Beijing Baihua Yuebang Technology Co., Ltd.
Report on the Feasibility of Using Raised Funds
Beijing Baihua Yuebang Technology Co., Ltd. plans to issue shares to specific objects, not exceeding 17,654,936 shares (inclusive of the principal amount). The feasibility analysis of the use of raised funds for this issuance is as follows: (Unless otherwise specified, terms in this report have the same meaning as in the "Beijing Baihua Yuebang Technology Co., Ltd. 2026 Plan for Issuing Shares to Specific Objects.")
I. Plan for Using Raised Funds
The total amount of funds to be raised by the company through the issuance of shares to specific objects shall not exceed RMB 295,013,980.56 (inclusive of the principal amount). After deducting issuance expenses, the company plans to use the net proceeds entirely for replenishing working capital.
II. Analysis of the Necessity and Feasibility of the Project for Using Raised Funds
(I) Necessity of Using Raised Funds to Replenish Working Capital
- Strengthen Cash Reserves, Supporting Business Development and Strategic Optimization
The company focuses on the mobile phone after-sales service industry, operating through a model that combines physical store chain operations with alliance business operations. It provides consumers with mobile phone repair services, product sales, used phone recycling and sales, and other mobile phone-related services. In a mature competitive landscape, sales channels have become a core strategy for companies to seize market share and optimize profit structures. Building an extensive after-sales service network requires substantial and continuous capital investment. To meet consumers' demand for higher-end service quality and achieve stronger customer loyalty, the company will, while maintaining its existing store scale, continuously expand its business scope, optimize its product positioning and service quality, leverage its established brand advantages in the industry, and firmly establish user trust in brands such as "Baibang" and "Lightning Bee" through excellent service quality and a comprehensive after-sales service system, thereby maximizing the company's channel and resource integration advantages and promoting overall company development.
The raised funds, after deducting issuance expenses, are planned to be used entirely for replenishing working capital. This will further enhance the company's capital strength, alleviate some financial pressure, and provide sufficient operating capital for the company's subsequent business layout and strategic optimization. This will help the company seize industry development opportunities, promote healthy and long-term business development, and effectively improve shareholder returns.
- Optimize the Company's Capital Structure and Enhance Risk Resistance Capability