(1) Shenzhen Woer Heat-Shrinkable Material Co., Ltd. (the “Company”), listed on the Shenzhen Stock Exchange under A Share code 002130, has commenced a Global Offering comprising 13,999,000 H Shares in the Hong Kong Public Offering and 125,989,800 H Shares in the International Offering, totaling 139,988,800 H Shares. Under the current plan, net proceeds are estimated at approximately HK$2,733.6 million. No separate over-allotment option is described. The underwriting arrangements provide for conditional listing approval and stipulate that the Global Offering will only become unconditional if all relevant listing and underwriting conditions are fulfilled.
(2) The Company primarily operates in two business segments: (i) electronic communications products, including telecoms cables and heat-shrinkable materials used in automotive and consumer electronics; and (ii) electrical power transmission product solutions, covering new energy vehicle (NEV) charging, high-voltage cable accessories, and other related services. A smaller “other activities” category includes wind power operations. Among the Group’s core strengths are technology-driven product innovation, a broad patent portfolio, and multiple manufacturing facilities, both in China and overseas.
(3) According to the disclosures, the industry environment remains competitive. Markets for high-speed data communication solutions, advanced heat-shrinkable products, and renewable energy-based power transmission have been expanding steadily. Key uncertainties include possible shifts in downstream demand, evolving regulatory requirements for safety and environmental compliance, and fast-paced technology changes. The Company identifies potential operational risks related to supply chain dependencies, protection of intellectual property, and the retention of specialized personnel.
(4) Based on historical financial data, revenue increased from RMB5,336.6 million in 2022 to RMB5,718.8 million in 2023 and then to RMB6,920.1 million in 2024. During the nine months ended September 30, 2025, revenue reached RMB6,076.7 million. Net profit moved from RMB660.2 million in 2022 to RMB757.7 million in 2023 and then RMB920.5 million in 2024, with RMB883.3 million recorded for the first nine months of 2025. Gross profit margins generally remained above 30%, reflecting sustained revenue growth and ongoing cost management.
(5) In conjunction with the Global Offering, 16 cornerstone investors have agreed to subscribe for a total of US$124.3 million in Offer Shares, representing about 34.45% of the H Shares offered and 3.45% of the enlarged share capital. Each cornerstone investor is subject to a six-month lock-up period starting from the listing date, with no preferential terms other than allocation of H Shares at the final offer price. Shareholding changes following completion of the offering indicate that the largest pre-listing shareholders will see modest reductions in their percentage holdings as new H Shares enter the market.
(6) Of the total estimated net proceeds of HK$2,733.6 million, approximately 45% will be used to diversify and upgrade the electronic communications and electrical power transmission product lines; 27% will support global capacity expansion, including new manufacturing bases in China and Malaysia; 18% is earmarked for potential strategic investments or acquisitions; and the remaining 10% will serve as general working capital. Upon completion of the Global Offering (assuming no exercise of share options), the Company’s total issued share capital will comprise 1,399,887,362 shares, of which 139,988,800 or roughly 10% will be H Shares listed on the Hong Kong Stock Exchange.