Zhejiang Shibao Co Ltd

Zhejiang Shibao announced plans to issue A-shares to targeted investors, raising no more than 1.394 billion yuan, with a focus on smart businesses such as automotive steer-by-wire and corner module systems. The net proceeds from this private placement will be used in five major areas, among which the industrialization construction project for automotive steer-by-wire systems is planned to invest 562 million yuan, making it the largest project by investment scale. Upon completion, it will add annual production capacity of 300,000 units of passenger vehicle steer-by-wire systems. The company stated that currently, automotive steering systems are still dominated by electric power steering, with foreign brands holding the major market share. However, in the steer-by-wire field, domestic brands and foreign brands are basically at the synchronous development stage, and leveraging the advantages of China's new energy vehicle industry, there is hope to achieve a corner overtaking. Another project, the industrialization construction project for a new generation of intelligent upper steering systems for passenger vehicles, plans to invest 438 million yuan to meet the growing demand from customer designated projects and mass production. In addition, the company will invest 100 million yuan in the intelligent technology transformation project for automotive electronic PPK products, and 93.7 million yuan in the project for the construction and upgrading of research and development capabilities for steer-by-wire and corner module systems. Zhejiang Shibao stated that these fundraising projects are expected to accelerate the industrialization and capacity building of products such as steer-by-wire.

The Ministry of Industry and Information Technology said it will accelerate the rollout of an AI plus software action plan to promote the intelligent transformation of software development. Boosted by the news, AI application stocks were active in early trading. Chuanzhi Education hit its daily limit up, marking four consecutive trading days of limit-up gains. Pu Lian Software, Hengfeng Information, Giant Network and other stocks followed the rally. Chuanzhi Education disclosed that its short-term training business has launched an AI embedded plus robotics development discipline, and the first course of the newly released AI embodied intelligent robot development discipline will start in October this year. The smart driving concept also performed actively. Zhejiang Shibao hit its daily limit up, while VanJee Technology and Suo Ling shares followed the rise. Earlier, Guo Shougang, head of the equipment industry division at the MIIT, said that since the beginning of this year, the penetration rate of passenger cars with Level 2 combined driver assistance functions has reached 70.5 percent, and the penetration rate of passenger cars with NOA functions has reached 34.2 percent. In addition, Elegant Home-Tech opened at its daily limit up, achieving an eight-day winning streak. The company previously announced plans to acquire no less than 77.08 percent of Oconnor for an overall valuation not exceeding 650 million yuan. Oconnor focuses on storage testing equipment and testing services.