Hyea Aromas(SZ:300886) Zheng Quan Zhi Xing·2025-06-24 19:18Core Viewpoint - Anhui Huaye Fragrance Co., Ltd. plans to raise up to RMB 113 million through a simplified procedure for a specific target stock issuance to enhance production capacity and competitiveness in the fragrance industry [1][6][8]. Group 1: Background and Purpose of the Issuance - The issuance aims to meet the funding needs for business development, expand operational scale, and enhance comprehensive competitiveness in line with national policies promoting high-quality development in the fragrance industry [2][4]. - The Ministry of Industry and Information Technology is promoting digitalization, greening, and upgrading of the fragrance industry, encouraging leading enterprises to accelerate technological upgrades and production line transformations [2][3]. Group 2: Market Potential and Growth - The global fragrance market was valued at approximately USD 30.6 billion in 2023, with a projected growth to USD 32.1 billion by 2025, reflecting a 2.3% annual growth rate [3][4]. - The domestic fragrance industry is expected to achieve a main business income of RMB 50 billion by 2025, with an average annual growth rate of over 2% [4][5]. Group 3: Use of Proceeds - The raised funds will be allocated to the first phase of a project aimed at producing 1,300 tons of fragrance annually, with a total investment of RMB 140.63 million [1][6]. - The company may initially use self-raised funds for the project and later replace them with the raised funds once available [1][6]. Group 4: Financial Structure and Risk Management - The issuance is expected to optimize the financial structure, reduce the debt-to-asset ratio, and enhance the company's financial strength and risk resistance [6][7]. - The company aims to avoid high financing costs associated with bank loans by opting for equity financing, which provides long-term stability [7][8]. Group 5: Issuance Process and Compliance - The issuance will target no more than 35 specific investors, including qualified institutional investors and individuals, ensuring compliance with relevant regulations [8][9]. - The pricing of the shares will be based on the average trading price over the 20 trading days prior to the pricing date, ensuring fairness in the issuance process [10][11]. Group 6: Project Viability and Strategic Fit - The fundraising project aligns with the company's core business and national industrial policies, enhancing market competitiveness and long-term sustainable development [21][27]. - The company has a well-established technical team and strong R&D capabilities, with numerous patents and industry recognition, supporting the project's success [22][25].