LIUSTEELCO(SH:601003) Zheng Quan Zhi Xing·2025-08-07 12:20Core Viewpoint - LiuZhou Steel Co., Ltd. plans to raise funds through a simplified procedure to invest in a technical upgrade project for its 2800mm medium-thick plate production line, with a total investment of approximately 487.68 million yuan, aiming to enhance product quality and market competitiveness [1][10]. Fundraising Plan - The company intends to raise no more than 300 million yuan, which complies with regulations for simplified procedures [1]. - The net amount raised after deducting related issuance costs will be fully allocated to the specified projects [1][2]. Project Overview - The main project is the upgrade of the 2800mm medium-thick plate production line, with a total investment of 487.68 million yuan and a planned investment from the raised funds of 300 million yuan [2][10]. - The construction period for the project is set at 18 months, focusing on advanced technology to improve production efficiency and product quality [2][6]. Necessity of Project Implementation - Current market conditions show low prices for long products, prompting a shift towards plate products, making the upgrade essential to avoid losing market share in the medium-thick plate sector [2][3]. - Existing equipment issues, such as uneven heating and inadequate surface treatment, necessitate the upgrade to meet higher quality demands from major customers [3][5]. Feasibility of Project Implementation - The project aligns with national policies promoting high-quality, sustainable development in the steel industry, encouraging upgrades towards high-end, intelligent, and green production [6][11]. - The upgrade is expected to enhance product quality, optimize product structure, and reduce emissions, thus meeting stringent environmental standards [6][9]. Economic Benefits - The financial internal rate of return for the project is estimated at 21.5%, with a payback period of 5.9 years, indicating strong economic viability [10]. - The project is anticipated to improve product competitiveness by addressing quality issues and increasing the added value of products [9][10]. Impact on Company Operations and Financial Status - The fundraising project is expected to enhance the company's operational capabilities, improve product quality, and strengthen market competitiveness, aligning with the company's long-term strategic goals [10][11]. - Post-fundraising, the company's asset scale and financial strength will improve, leading to a better capital structure and lower debt ratio [10][11].