Core Viewpoint - The company, Hunan Hualian Ceramics Co., Ltd., is experiencing growth in its business segments, particularly in dental materials and cross-border e-commerce, benefiting from currency depreciation and strong overseas revenue. Group 1: Company Performance - The company's stock price increased by 1.86% on September 22, with a trading volume of 224 million yuan and a market capitalization of 4.148 billion yuan [1] - For the first half of 2025, the company reported a revenue of 726 million yuan, representing a year-on-year growth of 25.10%, and a net profit attributable to shareholders of 120 million yuan, up 21.63% year-on-year [7] - Cumulative cash dividends since the company's A-share listing amount to 272 million yuan, with 219 million yuan distributed over the past three years [8] Group 2: Business Segments - The company produces zirconia, a key material for dental products, and has indicated involvement in cross-border e-commerce [2] - Its subsidiary, Hualian Torch, manufactures electrical porcelain products primarily for high and ultra-high voltage applications, serving clients such as the State Grid [3] - The subsidiary's products, including insulators and wall bushings, are utilized in flexible direct current transmission systems, with supply contracts to major clients like the State Grid and Southern Grid [4] Group 3: Market Dynamics - The company benefits from a significant overseas revenue share, accounting for 71.06% of total revenue, aided by the depreciation of the yuan [5] - The stock has seen a net inflow of 23.72 million yuan from major investors, indicating a positive trend in investor sentiment [6] - The average trading cost of the stock is 15.28 yuan, with the current price approaching a resistance level of 16.55 yuan, suggesting potential for upward movement if the resistance is broken [6]

Group 1: Financial Performance - The company's revenue in the first half of 2025 increased by 25.1% year-on-year, while net profit attributable to shareholders grew by 21.63% [2] - The gross profit margin for the first half of 2025 was 33.04%, a decrease of 1.08 percentage points compared to the same period last year [2] - The net profit growth rate in the second quarter of 2025 reached 31.51%, indicating strong performance in the industry [3] Group 2: Research and Development - R&D investment for 2024 is projected to be 67.9 million yuan, accounting for over 5% of revenue [1] - In the first half of 2025, R&D expenditure was 31.92 million yuan, reflecting a year-on-year increase of 4.78% [2] - The company holds 503 patents, indicating a strong focus on innovation [1] Group 3: Market Strategy and Expansion - The company plans to invest 1.438 billion yuan in the "ASEAN Ceramic Valley" project, which is expected to add 165 million pieces of colored glaze ceramic capacity, accounting for 40% of current capacity [4] - The company aims to diversify its customer base, as the top two clients account for over 60% of revenue [3] - The establishment of a research center in Shenzhen is part of the strategy to enhance innovation and design capabilities [1] Group 4: Export and International Relations - The proportion of foreign sales reached 71.06%, with key clients including IKEA and William Sonoma [2] - The company faces a 16.5% anti-dumping tax on exports to the EU, but the new Vietnam base will reduce tariffs to 3%, potentially increasing export share [2] - The company has maintained growth in EU exports despite the anti-dumping measures since 2011 [2] Group 5: Risk Management - The company has identified 12 internal risks and 291 related risks, primarily involving legal disputes [4] - Measures have been implemented to ensure compliance and manage related transactions effectively [4] - Accounts receivable accounted for 70.35% of net profit in the first half of 2025, with an average collection period of about one month [5]

Core Viewpoint - Huaci Co., Ltd. has responded to the Shenzhen Stock Exchange's inquiry regarding its application for a specific stock issuance, detailing its business operations, related transactions, and fundraising projects, showcasing the company's business layout and development trends [1] Group 1: Business Operations - Huaci's export revenue accounted for 67.20%, 62.84%, 71.06%, and 65.27% over the reporting periods, with major clients including IKEA, Guizhou Moutai, and Wuliangye, indicating a stable customer structure [2] - The global ceramics market is on an upward trend, with China being the largest producer, exporter, and consumer of ceramic products, particularly in daily-use ceramics, where Huaci holds significant advantages [2] - The company has a high customer concentration but maintains stable cooperation with major clients, aligning with industry norms, and does not face significant dependency or substitution risks [2] Group 2: Related Transactions - Huaci has frequent related transactions with major parties such as Huacai Packaging and Yucha Ceramics, which are necessary for production and have been verified for fair pricing [3] - The pricing mechanism for related transactions is reasonable, and comparisons with non-related party transactions confirm their fairness [3] - Overall, related transactions have a minimal impact on the company's operating performance and do not constitute unfair transactions [3] Group 3: Fundraising Projects - The total investment for the fundraising project is approximately 1.44 billion yuan, with 700 million yuan raised for the ASEAN Ceramic Valley project in Vietnam, which aims to produce color-glazed ceramics with an additional annual capacity of 16.53 million pieces [4] - The project targets both existing and new overseas customers, with a favorable market environment and strong product competitiveness, ensuring high sales certainty and reasonable capacity planning [4] - The project is expected to generate annual revenue of 1.41 billion yuan and a net profit of 271.92 million yuan after reaching full capacity, with an internal rate of return of 14.25%, indicating cautious and reasonable benefit assessments [4]

