Recently, the company's application materials for a public issuance of convertible bonds have been accepted by the Shenzhen Stock Exchange, marking the formal review stage of its refinancing plan.

    According to the related proposal, the company plans to raise no more than 600 million yuan by Public convertible bond issuance. The funds will be allocated to three projects: the Shanghai high-speed copper cable production base, the Mexico automotive cable and high-speed copper cable production base project, and the Ningbo automotive cable renovation project. Among the 600 million yuan in raised funds, 120 million yuan will be used for the Shanghai high-speed copper cable production base, 310 million yuan for the Mexico production base, and 170 million yuan for the Ningbo renovation project. The funded projects involve two types of products: automotive cables and high-speed copper cables. Once the project achieves full capacity, the projects are expected to add an annual production capacity of 63,000 kilometers of high-speed copper cable materials, with some products targeting the domestic market and others the North American market.

    Regarding automotive cable production capacity, the funded projects are expected to add 2.7332 million kilometers, primarily targeting overseas markets. KBE has long been planning its overseas layout and has cooperated with international mainstream automotive wiring harness manufacturers and automakers. In 2024, the company completed The first-phase construction of its Mexico base, which has already obtained partial customer certifications and fixed-point contracts, as well as secured procurement contracts worth approximately 1 billion yuan. The Mexico base project in this funding plan covers the second-phase and third-phases construction. Once the project achieves full capacity, it will enhance production capacity in North America and seize market opportunities.