Stock Code: 301588 Stock Abbreviation: NewTechWood
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NewTechWood Co., Ltd.
2026 Annual Feasibility Analysis Report on the Use of Proceeds from the Issuance of A-Shares to Specific Targets
July 2026
NewTechWood Co., Ltd. (hereinafter referred to as the "Company" or "NewTechWood") intends to issue A-shares to specific targets to raise funds to meet the capital requirements of the Company's business development and strengthen its capital base. 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 and Registration of Securities by Listed Companies, and other relevant laws, regulations, and the Articles of Association, the Company has prepared this Feasibility Analysis Report on the Use of Proceeds from the 2026 Annual Issuance of A-Shares to Specific Targets.
Unless otherwise specified, terms used herein have the same meanings as those defined in the "NewTechWood Co., Ltd. 2026 Annual Plan for the Issuance of A-Shares to Specific Targets."
I. Plan for the Use of Proceeds
The total amount of funds raised by the Company through this issuance of A-shares to specific targets shall not exceed 450 million RMB. After deducting issuance expenses, the proceeds are intended to be invested in the following projects:
| No. | Project Name | Total Investment | Proposed Proceeds Amount |
|---|---|---|---|
| 1 | Guangdong Meijia New Eco-friendly Wood-Plastic Composite Project | 282.154 million | 220 million |
| 2 | SPC & RPC Flooring and Wall Panel Smart Production Line Construction Project | 154.4895 million | 130 million |
| 3 | Supplementing Working Capital and Repaying Bank Loans | 100 million | 100 million |
| Total | 536.6435 million | 450 million |
Before the proceeds from this issuance are received, the Company will invest its own funds based on the actual progress of the projects and will replace them with the proceeds once they are received, in accordance with relevant regulatory procedures.
If the actual net proceeds from this issuance are less than the proposed amount, the Company will adjust and finalize the specific investment projects, priorities, and investment amounts based on the actual net proceeds and the urgency of the projects, with any shortfall to be covered by the Company's own funds.
II. Necessity and Feasibility of the Projects
(I) Guangdong Meijia New Eco-friendly Wood-Plastic Composite Project
- Project Overview
| Category | Content |
|---|---|
| Project Name | Guangdong Meijia New Eco-friendly Wood-Plastic Composite Project |
| Implementation Entity | Guangdong Meijia New Materials Co., Ltd. (hereinafter "Guangdong Meijia", a wholly-owned subsidiary) |
| Total Investment | 282.154 million RMB |
| Main Construction Content | New PVC fire-resistant profiles and third-generation aluminum-plastic co-extruded profiles |
| Construction Location | Shitouwutang Section, Daling Street, Huidong County, Huizhou City, Guangdong Province |
- Project Necessity
(1) Complying with the trend of upgrading fire safety standards in Europe and America to meet rapidly growing customer demand.
In recent years, global warming has led to frequent extreme heat and drought, resulting in longer wildfire seasons and increased fire intensity, which has heightened the focus on the fire safety performance of building materials. Consequently, the United States and the European Union have successively introduced and tightened fire safety standards for outdoor building materials. While the two systems have different focuses—the EU's CPR regulation (EN 13501) mandates multi-dimensional assessment and CE certification covering non-combustibility, smoke, and burning droplets, while the U.S. relies on the International Building Code (IBC) and ASTM E84 (Steiner Tunnel Test) for A/B/C classification of flame spread and smoke development—their core orientation is highly consistent, significantly raising the threshold for fire performance for outdoor flooring and wall panels. This trend has directly driven a rapid expansion in demand for high-performance fire-resistant profiles in overseas markets, particularly in the European and American commercial construction sectors where safety standards are extremely stringent.