Group 1 - The company plans to issue shares to specific investors, including its controlling shareholder, Zhi Yu Investment, and other qualified institutional investors, subject to regulatory approval [2][3][18] - The total amount to be raised from this issuance is not to exceed 700 million yuan, with the funds intended for specific investment projects [25][26] - The issuance will not change the company's control structure, as Zhi Yu Investment will remain the controlling shareholder post-issuance [27][31] Group 2 - The company aims to enhance its production capacity and efficiency by establishing a new production base in Vietnam, responding to increasing market demand for ceramic products [10][15][17] - The company has a strong international presence, with over 200 overseas clients across more than 60 countries, and aims to further expand its market share in the global ceramic industry [14][17] - The issuance is part of a broader strategy to align with national initiatives such as the Belt and Road Initiative and to strengthen supply chain cooperation with ASEAN countries [11][13][17] Group 3 - The issuance process will involve a pricing mechanism based on the average trading price of the company's shares over the 20 trading days prior to the pricing date [21][22] - Zhi Yu Investment has committed to subscribe for shares amounting to 30 million yuan, agreeing to the same price as other investors [6][21][31] - The company has established a shareholder return plan for 2025-2027, which includes measures to address potential dilution of immediate returns from the issuance [7][12]

一、本次发行募集资金使用计划 本次发行募集资金总额不超过 70,000 万元（含），扣除发行费用后拟用于以下 用途： 单位：万元 序号 项目名称 实施主体 投资总额 拟使用募集资金金额 合计 - 143,839.96 70,000.00 如果本次发行扣除发行费用后的实际募集资金净额少于拟投入募集资金总额，不 足部分公司将通过自有或自筹资金解决。 在本次募集资金到位前，公司将根据项目进度的实际情况以自有或自筹资金先行 投入，待募集资金到位后，再按照相关法规规定以募集资金置换预先已投入募投项 目的自有或自筹资金。 湖南华联瓷业股份有限公司 募集资金使用的可行性分析报告 （修订稿） 二○二五年七月 目 录 释 义 本报告中，除另有说明，下列简称具有如下特定含义： 华瓷股份、公司、本 指 湖南华联瓷业股份有限公司 公司、发行人 本次发行 指 华瓷股份 2025 年度向特定对象发行 A 股股票 本次发行募投项目、 指 本次发行募集资金投资项目，即越南东盟陶瓷谷项目 本次募投项目 Etrillion Ceramics Co.,Ltd，溢兆利瓷业有限公司，发行人在越南设立 溢兆利 指 的全资子公司，本次募投项目实施主体 致 ...

Core Viewpoint - Huaci Co., Ltd. plans to expand its production capacity by establishing a new manufacturing base in Vietnam, funded by a private placement of up to 700 million yuan, marking its first refinancing since going public [2][4]. Group 1: Fundraising and Investment Plans - The company intends to raise up to 700 million yuan through a private placement, with the funds allocated entirely to the ASEAN Ceramic Valley project [3][4]. - The controlling shareholder, Zhiyu Investment, plans to subscribe for 30 million yuan of the new shares [3]. - The issuance will involve no more than 75.56 million shares to up to 35 specific investors [3]. Group 2: Production Capacity and Financial Projections - The new project in Vietnam aims to produce an additional 16.534 million pieces of colored glazed ceramics annually, with projected annual revenue of 1.405 billion yuan and net profit of 272 million yuan once operational [5]. - The internal rate of return on the investment is estimated at 14.25%, with a payback period of 9.12 years [5]. Group 3: Revenue and Profit Trends - Huaci Co., Ltd. reported revenues of 1.34 billion yuan in 2024, a year-on-year increase of 8.79%, and a net profit of 205 million yuan, up 14.21% [2][7]. - The company has consistently maintained a high sales rate for its colored glazed ceramics, with production and sales rates exceeding 110% from 2022 to 2024 [8]. Group 4: Market Presence and Strategy - The company has established a significant international presence, with foreign sales accounting for 67.20%, 62.84%, and 71.06% of total revenue from 2022 to 2024 [6]. - Huaci Co., Ltd. aims to leverage Vietnam's geographical advantages and cost efficiencies to enhance its market share in Europe and ASEAN countries [6]. Group 5: Dividend Policy - The company has increased its cash dividend payout, reaching 100 million yuan in 2024, which is 49.14% of its net profit [9]. - A future dividend plan is set to distribute at least 50% of net profit as cash dividends from 2025 to 2027 [9].