Jiangsu Flag Chemical Industry Co., Ltd. (hereinafter referred to as "Flag Chemical" or "the Company") is listed on the ChiNext board of the Shenzhen Stock Exchange. To meet the capital needs for the Company's business development, expand its operating scale, and further enhance its capital strength and 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"), and 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, the Company plans to raise funds through issuing shares to specific objects. The Company has compiled this analysis report on the plan for issuing shares to specific objects.
(Unless otherwise specified, the terms used in this report have the same meaning as in the "Jiangsu Flag Chemical Industry Co., Ltd. 2026 Plan for Issuing A Shares to Specific Objects (Draft for Review)".)
I. Background and Objectives of the Current Issuance of Shares to Specific Objects
(I) Background of the Current Issuance of Shares to Specific Objects
- Policy Support Empowers Industrial Upgrading
Food security is a cornerstone of national security, and ensuring food and agricultural product safety is of paramount importance to the national economy and people's livelihoods. Pesticides, as an indispensable input in agricultural production, can effectively prevent and control crop pests, diseases, and weeds, thereby ensuring and increasing yields. They provide technical support for food and agricultural product security and are an important driving force for agricultural modernization. In recent years, the state has successively issued policies such as the "Outline for Accelerating the Construction of a Strong Agricultural Country (2024-2035)", the "14th Five-Year Plan for Promoting Agricultural and Rural Modernization", the "14th Five-Year Plan for National Planting Industry Development", and the "14th Five-Year Plan for National Pesticide Industry Development" to encourage, guide, and support the sustained, healthy, and stable development of China's pesticide industry. The "15th Five-Year Plan for National Economic and Social Development Outline" proposes to "coordinate the development of technological agriculture, green agriculture, quality agriculture, and brand agriculture, and build agriculture into a modern major industry." This strengthens the regulatory and green transformation orientation of the pesticide industry, which will inevitably accelerate the research, development, promotion, and application of efficient, low-toxicity, and low-residue pesticide products and biopesticides. The transformation and upgrading of the pesticide industry are inevitable. At the same time, with the continuous strengthening of environmental regulation, small and medium-sized pesticide enterprises will gradually be phased out due to their inability to bear the high costs of environmental safety and energy consumption dual control. The supply side of the pesticide industry is expected to continue to improve.
- Pesticide Market Demand Maintains Growth Momentum