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Recently, ZONCN Technology announced that on February 17, 2025, the company held the 11th meeting of the second board of directors and the 7th meeting of the second board of Supervisors, which reviewed and approved the "Proposal on Using Part of the Over-Raised Funds to Invest in the Construction of New Projects". It is agreed that the company will use part of the over-raised funds of 72.5686 million yuan to invest in the construction of a high-voltage frequency inverter production base and auxiliary building project.

According to relevant information, ZONCN Technology is a high-tech enterprise specializing in the research and development, production, sales and service of products in the field of industrial automation. Its main products include low-voltage frequency inverters, servo systems, as well as motors and main drive motor drivers for new energy vehicles. The "ZONCN" brand low-voltage frequency inverters, servo systems and other products independently developed and produced by ZONCN Technology have a power range covering 0.4KW to 1200KW, and are widely used in industries such as air compressors, plastic machinery, construction machinery, water supply equipment, metallurgical equipment, textile machinery, machine tools, chemical machinery, mining machinery, and printing and packaging.

In January this year, when ZONCN Technology received institutional research visits, it stated that currently, the fundraising and investment projects of ZONCN Technology are progressing smoothly. Among them, the production base located in Wuhu, Anhui Province has been partially put into operation and has entered the stage of capacity ramp-up. Meanwhile, the project in Shanghai is undergoing construction project acceptance, and at the same time, it is advancing preparations such as decoration and equipment procurement. The company is intensifying its recruitment and training efforts to achieve capacity expansion and rationally plan future capacity based on market demand.

According to previous reports, after the production bases in Shanghai and Wuhu reach full production capacity, they can achieve an annual increase of 720,000 units of inverter products, 37,000 units of servo system products, and 8,000 units of elevator and construction hoist system products. This can effectively meet the growing market demand and provide downstream customers with higher-quality and more efficient products and services.

ZONCN Technology leverages its advantages in brand, personnel, and technology to actively explore new customers and enhance cooperation with existing ones, thereby promoting business growth and sustainable development. The company expects that the order volume will remain stable in 2025 and plans to enhance its domestic and international performance through technological research and development, market expansion and strengthening the construction of overseas sales teams. The company's products are widely used in multiple industrial fields, and it plans to explore new revenue and profit growth points by enriching product categories and enhancing performance. The delivery cycle of the product is generally two weeks and shall not exceed one month at the longest.

It is understood that the project to be constructed with the over-raised funds this time is the construction of a high-voltage frequency converter production base and auxiliary buildings. The total investment of the project is 72.57 million yuan, including 32.45 million yuan for construction engineering, 23.52 million yuan for equipment purchase and installation, 2.8 million yuan for basic contingency reserve, and 13.79 million yuan for working capital. The project construction content includes the demolition of some old factories on the self-owned land at No. 1188, Xinyan Road, and the construction of new high-voltage frequency converter production workshops and auxiliary buildings (such as guard rooms and garbage rooms). A batch of advanced production equipment, testing equipment, and auxiliary equipment will be introduced as supporting facilities to form an annual production capacity of 1,200 high-voltage frequency inverter products. The total planned construction area of the project is 9,272.37 square meters, and the construction period of the project is 3 years (subject to the actual implementation).

ZONCN Technology's current main business focuses on the low-voltage frequency inverter field. Although it has launched some high-voltage products and achieved sales, the business scale is relatively small and the production capacity is limited. Through the construction of this high-voltage frequency inverter project, it will further promote the company to form a product system covering all voltage levels and achieve a comprehensive business expansion from the low-voltage market to the high-voltage market. High-voltage frequency inverters, as core equipment for industrial energy-saving transformation, are widely used in high-energy-consuming industries such as metallurgy, power, and mining. They have high technical thresholds, strong customer stickiness, and significant added value of products.

Through this project, ZONCN Technology will promote further mutual empowerment between its high-voltage business and existing low-voltage business. This will not only meet the diverse needs of customers but also enhance order value and market competitiveness through the "product portfolio sales" model, bringing new business growth points to the company.

ZONCN Technology stated that the company's use of part of the over-raised funds to invest in the construction of new projects is in line with the support of national industrial policies and the company's development needs, and is closely related to the company's existing main business. The implementation of the project is conducive to the company further expanding its production scale, improving its profit level, enhancing its core competitiveness and promoting its sustainable development.

-------This news is from "Power Transmission and Distribution Observation Market".

        February 25, 2025