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Grandall Law Firm (Shenzhen) Supplementary Legal Opinion (I) on Chongqing Meilixin Technology Co., Ltd.'s 2025 Private Placement of A Shares

Chongqing Millison Technologies Inc.··17 pages

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This document is a supplementary legal opinion from Grandall Law Firm regarding Chongqing Meilixin Technology Co., Ltd.'s 2025 private placement of A shares. It addresses inquiries about the necessity of leasing factory buildings for the fundraising projects, the reasons for previous fundraising projects not being separately accounted for, and the overall investment returns not meeting expectations. The opinion confirms the reasonableness of these aspects and compliance with relevant regulations.

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Table of Contents

Section 1 Main Text

I. Inquiry Letter Question 1

II. Inquiry Letter Question 2

Section 2 Signature Page

Section 1 Main Text

I. Inquiry Letter Question 1

According to the application documents, the total amount of the private placement of shares will not exceed RMB 1,200,000,000. The net proceeds will be invested in the construction of precision structural components for semiconductor equipment (hereinafter referred to as Project 1), the industrialization of solderable die-casting components for communication and automotive industries (hereinafter referred to as Project 2), and supplementary working capital and repayment of bank loans.

Project 1 aims to expand the company's production capacity for semiconductor equipment structural components. Upon reaching full production, it is expected to achieve an annual operating revenue of RMB 1,078,155,000, an annual net profit of RMB 117,128,300, and an internal rate of return (after tax) of 22.68%. In the most recent year, the company's revenue from semiconductor equipment was RMB 13,837,810, accounting for 3.68% of its main business revenue. Project 1 plans to be implemented by leasing factory buildings, and a lease agreement has been signed. Project 2 aims to build a production line for solderable die-casting components. Upon reaching full production, it is expected to achieve an annual operating revenue of RMB 51,043,690, an annual net profit of RMB 3,084,750, and an internal rate of return (after tax) of 15.19%. Project 2 plans to be implemented by leasing factory buildings, and a letter of intent for lease has been signed. The company incurred losses in 2024 and 2025, partly due to increased impairment losses on assets. During the reporting period, the company's gross profit margin for its main business has been continuously declining.

The company's previous fundraising was through its initial public offering in 2023. The proceeds were invested in the Chongqing Meilixin R&D Center construction project, the new energy vehicle system, the 5G communication components and mold production line construction project, and the new energy vehicle component expansion project (hereinafter referred to as previous fundraising projects). The previous fundraising projects could not be accounted for separately, and there were surplus funds used for permanent supplementary working capital. In 2024 and 2025, the overall investment returns of the new energy vehicle system, 5G communication components and mold production line construction project, and new energy vehicle component expansion project did not meet expectations.

During the reporting period, the company's products were exported to countries and regions including the United States, Estonia, Mexico, India, Poland, Germany, and France. As of the end of 2025, the company confirmed that it does not hold any financial investments.

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