### Overview Shenglan Technology Co., Ltd. has recently issued a report detailing their plans to raise funds through the issuance of convertible bonds. This move aims to enhance their financial strength and diversify their financing sources amidst a growing competitive landscape, particularly in the electric vehicle (EV) and industrial automation sectors. The report covers key financial metrics, management insights, and the overall outlook following this issuance.

### Key Financials In the latest financial year, Shenglan Technology reported a significant growth trajectory. The company has consistently increased its revenue over the past three years, with a net income rise reflecting effective management and operational strategies. As of March 31, 2025, the total number of shares stood at 163,704,863, indicating a clear share structure with 95.96% in unrestricted circulation, laying a stable foundation for future financing activities. Management expressed confidence in their strategy, underscoring that the funds raised will primarily be allocated towards the R&D of high-pressure connectors for electric vehicles and industrial control connectors.

### Management Commentary Management has maintained a positive outlook regarding the convertible bond issuance, noting its compliance with national policies while addressing future strategies to mitigate risks associated with capital market fluctuations. The tone of management reflects confidence in the company's growth trajectory, emphasis on transparency, and commitment to regulatory adherence throughout the bond issuance process.

### Trends and Drivers The decision to issue convertible bonds reflects a broader trend within the technology sector to seek flexible financing solutions that adapt to market demands. Shenglan Technology benefits from the rapid growth of the EV market, evidenced by the doubling of sales in this sector over recent years. Additionally, partnerships with notable players such as BYD have fortified their operational foundation and market presence, driving revenue growth. However, the company must balance growth ambitions with cost pressures from potential inflation and supply chain disruptions.

### Risks and Outlook While the outlook appears promising, notable risks include market volatility that can affect shareholder value post-bond conversion, and potential regulatory scrutiny as the company navigates complex compliance landscapes. Additionally, the concentrated ownership structure (54.20% held by Shenglan Investment Holdings) poses inherent governance risks that could impact decision-making and shareholder interests. The impact of these dynamics will be crucial in the upcoming quarters as the company executes its capital strategy and navigates an evolving market. Having noted these factors, investors and analysts should monitor the utilization of raised funds, the performance of the bond in the market, and the company's overall adherence to promised timelines and effectiveness in executing their projects.

### Conclusion In summary, Shenglan Technology Co., Ltd.'s move to issue convertible bonds marks a strategic pivot not only to ensure financial agility but also to bolster its position within the competitive landscape of electric vehicle technology and industrial automation. However, the company must remain vigilant against market fluctuations, governance risks, and operational execution challenges as it seeks to maximize the benefits of this funding initiative.