Core Viewpoint - The company, Shihua Technology, has announced its plan to issue shares to specific investors, pending approval from the China Securities Regulatory Commission (CSRC) [1] Group 1: Share Issuance Details - The total amount of funds to be raised from the share issuance is not to exceed 600 million yuan (approximately 60 million) [1][2] - The net proceeds from the issuance will be used for the optical display film material expansion project [1][2] - The issuance will involve no more than 35 specific investors, including qualified institutional investors and other eligible entities [2][3] Group 2: Shareholder Structure and Control - The maximum number of shares to be issued is 78,789,393, which will not exceed 30% of the company's total share capital prior to the issuance [3][4] - The current controlling shareholders, including Gu Zhengqing and his associates, collectively control 71.27% of the voting rights [3][4] - Post-issuance, if the maximum number of shares is issued and assuming no participation from the current controlling shareholders, their voting rights would decrease to 54.82%, but they would still maintain control [4] Group 3: Regulatory and Procedural Aspects - The issuance price will be set at no less than 80% of the average trading price over the 20 trading days prior to the pricing date [3] - The company will disclose further information regarding the issuance process and any potential related party transactions after the issuance is completed [2][3] - The lead underwriter for this issuance is Huatai United Securities Co., Ltd. [4]

Core Viewpoint - Suzhou Shihua New Materials Technology Co., Ltd. is responding to the Shanghai Stock Exchange's inquiry regarding its stock issuance application, addressing issues related to previous fundraising projects and their progress, as well as the financial implications of new projects [1][2]. Previous Fundraising Projects - The company has experienced delays in the "Functional Material Expansion and Upgrade Project" and the "R&D Center Construction Project," with specific reasons for these delays needing clarification [1]. - The total amount of non-capital expenditures before and after changes in previous fundraising projects was reported as 18,186.02 million yuan and 19,684.46 million yuan, respectively, indicating an increase in the proportion of non-capital expenditures from 24.10% to 26.08% of the total fundraising [2][3]. Current Fundraising and Project Plans - The current fundraising plan aims to raise up to 600 million yuan for the optical display film material expansion project, with an expected annual revenue of 1,392 million yuan once the project reaches stable operation [3][4]. - The total investment for the optical display film material expansion project is estimated at 740 million yuan, with 600 million yuan planned to be raised through this issuance [4][5]. Financial Metrics and Projections - The company’s asset-liability ratios were reported at 3.88%, 9.29%, and 7.98% for the respective reporting periods, indicating a relatively low leverage position [3]. - The internal rate of return for the project is estimated at 15.13%, with a payback period of 8.79 years [3][4]. - Future cash flow projections indicate a total cash flow of approximately 1,399.65 million yuan over the next three years, with a projected net profit of 1,583.20 million yuan during the same period [8][9].

Core Viewpoint - The document outlines the legal opinions provided by Merits & Tree Law Offices regarding Suzhou Shihua New Materials Technology Co., Ltd.'s application for a specific stock issuance and listing on the Sci-Tech Innovation Board, emphasizing compliance with relevant laws and regulations [1][2]. Group 1: Legal Compliance and Documentation - The law firm has conducted a thorough examination of the documents and facts provided by the issuer, adhering to the standards of the Company Law, Securities Law, and other relevant regulations [2]. - A supplementary legal opinion has been issued to modify and clarify the previous legal opinion based on inquiries from the Shanghai Stock Exchange regarding the issuer's application [2][3]. Group 2: Fundraising and Project Details - The issuer plans to raise 600 million yuan for the "Optical Display Film Material Expansion Project," which is part of the "High-Performance Optical Adhesive Film Material Project" [4]. - The document requests clarification on the differences and connections between the current fundraising project and existing businesses, as well as the necessity of the fundraising project in light of the company's financial situation and previous fundraising efforts [4]. Group 3: Environmental and Energy Assessments - The environmental impact assessment (EIA) for the fundraising project has been approved by the Wujiang Economic and Technological Development Zone Management Committee as of April 2, 2025, indicating no significant uncertainties regarding the EIA approval [5]. - The energy consumption report for the project is under review by the Jiangsu Provincial Development and Reform Commission, with expectations to receive approval by late June 2025, and the project is classified as not being a high-energy-consuming project [6][7].