Zhejiang XCC Group (603667.SH) announced that the original 'Annual production of 22 million 4 million kilowatt (MW) and above wind turbine main shaft bearings roller retrofit project' plans to raise 205 million yuan, as of August 31, 2024, the accumulated use of funds has reached 65.1117 million yuan. Due to the slower-than-expected development of the wind power market and a slowdown in market demand, the company's wind turbine roller production capacity currently meets the current order levels. In the short term, there is not much need to further increase investment. In order to improve the efficiency of the use of raised funds, optimize the allocation of funds and resources, promote the long-term development of the company, and in line with future development trends and the company's global strategy layout, after comprehensive and careful consideration, the company plans to change the 'Annual production of 22 million 4 million kilowatt (MW) and above wind turbine main shaft bearings roller retrofit project' to the more certainty investment 'Development and Industrialization Project of Core Components of Line Control Execution System', and all the remaining principal amount of 140 million yuan of the original project's raised funds will be fully redirected to the new project. The total investment amount for the new project is 160.3 million yuan, with the proportion of raised funds being redirected this time accounting for approximately 25.93% of the total amount of planned raised funds by the company.
The main products of the new project are components for automobile steering system screw nut pairs, line control brake system screw nut pairs, reverse planetary roller screw, micro ball screw, and other components for automobile transmission systems, mainly involving screw products. These related products are one of the company's key products to enter the target market in the future, primarily used for new energy autos and related fields, with broad market prospects. Adjusting some of the raised funds to invest in these projects better aligns with the current market situation and the development needs of the company.
