WOER's Shanghai Subsidiary Plans New Production Hub in Zhejiang's Dushan Port Economic Development Zone

On September 17, 2026, Shanghai Electronics, an indirect wholly-owned subsidiary of Shenzhen Woer Heat-Shrinkable Material Co.,Ltd. (WOER), entered into an investment agreement with the local committee to establish a new manufacturing base in the Dushan Port Economic Development Zone in Zhejiang Province. The project is conditional upon Shanghai Electronics successfully acquiring the land use rights through a public bidding, auction, and listing process, after which the committee will assist in its implementation.

The initiative involves constructing a new production facility on the designated land, focused on research, development, manufacturing, and sales of heat-shrinkable materials for automotive wiring harnesses and conduit protection, as well as insulating sleeves and other electronic material products. The total investment is capped at RMB 800 million, with fixed asset investment estimated at approximately RMB 600 million, covering land acquisition costs, plant and ancillary facility construction, and production equipment expenditures.

The investment amount is determined based on the project's scale and estimated construction needs, and will be financed through Shanghai Electronics' internal resources and proceeds from WOER's global offering. The new production base aims to leverage complementary strengths and shared resources between the two parties, fostering close collaboration in building an electronic materials production hub and advancing coordinated industrial development plans.

This investment enables the company to plan and coordinate production capacity ahead of time, optimizing the production capacity and resource allocation for electronic material products. It is expected to enhance production capabilities and delivery efficiency while mitigating operational risks arising from insufficient capacity at Shanghai Electronics. Furthermore, the project contributes to a more rational overall layout of the company's manufacturing facilities.

Additionally, this initiative by Shanghai Electronics will expand its production scale, strengthen the group's overall profitability and market competitiveness, and lay a solid foundation for sustainable long-term growth, aligning with WOER's strategic development objectives.