Henan SF Diamond High-Material Co., Ltd. (hereinafter referred to as "SF Diamond" or "the Company") plans to issue A shares to specific objects, with a proposed total fundraising amount not exceeding RMB 200,000.00 million. In accordance with the "Administrative Measures for the Registration of Issuance of Securities by Listed Companies" and other relevant regulations issued by the China Securities Regulatory Commission, the Company has prepared this Feasibility Analysis Report on the Use of Raised Funds for the Issuance of A Shares to Specific Objects.
Unless otherwise specified in this report, the terms used herein have the same meaning as in the "Pre-plan for Henan SF Diamond High-Material Co., Ltd.'s Issuance of A Shares to Specific Objects in 2026".
I. Plan for the Use of Raised Funds
The total fundraising amount for this issuance is expected to not exceed RMB 200,000.00 million (inclusive). After deducting issuance expenses, the funds will be used for the following projects:
| No. | Project Name | Total Project Investment (RMB million) | Raised Funds Allocation (RMB million) |
|---|---|---|---|
| 1 | Diamond Drill Bit Industrialization Project | 184,565.25 | 175,000.00 |
| 2 | Supplementary Working Capital Project | 25,000.00 | 25,000.00 |
| Total | 209,565.25 | 200,000.00 |
Within the scope of the above-mentioned fundraising investment projects, the Company may make appropriate adjustments to the order of investment and specific amounts for the corresponding fundraising investment projects based on the project's progress and actual capital needs. Before the raised funds are in place, the Company may use its own funds to invest in the fundraising investment projects and will be reimbursed after the raised funds are in place, in accordance with relevant regulations. If the actual net amount of raised funds after deducting issuance expenses is less than the total planned investment in fundraising projects, the shortfall will be covered by the Company's own funds.
II. Specifics and Feasibility Analysis of the Fundraising Investment Projects
(I) Diamond Drill Bit Industrialization Project
- Project Overview
The Diamond Drill Bit Industrialization Project will utilize the Company's existing factory premises for factory renovation and supporting utility construction. It will involve the procurement of professional production and testing equipment, such as high-precision laser processing, precision grinding, and automatic dimension inspection equipment. Professional software systems for simulation design and warehouse management will also be deployed to achieve large-scale production of diamond drill bits. The project leverages the Company's years of accumulated expertise in polycrystalline diamond composite materials, multi-axis laser precision processing, and precision tool design, focusing on the rigid demand for high-precision, long-life micro-hole processing tools in downstream high-frequency and high-speed circuit boards, silicon carbide, and single crystal silicon substrates. This will enable the industrialization and mass production of diamond drill bit products, enhancing the domestic supply capacity of high-end processing consumables for the semiconductor industry. Upon completion, the project will enrich the Company's portfolio of precision superhard tools, entering the integrated circuit and semiconductor application fields. This will create a new high-value-added profit segment, optimize the Company's overall profit structure, enhance its market competitiveness and industry risk resistance in the superhard precision tool sector, and support the Company's long-term, high-quality, sustainable development.
- Necessity and Feasibility of the Project
(1) Necessity
- Meeting the incremental demand from integrated circuits and semiconductors, and strengthening domestic high-end substrate processing capabilities