Zheng Quan Zhi Xing·2025-07-24 16:10Summary of Key Points Core Viewpoint - The company, Jiangsu Xiangteng New Materials Co., Ltd., has received approval to use its own funds to pay for part of the fundraising investment projects and will subsequently replace these with equivalent amounts from the raised funds, ensuring compliance with relevant regulations and maintaining project efficiency [1][7]. Group 1: Fundraising Overview - The company issued 17,171,722 shares at a price of RMB 28.93 per share, raising a total of RMB 496.78 million, with a net amount of RMB 464.49 million after deducting underwriting and other fees [1][2]. - The company has established a special account for the raised funds and signed a tripartite supervision agreement with the bank and the sponsor [2]. Group 2: Investment Project Details - The total investment for the projects is RMB 501.76 million, with an actual planned use of raised funds amounting to RMB 442.34 million [3]. Group 3: Reasons for Using Own Funds - The company faced challenges in directly using raised funds for payroll and other expenses due to regulatory requirements, necessitating the use of its own funds initially [4][5]. - Payments for social insurance, housing funds, and taxes must be made through a unified bank account, complicating the use of multiple accounts for raised funds [4]. - The need for foreign currency payments for overseas purchases and customs duties further limited the use of the raised funds account [5]. Group 4: Operational Process for Fund Replacement - The company plans to use its own funds for project payments and will replace these with raised funds within six months, following a defined approval and replacement process [6]. - The financial department will manage the replacement process, ensuring compliance with the established procedures [6]. Group 5: Impact on the Company - The use of own funds for project payments is aligned with regulatory requirements and is expected to enhance fund utilization efficiency without affecting the normal implementation of the projects [6][7]. Group 6: Approval Process - The board of directors and the supervisory board approved the proposal to use own funds for project payments on July 24, 2025, without needing shareholder approval [6]. Group 7: Sponsor's Verification Opinion - The sponsor, Everbright Securities, confirmed that the decision-making process was followed correctly and that the use of own funds for project payments complies with relevant laws and regulations [7].