DO&SH(SZ:002798) Zheng Quan Zhi Xing·2025-07-23 12:21Core Viewpoint - The company plans to change the use of raised funds from its convertible bond issuance and permanently supplement its working capital with the remaining funds due to changes in market conditions and internal operational needs [5][8][9]. Fundraising Overview - The company raised a total of 1.5 billion RMB through the issuance of 15 million convertible bonds, with a maturity of 6 years [1]. - The net amount raised after expenses was 1.48 billion RMB, with specific projects outlined for investment [2]. Investment Project Details - The main projects funded include the "High-end Wall and Floor Tile Intelligent Production Line" with a total investment of 1.64 billion RMB, and the "High-end Ceramic Tile Intelligent Production Line" with a total investment of 366 million RMB [2][4]. - As of July 20, 2025, the cumulative investment in the first project was approximately 517.83 million RMB, representing 72.78% of the planned investment [4]. Change in Fund Usage - The company intends to change the use of funds due to a significant decline in demand in the construction ceramics industry, which has led to a reduction in effective market demand [5][8]. - The decision to repurpose the funds is aimed at optimizing resource allocation and reducing investment risks, as the original projects are unlikely to yield the expected returns under current market conditions [8][9]. Financial Strategy - The company has temporarily used 400 million RMB of idle funds to supplement working capital, with a total remaining balance of approximately 476.58 million RMB after accounting for interest income [2][3]. - The board of directors has approved the change in fund usage, which will enhance the company's financial structure and reduce financing costs [9][10]. Approval Process - The change in fund usage has been reviewed and approved by the company's board and will be submitted for further approval from shareholders and bondholders [9][10].