Yurocka Precision Information Engineering Co., Ltd. (hereinafter referred to as "Yurocka" or "the Company") plans to raise funds by issuing A-shares to specific objects (hereinafter referred to as "this issuance to specific objects" or "this issuance"). The feasibility analysis of the Company's use of funds raised from this issuance to specific objects is as follows:
I. Plan for Use of Raised Funds
The total amount of funds expected to be raised from this issuance shall not exceed RMB 100,000.00 million (inclusive). After deducting issuance expenses, the entire amount will be used for the "Rocket Engine Core Component Precision Manufacturing and Industrialization Project (Phase I)". The specific details are as follows:
| Item | Project Name | Total Investment | Raised Funds Investment |
|---|---|---|---|
| 1 | Rocket Engine Core Component Precision Manufacturing and Industrialization Project (Phase I) | 100,357.20 | 100,000.00 |
Before the raised funds for this issuance are in place, the Company may make advance investments using its own funds or funds raised through other means, and will replace them according to relevant laws and regulations after the raised funds are in place. If the net amount of funds actually raised after deducting issuance expenses is less than the planned amount of raised funds to be used, the Company will resolve it through its own funds, bank loans, or other means.
If the total amount of funds raised from this issuance to specific objects is adjusted due to changes in regulatory policies or requirements in the registration documents for issuance, it will be adjusted accordingly at that time.
II. Project Details of Raised Funds Investment
(I) Specific Details of Raised Funds Investment Project
- Project Overview
The project implementation entity is the Company's wholly-owned subsidiary, Digital Technology. The project location is in Tai'an, Shandong. The total investment for this project is RMB 100,357.20 million, and it is planned to use RMB 100,000.00 million of raised funds. The project aims to purchase advanced 3D printing, processing, and testing equipment, optimize production processes and team configuration, precisely match market demand for related services, and establish a production capacity of 120 sets of thrust chambers and 120 sets of turbine pump core components for rocket engines.
The project construction period is expected to be 24 months.
- Project Benefits
Based on the feasibility study and project benefit calculations, the project will significantly enhance the Company's revenue scale upon reaching full production. At the same time, the fact that the net present value after tax is greater than zero indicates that the project will achieve a certain level of excess returns while meeting the benchmark rate of return requirement, i.e., profitability. The internal rate of return (IRR) after tax is higher than the general industry benchmark rate of return, indicating good investment returns.
- Matters Requiring Reporting for the Project
As of the announcement date of this preliminary plan, the project has obtained the "Shandong Province Construction Project Filing Certificate" (Project Code: 2605-370990-89-01-805770). The land acquisition for this project is under negotiation, and procedures such as environmental impact assessment are being prepared. These will be handled in a timely and compliant manner in accordance with relevant laws and regulations.
(II) Analysis of the Necessity and Feasibility of the Raised Funds Investment Project
- Necessity of Project Implementation
(1) Responding to the Urgency of National Strategy
According to the ITU's "first come, first served, first come, first served" rule, orbital frequency resources are scarce and exclusive. China has declared orbital frequency resources for over 200,000 satellites, but deployment must be completed within a strict timeframe, otherwise the non-compliant portion will be reclaimed. China urgently needs to expand the supply chain of launch vehicles through market-oriented means to safeguard China's rights to use space.