PACIFIC SECURITIES(SH:601099) Zheng Quan Zhi Xing·2025-07-22 16:16Core Viewpoint - The company has decided to change the use of raised funds and permanently supplement its working capital due to changes in market and policy environments affecting its original investment projects [4][9]. Summary by Sections Fundraising Overview - The company raised a total of RMB 368.17 million by issuing 36.8 million shares at RMB 11.45 per share in July 2021 [1]. - The net amount raised after expenses was RMB 368.17 million, verified by Tianjian Accounting Firm [2]. Proposed Changes to Fund Usage - The company's board and supervisory board approved a proposal to change part of the fundraising usage to new projects and permanently supplement working capital [2]. - As of July 10, 2025, the total amount of funds used was RMB 224.65 million, with RMB 74.11 million already utilized and RMB 149.35 million remaining [2]. Reasons for Changing Fund Usage - The original project aimed at "developing general contracting business" has seen slow progress due to market and policy changes, leading to a decision to halt further investment [3][4]. - The company has only utilized RMB 3.76 million of the planned RMB 153.11 million for the original project, with a completion rate of 2.45% [3]. Impact of Fund Usage Change - The decision to use the remaining funds for working capital is expected to alleviate liquidity issues, as the company reported a negative cash flow of RMB 82.97 million in Q1 2025 and has upcoming loan repayments of RMB 125 million [5]. - The change is anticipated to enhance the efficiency of fund usage and support the company's strategic initiatives in urban renewal, rural revitalization, and other sectors [5][6]. Approval Process - The board of directors and the supervisory board have both approved the proposal, which will also be submitted for shareholder approval [6][8]. - The company plans to transfer the remaining funds to its general settlement account and terminate the special fund storage agreement [6][10].