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]