Important Content Reminder:
- Proposed new investment project name: Annual production of 10,500 tons of 4,4'-biphenol series products and 150 tons of supported metal catalyst project.
- Proposed implementation entity: Wholly-owned subsidiary Anhui Xingxin New Materials Co., Ltd.
- Proposed implementation location: Dongzhi County, Anhui Province.
- Proposed amount of overraised funds to be used: 155 million RMB.
- Investment construction period: 3 years, with the project implemented in two phases, where phase one involves an annual production of 10,500 tons of 4,4'-biphenol series products, and phase two involves an annual production of 150 tons of supported metal catalysts.
- If the new investment project is approved by the shareholders' meeting, approximately 20.55 million RMB of remaining overraised funds (specific to be based on the balance of the overraised funds account on the day of cancellation) will be permanently allocated to supplement working capital, accounting for about 7.92% of the total overraised funds. After this capital supplementation, all overraised funds from the company's initial public offering will be fully utilized, and the corresponding overraised funds account will be canceled in accordance with regulations.
Shaoxing Xingxin New Materials Co., Ltd. (hereinafter referred to as "the Company") held the 16th meeting of the 3rd Board of Directors on May 27, 2026, where it reviewed and approved the proposal on using part of the overraised funds to increase capital for its wholly-owned subsidiary and permanently supplement working capital. The Board agreed to use part of the overraised funds of 155 million RMB obtained from the initial public offering to increase capital for its wholly-owned subsidiary Anhui Xingxin New Materials Co., Ltd. (hereinafter referred to as "Anhui Xingxin") for the implementation of the new investment project; at the same time, it agreed to permanently supplement working capital with the remaining overraised funds of approximately 20.55 million RMB, accounting for 7.92% of the total overraised funds.
This matter still needs to be submitted to the company's second extraordinary shareholders' meeting of 2026 for review and approval. The specific situation is announced as follows:
According to the approval from the China Securities Regulatory Commission on the registration of the initial public offering of Shaoxing Xingxin New Materials Co., Ltd. (Zheng Jian Xu Ke [2023] No. 2120), the company’s initial public offering of 22,000,000 shares of ordinary RMB shares (A shares), with a par value of 1 RMB per share, at an issue price of 41.00 RMB per share, raised a total of 902 million RMB, with a net amount of 809.588 million RMB after deducting non-taxable issuance costs, of which the total overraised funds amounted to 259.588 million RMB.
Lixin Accounting Firm (Special General Partnership) conducted an examination of the funds raised from the company’s initial public offering on December 18, 2023, and issued the verification report No. [2023] ZF11355. All raised funds have been deposited into the special account established by the company, and the company has signed a tripartite supervision agreement on the raised funds with the sponsor and the commercial bank holding the raised funds.
(1) Basic Situation of the Investment Projects Funded by Raised Funds
According to the prospectus for the initial public offering of Shaoxing Xingxin New Materials Co., Ltd., the investment projects funded by the raised funds and the usage plan are as follows:
| No. | Project Name | Total Investment Amount (10,000 RMB) | Proposed Investment from Raised Funds (10,000 RMB) |
|---|---|---|---|
| 1 | Annual production of 14,000 tons of environmentally friendly solvent products and 5,250 tons of polyurethane foaming agent project | 31,250.00 | 26,850.00 |
| 2 | 28,800 tons/year piperazine series products, 74,600 tons/year heavy metal chelating agents, 1,000 tons/year bis-morpholine ethyl ether project | 16,900.00 | 9,200.00 |
| 3 | R&D building construction project | 3,750.00 | 3,750.00 |
| 4 | Supplementing working capital | 15,200.00 | 15,200.00 |
| Total | 67,100.00 | 55,000.00 |