QinChuan Machine Tool subsidiary Hanjiang Tool Investment of 38.08 million yuan to advance the high-precision micro-precision complex tool technology renovation project

[Finance News] Qin Chuan Machine Tool & Tool Group Co., Ltd. (Stock Code: 000837, Stock Abbreviation: Qin Chuan Machine Tool) announced on March 27 that its wholly owned subsidiary, Hanjiang Tool Co., Ltd. (hereinafter referred to as “Hanjiang Tool”), plans to invest 38.08 million yuan to build the “High-Precision Micro-Complex Tool Technology Renovation and Industrialization Project (Phase II)”. The project duration is 2 years. This proposal was approved at the 23rd meeting of the 9th Board of Directors on March 25 and does not require shareholder approval.

The announcement states that this project aims to achieve domestic substitution of high-end complex tools such as root wheel groove milling cutters, high-precision involute new energy broaches, and integrated hard alloy gear cutters. The project will purchase 25 key pieces of equipment, including high-precision CNC gear hobbing and shaping machines, chamfering machines, CNC tool grinders, broach coating lines, and gear measurement centers, to update and supplement equipment in the sub-factories for broaching, gear hobbing, and shaping.

Basic project details are as follows:

Qin Chuan Machine Tool stated that this investment will rapidly expand the production capacity of high-precision micro-complex tools through process upgrades and core production and testing equipment updates at Hanjiang Tool. It aims to improve product accuracy, stability, and lifespan to meet top international standards, seizing the market window for replacing high-end imported tools.

Regarding risk warnings, the company noted that the project may face external risks such as macroeconomic fluctuations, industry development shortfalls, and policy adjustments, as well as compliance risks from preliminary approvals like environmental, energy, and safety assessments. The company will monitor macroeconomic and industry trends dynamically and coordinate with authorities to accelerate approval processes to manage these risks.

The announcement emphasizes that the project aligns fully with the national “Guidelines for Industrial Structure Adjustment” and the company’s core strategy of “focusing on domestic substitution of high-end tools,” which will strongly promote the development of new productive forces for its subsidiary, Hanjiang Tool. Since the project funding comes from Hanjiang Tool’s self-raised funds and will be disbursed in batches over 24 months according to the construction schedule, it will not significantly impact the company’s daily operations or performance in the short term.

As a wholly owned subsidiary of Qin Chuan Machine Tool, Hanjiang Tool has a registered capital of 153 million yuan, with business scope covering metal tool manufacturing, metal processing machinery manufacturing, CNC machine tools, and related fields. The implementation of this technological renovation project will further consolidate the company’s leading position in the domestic complex tool industry and continuously enhance its core technological competitiveness and profitability.

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