Stock Code: 300835 Stock Abbreviation: Sinomag Technology
Anhui Sinomag Technology Co., Ltd. (hereinafter referred to as "Sinomag Technology" or the "Company") is a company listed on the ChiNext market of the Shenzhen Stock Exchange. To further enhance the Company's core competitiveness and capital strength, improve its technical level and market position, and promote long-term development, in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Administrative Measures for the Issuance of Securities by Listed Companies, and other relevant laws, regulations, and normative documents, the Company intends to issue shares to specific targets, raising no more than 760,000,000.00 RMB (inclusive) for the Vietnam Phase II project, the chip inductor manufacturing project, and to supplement working capital and repay bank loans.
I. Use Plan for Proceeds from this Issuance
The total amount of proceeds from this issuance of shares to specific targets (including issuance expenses) shall not exceed 760,000,000.00 RMB (inclusive), subject to the registration approval document from the China Securities Regulatory Commission (CSRC). The net proceeds after deducting issuance expenses will be used for the following projects:
Unit: 10,000 RMB
| No. | Project Name | Investment Amount | Proposed Proceeds to be Used |
|---|---|---|---|
| 1 | Vietnam Phase II Project | 35,845.65 | 31,000.00 |
| 2 | Chip Inductor Manufacturing Project | 33,561.80 | 25,000.00 |
| 3 | Supplement Working Capital and Repay Bank Loans | 20,000.00 | 20,000.00 |
| Total | 89,407.45 | 76,000.00 |
If the net proceeds from this issuance are less than the amount proposed to be used for the above projects, the Company will adjust and finally decide on the specific investment projects, priorities, and specific investment amounts for each project based on the net proceeds and the urgency of the projects. Any shortfall in proceeds will be covered by the Company using its own funds or through other financing methods.
Before the proceeds are in place, the Company will invest with self-raised funds according to the actual needs of project progress, and will replace them according to the procedures stipulated by relevant regulations after the proceeds are in place.
II. Background and Purpose of this Issuance of Shares to Specific Targets
(I) Background of this Issuance of Shares to Specific Targets
- National policy supports the development of the magnetic materials and electronic components industry.
Magnetic materials and electronic components play an extremely important role in traditional and emerging fields such as automobiles, electronic equipment, environmental protection and energy saving, energy storage, and AI, and are industries long encouraged and supported by China. Since the Ministry of Industry and Information Technology issued the "11th Five-Year Plan for Information Industry Technology Development and 2020 Long-term Plan" in 2006, which listed magnetic materials as a key technology in the field of electronic materials, the state has successively issued multiple policies to promote the standardization and high-performance development of the magnetic materials industry, and to strengthen the connection between the industry and upstream and downstream entities to form a magnetic materials industrial cluster. At the same time, the recent issuance of policy documents such as "Made in China 2025" and the "14th Five-Year Plan for Digital Economy Development" has also provided strong policy support and a good development environment for the technological breakthrough, industrial upgrading, and cluster development of China's electronic components industry.
Since 2011, the policies and plans issued by China for the magnetic materials and electronic components industry mainly include: