Hangzhou Landscaping (SH:605303) Zheng Quan Zhi Xing·2025-08-29 18:30Core Viewpoint - Hangzhou Garden Greening Co., Ltd. plans to issue A-shares to specific investors through a simplified procedure, which may dilute immediate returns for existing shareholders, and the company has proposed measures to mitigate this impact [1][5][11]. Financial Impact of the Issuance - The issuance will increase the total share capital from 161,237,408 shares to a maximum of 174,526,443 shares, assuming the upper limit of 13,289,035 shares is issued at a price of 15.05 yuan per share [2][3]. - The projected net profit attributable to shareholders for 2025 under three scenarios shows potential losses: - Scenario 1: Net profit remains at -190.20 million yuan - Scenario 2: Net profit breaks even at 0 yuan - Scenario 3: Net profit decreases by 20% to -152.16 million yuan [3][4][5]. - Basic earnings per share (EPS) are projected to improve from -1.18 yuan to 0 yuan in the break-even scenario, and to -0.94 yuan in the 20% loss reduction scenario [4][5]. Necessity and Reasonableness of the Issuance - The issuance is deemed necessary to seize industry development opportunities, enhance core competitiveness, and align with the company's strategic goals [5][7]. Relationship of Fundraising Projects to Existing Business - The total amount to be raised is 200 million yuan, which will be invested in projects closely related to the company's main business, aimed at improving profitability and expanding business scope [7][8]. Measures to Mitigate Dilution of Immediate Returns - The company will implement several measures to enhance operational efficiency, reduce costs, and ensure effective use of raised funds, including: - Strengthening management of raised funds to ensure they are used for designated projects [9][10]. - Accelerating the development of main business areas to improve competitiveness [10]. - Optimizing operational management to enhance efficiency and control costs [10]. - Improving profit distribution policies to ensure investor returns [10][11]. Commitments from Related Parties - The controlling shareholder, Hangzhou Yuanrong Holding Group Co., Ltd., and the company's directors and senior management have committed to taking necessary measures to ensure the effectiveness of the proposed return mitigation strategies [11][12].