In-Depth Analysis Report on Convertible Bond Investment Projects of Fujia Co., Ltd. (603219)

Now, based on all the collected data, I will provide you with a systematic and comprehensive analysis report.

---

Fujia Co., Ltd. announced on January 7, 2026 that it plans to issue convertible corporate bonds with a total fundraising amount not exceeding

. The net proceeds after deducting issuance fees will be used for the following three major projects[1][2]:

No.	Project Name	Total Investment (ten thousand RMB)	Planned Raised Funds to be Invested (ten thousand RMB)	Fund Proportion	Construction Period
1	Phase II Construction Project of Vietnam Production Base	34,595.84	32,795.84	46.9%	2 years
2	Industrialization Project of Commercial and Residential Energy Storage Systems	26,598.46	23,913.36	34.2%	2 years
3	Industrialization Project of Intelligent Grain Storage Robots	14,022.50	13,290.81	19.0%	2 years
Total	-	75,216.79	70,000.00	100%	-

---

Fujia Co., Ltd. currently has a sound financial status[0]:

Profitability Indicator	Value	Industry Evaluation
Return on Equity (ROE)	16.12%	Good (exceeds the 15% benchmark)
Net Profit Margin	10.98%	Excellent Level
Operating Profit Margin	9.55%	Sound
Price-to-Earnings Ratio (P/E)	21.44x	Moderate
Price-to-Book Ratio (P/B)	3.28x	Reasonable Range

The company’s share price has performed strongly in the past year, with a cumulative increase of

, and has risen by more than in the past three years, reflecting the market’s recognition of the company’s development prospects[0].

Solvency Indicator	Value	Evaluation
Current Ratio	1.57	Sound (>1.5)
Quick Ratio	1.26	Good (>1.0)
Debt Risk Rating	Low Risk	According to Financial Analysis

Financial analysis also shows that the company adopts an

with a low depreciation/capital expenditure ratio, which means the company may be accelerating asset renewal or expansion[0].

---

: RMB 328 million (accounting for 46.9%)
: Upon completion, it will form an annual production capacity of 2.8 million units of various small home appliances

:

• Cost Optimization
  : Leverage Vietnam’s lower labor costs to enhance product competitiveness
• Trade Barrier Avoidance
  : Overseas production base layout to effectively respond to changes in international trade policies
• Capacity Expansion
  : Meet the continuously growing demand for overseas orders

:

• Increased complexity of overseas operation and management
• Impact of exchange rate fluctuations on profits
• Geopolitical uncertainties

: An extension and expansion of mature business, with relatively controllable risks, is expected to maintain stable investment returns.

: RMB 239 million (accounting for 34.2%)
: Annual production of 8,000 sets of battery PACKs, 1,800 sets of commercial cabinet-type energy storage systems, 900 sets of container-type energy storage systems, 1,000 sets of dual-circuit high-voltage boxes, and 1,000 sets of single-circuit integrated high-voltage distribution boxes

:

According to data from industry research institutions, the global energy storage market is in a period of rapid growth[3][4]:

• Global new energy storage installed capacity reached approximately 188.5GWh in 2024, an 80% year-on-year increase
• Global new energy storage installed capacity is expected to reach 265.1GWh in 2025, a 41% year-on-year increase
• Global commercial and industrial energy storage installed capacity is expected to increase by 92% to 19.68GWh in 2025
• Commercial and industrial energy storage is expected to maintain a high growth rate of over 35% in 2026

:

• Dual Carbon policy drives new energy transformation
• Boom in AI data centers drives energy storage demand
• Widening peak-valley price differences create arbitrage space for commercial and industrial energy storage
• Increased grid absorption pressure spurs rigid demand for energy storage[5]

:

• Aligns with the national new energy strategic development direction
• Enters a high-growth track, expected to bring new profit growth points
• Builds a differentiated competitive advantage of “Home Appliances + Energy Storage”

:

• Fierce industry competition with obvious advantages of leading enterprises
• Rapid technological iteration requires continuous R&D investment
• Policy changes may affect the profit model (such as adjustments to peak-valley electricity price policies)
• Fluctuations in upstream raw material prices (such as the rebound of lithium carbonate prices to RMB 110,000 per ton)

: Combines high growth and high uncertainty, and is the project in this investment.

: RMB 133 million (accounting for 19.0%)
: Annual production of 40,000 sets of grain storage pest monitoring and trapping devices and 40,000 sets of grain leveling robots (robot main units)

:

• Supported by agricultural modernization policies
• Relatively low competition in the niche market
• High technical threshold with first-mover advantage

:

• Relatively limited market size
• Possible long payment collection cycle from agricultural customers
• Technical maturity needs market verification

: A stable contribution project, expected to bring steady incremental revenue to the company, but it is difficult to become a major profit source.

