SFX(SH:600370) Zheng Quan Zhi Xing·2025-08-26 16:35Summary of Key Points Core Viewpoint - Jiangsu Sanfangxiang Ju Materials Co., Ltd. has completed the investment projects funded by the public issuance of convertible bonds and plans to permanently supplement its working capital with the remaining funds, which aligns with the company's operational needs and does not harm the interests of shareholders [1][9]. Fundraising Overview - The company issued 25 million convertible bonds with a face value of 100 RMB each, raising a total of approximately 2.5 billion RMB, with a net amount of 2,487,477,358.49 RMB after expenses [1][2]. - The funds are managed in a dedicated account as per regulatory requirements, ensuring investor protection [2]. Investment Project Details - The main project funded by the raised capital is the "Annual Production of 1.5 Million Tons of Green Packaging Materials Project" at Jiangyin Xingjia New Materials Co., Ltd., with a total committed investment of 248,747.74 million RMB [2][5]. - As of June 30, 2025, the project has reached its intended operational status, with a total investment of 97,333.49 million RMB and remaining funds of 32,802.28 million RMB [5][7]. Use of Idle Funds - The company has temporarily used up to 480 million RMB of idle funds to supplement working capital, with a balance of 472 million RMB as of June 30, 2025 [4][6]. Reasons for Fund Surplus - The surplus funds resulted from cost savings during project implementation, including a reduction in material and equipment prices, and the use of self-owned funds for some supplier payments [7][8]. - Interest income of 135.77 million RMB was also generated during the fund storage period [7]. Future Fund Utilization - The company plans to use the surplus funds of 32,802.28 million RMB for daily operations, while any outstanding contract payments will be settled using self-owned or raised funds [8]. - The dedicated fundraising account will be closed following the permanent allocation of surplus funds [8]. Approval Process - The board and supervisory committee have approved the project completion and fund allocation, pending shareholder meeting approval [9].