Qinchuan Machine Tool plans to invest over 90 million yuan in two major projects to provide core support for the company's high-quality development.

Qinchuan Machine Tool (000837) announced on March 26 that its wholly-owned subsidiary, Shaanxi Fastron Woke Gear Co., Ltd. (hereinafter referred to as “Woke Gear”), plans to implement the “Intelligent Manufacturing Production Line Project for New Energy Drive Motor Gears and Shaft Components.” The total investment for the project is 52 million yuan, with a construction period of 34 months.

Qinchuan Machine Tool stated that this project will promote Woke Gear to complete process iterations and intelligent capacity deployment for high-precision transmission components, further improve the company’s core new energy vehicle parts industry chain layout, and provide key support for the company’s high-quality development. The project funds will be financed through Woke Gear’s own funds and self-raised capital. Woke Gear’s current financial condition is stable, and funds will be allocated in phases according to the project schedule. In the short term, it will not significantly impact the company’s daily operations or performance.

Meanwhile, to achieve domestic replacement of high-end complex tools such as leaf root gear slot milling cutters, high-precision involute new energy broaches, and integrated hard alloy hobs, the company’s wholly-owned subsidiary, Hanjing Tools Co., Ltd. (hereinafter referred to as “Hanjing Tools”), plans to implement the “High-Precision Micro-Complex Tool Technology Renovation and Industrialization Project (Phase II).” The total investment is 38.08 million yuan, with a construction period of 2 years.

Qinchuan Machine Tool stated that this project aligns fully with the encouraged directions in the national “Guidance Catalog for Industrial Structure Adjustment” and the company’s core strategic layout of “focusing on domestic replacement of high-end tools.” It will strongly promote the cultivation of new quality productivity at Hanjing Tools, laying a solid foundation of core capacity and technology for the company’s overall transformation, upgrading, and high-quality development. The funding for this project will come from Hanjing Tools’ self-raised funds. As of now, Hanjing Tools’ overall financial condition is stable, with ample cash flow, and investment funds will be disbursed in batches according to the 24-month construction schedule. In the short term, it will not significantly impact the company’s daily operations or performance.

By 2025, Qinchuan Machine Tool’s performance is expected to grow steadily, with operating revenue reaching 4.09 billion yuan, a year-on-year increase of 5.96%; net profit attributable to shareholders of the listed company is projected to be 52.29 million yuan, a decrease of 1.65% year-on-year (excluding share-based incentive factors, net profit attributable to shareholders is expected to be 71.22 million yuan, a year-on-year increase of 32.42%).