CPEC(SH:600339) Zheng Quan Zhi Xing·2025-08-29 17:47Core Viewpoint - The company plans to issue A-shares to a specific entity, China National Petroleum Corporation, to raise funds for key projects aligned with the Belt and Road Initiative, enhance energy security, and improve its financial structure [1][2][3]. Group 1: Background and Purpose of the Issuance - The issuance aims to support the Belt and Road Initiative by funding significant energy projects in Iraq and the UAE, which will enhance local economic benefits and the company's international operational capabilities [2][3]. - The issuance is also intended to align with China's new energy security strategy, improving cash flow and supporting the implementation of national energy projects [2][3]. - The company seeks to optimize its market layout and promote overseas business development, with new contracts in domestic and international markets showing significant growth [2][3]. Group 2: Use of Proceeds - The funds raised will be allocated to the Basra seawater pipeline project in Iraq and gas pipeline projects in Abu Dhabi, with 70% of the funds directed towards these projects and 30% for working capital and R&D [10][20]. - The company emphasizes the importance of increasing R&D investment to enhance core competitiveness and accelerate the commercialization of research outcomes [3][4]. Group 3: Financial Strategy - The issuance will help reduce the company's debt-to-asset ratio, improve financial health, and support high-quality development [4][5]. - The company aims to maintain a stable capital structure through equity financing, which is more favorable compared to debt financing [5][6]. Group 4: Issuance Details - The issuance will consist of 1,674,944,241 A-shares at a price of RMB 3.53 per share, based on the average trading price over the previous 20 trading days [10][11]. - The issuance process has been approved by various internal committees and will require further approvals from regulatory bodies [13][14]. Group 5: Fairness and Reasonableness of the Issuance - The issuance plan has undergone multiple reviews and is designed to protect the interests of all shareholders, ensuring transparency and fairness in the voting process [14][25]. - The company has committed to measures to mitigate the potential dilution of immediate returns for existing shareholders [15][24]. Group 6: Conclusion - The issuance is deemed necessary and feasible, aligning with the company's strategic goals and benefiting all shareholders [25].