Core Viewpoint - The company has approved the use of part of the raised funds to provide interest-free loans to its wholly-owned subsidiary for the implementation of a fundraising investment project aimed at expanding the production of smart components for electric tools [1][5]. Fundraising Overview - The company raised a total of RMB 497 million by issuing 25 million shares at a price of RMB 19.88 per share, after deducting issuance costs [2]. - The funds are to be used entirely for the fundraising investment project, specifically the "Annual Production of 86.5 Million Smart Components for Electric Tools Expansion Project" [2][5]. Loan Details - The company will provide a loan of up to RMB 389.3644 million to its subsidiary, Zhangjiagang Huajie Electronics Co., Ltd., to facilitate the implementation of the fundraising investment project [1][3]. - The loan is to be repaid in installments or renewed based on the subsidiary's operational conditions after the loan term [3]. Subsidiary Information - Zhangjiagang Huajie Electronics Co., Ltd. has a registered capital of RMB 52.2121 million and was established on September 25, 2003 [4]. - The subsidiary's recent financial data shows total assets of RMB 720.4876 million and net assets of RMB 391.4507 million, with a revenue of RMB 201.1148 million and a net profit of RMB 22.1839 million for the most recent quarter [4]. Purpose and Impact of the Loan - The loan aims to ensure the smooth implementation of the fundraising investment project, aligning with the company's long-term planning and development needs [5][6]. - The company maintains control over the subsidiary's operations during the loan period, ensuring manageable financial risks [5]. Fund Management Post-Loan - The raised funds will be stored in a special account approved by the company's board, with strict adherence to regulatory requirements for fund usage and disclosure [5][6]. - The company and its subsidiary will comply with relevant laws and regulations regarding the management of the raised funds [5][6]. Approval Process - The board and supervisory committee approved the loan proposal during meetings held on July 16, 2025, and the matter did not require shareholder approval [5][6]. - The supervisory committee and sponsor have both expressed their agreement with the loan's purpose and compliance with regulations [6][7].
华之杰: 华之杰关于使用部分募集资金向全资子公司提供借款以实施募投项目的公告