Securities Code: 002805
Securities Abbreviation: Fengyuan Stock
Shandong Fengyuan Chemical Co., Ltd.
(Registered Address: No. 1227 Dongshun Road, Tai'erzhuang District, Zaozhuang City)
Analysis Report on the Feasibility of Using Raised Funds for Issuing A Shares to Specific Targets in 2026
June 2026
I. Plan for Use of Raised Funds
The total amount of funds to be raised in this issuance shall not exceed RMB 1,428,000,000 (inclusive). After deducting issuance expenses, the net amount of raised funds will be used for the following projects:
| No. | Project Name | Project Investment (RMB million) | Raised Funds Used (RMB million) |
|---|---|---|---|
| 1 | Expansion and renovation project for 100,000 tons/year high-performance lithium iron phosphate cathode material | 81,670.99 | 70,000.00 |
| 2 | Production line project for 50,000 tons/year high-performance lithium iron phosphate cathode material | 44,734.30 | 30,000.00 |
| 3 | Supplementing working capital | 42,800.00 | 42,800.00 |
| Total | 169,205.29 | 142,800.00 |
If the net amount of raised funds from this issuance is less than the planned investment amount, the Board of Directors may, without changing the planned investment projects, adjust the investment amount of raised funds for the above projects and their priority based on the actual needs of the projects. Any shortfall will be covered by the company's own funds.
Before the raised funds are in place, the company will use its own funds or funds raised through other means to invest in the above projects based on the actual progress of the projects, and will be reimbursed after the raised funds are in place in accordance with relevant laws and regulations.
II. Investment Projects Using Raised Funds
(I) Expansion and Renovation Project for 100,000 Tons/Year High-Performance Lithium Iron Phosphate Cathode Material
- Project Overview
Project Name: Expansion and renovation project for 100,000 tons/year high-performance lithium iron phosphate cathode material
Operating Entity: Fengyuan (Yunnan) Lithium Energy, a wholly-owned subsidiary of the company. After the raised funds are in place, the company will invest the raised funds in Fengyuan (Yunnan) Lithium Energy through loans or capital increases.
Location: Yuxi City, Yunnan Province
Construction Content: Renovation of the company's first phase 50,000 tons/year lithium iron phosphate production line in Yuxi, Yunnan, and expansion to build a new 50,000 tons/year lithium iron phosphate production line.
- Project Investment Estimate
The investment estimate for this project is as follows:
| No. | Project | Investment Amount (RMB million) | Proportion |
|---|---|---|---|
| I | Engineering and equipment costs | 71,317.00 | 87.32% |
| II | Contingency | 2,139.51 | 2.62% |
| III | Initial working capital | 8,214.48 | 10.06% |
| Total Project Investment | 81,670.99 | 100.00% |
- Project Economic Benefit Forecast
The project's economic benefits are expected to be good.
- Project Approval Status
As of the date of this report announcement, the project has obtained filing documents, and the environmental impact assessment approval is being processed.
(II) Production Line Project for 50,000 Tons/Year High-Performance Lithium Iron Phosphate Cathode Material