Guangdong Sunwill Precising Plastic Co., Ltd. (hereinafter referred to as "the Company") is a company listed on the Main Board of the Shenzhen Stock Exchange. To meet the capital needs for the Company's business development, enhance profitability, and improve overall competitiveness, the Company, considering its actual situation and in accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," and the "Administrative Measures for the Registration of Securities Issuances by Listed Companies" (hereinafter referred to as the "Registration Measures"), and other relevant laws, administrative regulations, departmental rules, or normative documents and the "Articles of Association," has compiled the "2026 Simplified Procedure Private Placement Stock Issuance Plan Argumentation Analysis Report (Revised Draft)."
According to the bidding results of this issuance, the intended subscription amount from the issuance targets totals RMB 24,229.10 million. The total amount of raised funds does not exceed RMB 300 million and does not exceed 20% of the Company's net assets at the end of the most recent accounting year. After deducting relevant issuance expenses, the net proceeds from the fundraising will be fully used for the following projects:
| Item | Project Name | Total Project Investment (RMB million) | Amount of Raised Funds to be Used (RMB million) |
|---|---|---|---|
| 1 | Automated Production Line Upgrade Project for Fan Blades | 11,823.62 | 10,540.20 |
| 2 | High-Performance Modified Composite Material Production Project | 7,074.81 | 6,488.90 |
| 3 | Supplementary Working Capital | 7,200.00 | 7,200.00 |
| Total | 26,098.43 | 24,229.10 |
Before the raised funds are in place, the Company will use its own funds to invest in the fundraising investment projects based on their actual situation. Once the funds are in place, they will be replaced according to the procedures stipulated by relevant laws and regulations. After the raised funds are in place, if the net proceeds after deducting issuance expenses are less than the total planned investment for the fundraising projects, the Company will adjust and decide on the specific investment projects, priorities, and investment amounts for each project within the scope of the fundraising investment projects, based on the actual amount of raised funds and considering factors such as urgency. Any shortfall will be covered by the Company's own funds.
Unless otherwise specified, the terms used in this report have the same meaning as in the "Guangdong Sunwill Precising Plastic Co., Ltd. 2026 Simplified Procedure Private Placement Stock Issuance Plan (Revised Draft)."
I. Background and Objectives of this Private Placement
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Background of this Stock Issuance
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National Industrial Policies Encourage and Support Healthy Industry Development
In recent years, to further expand domestic demand and better meet the people's needs for a better life, the state has successively introduced a series of policies to stimulate consumption, including the "Notice on Strengthening Efforts to Promote Large-Scale Equipment Renewal and Consumer Goods Trade-in in 2025," the "Notice on Doing a Good Job in Home Appliance Trade-in in 2025," and the "Action Plan for Promoting Consumer Goods Trade-in." These policies focus on actions such as upgrading home appliances to "smart" ones, renovating home decoration and bathrooms, and replacing vehicles with more efficient ones. To date, the trade-in initiatives have yielded significant results, continuously unleashing consumption potential. Particularly in the area of home appliance trade-in, the government strongly supports home appliance sales companies in collaborating with manufacturers and recycling companies to promote trade-in promotions. This involves integrating upstream and downstream resources across the entire chain, setting up online and offline trade-in zones for home appliances, and offering preferential treatment to consumers who trade in old home appliances for energy-efficient ones, thereby effectively stimulating domestic demand for home appliance consumption.