TongQingLou Catering (SH:605108) Zheng Quan Zhi Xing·2025-08-29 17:12Summary of Key Points Core Viewpoint The report outlines the fundraising activities and the utilization of raised funds by Tongqinglou Catering Co., Ltd. It details the amounts raised, the allocation of funds to various projects, and the management of these funds, emphasizing compliance with regulatory requirements. Fundraising Overview - The company raised a total of RMB 835 million by issuing 50 million A-shares at RMB 16.70 per share, with net proceeds amounting to RMB 735.3 million after deducting issuance costs of RMB 99.7 million [1][2]. - As of June 30, 2025, the company has utilized RMB 674.27 million of the raised funds, leaving a balance of RMB 61.03 million [3][4]. Fund Utilization Details - Prior to the funds being received, the company invested RMB 240.57 million from its own resources into projects, which was later reimbursed using the raised funds [2][3]. - In 2023, the company directly invested RMB 124.97 million from the raised funds into projects and temporarily supplemented working capital with RMB 196.86 million of idle funds, all of which were returned to the dedicated account by April 17, 2024 [2][3][4]. - For the first half of 2025, the company directly invested RMB 31.44 million from the raised funds and used RMB 85 million of idle funds temporarily, which were returned by May 22, 2025 [2][3]. Fund Management Practices - The company has established a dedicated fund management system in compliance with relevant laws and regulations, ensuring proper storage, approval, and usage of the raised funds [3][4]. - The company has signed tripartite supervision agreements with various banks to ensure the proper management of the funds [3][4]. Project Adjustments and Changes - The company has made adjustments to the investment projects, reallocating funds from the "Raw Material Processing and Distribution Base Project" to the "New Chain Hotel Project" due to strategic business needs [4][5]. - The company has also established special accounts for its subsidiaries to manage the funds allocated for specific projects, ensuring compliance with regulatory requirements [4][5]. Financial Performance and Future Plans - The "Raw Material Processing and Distribution Base Project" is expected to enhance food safety and brand recognition, contributing to long-term strategic value rather than immediate economic benefits [10][20]. - The company plans to continue utilizing any surplus funds for daily operations and business development, with a focus on maintaining compliance and transparency in fund usage [9][11].