Core Viewpoint - The company, Yuegui Co., Ltd. (000833.SZ), is raising up to 900 million yuan through a private placement of A-shares to fund three major projects, including a 100,000 tons/year refined wet phosphoric acid project, marking its first fundraising in ten years [1][2]. Group 1: Fundraising Details - The company plans to issue no more than 156 million shares, with the net proceeds after issuance costs allocated to the 100,000 tons/year refined wet phosphoric acid project, a quartz sandstone mining project, and an automation upgrade for Yunxiu Mining [2][3]. - The refined wet phosphoric acid project will receive 600 million yuan, accounting for 66.67% of the total fundraising amount, and is expected to produce 36,200 tons/year of purified phosphoric acid, among other products [2][3]. Group 2: Strategic Importance - The construction of the phosphoric acid project is closely related to the existing chemical products of Yunxiu Mining, utilizing the chemical energy value of pyrite and leveraging synergies with surrounding titanium dioxide production [3]. - The company aims to extend its industrial chain beyond mining to include deeper processing, addressing the current reliance on mining for profit and enhancing its strategic layout in the new energy materials sector [3][4]. Group 3: Company Performance and Resources - In 2024, the company reported revenues of approximately 2.8 billion yuan, a 16.8% decrease year-on-year, while net profit increased by 320% to 279 million yuan, driven by resource advantages and technological innovation in Yunxiu Mining [5][6]. - The company holds the largest pyrite resource in China, with proven reserves of 208 million tons, representing 85% of the national rich pyrite resources, and an annual production capacity of approximately 3 million tons [4].

Core Viewpoint - The company is issuing A-shares to specific investors, which may dilute immediate returns for existing shareholders, but it has proposed measures to mitigate this impact and ensure the protection of minority investors' interests [1][4][10]. Financial Impact Analysis - The total number of shares before the issuance is 802,082,221, and after the issuance, it will increase to 958,482,221 [2]. - Under three scenarios for net profit growth in 2025 compared to 2024 (flat, +10%, -10%), the basic and diluted earnings per share (EPS) will be affected as follows: - Scenario 1 (flat): Basic EPS will decrease from 0.3473 to 0.2906 [2]. - Scenario 2 (+10% growth): Basic EPS will decrease from 0.3473 to 0.3197 [3]. - Scenario 3 (-10% decline): Basic EPS will decrease from 0.3473 to 0.2616 [3]. Necessity and Reasonableness of the Issuance - The issuance is aimed at enhancing the company's overall profitability, improving financial conditions, and increasing risk resistance [4][5]. - The raised funds will be allocated to projects such as a 100,000 tons/year refined wet phosphoric acid project and a quartz sandstone mining project, which align with the company's strategic goals [5][8]. Talent and Technology Reserves - The company has established a comprehensive management system and possesses a skilled team in non-metallic mining and chemical sectors, which supports the implementation of the fundraising projects [6]. - The company is recognized as a national high-tech enterprise and has a strong foundation in research and development, which will aid in the successful execution of the projects [6]. Measures to Mitigate Dilution of Immediate Returns - The company will implement strict management of the raised funds, ensuring they are used for designated projects and subject to regular audits [7][8]. - The company plans to enhance its governance structure to ensure shareholder rights are protected and to maintain a sustainable development trajectory [8][9]. - A revised profit distribution policy has been established to strengthen the investor return mechanism, including a three-year dividend plan [9]. Commitments from Management - The company's board and senior management have committed to ensuring that the measures to mitigate the dilution of immediate returns will be effectively implemented [10]. - The actual controller and major shareholders have also pledged not to interfere with the company's management and to adhere to the established measures [10].