Core Viewpoint - The company plans to raise up to 1 billion yuan through a private placement to enhance water supply capabilities and wastewater treatment projects, aligning with national "dual carbon" strategies and strengthening its position in the industrial water treatment sector [2][5]. Fundraising Details - The fundraising will target no more than 35 specific investors, including institutional investors and qualified individuals, with a maximum issuance of 122.6 million shares, accounting for 30% of the pre-issue total share capital [3]. - The funds will primarily be allocated to two major water treatment projects and to supplement working capital [3]. Project Summaries - The Kashgar City North Water Supply Enhancement and Wastewater Treatment Plant project will receive 800 million yuan, aimed at providing industrial water security for the Kashgar Economic Development Zone and improving regional wastewater treatment capacity, with post-project internal rates of return of 10.02% and 6.17% for the water supply and wastewater treatment projects, respectively [3][4]. - The Shanxi Zhongmei Pingshu Energy Chemical Company water treatment system optimization and zero discharge project will receive 100 million yuan, addressing local high hardness and alkalinity water issues, enhancing production safety, and promoting green transformation in the coal chemical industry [4]. Financial Impact - The fundraising will improve the company's equity structure, expand total assets and net assets, reduce the debt-to-asset ratio, and enhance financial stability [4]. - The economic benefits from the Kashgar and Shanxi projects are expected to gradually enhance the company's profitability and market presence in the medium to long term [4]. Strategic Alignment - The projects align with national policies promoting water resource recycling in industrial sectors, with the company being a recognized high-tech enterprise with significant technological barriers [5][6]. - The Kashgar project responds to local government initiatives for wastewater reuse, while the Shanxi project targets high-salinity wastewater treatment challenges, indicating strong market demand and growth potential [6]. Expansion into Mining Sector - The fundraising is also a strategic move to support the company's expansion into the non-ferrous mining sector, particularly in lithium extraction from salt lakes, with projected revenue of 242 million yuan from lithium business in 2024 [7]. - The company has secured exploration rights for copper mines in Xinjiang, creating synergies between lithium extraction and associated mineral development [7].