Zhongchao Holdings (002471.SZ) disclosed a report on its private placement to specific targets on the evening of November 11: 244 million shares at RMB 4.06 per share, for gross proceeds of RMB 992 million (net RMB 972 million), subscribed in cash by 17 investors, with Yixing Xingyi Guojin and Caitong Fund among the largest allotments. The proceeds mainly fund a high-end components project for aerospace engines and gas turbines: the implementing entity is its controlled grand-subsidiary Jiangsu Zhongchao Hangyu Precision Casting (Yixing, Jiangsu), with total project investment of RMB 1 billion (RMB 700 million to come from the proceeds), adding 1,000 tons per year of superalloy precision casting capacity, covering turbine casings, turbine rotors, guide vanes, combustor nozzles and other products; a further RMB 150 million will build an advanced superalloy precision forming intelligent manufacturing technology R&D project. The project has been filed and received environmental approval and has broken ground, with the new plant topped out; the construction period is 24 months, and annual revenue of RMB 1.852 billion is expected at full capacity. Customer lock-in is advancing in parallel: in September it signed a strategic procurement framework agreement with Qingdao Zhongke Guosheng, committing no less than 30% of designed annual capacity as dedicated reservation once the new plant is operational; in October it signed a strategic cooperation agreement with Beijing Zhongran Yuneng, with procurement expected to be no less than RMB 300 million over the next three years. As of the end of June, Jiangsu Precision Casting had orders in hand of RMB 60.1897 million, 2.46 times its first-half revenue. Buyer value: full capacity of 1,000 tons per year of superalloy castings will generate considerable demand for master alloys and alloy raw materials, and rising output of gas turbine and aero-engine components directly benefits superalloy powder and master alloy suppliers.