Sunway Co Ltd

Fuhua Shangwei announced that its application to issue shares to specific investors has received approval from the China Securities Regulatory Commission. The shares will be issued to its controlling shareholder, Fuhua Chemical, which will subscribe for all shares in cash. The total funds raised will not exceed 865 million yuan. After deducting issuance expenses, the proceeds will be used for digital and intelligent upgrade and comprehensive capability enhancement projects, a marketing center and brand promotion project, and to supplement working capital. The number of shares to be issued will not exceed 137 million. The new shares subscribed by Fuhua Chemical will be subject to a 36-month lock-up period from the date of issuance. The company stated that competition in the wire and cable industry is intensifying, and it plans to improve operational efficiency and market share through digital and intelligent upgrades and marketing network construction, while establishing a digital management system covering the entire process. In addition, this issuance will reduce the asset-liability ratio, optimize the capital structure, and mitigate financial risks.

Fuhua Shangwei disclosed its earnings forecast, estimating first-half 2026 revenue at around 1.08 billion yuan, up about 97.8 percent year-on-year. Net profit attributable to the parent is expected to be between 10 million and 15 million yuan, swinging from a loss to a profit compared with a loss of 31.624 million yuan in the same period last year. The company actively adjusted its sales strategy, continued to strengthen market development efforts, deepened its channel network layout and core customer partnerships, steadily increased overall market share, and achieved relatively rapid business scale growth.