HAITIAN CO.,LTD.(SH:603759) Xin Lang Cai Jing·2025-12-01 16:36Core Viewpoint - The company, Haitan Water Group Co., Ltd., is planning to issue no more than 801 million yuan in convertible bonds to fund essential infrastructure upgrades and working capital, with the necessity and feasibility of these projects thoroughly validated [1][2]. Group 1: Fundraising Projects - The fundraising will focus on four projects: - 204 million yuan for the Jianyang Haitan Smart Water Supply and Comprehensive Efficiency Improvement Project - 254 million yuan for the Ziyang Water Supply Infrastructure Resilience Upgrade and Smart Construction Project - 103 million yuan for the expansion of the Jiajiang Urban Domestic Sewage Treatment Plant - 240 million yuan to supplement working capital [2]. - The necessity of the water supply projects is highlighted by the aging infrastructure of key water plants, with some facilities over 30 years old, leading to significant operational issues [2][3]. Group 2: Capacity Planning - The company clarified that the water supply projects do not involve new capacity but rather aim to enhance existing facilities through technological upgrades, ensuring that current capacities are effectively utilized [3]. - The sewage treatment expansion project is aligned with the projected sewage volume for Jiajiang by 2035, ensuring that new capacity matches anticipated demand [3]. Group 3: Financial Arrangements - The company provided a rationale for borrowing funds for project implementation through its subsidiary, ensuring compliance and transparency in financial arrangements [4]. - The estimated funding gap over the next three years is approximately 1.255 billion yuan, and the planned issuance of 801 million yuan in bonds is expected to alleviate financial pressure [4]. Group 4: Asset Management - The company disclosed details regarding 18 properties with ownership issues, most of which are historical or unused assets, and has received authorization for continued use from regulatory authorities [5]. - The company emphasized that these asset issues do not impact the implementation of the fundraising projects, and all necessary permits for water extraction and wastewater discharge have been obtained [5].