Hefei Hengxin Life Technology Co., Ltd. Announcement on Changing Part of Raised Fund Projects and Investing Raised Funds in New Projects
The Company and all members of the Board of Directors guarantee the content of the information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions.
Key Information Prompt:
- Original raised fund project names: "Intelligent Upgrade Project," "R&D Technology Center Project."
- New raised fund project name and investment amount: "Biodegradable Product Production Base Project," with an investment amount of 501 million yuan.
- Implementation entity for the new raised fund project: Anhui Hengxin Environmental Protection New Material Co., Ltd., a wholly-owned subsidiary of Hefei Hengxin Life Technology Co., Ltd. (hereinafter referred to as "the Company" or "Hengxin Life").
- Amount of raised funds to be redirected: This change fully utilizes 142.14 million yuan from the original raised fund projects (including interest income and wealth management income) and 70.98 million yuan of surplus funds (including interest income and wealth management income), totaling 213.1195 million yuan (the specific amount is subject to the balance of the special account for raised funds at the time of actual transfer).
- The matter of changing part of the raised fund projects and investing raised funds in new projects still needs to be submitted for review by the Company's First Extraordinary General Meeting of Shareholders in 2026.
The Company held the Tenth Meeting of the Second Board of Directors on March 17, 2026, which reviewed and approved the "Proposal on Changing Part of Raised Fund Projects and Investing Raised Funds in New Projects." Considering the Company's overall strategic layout and future business development plan, and to improve the efficiency of raised fund utilization, it was agreed to change the Company's initial public offering of shares raised fund investment projects, "Intelligent Upgrade Project" and "R&D Technology Center Project." The construction content of the "Intelligent Upgrade Project" and "R&D Technology Center Project" will be integrated into the new raised fund project "Biodegradable Product Production Base Project." The raised funds and all surplus funds (including interest income and wealth management income) from the "Intelligent Upgrade Project" and "R&D Technology Center Project" will be invested in the new raised fund project. This proposal still needs to be submitted for review by the Company's First Extraordinary General Meeting of Shareholders in 2026. The relevant matters are hereby announced as follows:
I. Basic Situation of Raised Funds According to the "Approval for the Registration of the Initial Public Offering of Shares by Hefei Hengxin Life Technology Co., Ltd." (Zhengjian Permit [2024] No. 1909) issued by the China Securities Regulatory Commission, the Company issued 25,500,000 ordinary shares of RMB 1.00 par value each at an issuance price of RMB 39.92 per share. The total raised funds amounted to RMB 101,796.00 million. After deducting issuance expenses (excluding VAT) of RMB 11,904.53 million, the net amount of raised funds is RMB 89,891.47 million.
The raised funds were transferred to the Company's designated account on March 13, 2025. Rongcheng Certified Public Accountants (Special General Partnership) audited the capital verification of the raised funds and issued the "Capital Verification Report" (Rongcheng Yan Zi [2025] No. 230Z0024). The Company has adopted a special account storage system for the raised funds and signed a "Tripartite Supervision Agreement for Raised Funds" with the special account bank and the sponsor.
II. Use of Raised Funds As of February 28, 2026, the usage of the Company's raised funds (including surplus funds) is as follows: