Guangdong Zhengye Technology Co., Ltd. (hereinafter referred to as the "Company") was listed on the Growth Enterprise 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 Issuance of Securities by Listed Companies" promulgated by the China Securities Regulatory Commission, the Company plans to issue no more than 68,259,385 shares (inclusive) to specific targets, raising no more than RMB 40,000,000,000 (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 GEM Targeted Offering of Shares Prospectus.")
I. Plan for the Use of Proceeds from the Targeted Offering of Shares
The total amount of proceeds to be raised from the targeted offering of shares shall not exceed RMB 40,000,000,000 (inclusive). After deducting issuance expenses, the entire amount will be used to supplement the Company's working capital and repay bank loans.
If the timing of the arrival of the targeted offering proceeds does not align with the Company's actual repayment progress for the relevant loans, the Company may use its own funds for advance repayment. Upon the arrival of the targeted offering proceeds, these funds will be used for reimbursement, or the relevant loans may be renewed, and repayment will be made upon the arrival of the proceeds. 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 arrangements for the repayment of each loan using the proceeds.
II. Background and Objectives of the Targeted Offering of Shares
(I) Background of the Targeted Offering of Shares
- Intensified Industry Competition, Encouraging Technological Innovation
In recent years, the battery and new energy industry chain has experienced a period of intense pain, moving from rapid expansion to structural overcapacity. In 2023 and 2024, the battery and new energy industry chain faces structural adjustments, with severe internal competition and a slowdown in overall production capacity expansion in the battery sector. On June 19, 2024, the Ministry of Industry and Information Technology issued the "Code of Conduct for the Lithium Battery Industry (2024 Edition)" and the "Administrative Measures for the Announcement of the Lithium Battery Industry (2024 Edition)," aiming to curb blind expansion, encourage technological innovation, improve product quality, and reduce costs. The Central Economic Work Conference held in December 2024 proposed comprehensive efforts to address "involutionary" competition and regulate the behavior of local governments and enterprises.
By 2025, capital will no longer flow in blindly. Except for a few leading companies that maintain their expansion pace, overall industry investment has slowed down, shifting towards more precise segmentation and new material strategies.
Based on industry conditions and policy releases, the rapid development of new energy is nearing its end. Future industry competition will focus more on new quality productive forces and technological breakthroughs, clearing excess capacity. In the "intelligent industrial testing equipment" sector, the Company, as one of the first batch of leading enterprises in Guangdong Province, focuses on the main track of intelligent industrial testing equipment. Centered on the core technology of "optical testing + automated control," it continues to deepen its work in the three major industries of "lithium batteries, flat panel displays, and PCBs," accelerating the application of X-ray 3D technology in the lithium battery industry, promoting industrial upgrading, and maintaining the Company's leading position in the domestic lithium battery testing market.