Zheng Quan Zhi Xing·2025-08-08 10:19Core Viewpoint - The company is adjusting the use of part of the raised funds to better align with market demands and internal development needs, specifically by reallocating funds from a gummy production line to a liquid production line, which reflects the industry's trend towards diversification and new product forms [5][8]. Summary by Sections Fundraising Overview - The company raised a total of RMB 3,125.35 million by issuing 119,288,209 shares at a price of RMB 26.20 per share in April 2021, with a net amount after expenses being confirmed by an auditing firm [1][2]. Project Change Details - The "Zhuhai Production Base Phase IV Expansion and Upgrade Project" originally planned to optimize existing facilities for dietary supplements, with a total investment of RMB 437.52 million, fully funded by the raised capital. As of June 30, 2025, RMB 82.31 million has been utilized, generating economic benefits of RMB 90.93 million [2][5]. Reasons for Change - The shift in product lifecycle and market demand has led to a strategic decision to pause the gummy production line and introduce a liquid production line, reallocating RMB 11.92 million from the gummy line to the new liquid line. This change represents 0.39% of the actual net raised funds [5][6]. Economic Benefit Analysis - The project is expected to generate annual revenue of RMB 1,248.41 million and a post-tax profit of RMB 148.65 million upon reaching full production capacity [5][6]. Approval Process - The project has received necessary approvals from relevant authorities, including the Zhuhai Development and Reform Bureau, and will continue to follow regulatory procedures as required [6][7]. Impact of Fund Use Change - The adjustment in fund usage is deemed reasonable and beneficial for improving fund efficiency and resource allocation, aligning with the company's operational needs without adversely affecting normal business operations [7][8]. Review Opinions - The board of directors, audit committee, and supervisory committee have all approved the changes, affirming that the adjustments are necessary for the company's strategic development and do not harm shareholder interests [7][8]. Sponsor's Verification - The sponsor, CITIC Securities, has confirmed that the changes comply with relevant regulations and have undergone the necessary review processes, pending shareholder approval for implementation [8][9].