Guangdong Zhengye Technology Co., Ltd. (hereinafter referred to as the "Company") was listed on the ChiNext market of the Shenzhen Stock Exchange on December 31, 2014. To meet the capital needs of the Company's business development, enhance its capital strength, and improve profitability, in accordance with the "Company Law," "Securities Law," "Articles of Association," and the "Administrative Measures for the Registration of Securities Issuance by Listed Companies" promulgated by the China Securities Regulatory Commission, and other relevant laws, regulations, and normative documents, the Company plans to issue no more than 68,259,385 shares (inclusive) to specific targets, with total raised funds not exceeding RMB 100,000,000 (inclusive). After deducting issuance expenses, the net proceeds will be used to supplement working capital and repay bank loans.
(Unless otherwise specified in this report, the terms used herein have the same meaning as defined in the "Guangdong Zhengye Technology Co., Ltd. 2025 Plan for Issuing Shares to Specific Targets on the ChiNext Market.")
I. Plan for the Use of Raised Funds from the Issuance of Shares to Specific Targets
The total amount of raised funds from the issuance of shares to specific targets shall not exceed RMB 40,000.00 million (inclusive), all of which will be used to supplement the Company's working capital and repay bank loans.
If the arrival time of the raised funds from the issuance to specific targets does not align with the Company's actual repayment progress of the corresponding loans, the Company may use its own funds to repay in advance and then replace them with the raised funds upon their arrival, or renew the relevant loans and repay them upon the arrival of the raised funds. Within the scope permitted by relevant laws and regulations and authorized by the Company's shareholders' meeting, the Company's Board of Directors has the right to determine or adjust the specific use arrangements for each loan repayment and the amount thereof using the raised funds.
II. Analysis of the Necessity and Feasibility of the Investment Projects Funded by the Raised Capital
(I) Necessity of using the raised funds to supplement working capital