Overview of Fundraising - The company plans to publicly issue no more than 21.67 million shares of RMB ordinary shares (A shares) to raise funds, which will be invested in specific projects after deducting issuance costs [1][2] Fund Utilization - The total investment amount for the projects is 664.68 million RMB, which includes two main projects: the annual production line upgrade project for 1.3 million towel racks and the construction project for an annual production line of 1 million towel racks [2][3] - If the actual funds raised exceed the project funding needs, the excess will be used to supplement working capital related to the company's main business [2][3] - If the actual funds raised are insufficient, the funding gap will be resolved through self-raised funds [2][3] Fund Management - The company has established a "Fund Management Method" to regulate the storage, use, management, and supervision of the raised funds [3] - The raised funds will be stored in a special account managed by the company's board of directors, ensuring that the funds are used for their intended purpose [3] Project Details Project 1: Annual Production Line Upgrade for 1.3 Million Towel Racks - The project will be implemented by the company, with a planned construction period of 18 months, aiming for production capacity to reach 40% in the second year and 90% in the third year, achieving full capacity in the fourth year [4][5] - The project will primarily produce bathroom towel rack products, with various pollution control measures in place for wastewater, waste gas, solid waste, and noise [4][5][6] Project 2: Annual Production Line Construction for 1 Million Towel Racks - Similar to the first project, this project will also have an 18-month construction period, with production capacity targets set for the second, third, and fourth years [7][8] - The project will also implement pollution control measures similar to those in the first project [7][8] Working Capital Supplement - The company plans to use 50 million RMB of the raised funds to supplement working capital to support existing business development and control debt levels [9][10] - The need for working capital arises from the stable growth of the company's business and the increasing demand for operational funds [9][10] - The infusion of working capital is expected to enhance the company's short-term solvency and overall competitiveness in the market [10]

Group 1: Innovation Technology Research Institute Headquarters Project - The project is led by the wholly-owned subsidiary of the company, aiming to build a headquarters industrial base on purchased land in Zhongshan Cuiheng New District, covering an area of 32,250 square meters [1] - The project includes the establishment of seven research centers, with an expected first-year sales revenue of 133.6 million yuan and a net profit of 42.24 million yuan, resulting in a post-tax internal rate of return of 10.59% [1] - Total investment for the project is estimated at 386.9172 million yuan, with major costs including engineering fees (57.31%), equipment purchase (14.15%), and personnel investment (15.02%) [1] Group 2: Equipment Investment Details - The total cost for various operational equipment (including software) is 54.7589 million yuan, allocated across seven research centers based on their specific needs [1] - The ecological environment research center has a budget of 2.937 million yuan for experimental equipment, while the new building materials research center has a budget of 19 million yuan for equipment [1] Group 3: Project Timeline - The project is scheduled for a 36-month construction period, with specific phases including feasibility studies, preliminary planning, construction, and equipment procurement [2] - The timeline includes recruitment and training of personnel, with a focus on ensuring operational readiness by the end of the project [5] Group 4: Testing and Marketing Service Network Project - This project involves the expansion of the company's testing and marketing service network, including the renovation of existing branches and the establishment of new testing stations [3] - The project is expected to generate an average annual sales revenue of 116.6484 million yuan and a net profit after tax, with a dynamic investment payback period of 5.4 years [3][4] - Total investment for this project is projected at 94.3358 million yuan, with significant allocations for equipment purchase (40.51%) and talent acquisition (26.16%) [4]

Core Viewpoint - The company plans to publicly issue no less than 40.01 million shares of common stock, with the post-issue circulating shares accounting for at least 10% of the total shares [1] Fund Utilization - The total expected investment for the projects is 643.47 million yuan, with 420 million yuan to be raised through this public offering [2] - The company will initially use self-raised funds for the projects before the raised funds are available, and will replace the self-raised funds with the raised funds once they are in place [2] Project Summaries 1. Intelligent Home Hardware Automation Manufacturing Base - The project aims to establish an intelligent production line for home hardware by introducing advanced equipment and information systems, enhancing production capacity and efficiency to meet growing market demand [3] - Total investment for this project is 561.17 million yuan, with 370 million yuan expected to be funded from the raised funds [3] - The project is scheduled to be completed within 36 months, with various phases including preparation, engineering implementation, and personnel training [3] 2. R&D Center Construction Project - This project will upgrade the R&D and design environment by introducing advanced equipment and renovating laboratories, thereby enhancing the company's R&D capabilities [4] - Total investment is 52.26 million yuan, with 30 million yuan to be funded from the raised funds [4] - The project will also take 36 months to complete, focusing on project preparation and engineering implementation [4] 3. Information Technology Construction Project - The project aims to integrate various management modules such as ERP, R&D management, and supply chain management to improve internal management efficiency and facilitate collaboration across the company [4] - Total investment is 30.04 million yuan, with 20 million yuan to be funded from the raised funds [4] - The project will also be completed within 36 months, focusing on software development and personnel training [4]

Fundraising Utilization Plan - The company plans to invest the raised funds in two main projects: "High-Density QFN/DFN Packaging Material Industrialization Project" and "R&D Center Expansion and Upgrade Project" with a total investment of 518.63 million yuan [1][2] - The total amount of funds raised, after deducting issuance costs, will be fully allocated to these projects [2] Fund Management System - The company has established a management system for the raised funds, which includes regulations on special account storage, usage, changes in fund purposes, management, and supervision [2] - The board of directors is responsible for the effective execution of the fundraising management system, ensuring that the funds are stored in a designated special account [2] Project Timeline and Progress - The construction period for the High-Density QFN/DFN Packaging Material Industrialization Project is 24 months, involving engineering design, civil engineering, equipment procurement, and trial operation [2] - The R&D Center Expansion Project has a construction period of 18 months, focusing on engineering design, renovation, and equipment installation [2] Environmental Impact - The High-Density QFN/DFN Packaging Material Industrialization Project will produce minimal wastewater and waste, with noise levels meeting national standards [3] - The R&D Center Expansion Project will primarily generate solid waste such as paper, with no significant environmental pollution expected during its operation [3]