HXPP(SZ:002228)2022-12-07 09:31Fund Establishment and Progress - The company has established two industry funds, with the first fund in collaboration with Zhongxin Rongchuang, having an initial investment of over RMB 200 million, where the company holds a 20% stake in the first phase [1] - The second fund, in partnership with GF Xinde and Ruiyuan Capital, has a target scale of RMB 800 million (with an initial phase of RMB 200 million), where the company’s wholly-owned subsidiary, Yurong Investment, invests RMB 40 million as a subordinate investor [1] Project Integration and Financial Planning - The projects acquired by the funds are extensions of the company's main business, and the company is involved in the research and cultivation of these projects, allowing for quick integration into the listed company [2] - A new factory needs to achieve a capacity utilization rate of approximately 50% to break even [2] - Funding for future acquisitions by the listed company may come from various sources, including issuing stocks or using the company's own funds, depending on the actual situation [2] E-commerce and Client Relationships - E-commerce currently accounts for a small percentage of the company's total sales, but it is expected to gradually increase in line with industry trends; the company has long-term partnerships with platforms like JD.com, Vipshop, Dangdang, and SF Best [2] - Large clients typically choose 2-4 suppliers, with some unique cases having exclusive arrangements, but the company does not rely solely on any single industry or client [2] Employee Incentives and Stock Issuance - The company places significant emphasis on employee incentive mechanisms and will consider various methods to effectively motivate employees, with specific plans to be announced [3] - The non-public stock issuance plan has been approved by the China Securities Regulatory Commission and will proceed once the approval document is obtained, with timing to be determined based on specific circumstances [3] - The company prefers investors for the upcoming targeted issuance who can achieve mutual benefits or complementarity [3]