Gian(SZ:300709) Zheng Quan Zhi Xing·2025-08-01 16:35Core Viewpoint - Jiangsu Jingyan Technology Co., Ltd. plans to issue convertible bonds to raise up to RMB 577.89 million to support its business development and enhance capital strength and profitability [1][3][10] Group 1: Issuance Details - The company intends to issue convertible bonds convertible into A-shares, which will be listed on the Shenzhen Stock Exchange [2][3] - The funds raised will be allocated to projects including precision MIM components for new consumer electronics and data servers, as well as the construction of headquarters and R&D centers [1][18] Group 2: Necessity of Issuance - The investment amount for the projects is substantial, and self-funding is insufficient, necessitating external financing [3][10] - Convertible bonds offer a combination of equity and debt financing, typically with lower interest rates, thus reducing financial costs and optimizing capital structure [3][10] Group 3: Target Investors - The issuance will prioritize existing shareholders, with specific allocation ratios to be determined by the board [4][24] - The issuance will also be open to other qualified investors, including individuals and institutions [4][5] Group 4: Pricing and Valuation - The initial conversion price will be set based on the average stock price over the previous twenty trading days and must not be lower than the latest audited net asset value per share [6][8][21] - The pricing method and procedures comply with relevant regulations and will be disclosed appropriately [9][20] Group 5: Compliance and Governance - The company has established a sound organizational structure and governance framework, meeting the requirements for issuing convertible bonds [12][15] - The company has no outstanding debts or violations of regulations that would prevent it from issuing bonds [12][22] Group 6: Use of Proceeds - The funds will be exclusively used for business-related projects and will not be allocated for loss compensation or non-productive expenditures [18][19] - The projects align with national industrial policies and regulations [18][19] Group 7: Impact on Shareholder Returns - The issuance may dilute immediate returns for existing shareholders, but the company plans to implement measures to mitigate this impact and enhance profitability [24][25] - Commitments from major stakeholders to support the measures have been documented [25][26] Group 8: Conclusion - The issuance of convertible bonds is deemed necessary and feasible, aligning with the company's strategic goals and benefiting all shareholders [26]