Zhongchuang Zhiling (Zhengzhou) Industrial Technology Group Co., Ltd. has submitted its response to the Shanghai Stock Exchange's review inquiry concerning its application for a public issuance of convertible corporate bonds. The total amount to be raised does not exceed RMB 4.35 billion, to be allocated, after deducting issuance expenses, to four projects and supplementary working capital. The projects are: an NEV high-end parts industrial base, an intelligent upgrade of a high-end hydraulic parts production system, a smart mobile robot manufacturing base, and a smart manufacturing full-scenario R&D center.
The company's main business consists of three segments: coal mining machinery, auto parts, and industrial intelligence. The reply states that all proposed investment projects are closely aligned with these three core businesses, do not involve new business areas, and the use of raised funds complies with the requirement of focusing on the main business.
The NEV high-end parts project focuses on products including high-voltage drive motor stators and rotors, electric drive systems, fully active suspension electro-hydraulic pumps, and chassis motors. Among these, stators and rotors involve capacity expansion, while the electric drive systems, electro-hydraulic pumps, and chassis motors are new products, all extending from the company's existing motor stator-rotor and assembly technologies, with strong technological synergy and overlapping customer bases. The project plans annual production of 2.5 million sets of stator-rotor assemblies for electric drive systems, 400,000 electric drive systems, 600,000 electro-hydraulic pumps, and 3.85 million smart chassis small motors. The company indicated that the products are in the process of securing mass-production designation or converting to mass-production orders, with no major uncertainties in customer verification or sales.
The hydraulic parts upgrade project involves the intelligent transformation of the existing cylinder production line, optimizing layout and processes, upgrading equipment, and building smart production lines and digital systems to enhance lean, intelligent, and green manufacturing of hydraulic support cylinders. Post-upgrade capacity will modestly increase from 100,000 tons (about 347,000 units) to 120,000 tons (about 402,000 units) per year, with the added capacity primarily used for in-house hydraulic support assembly. The company's cylinder capacity utilization rates were high in recent years, at 110.40% in 2023, 102.32% in 2024, and 91.18% in 2025, supporting the rationale for added capacity.
The smart mobile robot project will produce overhead transport robots, logistics robots, and storage robots, aimed at filling the company's gap in self-manufacturing smart factory hardware. As of end-June 2026, orders on hand in this segment totaled approximately RMB 99.72 million. The company plans a phased capacity ramp-up, releasing 40% in the first operating year and gradually reaching 100% by the fourth year.
The R&D center project is designed to systematically integrate the company's currently scattered R&D resources, building unified platforms for digital twins and industrial AI agents. The reply disclosed that by end-2025, the company had 2,311 R&D personnel, of whom about 101 were in the industrial intelligence segment. Existing R&D sites and equipment are insufficient to meet multi-directional technical challenges, making the project necessary and urgent.
Regarding the reasonableness of the overall financing scale, the company noted that as of end-2025, its cash and trading financial assets totaled RMB 9.517 billion. The company provided explanations based on its own asset-liability situation, future cash inflows and outflows, and various capital expenditure requirements.
The sponsor China International Capital Corporation Limited, reporting accountant BDO China Shu Lun Pan Certified Public Accountants LLP, and issuer's legal counsel Haiwen & Partners participated in the preparation of the inquiry response.
(Note: This article is based solely on the published inquiry response and does not constitute any investment advice.)