Use of Raised Funds Plan
The total amount of raised funds for this issuance shall not exceed RMB 61,654.94 million (inclusive). After deducting issuance expenses, the net amount of raised funds is intended for the following projects:
| Item | Project Name | Total Project Investment | Amount of Raised Funds to be Used |
|---|---|---|---|
| 1 | Annual production of 250 tons of special resins for the biopharmaceutical field | 33,710.25 | 33,710.25 |
| 2 | Annual production of 30 sets of adsorption and purification equipment | 9,555.16 | 9,555.16 |
| 3 | R&D center for biopharmaceuticals and new energy resins | 5,320.80 | 5,320.80 |
| 4 | Construction of marketing network and service system | 4,568.73 | 4,568.73 |
| 5 | Supplementary working capital | 8,500.00 | 8,500.00 |
| Total | 61,654.94 | 61,654.94 |
If the actual net amount of raised funds after deducting issuance expenses is less than the planned investment amount, the shortfall will be covered by the company's own funds. Before the raised funds are in place, the company will invest its own funds or funds raised through other means in advance according to the project progress, and will replace them after the raised funds are in place. Within the scope of the above fundraising investment projects, the board of directors may make appropriate adjustments to the order and amount of fundraising investment according to the project progress and capital needs.
Details of Fundraising Investment Projects
(1) Annual production of 250 tons of special resins for the biopharmaceutical field
1. Project Overview
Zheng Guang Co., Ltd. plans to implement the "Annual production of 250 tons of special resins for the biopharmaceutical field" project, one of the fundraising investment projects, through its wholly-owned subsidiary, Jingmen Zheng Guang New Material Technology Co., Ltd., in the Jingmen Chemical Circular Economy Industrial Park. The project mainly involves the construction of factory buildings and supporting facilities, and the procurement of hardware and software equipment. Relying on the company's mature technical platform in ion exchange and adsorption resins, rich process experience, and large-scale production capacity, the project will focus on the industrialization of solid-phase synthesis carriers and various chromatography media for pharmaceutical use.
Upon completion and commencement of production, the project will precisely meet the rapidly growing demand for adsorption and separation materials in the domestic polypeptide drug and biopharmaceutical fields, further enrich the company's product system, increase the proportion of business income from the pharmaceutical field, enhance overall profitability and risk resistance, and help the company deepen its layout in the biopharmaceutical field and further consolidate its competitive advantage in the industry.
2. Project Investment Estimate
The total investment for this project is RMB 33,710.25 million, of which the construction investment (excluding contingency) is RMB 30,659.10 million. The amount of raised funds to be invested is RMB 33,710.25 million, which will be used for capital expenditures such as equipment and software procurement, and building construction.
3. Project Implementation Entity
The company plans to implement this project through its wholly-owned subsidiary, Jingmen Zheng Guang New Material Technology Co., Ltd.
4. Analysis of Project Necessity
(1) Relying on the existing technical platform to achieve application extension and product upgrade
The company has been deeply involved in the field of ion exchange and adsorption resins for a long time. It has formed a systematic and mature core technical system covering the entire process of producing products such as uniform microsphere synthesis, various high-performance resin preparation, and experimental testing. It has achieved stable industrialization of high-end ion exchange and adsorption resin products such as nuclear-grade resins, powder resins, uniform microsphere resins, polishing resins, biopharmaceutical resins, and condensed water resins. The material basis, synthesis routes, and quality control logic of solid-phase synthesis carriers and various chromatography media for pharmaceutical use are highly common with the company's existing technical platform.