I. Fundraising Plan
The total amount to be raised through the simplified procedure for specific objects is no more than 108.5 million yuan (including the principal). The net amount after deducting relevant issuance costs will be fully invested in the following projects:
| No. | Project | Total Investment Amount | Amount to be Raised |
|---|---|---|---|
| 1 | R&D and Industrialization of Embedded Memory | 152.42 million yuan | 108.5 million yuan |
If the company invests in the project using self-raised funds before the fundraising is completed, the amount invested will be replaced by the raised funds once they are available. If the actual amount raised (after deducting issuance costs) is less than the intended amount for the project, the board will arrange the specific use of the funds based on the importance and urgency of the uses. Any shortfall will be addressed through self-raised funds. Within the final scope of the investment projects, the company will adjust the amount of funds allocated to the projects based on the actual amount raised and the urgency of the projects.
II. Basic Situation and Feasibility Analysis of the Investment Projects
(1) Project Overview
This project focuses on the R&D and industrialization of embedded memory, enriching the product structure and deepening the embedded storage business layout based on the company's existing technology and products. The company plans to purchase a series of production testing and R&D testing hardware and software equipment, as well as recruit professional technical talent to expand the R&D team, continuously strengthening R&D and business capabilities in the embedded storage field. The project will help the company enhance its independent innovation capabilities, accelerate business expansion in smart TVs, network communications, tablets, and commercial displays, and improve market competitiveness. The total planned investment for the project is 152.42 million yuan, with 108.5 million yuan to be funded through the raised funds, while the remaining portion will be self-raised by the company, with a planned construction period of 3 years.
(2) Necessity of Project Implementation
- Aligning with Industry Development Trends and Seizing Market Growth Opportunities Currently, the global storage industry has entered a new growth cycle. With the ongoing deepening of intelligent and digital transformation, the demand for high-performance and high-reliability storage products in downstream application scenarios is steadily increasing. The company has made progress in product certification and industry access, gaining validation from several industry clients, laying a foundation for business development. In recent years, the company has closely tracked industry technology evolution and market trends, actively upgrading products and expanding business scale, making enhancing the supply capacity of its own brand products a key strategic direction. Through the implementation of this project, the company can leverage its existing management system and market resources to strengthen the market supply capacity of products such as eMMC, DDR, and LPDDR, effectively enriching the product structure, better meeting customer application needs, and enhancing brand influence and service capabilities, fully seizing industry growth opportunities.