Group 1 - The company Changlian Technology (301618) has achieved the highest level of ZDHC MRSL compliance, receiving the 2025 adiFORMULATOR AWARD CHAMPION from international sports brand ADIDAS, marking a significant recognition of China's capabilities in high-end eco-friendly chemicals [1] - Achieving ZDHC MRSL compliance level 3 requires source innovation starting from molecular structure design, including water-based technology systems and non-toxic formulations, ensuring products meet or exceed stringent international standards [1] - The company has eliminated VOC emissions from traditional solvent-based products, using water as a medium to ensure green safety throughout production and usage, while maintaining excellent weather resistance and printing effects [1] Group 2 - As a nationally certified manufacturing champion, Changlian Technology has been deeply involved in the water-based printing materials sector for decades, breaking foreign technology monopolies with its core product—eco-friendly water-based printing paste [2] - The products are recognized for their stability, printing adaptability, and environmental friendliness, widely used in textiles, sportswear, electronics, crafts, and eco-friendly packaging, receiving high acclaim from well-known domestic brands [2] - The company plans to continue focusing on its core business, increasing R&D investment in eco-friendly new materials, and embedding green chemistry concepts into product innovation for sustainable industry development [2]

Core Viewpoint - Changlian Technology (301618) has announced the absorption merger of its wholly-owned subsidiary Huizhou Hualian by its wholly-owned subsidiary Huizhou Changlian, which will lead to the cancellation of Huizhou Hualian's legal status and the transfer of all its business, assets, and debts to Huizhou Changlian [1] Group 1 - As of November 28, 2025, Changlian Technology's stock closed at 53.29 yuan, up 0.23% from the previous trading day, with a total market capitalization of 4.808 billion yuan [1] - The stock opened at 53.78 yuan, reached a high of 53.79 yuan, and a low of 53.15 yuan, with a trading volume of 17.6022 million yuan and a turnover rate of 1.0% [1] - The implementation subject of the fundraising project "Annual Production of 27,750 Tons of Environmentally Friendly Water-Based Printing Glue Project" will change to Huizhou Changlian, with the expected usable date postponed from January 2026 to July 2027 [1] Group 2 - The fundraising project "Headquarters Base and R&D Center Construction Project" has been completed, with surplus raised funds of 9.6315 million yuan to be permanently supplemented into working capital [1] - The merger does not constitute a major asset restructuring and does not require submission for shareholder meeting approval [1]

Financial Performance - In the first half of 2025, the company achieved operating revenue of 272 million yuan and a net profit attributable to shareholders of 24.65 million yuan, with a basic earnings per share of 0.27 yuan [2] - The company's total assets reached 1.219 billion yuan, reflecting a year-on-year growth of 4.23% [2] - The company proposed a cash dividend of 1.00 yuan per 10 shares, amounting to 9.02 million yuan, which represents 36.60% of the net profit attributable to shareholders, indicating a significant increase in the dividend payout ratio [2] Business Development - The company focuses on eco-friendly and high-value-added products, including water-based printing pastes and automated printing equipment, serving well-known brands like Anta, Li Ning, Adidas, and Nike [3] - To capitalize on the growing demand for water-based printing materials, the company is expanding its production capacity, with plans to increase the annual production of eco-friendly water-based printing pastes to 27,750 tons [3] - The company is also investing in new silicon-based materials and smart printing equipment to create an integrated industrial base [3] Research and Development - The company increased its R&D expenditure to 14.92 million yuan in the first half of 2025, representing a year-on-year growth of 8.58% and accounting for 5.48% of operating revenue [4] - The company holds 41 invention patents and 7 utility model patents, and has been recognized with several awards for its innovative products [4] - Future plans include focusing on the industrial application of digital pastes and functional pastes, while continuing to strengthen the sales network for sustainable high-quality growth [4]

Fundraising Overview - The company, Dongguan Changlian New Materials Technology Co., Ltd., has successfully completed its initial public offering (IPO) of 16.11 million shares at a price of RMB 21.12 per share, raising a total of RMB 340.24 million. After deducting issuance costs of RMB 63.03 million, the net proceeds amount to RMB 277.21 million [1][2]. Fund Utilization and Project Adjustment - The company has restructured its fundraising projects, merging the original projects into a new project with an annual production capacity of 27,750 tons of environmentally friendly water-based printing paste. This adjustment aims to optimize capacity layout and resource allocation, enhancing the efficiency and return on investment of the raised funds [2][3]. Fund Management and Supervision - A new fundraising supervision agreement has been signed among the company, Dongguan Rural Commercial Bank, and Dongguan Securities as the sponsor. The agreement stipulates that the raised funds must be used exclusively for the designated projects and cannot be mixed with other funds [3][4]. Compliance and Reporting - The company is required to comply with relevant regulations regarding the management of raised funds, including regular audits and reporting to the stock exchange. The sponsor has the authority to conduct on-site inspections and inquiries to ensure proper management and usage of the funds [4][5]. Fund Security Measures - The agreement includes provisions to ensure that the funds are kept in secure, high-safety financial products, such as structured deposits and large-denomination certificates of deposit, with a maximum term of twelve months. The funds cannot be pledged or used for other purposes [5][6].

Summary of Key Points Core Viewpoint The company is adjusting part of its fundraising projects and changing the use of some raised funds to optimize resource allocation and enhance operational efficiency, which aligns with its strategic development goals and benefits all shareholders [21][22]. Group 1: Fundraising Overview - The company has received approval from the China Securities Regulatory Commission for its initial public offering, raising a total of RMB 340.24 million by issuing 16.11 million shares at RMB 21.12 each [1]. - The funds are stored in a dedicated account, and a tripartite supervision agreement has been signed with the sponsor and the supervising bank [2]. Group 2: Actual Use of Funds - As of May 23, 2025, the company has invested RMB 39.84 million in various projects, with a remaining balance of RMB 11.02 million in unutilized funds [3][5]. - The main projects include the construction of an environmentally friendly water-based printing glue production base and a headquarters and R&D center [3]. Group 3: Adjustments to Fundraising Projects - The company plans to relocate its R&D center to an existing production base to improve management and reduce operational costs while maintaining the same investment amount [6][7]. - The adjustment aims to enhance collaboration between production and R&D, supporting the development of high-performance silicon-based materials [6][7]. Group 4: Changes in Project Investment - The company is merging two projects into one, increasing the annual production capacity from 15,000 tons to 27,750 tons for environmentally friendly water-based printing glue [8][9]. - The total investment for the merged project is set at RMB 20.83 million, with a proposed fundraising amount that matches the previous projects' total [9][10]. Group 5: Economic Benefits and Feasibility - The merged project is expected to generate an average annual sales revenue of RMB 37.72 million, with a financial internal rate of return of 13.75% and a net present value of RMB 2.68 million [12][14]. - The project aligns with national policies promoting green and sustainable development, enhancing the company's competitive edge in the market [15][16]. Group 6: Approval and Compliance - The adjustments have been approved by both the board of directors and the supervisory board, ensuring compliance with relevant regulations and guidelines [21][22]. - The sponsor has confirmed that the adjustments will not harm the interests of the company or its minority shareholders and will not adversely affect current operations [22].