Summary of Key Points Core Viewpoint The report provides a detailed account of the fundraising activities and the management of the raised funds by Zhejiang Guanghua Technology Co., Ltd. It highlights the amount raised, the usage of funds, and the compliance with regulatory requirements. Group 1: Fundraising Overview - The company raised a total of RMB 88,832.00 million by issuing 32 million shares at RMB 27.76 per share, with net proceeds amounting to RMB 77,325.08 million after deducting various fees [2][5][11] - The funds were deposited into a designated account managed under a tripartite supervision agreement with the underwriter and banks [3][4] Group 2: Fund Usage and Management - The company has established a management method for the raised funds, ensuring they are stored in a dedicated account and used in compliance with relevant laws and regulations [3][4] - As of June 30, 2025, the company has not utilized any temporarily idle funds for cash management or investment in related products [6] - The company has permanently supplemented working capital with surplus funds from completed projects, including RMB 4,354.30 million from the "Annual Production of 120,000 Tons of Polyester Resin for Powder Coatings Project" and RMB 1,759.16 million from the "R&D Center Construction Project" [7][8] Group 3: Project Status and Compliance - The company has not encountered any abnormal situations regarding the investment projects funded by the raised capital [9] - There have been no changes in the fundraising investment projects, and the company has adhered to all disclosure requirements without any issues [9][22][27] - The company plans to establish overseas subsidiaries to expand its international business, with investments in Singapore and Hong Kong [19][20]

Core Viewpoint - The company has approved its 2025 semi-annual report, which reflects its operational results, financial status, and future development plans, with no cash dividends or stock bonuses planned for the reporting period [1][3][11]. Company Basic Information - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period [5]. - The company has no preferred shareholders or related bond situations during the reporting period [5][6]. Important Matters - The company has completed its "Research and Development Center Construction Project" and plans to use the remaining raised funds to supplement working capital permanently [6][28]. - A new project for the construction of a "15,000 tons/year powder coating polyester resin" facility has been signed with the government of Haining City, which is currently progressing smoothly [6]. - The company plans to establish wholly-owned subsidiaries in Singapore and Hong Kong to enhance its international business layout [7]. Board and Supervisory Committee Meetings - The third board and supervisory committee meetings were held on August 26, 2025, where the semi-annual report and the special report on the use of raised funds were approved unanimously [9][16][18]. Fundraising and Usage - The company raised a total of 88,832 million RMB from its initial public offering, with a net amount of 77,325.08 million RMB after deducting various fees [22]. - As of June 30, 2025, the company has not used any temporarily idle raised funds for cash management or investment in related products [26]. - The company has permanently supplemented working capital with surplus raised funds from completed projects, amounting to 4,354.30 million RMB and 1,759.16 million RMB from different projects [28][29].

Core Viewpoint - The demand for polyester resins in China's powder coating industry is continuously rising due to the expanding applications in various sectors such as construction, automotive, home appliances, and electronics, leading to a significant market growth [1][7]. Industry Definition and History - Powder coatings are a new type of solid powder coatings composed of solid resins, pigments, fillers, and additives, which do not contain solvents [2]. - The polyester resin industry in China began developing in the late 1970s, with significant growth occurring from the late 1990s to the early 2000s, and has now entered a mature phase [3]. Current Industry Status Global Market - The global market for powder coating polyester resins is projected to reach USD 4.605 billion by 2024, with Asia accounting for USD 2.689 billion, representing 58.39% of the market share [5]. Chinese Market - In China, the demand for powder coating polyester resins is expected to grow to 1.239 million tons and a market size of CNY 13.649 billion in 2024, with further growth anticipated in 2025 [7][9]. SWOT Analysis - The powder coating polyester resin industry aligns well with global environmental policies due to its high solid content and zero VOC emissions, creating significant market opportunities [11]. Development Environment and Policies - The Chinese government has implemented various policies to promote the sustainable development of the powder coating polyester resin industry, focusing on environmental protection and increasing technical standards [13][14]. Competitive Landscape Major Companies - The industry has seen increased concentration, with major production companies located in Anhui, Zhejiang, Shanghai, and Guangdong, accounting for over 70% of the total production [15]. Representative Enterprises - Companies like Shenjian New Materials and Zhejiang Guanghua Technology are leading players in the market, with significant production capacities and market shares [17][19]. Industry Development Trends - The demand for powder coatings is expected to grow due to increasing environmental awareness and the push for carbon neutrality, particularly in sectors like new energy vehicles [22][23]. - The industry is likely to experience a shift towards high-performance products, with a focus on durability and corrosion resistance, driven by the evolving needs of the market [22].

