Shanghai Morn Electric Equipment (002451.SZ) plans to invest no more than RMB450 million to increase capital in Thailand Zhidong for the construction of an overseas cable production base.

Shanghai Morn Electric Equipment (002451.SZ) announced that, in order to fully leverage Thailand's location and resource advantages and the company's own technical strengths, actively deploy overseas production capacity, flexibly respond to the complex and volatile international trade environment, cover the North American and Southeast Asian markets, and promote the company's business development in international markets, the company plans to use its own funds or self-raised funds of no more than RMB450 million (or equivalent foreign currency) to increase capital in its wholly-owned subsidiary Zhidong Electric. After the capital increase is completed, an equivalent amount will then be injected through Zhidong Electric into Thailand Zhidong as a capital increase. The funds from this capital increase will be used by Thailand Zhidong to build an overseas cable production base. This time, the company plans to purchase land in Thailand to build a new cable production base, mainly for the production of UL-standard power cables, photovoltaic cables, and other products targeted at the North American market. The implementation of the project will help transform the results of earlier leased trial production into its own stable production capacity, leverage Thailand's location and country-of-origin advantages, optimize export plans to the United States, respond to the complex international trade environment, and diversify supply chain risks; it will help shorten delivery times, improve response speed, and consolidate customer resources in the North American market; it will help improve the company's global production capacity layout, create synergy between domestic and overseas production capacity, and enhance the company's risk resistance and competitiveness in international markets. It is an important measure for the company to deepen its internationalization strategy and expand its overseas cable business.