Polyrocks(SH:688669) Zheng Quan Zhi Xing·2025-08-18 16:30Core Viewpoint - The report provides an overview of the fundraising activities and the utilization of funds by Guangdong Jushi Chemical Co., Ltd., highlighting the total amount raised, expenses incurred, and the current status of the funds as of June 30, 2025 [1][2]. Fundraising Overview - The total amount raised through the initial public offering (IPO) was RMB 855.17 million, with net proceeds amounting to RMB 775.73 million after deducting issuance costs of RMB 79.44 million [2][3]. - The funds were fully deposited into a designated account approved by the board of directors, and a regulatory agreement was signed with the sponsoring institution and the bank [2][3]. Fund Utilization - As of June 30, 2025, the total amount utilized from the raised funds was RMB 796.85 million, with various deductions for underwriting fees, pre-invested funds, and temporary working capital [2][3]. - The company has also temporarily supplemented working capital with idle funds, amounting to RMB 47.58 million, which was returned to the designated account by August 2, 2023 [5][6]. Project Changes - The implementation subject and location for the "Halogen-free Flame Retardant Expansion Project" were changed from a subsidiary in Guangdong to another in Anhui due to local regulatory constraints [3][7]. - The "Poly Styrene Production Project" was also relocated from Anhui to a different site in Anhui, reflecting strategic adjustments based on land availability and logistical considerations [4][7]. Financial Management - The company has engaged in cash management with idle funds, investing a total of RMB 121 million in low-risk financial products, yielding a return of RMB 367,042.51 [5][6]. - The company has also utilized excess funds for permanent working capital supplementation, with a total of RMB 80 million allocated for this purpose [6][7]. Economic Benefits - The projects funded by the raised capital are expected to generate significant economic benefits, although some projects, such as those for working capital and R&D, do not yield direct financial returns [8][12]. - The production capacity and output from the projects have been monitored, with the "Modified Plastic Expansion Project" achieving a production output of 23,358.52 tons in 2023, with a capacity utilization rate of 58.40% [12].