Jiangsu Shemar Electric (603530.SH) plans to invest in the construction of a digital factory for new materials products for the Vietnamese power grid construction project (Phase I).

Jiangsu Shemar Electric (603530.SH) announced that in order to meet the needs of the company's overseas business development, improve the overseas industrial supply chain system, deepen international market layout, strengthen cooperation with globally renowned customers, and enhance customer loyalty, the company plans to establish Jiangsu Shemar Electric Vietnam Limited (tentative name, subject to actual registration) through its wholly-owned subsidiary SHEMAR POWER PTE. LTD in Singapore. The company will act as the implementation entity to invest in and construct the Jiangsu Shemar Electric Vietnam digital factory for new materials in the electrical network, primarily producing products such as external insulation for substation equipment and composite external insulation for transmission and distribution lines. The project will be implemented in two phases, with the total investment for the first phase not exceeding 122 million RMB. This investment will be used for the paid-up capital of the Vietnamese company, as well as for factory/land leasing, equipment investment, and other supporting facilities. The second phase of the project is still in the planning stage, and the company will fulfill its disclosure obligations in accordance with regulations based on the actual situation. The establishment of the Vietnamese company and the construction of the production base in Vietnam is an important measure for advancing the overseas production capacity layout of products such as external insulation for substation equipment and composite external insulation for transmission and distribution lines in European and American markets. The implementation of this project will leverage Vietnam's location and development advantages to more flexibly respond to changes in the macro environment and international trade dynamics, effectively meet the higher demands of overseas customers for supply chain security, enhance the company's ability to respond to tariff adjustments and trade barriers risks, and help the company further capture market share in overseas markets.