---

The conversion of convertible bonds into shares will cause a certain degree of equity dilution to existing shareholders. Calculated based on the current market value of approximately RMB 3.35 billion:

Conversion Premium Rate	Conversion Price (RMB)	Expected Dilution Ratio
0%	25.09	Approximately 17.28%
10%	27.60	Approximately 15.96%
20%	30.11	Approximately 14.83%
30%	32.62	Approximately 13.85%

:

• If the current share price (RMB 25.09) is used as a reference for the conversion price, the potential dilution ratio is approximately
  17.3%
• Conversion prices usually have a certain premium (generally 10%-30%), so the actual dilution ratio may be in the range of
  14%-16%
• After convertible bonds are converted into equity, the company’s net assets will increase, asset-liability ratio will decrease, and capital structure will be optimized[2]

1. Enhanced Capital Strength
   : The RMB 700 million fundraising will significantly increase the company’s asset scale and capital strength
2. Optimized Capital Structure
   : After conversion is completed, net assets increase, liability ratio decreases, and financial leverage is improved
3. Sufficient Project Reserves
   : All three projects have a 2-year construction period, and production capacity will be gradually released in the next 2-3 years
4. Improved Strategic Layout
   : The energy storage project helps the company enter the new energy track and realize the “one body, two wings” development strategy

1. Short-Term Performance Dilution
   : During the project construction period (2 years), the raised funds cannot generate returns temporarily
2. Equity Dilution
   : The shareholding ratio of existing shareholders passively decreases
3. Opportunity Cost
   : Investing funds in new projects means giving up other investment opportunities
4. Project Risks
   : As a new business area, the energy storage project has technological and market uncertainties

---

Evaluation Dimension	Score (1-10)	Weight	Weighted Score	Explanation
Project Strategic Alignment	8	25%	2.0	Aligns with national industrial policies and the company’s development direction
Financial Health Status	7	25%	1.75	Strong profitability and sufficient liquidity
Industry Prospects	7	20%	1.4	Rapid growth of the energy storage industry with policy support
Dilution Effect	6	15%	0.9	Approximately 14-17% dilution, within an acceptable range
Management Execution Capability	7	15%	1.05	Stable historical performance with ROE maintained at 16%+
Comprehensive Score	-	100%	7.1/10	Overall Positive

:

• The issuance of convertible bonds may cause short-term pressure on the share price (dilution expectation)
• However, the company has sound fundamentals and stable performance growth, so the room for share price correction is limited

:

• During the project construction period, the raised funds do not generate returns temporarily
• Changes in market expectations for project prospects will dominate the share price trend
• Pay attention to the progress of the energy storage project and order acquisition

:

• After the three projects are put into production one after another, the company’s performance will be significantly improved
• The Vietnam base expands the basic business foundation of mature home appliance business
• The energy storage business is expected to become the second growth curve
• The grain storage robots contribute stable niche market revenue

---

1. Project Execution Risk
   : All three projects have a 2-year construction period, and there is a possibility of delay or cost overrun
2. Intensified Industry Competition
   : The energy storage market is fiercely competitive, which may erode profit margins
3. Policy Risk
   : Changes in new energy-related policies may affect project returns
4. Exchange Rate Fluctuation
   : The Vietnam base project faces exchange rate risks
5. Technological Iteration
   : Rapid technological iteration of energy storage may affect product competitiveness

---

The decision of Fujia Co., Ltd. to issue RMB 700 million in convertible bonds to invest in three major projects is

:

• The energy storage project aligns with industry development trends; despite uncertainties, it will bring significant performance growth upon success
• The Vietnam base is an extension and expansion of mature business with controllable risks
• The grain storage robots are stable contributors in the niche market

For existing shareholders, it is necessary to pay attention to the conversion price and dilution ratio of the convertible bonds.

that investors continue to track the progress of the projects, focusing on the order acquisition and market expansion of the energy storage business. If the projects are implemented smoothly, performance growth is expected to be gradually reflected in 2027-2028.

---

[1] Sina Finance - “Fujia Co., Ltd. (603219.SH) Plans to Issue Convertible Bonds to Raise No More Than RMB 700 Million” (https://finance.sina.com.cn/stock/hkstock/ggscyd/2026-01-07/doc-inhfnvii6092833.shtml)

[2] CFi.net - “Feasibility Analysis Report on the Use of Funds Raised from Convertible Corporate Bonds Issued to Unspecific Objects by Ningbo Fujia Industrial Co., Ltd.” (https://www.cfi.net.cn/p20260107001822.html)

[3] Eastmoney - “Plans to Raise No More Than RMB 700 Million for Industrialization Projects of Commercial and Residential Energy Storage Systems, etc.” (https://wap.eastmoney.com/a/202601073611679044.html)

[4] Financial Newspaper - “Special Report on Energy Storage Industry: Bright Prospects for Energy Storage, Seize the High Prosperity of the Industry” (http://www.sbichinacapital.com/research/pdf/SBI sector report 20251212.pdf)

[5] Sina Finance - “In 2025, the Energy Storage Industry Started Low and Went High” (https://finance.sina.com.cn/roll/2025-12-27/doc-inheehva0603616.shtml)

[0] Jinling AI Financial Database - Real-time Market and Financial Data of Fujia Co., Ltd.