Shenzhen Xinyuren Technology (SH:688573) Zheng Quan Zhi Xing·2025-07-07 16:23Core Viewpoint - The company, Shenzhen Xinyuren Technology Co., Ltd., is utilizing its own funds to pay for fundraising project expenses and will subsequently replace these with equivalent amounts from the raised funds, ensuring compliance with regulatory requirements and maintaining project efficiency [1][2][4]. Fundraising Overview - The company has successfully completed its initial public offering (IPO) of 24,438,597 shares at a price of RMB 23.68 per share, raising a total of approximately RMB 578.71 million. After deducting issuance costs of about RMB 72.51 million, the net proceeds amount to approximately RMB 506.20 million [1][2]. - The total investment for the fundraising projects is RMB 618.52 million, with RMB 462.25 million allocated from the raised funds [1]. Fund Utilization and Replacement Process - The company has opted to use its own funds for certain project expenses, particularly for land purchases, due to tax payment requirements that necessitate using a specific account not linked to the fundraising account. This approach allows for timely payments while ensuring that the raised funds are eventually used to reimburse these expenses [1][2]. - The process involves the company’s relevant departments preparing detailed payment records, followed by internal approvals, and then transferring equivalent amounts from the fundraising account to the company’s general account [2][4]. Impact on Company Operations - The decision to use self-funds for project expenses and later replace them with raised funds is expected to enhance the efficiency of fund utilization and project implementation, ensuring that the projects proceed smoothly without altering the intended use of the raised funds [4][5]. Approval and Oversight - The board of directors approved the use of self-funds for project expenses with a unanimous vote, and the supervisory board expressed agreement, confirming that this action does not affect the normal operation of the fundraising projects or violate any regulatory requirements [5][6]. - The sponsoring institution, Minsheng Securities, has conducted a review and found that the company has adhered to necessary procedures and regulations regarding the use of funds [6].