Fulin Precision Co., Ltd. (hereinafter referred to as "Fulin Precision" or the "Company") intends to raise funds by issuing shares to specific objects to meet the Company's capital needs for business development, enhance its capital strength, and improve its profitability, in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Securities Law of the People's Republic of China" (hereinafter referred to as the "Securities Law"), the "Administrative Measures for the Registration of Issuance of Securities by Listed Companies" (hereinafter referred to as the "Registration Measures"), and other relevant laws, regulations, and normative documents. Unless otherwise specified, the terms used in this report shall have the same meaning as defined in the "Fulin Precision Co., Ltd. Proposal for Issuance of Shares to Specific Objects."
The Company's feasibility analysis on the use of raised funds for the issuance of shares to specific objects is as follows:
I. Plan for the Use of Raised Funds
The total amount of funds to be raised by issuing shares to specific objects shall not exceed RMB 305,441.87 million (inclusive), and shall not be less than RMB 2,000.00 million (inclusive). The amount of funds used for replenishing working capital in the previous fundraising exceeded 30% of the total amount of the previous fundraising. The Company has deducted the excess portion from the total amount of the current fundraising. After deducting relevant issuance expenses, the net amount of raised funds will be used for the following projects:
| No. | Project Name | Estimated Total Investment | Funds to be Raised |
|---|---|---|---|
| 1 | 500,000 tons/year high-end energy storage lithium iron phosphate project | 600,000.00 | 235,441.87 |
| 2 | New energy vehicle electric drive system key component project | 30,000.00 | 30,000.00 |
| 3 | Robot integrated electric joint project | 20,000.00 | 20,000.00 |
| 4 | Intelligent chassis by-wire system key component project | 10,000.00 | 10,000.00 |
| 5 | Low-altitude flying object power system key component project | 10,000.00 | 10,000.00 |
| Total | 670,000.00 | 305,441.87 |
According to the "Explanation of the 500,000 tons/year High-end Energy Storage Lithium Iron Phosphate Project" issued by the Ijin Horo Banner Development and Reform Bureau and Science and Technology Bureau, the "500,000 tons/year High-end Energy Storage Lithium Iron Phosphate Project" will be constructed in two phases. The first phase is named "Inner Mongolia Fulin Times New Material Co., Ltd. 250,000 tons/year High-end Energy Storage Lithium Iron Phosphate Phase I Project" (Project Code: 2602-150627-04-01-682678). According to the filing documents, the total investment for the first phase is RMB 400,000 million. To improve the efficiency of fund utilization, the board of directors confirms that the raised funds of RMB 235,441.87 million for the "500,000 tons/year High-end Energy Storage Lithium Iron Phosphate Project" will be fully used for the first phase of the project.
Before the raised funds for this issuance are in place, the Company will use its own funds for advance investment in the raised fund investment projects. These funds will be replaced after the raised funds are in place, in accordance with relevant laws and regulations. After the raised funds are in place, if the net amount of raised funds after deducting issuance expenses is less than the total estimated investment, the Company will adjust and decide on the specific investment projects, priority, and investment amounts within the scope of the raised fund investment projects based on the urgency of the projects and the actual amount of raised funds. Any shortfall will be covered by the Company's own funds.