Ferrotec plans convertible bond issue to raise up to 1.176 billion yuan for capacity expansion

Corporate Action
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Ferrotec released a preliminary plan on the evening of August 14, proposing to issue convertible corporate bonds to unspecified investors, raising total proceeds of no more than 1.176 billion yuan to expand multiple production lines including semiconductor cleaning and regeneration and precision component repair. After deducting issuance expenses, the proceeds are intended for seven projects with a total investment of 1.587 billion yuan. After deducting financial investments, the amount of proceeds to be invested totals 1.176 billion yuan. The projects include the Dalian Ferrotec precision cleaning and regeneration service line construction project and the precision cleaning and regeneration service base in Shanghai Lingang, among others. In this offering, existing shareholders will receive priority allotment, with the remainder sold through a combination of offline placement and online fixed-price issuance, and any balance underwritten by the lead underwriter. No guarantee is provided. The plan has been approved by the board of directors and still requires review by the shareholders' meeting, approval by the Shenzhen Stock Exchange, and registration with the China Securities Regulatory Commission before implementation. The net proceeds raised from the company's 2022 IPO and its 2025 share and convertible bond issuance to acquire assets and raise supporting funds totaled 1.405 billion yuan. As of March 31, 2026, the remaining unused proceeds balance was approximately 735 million yuan. Ferrotec expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 182 million yuan and 222 million yuan, up 58.62% to 93.51% year on year. Net profit after deducting non-recurring items is expected to be between 128 million yuan and 168 million yuan, up 169.93% to 254.29%. The company said domestic wafer manufacturers continue to expand capacity, AI chip demand is driving a sharp increase in equipment investment, and the semiconductor expansion cycle is boosting demand for cleaning and related services. At the same time, faster data center construction is driving rapid growth in demand for new products such as DPC. In the secondary market, Ferrotec's share price fell first and then rose over the past month, closing at 35.54 yuan on August 14, up about 2.9% from the previous trading day.

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