Group 1 - The company, Diou Waterhua, plans to raise up to 360 million yuan through a private placement of A-shares to a specific entity, Shuihua Zhiyun, with the issuance price set at 5.05 yuan per share, and the number of shares not exceeding 71.2871 million [1] - Following the issuance, the shareholding ratio of the actual controller and its concerted parties will increase to 36.26% [1] - The company is facing financial pressure, with debt ratios recorded at 64.11%, 66.93%, 72.33%, and 63.49% from the end of 2022 to September 2025, indicating a consistently high level of leverage [1] Group 2 - As of September 2025, the company has short-term borrowings and current liabilities totaling 1.128 billion yuan, alongside an outstanding convertible bond balance of 844 million yuan, indicating significant short-term repayment pressure [1] - Financial expenses are high, with 102 million yuan recorded for the first nine months of 2025, while the net profit attributable to shareholders shows a loss of 141 million yuan during the same period, reflecting ongoing performance challenges [1] - The company has terminated two major projects from its 2019 convertible bond fundraising due to market conditions and capacity demand changes, reallocating 477 million yuan of surplus funds to supplement working capital [2] Group 3 - The "Oushennuo Eight Group's annual production of 50 million square meters of high-end wall and floor tile intelligent production line phase II" project has incurred a total investment of 518 million yuan but has generated a loss of 8.8959 million yuan, falling short of the promised annual net profit target of 154 million yuan [2] - The decline in revenue from engineering channels is attributed to difficulties in payment from real estate clients, lower-than-expected capacity utilization, and intensified competition leading to price reductions [2] - Another project, "Two Groups' annual production of 13 million square meters of high-end ceramic tile intelligent production line," has also been repurposed and has yet to generate any revenue [2]

Core Viewpoint - The company, Diou Home (002798.SZ), plans to adjust the use of funds raised from its convertible bonds, reallocating approximately 477 million yuan to permanently supplement its working capital due to changes in market conditions and operational needs [2][3][4]. Fund Allocation Changes - Diou Home has decided to change the funding purpose of its previously planned projects, specifically the "Oushinou Eight Group Annual Production of 50 Million Square Meters High-End Wall and Floor Tile Intelligent Production Line (Energy Saving and Emission Reduction, Water Saving) Project Phase II" and the "Two Groups Annual Production of 13 Million Square Meters High-End Ceramic Floor Tile Intelligent Production Line Project" [2][3]. - The company had initially raised 1.5 billion yuan through convertible bonds in 2021, with a net amount of approximately 1.482 billion yuan after deducting issuance costs [4]. Operational Adjustments - The decision to repurpose the remaining funds is based on the current market environment and competition, which have significantly changed since the original project plans were made [5][6]. - The company has already utilized 400 million yuan of idle funds to temporarily supplement working capital, which has not yet been repaid [4]. Production Capacity - Diou Home asserts that its current production capacity meets demand, and the new ceramic production lines and technological upgrades have sufficiently addressed the company's needs [5][6]. - The company completed a large-scale high-performance ceramic production line in November 2021, which significantly enhanced its capacity for large-format ceramic slabs [5]. Future Considerations - The company emphasizes the importance of maintaining liquidity to manage potential risks in an uncertain market environment, hence the decision to allocate funds to working capital rather than continuing with the original investment projects [4][5].

Group 1 - The company held its sixth board meeting on July 23, 2025, with all 8 directors present, confirming compliance with legal and regulatory requirements [1] - The board approved a resolution to change the use of raised funds from the public offering of convertible bonds, reallocating surplus funds of 476.5843 million yuan to permanently supplement working capital [2][3] - The board's decision to change the use of funds has been reviewed and approved by the audit and strategy committees and will be submitted for approval at the upcoming shareholder and bondholder meetings scheduled for August 8, 2025 [2][4] Group 2 - The company will terminate the special account for the raised funds after reallocating the remaining funds, and the tripartite supervision agreement with the bank and sponsor will also be terminated [2] - The upcoming shareholder meeting will take place at 14:30 on August 8, 2025, at the company's headquarters in Chengdu, with both in-person and online participation [3][4] - The first bondholder meeting is also scheduled for August 8, 2025, at 15:00, at the same location [4][5]

Core Viewpoint - The company plans to change the use of raised funds from its convertible bond issuance and permanently supplement its working capital with the remaining funds due to changes in market conditions and internal operational needs [5][8][9]. Fundraising Overview - The company raised a total of 1.5 billion RMB through the issuance of 15 million convertible bonds, with a maturity of 6 years [1]. - The net amount raised after expenses was 1.48 billion RMB, with specific projects outlined for investment [2]. Investment Project Details - The main projects funded include the "High-end Wall and Floor Tile Intelligent Production Line" with a total investment of 1.64 billion RMB, and the "High-end Ceramic Tile Intelligent Production Line" with a total investment of 366 million RMB [2][4]. - As of July 20, 2025, the cumulative investment in the first project was approximately 517.83 million RMB, representing 72.78% of the planned investment [4]. Change in Fund Usage - The company intends to change the use of funds due to a significant decline in demand in the construction ceramics industry, which has led to a reduction in effective market demand [5][8]. - The decision to repurpose the funds is aimed at optimizing resource allocation and reducing investment risks, as the original projects are unlikely to yield the expected returns under current market conditions [8][9]. Financial Strategy - The company has temporarily used 400 million RMB of idle funds to supplement working capital, with a total remaining balance of approximately 476.58 million RMB after accounting for interest income [2][3]. - The board of directors has approved the change in fund usage, which will enhance the company's financial structure and reduce financing costs [9][10]. Approval Process - The change in fund usage has been reviewed and approved by the company's board and will be submitted for further approval from shareholders and bondholders [9][10].