Core Viewpoint - The company plans to change the use of part of the raised funds from its previous projects to invest in a new project for producing 20,000 tons of zirconium and hafnium series products, which aligns with market demand and strategic development goals [4][8][9]. Fundraising Overview - The company raised a total of RMB 220 million by issuing 11.0664 million shares at RMB 19.88 per share, with a net amount of RMB 216.0763 million after deducting issuance costs [1][2]. - The funds are managed in a dedicated account with a tripartite supervision agreement signed with the bank and the sponsor [1]. Investment Project Status - As of July 31, 2025, the total investment for the original projects was RMB 31.7273 million, with RMB 21.6076 million planned to be funded from the raised capital, of which RMB 16.1259 million has been used [3][6]. - The original projects included a 1,500-ton specialty ceramics project and an advanced ceramics materials R&D laboratory, which faced delays due to various factors [6][7]. Reasons for Fund Use Change - The company decided to redirect unutilized funds from the original projects to the new zirconium and hafnium project due to changes in market demand and to mitigate investment risks [4][7]. - The new project has a total investment of RMB 27.89127 million, with RMB 5.71133 million planned to be funded from the raised capital, representing 26.43% of the total raised funds [4][9]. New Project Details - The new project aims to produce 20,000 tons of zirconium and hafnium series products, with an expected return on investment of 55.46% and a payback period of 3.3 years [9][10]. - The project will be implemented by Liaoning Huaxiang, which will borrow the necessary funds at the current 5-year loan market quotation rate [10]. Market Outlook - Zirconium and hafnium are critical strategic materials with applications in nuclear energy, aerospace, and high-end semiconductors, and their demand is expected to grow significantly [8][14][15]. - The project aligns with national policies promoting the development of new materials and aims to enhance domestic production capabilities [12][13]. Approval Process - The change in fundraising project has been approved by the company's board and supervisory committee and will be submitted for shareholder approval [17].