Core Viewpoint - The company, Guangdong Jianlang Hardware Products Co., Ltd., has decided to terminate its "Jianlang Hardware Zhongshan Digital Intelligent Industrial Park Project" due to adjustments in the real estate industry, reallocating the originally planned investment of 200 million yuan to other fundraising projects [2][4][5]. Group 1: Project Termination and Financial Adjustments - The termination of the industrial park project is linked to the downturn in the real estate sector, prompting the company to control costs and slow down investment progress to mitigate potential depreciation impacts on financial results [5]. - The total planned investment for the industrial park was approximately 1.034 billion yuan, with an initial fundraising allocation of 551 million yuan, which has now been reduced to 200 million yuan [3][5]. - The company plans to recover the previously invested funds through the sale of land, buildings, and associated equipment acquired for the project, with expectations of recouping the investment based on the market value of the assets [6][7]. Group 2: Adjustments to Other Fundraising Projects - Alongside the termination of the industrial park project, the company has adjusted the investment amounts and timelines for three other fundraising projects, with the assembly material project seeing an increase in investment from 100 million yuan to 190 million yuan, while the completion date has been extended to the end of 2027 [8][9]. - The assembly material project is viewed as a key growth driver due to the increasing market capacity in the construction decoration industry and government encouragement for prefabricated buildings [9][10].

Summary of Key Points Core Viewpoint The company has made adjustments to the use of raised funds and the implementation progress of its projects, which is aimed at optimizing resource allocation and enhancing operational efficiency in response to current market conditions and strategic planning. Group 1: Fundraising Overview - The company raised a total of RMB 601.94 million through the issuance of 32,345,013 shares at a price of RMB 18.61 per share, with a net amount of RMB 592.14 million after deducting issuance costs [1][2] - The funds were fully received by August 19, 2024, and have been verified by an accounting firm [1] Group 2: Investment Project Adjustments - The company has decided to terminate the "Zhongshan Digital Intelligent Industrial Park Project" and redistribute the originally allocated RMB 200 million to three other projects: "Prefabricated Metal Composite Decorative Material Construction Project," "Information System Upgrade Project," and "Headquarters Automation Upgrade Project" [1][2] - The total investment for the adjusted projects is RMB 220.34 million, with RMB 59.21 million already invested, representing a progress rate of 77.06% as of May 31, 2025 [1][2] Group 3: Specific Project Details - The "Zhongshan Digital Intelligent Industrial Park Project" has a total investment of RMB 1.03 billion, with RMB 114.38 million invested so far, achieving 57.19% of the funding progress [2][3] - The "Prefabricated Metal Composite Decorative Material Construction Project" has an adjusted total investment of RMB 243.40 million, with plans to enhance production capacity for various metal products [4][5] - The "Information System Upgrade Project" has a total investment of RMB 109.51 million, aimed at improving digital marketing and operational efficiency [6][7] - The "Headquarters Automation Upgrade Project" has a total investment of RMB 155.96 million, focusing on replacing old equipment with more efficient technology to reduce costs and improve productivity [8][10] Group 4: Strategic Implications - The adjustments in project funding and implementation are designed to enhance the company's competitive edge and align with long-term strategic goals, ensuring that the interests of all shareholders are protected [11][12] - The board and supervisory committee have approved these changes, emphasizing their alignment with the company's operational needs and market conditions [11][12][13]