Summary of the Issuance Plan Core Viewpoint The issuance plan by Jiangsu Fasten Company Limited aims to raise funds through a private placement to enhance its operational capabilities and financial stability, focusing on both metal products and environmental protection businesses. Group 1: Issuance Details - The company plans to issue up to 125 million shares, not exceeding 30% of the total share capital prior to the issuance [2][12][24] - The issuance price is set at 2.48 RMB per share, which is 80% of the average trading price over the 20 trading days prior to the pricing date [10][12][24] - The funds raised will be used entirely for replenishing working capital and repaying debts [10][30] Group 2: Background and Purpose - The steel wire industry in China faces structural overcapacity and intense competition, with high-end products still reliant on imports [8][9] - The issuance aims to support the company's transition towards technology innovation and green transformation, enhancing core competitiveness and sustainable profitability [9][10][30] Group 3: Financial Impact - The net proceeds from the issuance will significantly improve the company's asset structure and reduce financial risks, enhancing its debt repayment capacity [10][30] - Following the issuance, the controlling shareholder, Hongsheng Group, will increase its stake to 43.62%, ensuring stable control of the company [10][15][30] Group 4: Regulatory Compliance - The issuance plan has been approved by the company's board and requires further approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission [1][16][30] - The company has established measures to address any potential dilution of immediate returns resulting from the issuance [5][10]