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Recently, ZONCN Technology announced that at the 11th meeting of the 2nd Board of Directors and the 7th meeting of the 2nd Board of Supervisors held on February 17, 2025, the Proposal on Using Part of the Overraised Funds to Invest in the Construction of New Projects was reviewed and approved. The proposal aims to authorize the company to utilize a total of 72.5686 million yuan of part of its overraised funds for the investment and construction of a high-voltage variable frequency drive (VFD) production base and auxiliary buildings.

The project invested and constructed with the overraised funds this time focuses on the construction of a high-voltage variable frequency drive (VFD) production base and auxiliary buildings, with a total investment of as much as 72.57 million yuan. Specifically, the investment in construction works accounts for 32.45 million yuan, the cost for equipment purchase and installation is 23.52 million yuan, while a basic reserve fund of 2.80 million yuan and a start-up working capital of 13.79 million yuan are reserved. The construction of this project not only involves the demolition of some old factory buildings on the company's own land at No. 1188 Xinyan Road, but also includes the new construction of high-voltage VFD production workshops and auxiliary facilities such as gatehouses and garbage rooms. In addition, a series of advanced production, testing and auxiliary equipment will be introduced, aiming to increase the annual production capacity of high-voltage VFD products to 1,200 units.

ZONCN Technology, a high-tech enterprise deeply rooted in the field of industrial automation, has a core business covering the R&D, production and sales of low-voltage variable frequency drives (VFDs), servo systems, motors, and main drive motor drivers for new energy vehicles. The company’s independently developed "Zhongchen" brand products, including low-voltage VFDs and servo systems, boast a wide power range from 0.4kW to 1200kW and are widely applied in multiple industries. Its production base in Wuhu, Anhui has been partially put into production and entered the capacity ramp-up phase; meanwhile, the Shanghai project is undergoing construction acceptance, with preparatory work such as decoration and equipment procurement being actively advanced.

It is reported that after the production bases in Shanghai and Wuhu reach full production capacity, they are expected to add an annual production capacity of 720,000 units of VFD products, 37,000 units of servo system products, and 8,000 units of elevator and construction hoist system products. This capacity expansion will effectively meet the continuously growing market demand and provide higher-quality and more efficient products and services for downstream customers.

Leveraging its advantages in brand, talent, and technology, ZONCN Technology is actively expanding its customer base and deepening cooperation with existing customers to drive sustained business growth. Looking ahead, the company expects its order volume to remain stable in 2025 and plans to further boost its domestic and overseas performance through technological R&D, market expansion, and the strengthening of its overseas sales team. By enriching its product portfolio and enhancing product performance, ZONCN Technology is committed to developing new revenue and profit growth drivers.

At the same time, the company is also committed to shortening product lead times to meet customers’ timely demand. The project invested and constructed with the overraised funds this time, which focuses on the construction of a high-voltage variable frequency drive (VFD) production base and auxiliary buildings, will help the company build a product system covering the full voltage range and achieve comprehensive expansion from the low-voltage to the high-voltage market. ZONCN Technology emphasizes that this overraised fund investment and construction project not only aligns with the direction of national industrial policies, but also is closely linked to the company’s development strategy. It will help the company further expand production scale, improve profitability, and inject strong impetus into its long-term sustainable development.