HAIWEI ELEC (09609.HK): Southern China Plant to Make Ultra-Thin Films
NewTimeSpace News: On 30 September 2026, Hebei Haiwei Electronic New Material Technology Co., Ltd. (stock code: 09609.HK) announced on a voluntary basis the latest progress of its production line expansion and potential relocation. The Company intends to refine the specifications of two production lines at the Southern China Facility to enable the production of ultra-thin capacitor base films (the "Phase I Facility") and to add three additional production lines at the Southern China Facility for the same purpose (the "Phase II Facility"), in order to meet the expected demand for such products.
The Southern China Facility was designated as a key project by the local government in December 2025; the relevant land use arrangement was filed with the local government in January 2026, and the Company formally obtained the relevant land title in March 2026. The Company currently expects the investment cost of each production line for ultra-thin capacitor base films to be approximately RMB200 million. Compared with the original plan disclosed in the Prospectus, the two production lines under the Phase I Facility were originally expected to have an investment cost of approximately RMB120 million per line and were designed for the production of non-ultra-thin capacitor base films. To the extent that the ultra-thin specifications resulted in additional costs beyond the amount contemplated in the Prospectus, such costs would be funded by the Company's own resources and the proceeds from the exercise of the Offer Size Adjustment Option and the Overallotment Option on a pro rata basis; the capital expenditure for the Phase II Facility is currently expected to be funded by self-owned funds and/or the proposed project financing.
As the Procurement Agreement was terminated on 27 March 2026 and no new procurement agreement has yet been entered into, and taking into account the time required for equipment production, procurement and installation, the Company currently expects that both production lines under the Phase I Facility will be completed and commence operation in the second half of 2027, while the Phase II Facility is expected to be completed in or around 2028. In addition, as the Company has not been able to obtain the relevant land resources in Hebei Province due to the ongoing local government administrative review, there will be a delay in the expected commencement of operation of the first production line, and the Company plans to relocate the two production lines originally planned for Hebei Province to the Southern China Facility, subject to the prevailing market environment, the progress of acquiring relevant land resources and the Company's business strategy.
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