On April 21, Qingdao CHOHO Industrial Co., Ltd. (003033.SZ) announced that its application for the issuance of A-shares to specific objects for the year 2025 has been officially accepted by the Shenzhen Stock Exchange. This marks a key step in CHOHO Industrial's refinancing plan, which has been in preparation for nearly 8 months.

In terms of fundraising allocation, the funds will mainly be used for three major projects: the agricultural machinery component expansion project, the integrated research and development manufacturing project of micro chain systems, and the replenishment of working capital.

Among them, the micro chain system project is closely related to the company's recent layout in the humanoid robot sector. According to the annual report, the company's humanoid robot joint differential module micro chain system has begun small-batch production, and the world's first chain-type dexterous hand has been released, with products widely applicable in various fields such as industrial manufacturing, precision medical care, and extreme environment operations. The release of the dexterous hand marks the company's entry into the embodied intelligent robot industry, achieving a strategic leap from traditional manufacturing to high-end intelligent manufacturing. This private placement will provide capital support for the company's new track development.

Ranking first in market share for ten consecutive years, raising a maximum of 704 million yuan to layout three major projects

According to the fundraising prospectus disclosed by the company, this private placement aims to raise a total of no more than 704 million yuan (including the principal), with the issuance target being no more than 35 qualified investors. The issuance price will not be lower than 80% of the average trading price of the company's stock over the twenty trading days prior to the pricing benchmark date, and the number of shares issued will not exceed 24.525 million shares (including the principal), which is no more than 30% of the company's total share capital before the issuance.

China International Capital Corporation (CICC) serves as the sponsor for this issuance. It is worth noting that this private placement still needs to be approved by the Shenzhen Stock Exchange and registered with the China Securities Regulatory Commission before it can be implemented. There remains uncertainty regarding whether it will pass the review, obtain registration, and the specific implementation timeline. The company will fulfill its information disclosure obligations in a timely manner based on the progress of the matter.

The raised funds will mainly be used for three major projects: the agricultural machinery component expansion project, the integrated research and development manufacturing project of micro chain systems, and the replenishment of working capital.

According to statistics from the China General Machinery Components Industry Association, CHOHO Industrial's motorcycle chain system and agricultural machinery chain system have ranked first in market share for ten consecutive years (2016-2025).

From the perspective of fundraising projects, the agricultural machinery component expansion project will further consolidate the company's leading position in the agricultural machinery chain system field, aligning with the trend of agricultural modernization. The micro chain system research and development manufacturing project focuses on new scenarios such as embodied intelligent robots, which is an important layout for the company to cultivate its second growth curve.

Investor analysis indicates that if this private placement can be successfully implemented, it will effectively supplement the company's cash flow, optimize its financial structure, and assist the company in expanding production capacity and increasing research and development efforts, further enhancing its core competitiveness and seizing the opportunity for high-end and intelligent development Previously, CHOHO successfully gained attention by providing Zhang Xue's motorcycle with a competition-grade chain drive system product. Its aerospace-grade materials and core nano-coating technology have been validated on top-tier racing circuits, providing technical support for the smooth advancement of fundraising projects.

Steady growth in performance in 2025, recent stock price fluctuations and adjustments

In addition to the progress of the private placement, CHOHO's disclosed 2025 annual report showcases the company's robust operational resilience and strong profitability.

In 2025, the company achieved an annual operating revenue of 1.932 billion yuan, a year-on-year increase of 5.30%; the net profit attributable to the parent company was 175 million yuan, a significant year-on-year increase of 33.72%; the net profit attributable to the parent company after deducting non-recurring gains and losses was 143 million yuan, a year-on-year increase of 11.09%. The basic earnings per share reached 2.14 yuan, a year-on-year increase of 33.75%.

From the business structure perspective, the vehicle chain system remains the core source of revenue for the company, with annual revenue of 1.1113 billion yuan, accounting for 57.61%, a year-on-year increase of 4.52%; the agricultural machinery chain system performed well, with revenue of 371 million yuan, a year-on-year increase of 13.42%, and its proportion increased to 19.18%; the industrial equipment chain system generated revenue of 308 million yuan, a year-on-year increase of 6.79%.

The overseas market has become an important growth engine. In 2025, the company's export revenue was 674 million yuan, a year-on-year increase of 8.94%, accounting for 34.90%. Through the merger and integration with Thailand's DDC company, the company improved its chain wheel precision stamping process layout and successfully entered the Honda supply chain in Thailand; the marine chain 72B project also successfully passed sea trials and obtained German MAN certification.

In terms of cash flow, the net cash flow from operating activities in 2025 was 350 million yuan, a year-on-year increase of 24.18%, with a growth rate exceeding that of profits, reflecting improvements in sales collection capabilities and operational efficiency. The weighted average return on net assets rose to 13.15%, an increase of 2.35 percentage points year-on-year.

Regarding shareholder returns, the company's profit distribution plan for 2025 is to distribute a cash dividend of 5 yuan (including tax) for every 10 shares, totaling 40.875 million yuan, accounting for approximately 23.34% of the net profit attributable to the parent company. The ex-dividend date for this dividend plan is April 20, 2026, and the ex-rights and ex-dividend date is April 21.

However, the annual report also highlights some risk factors. The company's management expenses increased significantly by 25.30% year-on-year to 109 million yuan, mainly due to increased employee compensation, rising management consulting fees, and the addition of newly consolidated subsidiaries. In addition, non-recurring gains and losses contributed significantly to net profit, with government subsidies reaching 38.1748 million yuan for the year, compared to only 5.348 million yuan in 2024.

CHOHO's stock price has recently experienced fluctuations and adjustments, with the market responding rationally overall. As of the close on April 21, the company's stock price fell by 2.41%, closing at 59.20 yuan. During the market halt on April 22, the stock price further dropped to 57.47 yuan, a decrease of 2.92% from the previous trading day's closing price, with a total market capitalization of approximately 4.698 billion yuan

Reporter: Liu Jinyang Editor: Cao Mengjia Proofreader: Li Li