数据显示，8月20日光华股份主力资金净流出500.70万元，近五个交易日累计净流出1862.86万元。 截至2025年8月20日收盘，光华股份股价报22.75元，较前一交易日上涨0.84%。当日成交量为20571手， 成交金额达0.47亿元。 风险提示：股市有风险，投资需谨慎。 光华股份主要从事粉末涂料用聚酯树脂的研发、生产和销售，产品广泛应用于建材、家电、汽车等多个 领域。公司所属行业为化学制品板块。 公司8月20日在互动平台表示，其研发的电子封装材料用聚酯树脂已实现小批量试产，目前进展良好。 同时公司表示当前生产经营活动正常。 ...

Group 1 - Guanghua Co., Ltd. (光华股份) announced a share reduction plan by its shareholder, Hangzhou Guangfeng Qichen Equity Investment Partnership (Limited Partnership), intending to reduce up to 3,840,000 shares, accounting for 3% of the total share capital, within three months starting from June 7, 2025 [1] - The reduction will occur through centralized bidding and block trading, with a limit of 1,280,000 shares (1% of total share capital) via centralized bidding and 2,560,000 shares (2% of total share capital) via block trading within any consecutive 90-day period [1] - As of the announcement date, Guangfeng Qichen holds 4,120,000 shares, representing 3.22% of the total share capital, and these shares were acquired before the company's initial public offering [1] Group 2 - Guanghua Co., Ltd. was listed on the Shenzhen Stock Exchange on December 8, 2022, with an initial price of 27.76 yuan per share, and the stock experienced a first-day increase of 43.98% [2] - The total number of shares issued was 32 million, raising a total of 88.832 million yuan, with a net amount of 77.325 million yuan after deducting issuance costs [2] - The raised funds are intended for projects including the construction of a production facility for 120,000 tons of powder coating polyester resin, a research and development center, and to supplement working capital [2]

Core Viewpoint - Guanghua Co., Ltd. reported strong financial performance for 2024, with a net profit of 146 million yuan, a year-on-year increase of 39.1%, and operating revenue of 1.724 billion yuan, up 16.48% [1] Group 1: Financial Performance - The company achieved a net profit of 146 million yuan in 2024, representing a 39.1% increase compared to the previous year [1] - Operating revenue reached 1.724 billion yuan, reflecting a year-on-year growth of 16.48% [1] - Sales volume of polyester resin was 167,300 tons, an increase of 18.03% from the previous year, indicating strong development momentum [1] Group 2: Industry Trends - The trend of "paint to powder" is evident due to ongoing national environmental policies, leading to rapid growth in powder coatings and polyester resin [2] - The market share of polyester resin in powder coatings is continuously increasing, driven by the demand from new sectors such as electric vehicles and steel structures [2] - The powder coating market is expanding, resulting in higher functional demands for polyester resin, particularly in the automotive sector [2] - The concentration of the polyester resin industry is increasing, leading to intensified market competition and a focus on technological innovation and production automation [2] Group 3: Company Positioning and Strategy - Guanghua Co., Ltd. is a major supplier of polyester resin for powder coatings, consistently ranking among the top in sales within the industry [3] - The company has established long-term partnerships with notable powder coating manufacturers, enhancing its market presence [3] - By 2025, the company plans to increase its production capacity from 99,000 tons to 219,000 tons, with additional projects underway to further expand capacity [3] - The company aims to leverage its advantages in large-scale production, brand strength, and technological research to enhance its market share in the polyester resin sector [3]

Financial Performance - In 2024, the company achieved revenue of CNY 1,648,896,425.50 from polyester resin, accounting for 95.65% of total revenue [2] - R&D investment in 2024 was CNY 51,982,997.02, a year-on-year increase of 9.61%, representing 3.02% of revenue [2][3] - Gross margin for 2024 was 14.92%, an increase of 0.81% year-on-year, with net profit of CNY 146,396,329.13, up 39.10% [4] Sales Distribution - Domestic sales in 2024 amounted to CNY 1,406,096,499.56, making up 81.56% of total revenue, while international sales were CNY 317,848,577.67, accounting for 18.44% [3] - The company’s direct exports to the U.S. represented less than 1% of total revenue, indicating limited impact from U.S. tariffs [4] Product Development and Innovation - The company has developed 17 invention patents and 9 utility model patents, focusing on market-driven R&D [3] - New product developments include low-temperature curing indoor large-pattern resin and environmentally friendly powder coatings [3] Market Position and Strategy - The company is a leading supplier of polyester resin for powder coatings, with over 10% market share in 2023 [6] - Future strategies include enhancing core competitiveness, optimizing technology, and expanding product functionality to meet market demands [5][6] Capacity and Expansion - Current production capacity is 21.9 million tons, with an additional 150,000 tons under construction [5] - The new capacity project is expected to enhance market share and competitiveness, aligning with the company's strategic goals [5] Industry Trends - The powder coating industry is experiencing growth due to environmental policies and the shift towards green development, with a compound annual growth rate of 11.16% for polyester resin from 2018 to 2023 [6]