Zheng Quan Zhi Xing·2025-09-03 12:19Core Viewpoint - Jiangsu Evergreen New Material Technology Incorporated Company plans to issue convertible bonds to raise funds for its Phase I project of the Taizhou Polymer New Material Production Base, addressing the need for external financing to support project construction and enhance capital strength [1][2]. Group 1: Necessity of the Bond Issuance - The total planned investment for the Taizhou project is 800 million yuan, which exceeds the company's current financial capacity, necessitating external financing [2]. - The convertible bonds have a maturity of 6 years, aligning with the medium to long-term funding needs of the project [2]. - Compared to bank loans and other debt financing methods, convertible bonds offer lower interest rates, reducing interest expenses and optimizing the company's capital structure [2][3]. Group 2: Selection of Issuance Objects - The issuance will target unspecified investors, including individuals, legal entities, and investment funds, with priority given to existing shareholders [3][4]. - The selection criteria for investors require them to possess risk identification and bearing capabilities, as well as sufficient financial strength [4][5]. Group 3: Pricing Principles and Methods - The pricing of the convertible bonds will be determined based on market conditions and company specifics, with the initial conversion price set not lower than the average stock price over the previous 20 trading days [6][7]. - Adjustments to the conversion price will occur in response to stock dividends, capital increases, or cash dividends, ensuring fair treatment for bondholders [6][7][8]. Group 4: Feasibility of the Issuance - The issuance complies with the Securities Law and relevant regulations, confirming the company's sound organizational structure and operational capability [8][9]. - The company has maintained a consistent profit over the last three years, with average distributable profits sufficient to cover bond interest payments [9][10]. Group 5: Fairness and Reasonableness of the Issuance Plan - The issuance plan has been thoroughly reviewed by the board of directors, ensuring it benefits the company's business expansion and enhances overall competitiveness [25][26]. - The plan will be disclosed to all shareholders, allowing for fair voting during the shareholders' meeting [25][26]. Group 6: Impact on Immediate Returns and Mitigation Measures - The issuance may dilute immediate returns for existing shareholders, but the company plans to implement measures to mitigate this risk, including effective management of raised funds and enhancing market competitiveness [26][27]. Group 7: Conclusion - The issuance of convertible bonds is deemed necessary and feasible, aligning with the company's strategic goals and benefiting all shareholders [27].