Core Viewpoint - Shenzhen Shangrong Medical (002551) announced the termination of the "High-end Medical Consumables Industrialization Project" and plans to use the remaining raised funds to permanently supplement working capital [1][2][3] Group 1: Project Termination - The project was initially approved for a total fundraising of 750 million yuan through convertible bonds, with a net amount of 733 million yuan after expenses [2] - As of July 31, 2025, the project had accumulated an investment of 415 million yuan, representing 56.73% of the planned investment [2] - The decision to terminate the project was influenced by intensified market competition and declining profit margins, making the original profit expectations unattainable [3][4] Group 2: Financial Performance - The company has faced significant financial challenges, with a cumulative loss of nearly 400 million yuan over four and a half years [6] - Revenue figures from 2021 to 2024 were 1.79 billion yuan, 1.28 billion yuan, 1.19 billion yuan, and 1.44 billion yuan, showing a year-on-year decline of -21.04%, -28.74%, -6.49%, and an increase of 21.40% respectively [7] - In the first half of 2025, the company reported a revenue of 528 million yuan, a year-on-year decline of 16.38%, and a net loss of 7.76 million yuan, a significant drop of 155.31% compared to the previous year [7] Group 3: Asset Management and Regulatory Scrutiny - The company has been under regulatory scrutiny regarding the use of raised funds, with questions raised about the project's expected benefits and the authenticity of fund usage [4][5] - As of June 30, 2025, the total assets of the company were 3.542 billion yuan, with cash and cash equivalents amounting to 419 million yuan, a decrease of 17% from the beginning of the period [8]