“Science and Technology Innovation Board Daily”, January 11 (Reporter Wu Xuguang) With changes in the external market environment, PCB circuit board provider Xunjiexing's financing plans have changed.

On January 10, Xunjiexing announced that after careful analysis, the company decided to stop issuing convertible corporate bonds to unspecified targets. On the same day, the company also issued an announcement stating that it plans to adjust the financing method to non-public stock issuance and issue shares to specific targets to raise no more than 340 million yuan for the Zhuhai Xunjiexing Smart Model Production Base Project (Phase I) to supplement working capital.

“Unlike traditional financing and production expansion projects, the difference between this planned production project is that it will use an online order receiving platform on the Internet to achieve large-scale integration of the model.” A member of Xunjiexing's executive office told the “Science and Technology Innovation Board Daily” reporter.

Specifically, Xunjiexing will launch an e-commerce platform to implement functions such as online inquiry for PCB production, DFM manufacturability analysis, online ordering, payment, order management and progress inquiries, and online after-sales service. Customers can obtain quotation, delivery and other information in real time and quickly complete online orders to improve customer procurement efficiency.

As for the company's termination of convertible bonds and fixed capital raising, Zhang Cuixia, chief investment adviser of Jufeng Investment, analyzed to the “Science and Technology Innovation Board Daily” reporter that against the backdrop of declining yields in the bond market at this stage, the market's unwillingness to subscribe and invest has had a certain impact on the issuance of convertible bonds; relatively speaking, the issuance threshold for fixed increases is low, only for some specific investors, and there are relatively few restrictions.

According to the fixed increase plan, the Zhuhai Xunjiexing Smart Model Production Base Project (Phase I) plans to invest 407 million yuan, of which 300 million yuan will be raised. The construction site is located in Fushan Industrial Park in Zhuhai City. It is planned to build an intelligent model production base. It will focus on rapid delivery of 2 to 8 floors (mainly 4 to 6 floors, with an average number of layers about 5) for express model production.

The construction period of the above project is three years. After the project is delivered, it will form a PCB model production scale of 180,000 square meters. It is estimated to achieve annual sales revenue of 261 million yuan without tax, and total annual profit before tax of 43.7581 million yuan.

Looking at the industry where Xunjiexing is located, throughout 2023, due to market factors such as the international situation, energy, and inflation, demand for terminal consumption was weak, enterprises in the industry had high inventories, high pressure to remove inventory, and demand for PCB circuit boards shrank.

According to the Prismark report, the output value of the global PCB circuit board market is expected to shrink by 9.3% to US$74.139 billion in 2023.

In this context, the “Science and Technology Innovation Board Daily” reporter combed through and found that because they are optimistic about the development of the PCB market in the medium to long term, from 2023, more than 12 listed companies in the A-share market, including Xunjiexing, including Xunjiexing, have “bucked the trend” and disclosed financing expansion plans such as fixed growth and convertible bonds, involving a total of more than 14.5 billion yuan in financing.

In response, an institutional analyst told the “Science and Technology Innovation Board Daily” reporter that the PCB circuit board market concentration is low, there are more than 1,500 participating companies, and market competition is fierce. Currently, downstream terminals in the domestic PCB industry are under heavy pressure to remove inventory. However, even so, for PCB companies, once a company in the industry takes the lead in starting financing, other companies will follow suit and expand production at a low cost on a large scale, and there is uncertainty about raising capital.

“In the long run, with the continuous development of new technology industries such as artificial intelligence, automotive electronics, cloud computing, big data, and 5G communications, future PCBs will be used in a wide range of fields, and there are structural development opportunities.” An agency analyst said.

Xunjiexing focuses on the PCB model and small-batch board business. The continuous layout is a one-stop service model from customer product development to mass production to meet the customer's PCB needs from new product development to final mass production. The company was listed on the Science and Technology Innovation Board in May 2021. At that time, the total capital raised was 2,534 billion yuan. The capital raised was mainly used for projects with an annual output of 300,000 square meters of high-multi-layer boards and 180,000 square meters of HDI boards to supplement liquidity.

According to Xunjiexing's latest announcement, some fund-raising projects have been postponed or changed.

In September 2021, after review by the company's shareholders' meeting, the original fund-raising investment project was changed from a “project with an annual output of 300,000 square meters of high-multilayer boards and 180,000 square meters of HDI board” to a “600,000 square meter PCB intelligent chemical plant production expansion project”. As a result, the timing of the fund-raising project was changed: the start of production of the first phase of the project was extended from 2022/6 to December 2022; the commissioning period of the second phase of the project was extended from the fourth quarter of 2022 to October 2023.

Regarding the reason for the change and extension of the project, Xun Jiexing said that considering that the current production capacity can no longer meet the needs of rapid order growth, in order to speed up the expansion of production capacity, meet the demand for customer order growth, and accelerate the transformation and upgrading to intelligent manufacturing; the project was postponed because the production schedule of some suppliers was affected by the domestic and foreign situation in 2022, and some of the company's key equipment failed to arrive at the factory as scheduled, causing the project implementation schedule to lag behind the original plan.

Regarding the latest progress of the fund-raising project, on November 15, 2023, Xunjiexing said during an investor survey that the Xinfeng Phase II intelligent chemical plant of the company's fund-raising project has already been put into operation.