Analysis Report on the Justification of the Plan for Issuing A Shares to Specific Objects in 2025 (Revised Draft)
To meet the needs of the company's business development, in accordance with the Company Law, Securities Law, Administrative Measures for the Registration of Issuance of Securities by Listed Companies (hereinafter referred to as the "Registration Measures") and other relevant laws, administrative regulations, and normative documents, the company has compiled the Analysis Report on the Justification of the Plan for Issuing A Shares to Specific Objects (Revised Draft).
The terms or abbreviations used in this report have the same meaning as those in the "Glossary" of the "Guangdong Piano Scientific Art Home Furnishings Co., Ltd. 2025 Plan for Issuing A Shares to Specific Objects (Revised Draft)".
I. Background and Objectives of the Current Issuance of Shares to Specific Objects
(I) Background of the Current Issuance
- Continuous Government Encouragement of Consumption Benefits the Long-Term Development of the Home Furnishing Industry
Since 2022, the state has continuously introduced policies to promote consumption, expand domestic demand, and support the real estate industry, benefiting the development of the home furnishing industry. In April 2022, the General Office of the State Council issued the "Opinions on Further Unleashing Consumption Potential and Promoting the Sustained Recovery of Consumption" (Guo Ban Fa [2022] No. 9), which clearly proposed to stabilize the basic consumption base and required active efforts to upgrade the quality of physical consumption and strengthen the quality, branding, and standardization of manufactured goods. In December 2022, the Central Committee of the Communist Party of China and the State Council issued the "Outline of the Strategic Plan for Expanding Domestic Demand (2022-2035)", which defined the development goals and key tasks for implementing the strategy of expanding domestic demand, and clearly required continuous improvement of traditional consumption, promotion of healthy development of housing consumption, and promotion of home decoration consumption.
In July 2023, the Ministry of Commerce, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, and 10 other departments, jointly issued the "Notice on Several Measures to Promote Home Furnishing Consumption," emphasizing that home furnishing consumption covers multiple fields such as home appliances, furniture, home textiles, and home decoration. It is an important component of residents' consumption and a direct reflection of people's desire for a better life. It proposed to promote home furnishing consumption from four aspects: "vigorously improving the quality of supply, actively innovating consumption scenarios, effectively improving consumption conditions, and earnestly optimizing the consumption environment." The continuous introduction of stimulus policies for home furnishing consumption validates the important position of home furnishing consumption in economic growth and is expected to continue to receive policy support.
The 2024 Government Work Report made specific arrangements for "promoting stable growth in consumption," including stabilizing and expanding traditional consumption and encouraging and promoting the replacement of consumer goods. In March 2024, the State Council issued the "Action Plan for Promoting Large-Scale Equipment Renewal and Consumer Goods Trade-in," which clarified 5 aspects and 20 key tasks, including the implementation of the consumer goods trade-in action to promote the replacement of home decoration consumption. The introduction and implementation of industrial policies have laid the foundation for the sustained development of the home furnishing market in the future. In July 2024, the National Development and Reform Commission and the Ministry of Finance jointly issued the "Notice on Several Measures to Vigorously Support the Expansion of Large-Scale Equipment Renewal and Consumer Goods Trade-in," which specifically supported "the purchase of goods and materials for old house renovation, partial renovation of kitchens and bathrooms, and elderly-friendly home renovation, and the promotion of smart home consumption."