ZHEJIANG SHIBAO (01057.HK): Proposes private placement of up to 246,789,715 A shares to no more than 35 specific targets, raising up to RMB 1.394 billion
NewTimeSpace News: On 7 August 2026, Zhejiang Shibao Company Limited (stock code: 01057) published an announcement, announcing that the Board passed resolutions in respect of the private placement of A shares at its board meeting on that day, pursuant to which the Company will issue up to 246,789,715 A shares (inclusive) to no more than 35 qualified specific targets at the issue price, with the total amount of funds raised (including issuance expenses) not exceeding RMB 1,394,000,000 (inclusive). The number of A shares to be issued under the private placement will be determined by dividing the total amount of funds raised by the issue price, and will not exceed 30% of the Company's total share capital before the issuance, with the final number to be determined by the Board within the mandate granted by shareholders at the general meeting.
The proceeds to be raised from the private placement will be invested in five projects, including the industrialisation construction project for automotive steer-by-wire steering systems (planned investment of RMB 562,300,000), the industrialisation construction project for next-generation intelligent steering systems for passenger vehicles (RMB 438,000,000), the intelligent technology upgrading project for automotive electronic PPK products (RMB 100,000,000), the construction and upgrading project for R&D capability of steer-by-wire and corner module systems (RMB 93,700,000) and supplementary working capital (RMB 200,000,000), aggregating RMB 1,394,000,000. The issue price will not be lower than 80% of the average trading price of the A shares during the 20 trading days prior to the pricing date, with the final issue price to be determined after the issuance passes the review of the Shenzhen Stock Exchange and obtains the registration approval of the CSRC, in accordance with the principle of price priority after consultation with the sponsor (lead underwriter); the A shares subscribed by the subscribers will be subject to a lock-up period of six months commencing from the date of completion of the private placement.
The Board considers that the projects to be funded by the proceeds of the private placement are intended to accelerate the industrialisation of next-generation intelligent steering products and seize the important window period of domestic component substitution, increase R&D resource investment to consolidate technology reserves in response to the industry transformation of autonomous driving technology extending from perception and decision-making to chassis execution systems, and optimise the capital structure and reduce financial risks, with the Company's total assets and net assets both increasing and its gearing ratio declining to a certain extent upon completion. The Company will convene an extraordinary general meeting, an A share class meeting and an H share class meeting in due course for shareholders to consider and approve the private placement of A shares and other related resolutions, with a circular to be despatched to shareholders in due course. As the issuance is subject to the satisfaction of certain conditions precedent, there is uncertainty as to whether it can proceed, and shareholders and potential investors of the Company should exercise caution when dealing in the securities of the Company.
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