Group 1 - The company, Henan Jindan Lactic Acid Technology Co., Ltd, issued 7,000,000 convertible bonds with a total fundraising amount of approximately RMB 689.61 million [1][13] - The bonds have a face value of RMB 100 each and are set to be listed on the Shenzhen Stock Exchange [1][2] - The initial conversion price for the bonds is set at RMB 20.94 per share, which is based on the average trading price of the company's stock prior to the announcement [1][2] Group 2 - The company specializes in the research, production, and sales of lactic acid and its derivatives, with a production capacity of 183,000 tons per year [9][10] - The main products include lactic acid, sodium lactate, and calcium lactate, which are widely used in food, feed, biodegradable materials, and pharmaceuticals [9][10] - The company has been recognized as a leading enterprise in the lactic acid industry, exporting products to over 90 countries and regions [9][10] Group 3 - For the fiscal year 2024, the company reported a revenue of RMB 150.54 million, a year-on-year increase of 6.15%, primarily due to increased sales of lactic acid and lactate products [11] - The operating profit and net profit attributable to shareholders decreased significantly by 67.93% and 56.01% respectively, mainly due to impairment losses [11][12] - The net cash flow from operating activities increased by 634.96% to RMB 26.05 million, attributed to reduced procurement costs for corn raw materials [12] Group 4 - The company plans to use the proceeds from the convertible bonds for projects including the construction of a 75,000-ton biodegradable material project, with total project investment estimated at RMB 1.03 billion [8][15] - As of December 31, 2024, the company had utilized RMB 504.15 million of the raised funds, with the remaining funds allocated for ongoing project construction [15] - The project to produce biodegradable materials is currently under construction and is expected to reach operational status by August 2025 [15][17]

Core Viewpoint - The recent announcements regarding share reductions by major shareholders of Jindan Technology raise concerns about the company's stability and future growth prospects, particularly in light of the delays in its key project for biodegradable materials. Shareholder Actions - Guangzhou Chengxin plans to reduce its holdings by up to 5.635 million shares, representing 2.93% of the total share capital, between June 30 and September 29 [1] - Following this, Guangzhou Chengxin's shareholding will decrease from 6.25% to approximately 0.26% if the planned reduction is executed [3] - Another major shareholder, Shenzhou Education, also announced plans to reduce its holdings by up to 600,000 shares, which is 0.31% of the total share capital [4] Project Delays - The "Annual Production of 75,000 Tons of Polylactic Acid Biodegradable Material Project," deemed the company's top priority for 2025, has faced multiple delays, with the expected completion date pushed from August 2024 to June 2026 [8] - The project is critical for expanding the company's product chain and enhancing its competitive edge in the biodegradable materials market [8] Financial Performance - In Q1 2025, Jindan Technology reported revenue of 344 million yuan, a slight decrease of 1.73% year-on-year, while net profit surged by 125.85% to 38.61 million yuan due to stable sales and lower raw material costs [7] - For the year 2024, the company achieved revenue of 1.505 billion yuan, a 6.15% increase, but net profit fell by 56.01% to 37.49 million yuan [8]