Fulai New Material(SH:605488) Zheng Quan Zhi Xing·2025-09-02 16:14Core Viewpoint - The company plans to raise up to RMB 71 million through a private placement of A-shares to enhance its research and development capabilities, upgrade product technology, and strengthen core business competitiveness in the rapidly growing label and consumer electronics industries [1][15]. Fundraising Plan - The total investment for the projects funded by the raised capital is RMB 840.84 million, with the net amount after deducting issuance costs intended for specific projects [1]. - The company will initially use its own funds or other means to invest in projects before the raised funds are available, and will adjust the investment projects based on the actual amount raised [1]. Investment Projects Overview Label Printing Materials Expansion Project - The project aims to build a new production line for label printing materials in Jiaxing, Zhejiang, with an expected annual capacity increase of approximately 773 million square meters [2]. - The total investment for this project is RMB 289.33 million, with RMB 243.20 million sourced from the raised funds [2]. - The project aligns with industry trends and aims to meet the growing market demand driven by sectors such as daily chemicals, food and beverage, pharmaceuticals, and e-commerce [2][4]. Electronic-grade Functional Materials Expansion Project - This project will establish a new production line for electronic-grade functional materials, adding an annual capacity of about 37 million square meters [7]. - The total investment is RMB 277.94 million, with RMB 220.50 million from the raised funds [7]. - The project targets the expanding global consumer electronics and automotive electronics markets, particularly in flexible OLED displays and new energy vehicles [7][8]. R&D Center Upgrade Project - The project involves upgrading the R&D center with advanced equipment and cleanroom facilities, with a total investment of RMB 63.57 million and RMB 36.30 million from the raised funds [9]. - This upgrade aims to enhance the company's innovation capabilities and support the development of high-value-added products in response to increasing market demands [10][11]. Working Capital Supplement - The company plans to use part of the raised funds to supplement working capital, which is essential for supporting ongoing business expansion and R&D investments [12][13]. - The company has maintained stable revenue growth, and the additional funds will help optimize its capital structure and enhance financial stability [12][15]. Market Outlook - The global label printing market is projected to grow from USD 46.14 billion in 2023 to USD 64.01 billion by 2028, indicating a strong market potential [3]. - The domestic self-adhesive label market in China is expected to exceed RMB 60 billion by 2031, driven by the increasing penetration of film labels in various applications [3][4]. - The company has seen significant revenue growth in its label printing materials, with projected revenues of RMB 675 million and RMB 402 million for 2024 and the first half of 2025, respectively, reflecting year-on-year growth rates of 23.53% and 27.83% [5]. Competitive Advantages - The company has established a strong brand presence and technical expertise in multi-functional coating composite materials, which enhances its competitive edge in the market [6][8]. - The company has received multiple awards and recognitions, including being named a "Global Innovation Supplier" by Avery Dennison, which bolsters its reputation in the industry [6]. Conclusion - The fundraising and investment projects are aligned with national industrial policies and the company's strategic development goals, aimed at enhancing competitiveness and ensuring sustainable growth [14][15].