Shengyang Technology plans to raise 1.076 billion yuan to invest in new display and other industries

On June 5, Zhejiang Shengyang Technology Co., Ltd. disclosed its plan to issue stocks to specific targets. The company plans to increase the amount by no more than 1.076 billion yuan, which will be used for the "satellite Internet communication terminal intelligent manufacturing project" and the "new smart display device intelligent manufacturing project" to further expand the company's main business and enhance the company's core competitiveness.

Among them, the "New Smart Display Device Intelligent Manufacturing Project" has a total investment of 739.484 million yuan and a construction period of 36 months. The project will build a new intelligent digital production line for display devices, introduce automation equipment and flexible manufacturing systems, improve production efficiency, yield and delivery capabilities, and simultaneously build a high-standard testing center equipped with advanced testing equipment.

Shengyang Technology stated that with the rapid expansion of its display device business, the company's existing production line capacity has been unable to meet the diversified needs of customers. In order to seize market opportunities, strengthen delivery capabilities, and consolidate customer cooperation, the company urgently needs to add dedicated production lines for LED display devices and high-value components, VFD display devices, and LCD display devices, accelerate product upgrades, expand production capacity, and lay a solid foundation for the company's sustainable development.

Shengyang Technology was established in 2003 and listed on the Shanghai Stock Exchange in April 2015. After years of development, the company has gradually extended its industrial chain layout and formed five major business areas: wired signal transmission, wireless signal transmission, integrated circuit display, communication base station construction and satellite communication.

In recent years, the company's traditional cable business has benefited from the upgrade of its production capacity structure and the growth in downstream demand for intelligent driving, data centers, etc., and has shown a steady recovery trend. On this basis, the company has promoted a fixed increase of 1.076 billion yuan this time, focusing on the two major directions of satellite communication terminals and high-end displays. The construction period of both investment projects is three years. If the project is successfully implemented and production capacity is released, the company is expected to form a "two-wheel drive" pattern based on its main cable business and the coordinated development of satellite communications and display devices.

In 2024 and 2025, Shengyang Technology achieved operating income of 825 million yuan and 914 million yuan respectively, a year-on-year increase of 26.20% and 10.77% respectively; net profits attributable to the parent company were -37.0053 million yuan and -23.3705 million yuan respectively.

Shengyang Technology stated that during the reporting period, the company seized market opportunities, continued to optimize product structure and strengthened order acquisition capabilities, increased the market share of existing businesses, achieved operating income growth, and highlighted the market competitiveness of core products such as automotive high-speed cables and high-performance data cables.

However, the profit side is affected by multiple factors: on the one hand, employee incentives and external uncontrollable factors, including approximately 27.3 million yuan in share-based payment expenses arising from the implementation of the 2024 employee stock ownership plan, and approximately 11.94 million yuan in exchange losses caused by the depreciation of the U.S. dollar; on the other hand, in order to consolidate its advantages in the field of automotive high-speed cables, the company continues to increase investment in research and development, expand production lines, and expand technology, sales, and management teams, causing the increase in research and development, sales, and management expenses to further affect the current profit and loss.