Fundraising Plan - The company plans to raise a total of up to 1,050 million yuan through a targeted stock issuance, with net proceeds allocated to specific projects [1][2] - The total investment for the projects is estimated at 1,792.9986 million yuan, with 190.6592 million yuan already invested [1] Project Overview Integrated Ecological Restoration Project - The project covers an area of approximately 94.7 square kilometers in the central urban area of the Zhangzhou Taiwan Business Zone, aiming to improve drainage facilities and achieve full coverage of the municipal sewage network [2][3] - The project will enhance water quality and living conditions, promoting high-quality ecological development in the region [3][4] Third Water Plant Expansion - The expansion of the Zhangzhou Third Water Plant will increase its capacity from 100,000 m³/d to 200,000 m³/d to meet the growing water demand in the city [8][9] - The project aligns with national policies emphasizing urban infrastructure improvement and water supply security [8][9] Photovoltaic Power Generation Project - The Zhangpu Salt Field 100MW (128.6MWp) photovoltaic project will combine water surface power generation with aquaculture, promoting sustainable energy and ecological practices [12][13] - The project is in line with national energy transition goals and aims to enhance the local renewable energy supply [12][14] Financial Feasibility - The financial internal rate of return for the Third Water Plant expansion is estimated at 6.25%, with a payback period of 14.32 years, indicating good economic viability [11] - The photovoltaic project has a projected internal rate of return of 8.42% and a payback period of 10.53 years, suggesting favorable economic benefits [18] Strategic Alignment - The fundraising and project investments align with the company's strategic focus on expanding its water services and renewable energy sectors, enhancing its market position [4][20] - The projects are expected to improve the company's financial structure, increase asset and net asset scales, and enhance its ability to manage risks [20][21]

Core Viewpoint - Fujian Zhangzhou Development Co., Ltd. plans to raise up to 1.05 billion yuan through a private placement of A-shares to enhance capital strength and profitability, focusing on urban development and environmental projects [1][6][19]. Summary by Sections Background and Purpose of the Issuance - The company aims to become a leading urban comprehensive service provider, focusing on water resource development, new energy, and smart technology, while supporting capital operations [1][6]. - The funds will be allocated to projects including ecological remediation, water plant expansion, and a photovoltaic power generation project [1][6]. Industry Context - The Chinese government emphasizes ecological protection and green transformation, with initiatives targeting the elimination of black and odorous water bodies by 2025 [2][3]. - The water supply and sewage treatment sectors are evolving towards systematization, with a focus on efficiency and smart water management, presenting growth opportunities for companies in the industry [3][5]. Financial Implications - The issuance will improve the company's total assets and net assets, enhance working capital, and optimize the capital structure, thereby increasing financial stability and reducing debt pressure [7][9]. - The company’s recent asset-liability ratio stands at 67.62%, indicating limited capacity for further debt financing [8]. Projected Financial Impact - The issuance is expected to dilute immediate returns, with projections indicating potential decreases in earnings per share depending on future profit scenarios [20][21]. - The company has outlined measures to mitigate the impact of dilution on shareholder returns, including commitments from major stakeholders to uphold company independence and protect investor interests [26][27]. Compliance and Fairness of the Issuance - The issuance plan has been approved by the board and complies with relevant regulations, ensuring fair treatment of all shareholders [19][24]. - The company will conduct a shareholder meeting to vote on the issuance, ensuring transparency and adherence to governance standards [19][24].

Core Viewpoint - The proposal for a 1.2 billion yuan private placement by Zhangzhou Development was rejected at the annual shareholders' meeting due to opposition from minority shareholders [2][4]. Group 1: Shareholder Meeting Outcomes - The annual shareholders' meeting held on May 23 resulted in the rejection of seven proposals, primarily related to the private placement of A-shares [3][4]. - The specific proposal for the private placement received 18,184,141 votes against, accounting for 38.44% of the total shares held by attending shareholders, with all opposing votes coming from minority shareholders [4]. Group 2: Investor Concerns - Many investors expressed concerns that the private placement would depress the stock price of Zhangzhou Development, leading to their votes against the proposal [5]. Group 3: Fundraising Details - Zhangzhou Development aimed to raise up to approximately 1.2 billion yuan through the private placement, targeting no more than 35 specific investors, including the controlling shareholder, Zhanglong Group [6]. - The issuance price was set to be no less than 80% of the average trading price over the 20 trading days prior to the pricing date [7]. Group 4: Project Funding Allocation - The funds from the proposed private placement were intended for four projects, including ecological restoration, expansion of a water plant, a solar power project, and working capital [7][8]. - The total investment for these projects is approximately 1.8 billion yuan, with the planned fundraising amounting to about 1.2 billion yuan [8].