Hunan Farsoon High-Technology Co., Ltd. has disclosed its full reply to the Shanghai Stock Exchange's inquiry letter regarding its application for a private placement, adjusting the plan. According to Sina Finance on November 6, the adjusted total of funds to be raised is RMB 1,754.3216 million, directed toward an additive manufacturing integrated service platform project and a global operations center project.
Specifically, the "advanced additive manufacturing equipment capacity expansion project," originally slated to use RMB 1,075.0979 million of proceeds, will no longer use raised funds and will instead be built with the company's own or self-raised capital. Farsoon said the project's products are all mature metal and polymer 3D printing systems that align closely with its existing main business, that implementation carries no major uncertainty, and that capacity expansion will be secured through its own funds.
The largest component is the additive manufacturing integrated service platform project, with total investment of RMB 2,356.1611 million and adjusted proceeds of RMB 1,512.8791 million. The project will deploy 1,600 self-produced standard metal 3D printers, targeting high-precision batch manufacturing of metal parts for consumer electronics, new energy vehicles and embodied intelligence. Farsoon disclosed that it has entered the supply chains of several leading consumer electronics companies, that some core customers have signed volume orders, that demand is expected to concentrate from 2027, and that intended orders for 2030 could cover 87.05% of the project's new capacity. The project's after-tax internal rate of return is projected at 12.24%, with an after-tax static payback period (including construction) of 10.53 years.
The global operations center project has total investment of RMB 478.4324 million with RMB 241.4425 million in proceeds, building localized operations in Germany, the Czech Republic and Vietnam; filings with the development and reform and commerce authorities for the relevant overseas entities are complete. Investment in Singapore will shift to the company's own funds and be removed from the proceeds. R&D-related spending accounts for 68.64% of that project.
On compliance and financials, non-capital expenditures across the projects total RMB 381 million, or 21.73% of proceeds, below the 30% regulatory ceiling. Farsoon estimates average additional depreciation and amortization of about RMB 167 million annually over five years after completion, equal to 9.78% of the projects' cost of sales, with an impact on gross margin of about -6.22%. As of end-June 2026, consolidated net assets were about RMB 2.154 billion, and the proposed raise does not exceed net assets; the funding gap during construction is RMB 3.798 billion, larger than the proposed raise. The company's debt-to-asset ratio stands at 24.54%, with no interest-bearing debt.