Zhejiang Shibao Company Limited has announced plans to raise up to RMB1.39 billion through a non-public issuance of no more than 246.79 million new A shares, representing 30% of its current share capital. The proposal will be put to a vote at an extraordinary general meeting and separate A- and H-share class meetings on 15 September 2026 in Hangzhou.
The placement will be offered to no more than 35 qualified investors — including fund managers, securities firms, trusts, insurers and QFII/RQFII institutions — at a price not lower than 80% of the average trading price of the company’s A shares over the 20 trading days preceding the pricing date. The shares will be subject to a six-month lock-up after issuance and are intended to be listed on the Shenzhen Stock Exchange.
Proceeds allocation: • RMB562.30 million – Automotive steer-by-wire system industrialisation • RMB438.00 million – Next-generation intelligent hand-wheel actuator system for passenger cars • RMB100.00 million – Intelligent technology upgrade for automotive electronic PPK products • RMB93.70 million – R&D capacity enhancement for steer-by-wire and wheel corner module systems • RMB200.00 million – Replenishment of working capital
Any shortfall will be covered with internal funds, and residual proceeds, if any, may be reassigned in line with regulatory guidance.
If fully subscribed, Zhejiang Shibao’s total share count would rise from 822.63 million to 1.07 billion, diluting existing holdings; the controlling shareholder Zhejiang Shibao Holding Group’s stake would fall from 31.79% to 24.46%.
Directors emphasise that the capital injection will accelerate industrialisation of advanced steering technologies, strengthen R&D and optimise the balance sheet. The board is seeking a 12-month authorisation to complete the placement and handle related filings with the Shenzhen Stock Exchange and the China Securities Regulatory Commission.
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