Analysis Report on the Plan for Issuing Convertible Corporate Bonds to Unspecified Objects
Jushen Logistics Group Co., Ltd. (hereinafter referred to as "Jushen" or "the Company") is a listed company on the Shenzhen Stock Exchange. In order to further enhance the company's comprehensive strength and core advantages, and to meet the funding needs for business development, the company intends to issue convertible corporate bonds to unspecified objects to raise no more than RMB 380 million (including principal). The net proceeds after deducting issuance costs will be used for the following projects:
| Project Name | Total Investment Amount | Amount of Funds to be Raised |
|---|---|---|
| Guinea Transshipment Project | 349,009,100 | 266,000,000 |
| Supplement Working Capital and Repay Bank Loans | 114,000,000 | 114,000,000 |
| Total | 463,009,100 | 380,000,000 |
(Unless otherwise specified in this report, relevant terms have the same meanings as in the "Plan for Issuing Convertible Corporate Bonds to Unspecified Objects by Jushen Logistics Group Co., Ltd.")
I. Necessity of the Issuance of Securities and Selection of Types
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Selection of Securities Type The type of securities selected for this issuance is convertible corporate bonds that can be converted into the company's A-shares. These convertible bonds and the future converted A-shares will be listed on the main board of the Shenzhen Stock Exchange.
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Feasibility and Necessity of the Securities Type Selection The projects funded by the issuance of convertible corporate bonds have been prudently evaluated by the company, and their implementation will further enhance the company's comprehensive strength and core competitiveness. The issuance of convertible corporate bonds to unspecified objects is feasible and necessary.
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Meeting the Funding Needs of Investment Projects The issuance aims to raise no more than RMB 380 million, which will be used to invest in the Guinea transshipment project and to supplement working capital and repay bank loans. The implementation of these projects will help expand the company's service scope, increase production and operational scale, and enhance market competitiveness. Using only self-owned funds would put pressure on the company's financial situation, while the company also needs to retain a certain amount of funds for daily operations; therefore, external financing is necessary to support project construction.
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Issuing Convertible Corporate Bonds is Suitable for the Company's Current Financing Method The convertible corporate bonds to be issued can be converted into company stocks under certain conditions, effectively adding an option to the bond issuance. This dual nature of equity and debt typically comes with a lower coupon rate and allows conversion during the conversion period, significantly reducing the company's financing costs. Additionally, convertible corporate bonds have a longer maturity, enabling the company to optimize its capital structure, meet development needs, and enhance shareholder returns. Therefore, the public issuance of convertible corporate bonds to unspecified objects is a necessary and suitable financing method for the company's current situation.