Yifan Transmission Postpones 487 Million Yuan Fundraising Project; CITIC Securities to Sponsor 2021 IPO

Jiangnan Yifan (301023.SZ) announced last night that the company’s fundraising project has been postponed. The fifth session of the Board of Directors held its second meeting on March 16, 2026, and approved the proposal for the postponement of the fundraising project. The company agreed to extend the expected date for the “Energy Storage Deceleration Motor and RV Deceleration Motor Production Base Construction Project” and the “R&D Center Construction Project” to March 2027, based on the actual progress of the current fundraising investment projects. This matter is within the authority of the Board of Directors and does not require shareholder approval.

According to the China Securities Regulatory Commission’s approval document (No. 1867 [2021]), the company’s initial public offering (IPO) of 9,333,500 A-shares with a par value of RMB 1 per share was approved, at an issue price of RMB 58.31 per share, raising a total of RMB 544.236385 million. After deducting related issuance expenses, the net funds raised amounted to RMB 486.576654 million. Tianjian Certified Public Accountants (Special General Partnership) verified the funds received for the IPO on July 1, 2021, and issued the Capital Verification Report No. Tianjian Yan [2021] 352.

As of December 31, 2025, the company had invested a total of RMB 107.444 million of the raised funds. The “Energy Storage Deceleration Motor and RV Deceleration Motor Production Base Construction Project” had a committed investment of RMB 311.1203 million, with a total investment of RMB 86.0894 million, representing 27.67% progress. The “R&D Center Construction Project” had a committed investment of RMB 53.9506 million, with a total investment of RMB 21.3546 million, representing 39.58% progress. The total committed investment for both projects was RMB 365.0709 million, with a total invested amount of RMB 107.444 million, and an overall progress of 29.43%.

Regarding the postponement of the “Energy Storage Deceleration Motor and RV Deceleration Motor Production Base Construction Project,” Yifan Transmission stated that through resource integration and optimization, the company has effectively increased existing capacity, which now meets customer order demands. To prudently use the raised funds and gradually advance project deployment, the company has planned capacity expansion based on actual order situations. Therefore, the expected completion date for the project has been extended to March 2027 from the original planned date of March 2026.

For the “R&D Center Construction Project,” Yifan Transmission explained that due to macroeconomic fluctuations domestically and abroad, as well as changes in the market environment, the company has taken a more mature approach to project development, aiming to control investment risks. The progress of procurement research, equipment selection, and construction has been delayed compared to the original plan, preventing the project from reaching the expected operational status by the initial deadline. As a result, the completion date has been extended to March 2027 from the original planned date of March 2026.

Yifan Transmission’s announcement states that the decision to postpone some fundraising projects is made cautiously based on market conditions and project progress. The project entities, use of funds, investment scale, and feasibility remain unchanged, and there are no significant changes or covert alterations in the use of raised funds that could harm shareholders’ interests. The postponement will not have a substantial impact on the company’s current production and operations.

CITIC Securities Co., Ltd., as the sponsor for Jiangnan Yifan’s IPO and listing on the ChiNext board, has reviewed the postponement of the fundraising projects in accordance with relevant regulations, including the “Regulations on Sponsoring and Guarantee Business for Securities Issuance and Listing,” “Supervision Rules for the Use of Funds by Listed Companies,” “Shenzhen Stock Exchange ChiNext Listing Rules (2025 Revision),” and “Guidelines for Self-Regulation of Listed Companies on the Shenzhen Stock Exchange (2025 Revision).”

After review, the sponsor believes that the proposal for the postponement has been approved by the company’s fifth Board of Directors, has followed necessary legal procedures, and complies with relevant laws, regulations, and exchange rules. The postponement does not harm the interests of the company or shareholders. Therefore, the sponsor has no objection to the postponement.

On July 7, 2021, Jiangnan Yifan was listed on the Shenzhen Stock Exchange ChiNext board, issuing 9.3335 million new shares at RMB 58.31 per share, with a total post-issuance share capital of 37.3335 million shares.

The total funds raised in this issuance amounted to RMB 544 million, with net proceeds of RMB 487 million after deducting issuance costs, exceeding the originally planned net raise of RMB 365 million by RMB 122 million. The prospectus previously disclosed that the company intended to raise RMB 365 million, mainly for the “Energy Storage Deceleration Motor and RV Deceleration Motor Production Base Construction Project” and the “R&D Center Construction Project.”

The sponsor for this issuance was CITIC Securities, with Xu Xingwen and Sui Yuyao as the sponsoring representatives. The total issuance expenses were RMB 57.6597 million, of which CITIC Securities received RMB 37.7358 million in sponsorship and underwriting fees.