Hunan Hualian China Industry (SZ:001216) Zheng Quan Ri Bao·2025-11-18 23:25Summary of Key Points Core Viewpoint The report outlines the usage and management of the funds raised by Hunan Hualian Ceramics Co., Ltd. through its previous public offering, detailing the amounts raised, their allocation, and subsequent adjustments to project funding. Group 1: Fundraising and Allocation - The company raised a total of RMB 58,999.80 million by issuing 62,966,700 shares at RMB 9.37 per share, with a net amount of RMB 53,267.91 million after deducting various fees [2][24]. - As of September 30, 2025, the remaining balance of the raised funds in the special account was RMB 4,948.84 million, including accumulated interest and investment income [24]. Group 2: Changes in Fund Usage - The company adjusted the funding allocation for several projects, including increasing the budget for the Hualian Ceramics liquor production line upgrade project to RMB 5,200.00 million and reducing the budget for the Yuxiang Factory technical upgrade project to RMB 7,530.32 million [4]. - In August 2022, the company terminated the ceramic new materials production line project, reallocating the available funds of RMB 2,088.81 million to the energy comprehensive utilization project [5][8]. - In April 2025, the company decided to redirect RMB 1,200 million from the engineering technology center project to the Hongguang Kiln intelligent manufacturing project [10]. Group 3: Project Delays and Adjustments - The company announced delays for several projects, extending the expected completion dates for the daily ceramic production line technical upgrade project and the energy comprehensive utilization project to December 31, 2025 [12][13]. - The adjustments were made based on the actual progress of the projects and did not alter the overall investment content or total amount [13]. Group 4: Financial Management of Idle Funds - The company has utilized idle funds for cash management, investing in low-risk financial products, with a total of RMB 30,000 million allocated for such purposes [21][22]. - The company reported earning investment income of RMB 679.91 million in 2022 and RMB 529.20 million in 2023 from these financial products [21][22]. Group 5: Project Benefits and Performance - The report indicates that the benefits from the previous fundraising projects are not yet fully quantifiable due to ongoing projects, such as the daily ceramic production line technical upgrade project [18]. - The company confirmed that there were no discrepancies between the actual investment amounts and the committed amounts for the previous fundraising projects [14][19].