Securities abbreviation: Shanghai Taisheng Wind Power Equipment Co.Ltd(300129) securities code: Shanghai Taisheng Wind Power Equipment Co.Ltd(300129) Shanghai Taisheng Wind Power Equipment Co.Ltd(300129)
Use of funds raised by issuing shares to specific objects
Feasibility analysis report
(Revised Version)
March, 2002
1、 Investment plan of the raised funds
The total amount of raised funds issued to specific objects this time is 1080887300 yuan, which will be used to supplement working capital after deducting the issuance expenses. 2、 Necessity and feasibility analysis of raising funds
(I) necessity of investment of the raised funds
1. The company's business scale is expanding, and its daily production and operation activities have high requirements for working capital
Since its listing, the business scale of the company has expanded rapidly. From 2018 to 2020, the operating revenue was 14725262 million yuan, 22190258 million yuan and 3 Nantong Acetic Acid Chemical Co.Ltd(603968) 5 million yuan respectively, with a compound annual growth rate of 56.44%. With the rapid expansion of business scale, the scale of accounts receivable of the company is also growing. The book values of accounts receivable at the end of 2018, 2019, 2020 and September 2021 are 772526200 yuan, 1034933200 yuan, 1731508600 yuan and 1738142500 yuan respectively. In 2018, 2019, 2020 and January September 2021, the company's cash outflows from operating activities were 17818758 million yuan, 24867653 million yuan, 38880319 million yuan and 28338077 million yuan respectively. The net cash flow generated by operating activities in the latest year was negative. The company's daily production and operating activities had high requirements for working capital, and there was great pressure on working capital in the first period of the latest year. With the further development of the company's future business and the consolidation of the industrial chain, the company's demand for working capital will also increase significantly.
This time, the company issues shares to specific objects to supplement working capital, which is in line with the company's current actual financial situation and the capital needs of future business development, helps to promote the long-term and healthy development of the company, and is conducive to maximizing the interests of the company and all shareholders.
2. The company continues to deploy offshore wind power business, and is expected to have a large demand for working capital
In recent years, the company has continued to deepen the "dual sea strategy", vigorously expand the overseas market and offshore wind power market, and is committed to opening up an emerging and broader market space. With the gradual implementation of the "dual sea strategy", the revenue of the company's offshore wind power business segment increased rapidly during the reporting period.
At present, China's offshore wind power is in a period of rapid development, and the offshore wind power market in Guangdong and other coastal provinces is huge. By subsidizing offshore wind power, local economic development can be driven, and coastal provinces can realize energy transformation and improve energy security coefficient. In October 2020, Guangdong Province issued the action plan for cultivating new energy strategic emerging industry clusters in Guangdong Province (20212025). The plan pointed out that by promoting the large-scale development of offshore wind power, it will drive the formation of a whole offshore wind power industry system integrating offshore wind power R & D, manufacturing and operation and maintenance. The company plans to apply to the Guangdong Provincial Government for the allocation of offshore wind power resources of 1 million KW. Compared with onshore wind power, offshore wind power business accounts for more funds, has a longer production cycle, and has greater pressure on the company's working capital.
This time, the company issues shares to specific objects to supplement working capital, which can help the company occupy the dominant market in offshore wind power business and continue to tap production capacity, which is in line with the strategic needs of the company to develop offshore wind power.
3. It is conducive to optimizing the capital structure and improving the anti risk ability of the company
In recent years, the business scale of the company has been expanding, and the demand for funds is increasing day by day. By issuing shares to specific objects this time, the asset liability ratio of the company will decline, the solvency will be improved, and the capital strength and anti risk ability of the company will be further enhanced. At the same time, replenishing working capital can reduce the company's short-term loan demand, so as to reduce financial expenses, reduce financial risks and operating pressure, further improve the company's profitability and enhance the company's long-term sustainable development ability.
(II) feasibility of the investment of the raised funds
1. Feasibility of replenishing working capital
The use of some raised funds to supplement working capital this time can better meet the daily capital turnover needs of the production and operation of listed companies and their subsidiaries, reduce financial and operational risks, and enhance the competitiveness of the company.
2. The use of the funds raised by issuing shares to specific objects this time complies with the provisions of laws and regulations
The company's use of the funds raised by issuing shares to specific objects this time complies with relevant policies, laws and regulations and is feasible. After the funds raised by issuing shares to specific objects are in place, the company's asset liability ratio will decline, which is conducive to reducing the company's financial risk, improving asset quality, improving profitability and providing sufficient capital guarantee for the company's operation and development.
3. The implementation subject of the investment project of raising funds by issuing shares to specific objects this time has standardized governance and improved internal control
As the implementation subject of the investment project of raising funds by issuing shares to specific objects, the company has established a modern enterprise system with the corporate governance structure as the core according to the governance standards of listed companies, and formed a more standardized corporate governance system and a perfect internal control environment through continuous improvement and perfection.
In terms of the management of raised funds, the company has formulated the corresponding management system of raised funds, and clearly stipulated the storage, investment direction change, management and supervision of raised funds in accordance with the latest regulatory requirements. After the funds raised by issuing shares to specific objects are in place, the board of directors of the company will continue to supervise the company's storage and use of the raised funds, so as to ensure the rational and standardized use of the raised funds and prevent the use risks of the raised funds. 3、 The impact of this issuance to specific objects on the company's business and financial status
(I) impact of this issuance on the company's business
The purpose of raising funds by issuing shares to specific objects is in line with relevant national industrial policies and the overall strategic development direction of listed companies. The raised funds are used to supplement working capital, which is conducive to improving the company's capital strength, enhancing the company's risk prevention ability and competitiveness, improving the company's main business strength, realizing and safeguarding the long-term interests of all shareholders, and has important strategic significance for the long-term sustainable development of the company. (II) impact of this issuance on the company's financial position
After the issuance, the total assets and net assets of the company will increase and the asset liability ratio will be reduced, which is conducive to further enhance the company's capital strength, optimize the capital structure and reduce financial risks, and is conducive to the steady operation, sustainable and healthy development of the company; At the same time, the profitability and anti risk ability of the company will be further improved, and the overall strength will be further enhanced. 4、 The investment projects of the raised funds involved in the application for approval
The funds raised in this issuance are intended to supplement working capital, and do not involve the need to perform the project filing, environmental impact assessment and other related approval matters, nor the use of construction land. 5、 Conclusion of feasibility analysis
To sum up, the use plan of the funds raised by issuing shares to specific objects complies with relevant policies, laws and regulations and the overall strategic development plan of the company in the future, which is necessary and feasible. When the raised funds are in place and put into use, the net assets of the company will increase, which will enhance the sustainable development ability and anti risk ability of the company, so as to provide important support and guarantee for the subsequent development of the company. Therefore, it is necessary and feasible for the company to use the funds raised by this issuance of shares, which is in line with the interests of the company and all shareholders.
Shanghai Taisheng Wind Power Equipment Co.Ltd(300129) board of directors March 2, 2022
