Bond Code: 3006 securities code: 3006
Issue shares to specific objects
Feasibility analysis report on the use of raised funds (Revised Version) March 2022
1、 Use plan of the raised funds
The total amount of funds to be raised from this issuance of shares to specific objects shall not exceed 165.1 million yuan (including this amount). After deducting the issuance expenses, it is proposed to use all of them for the following projects:
No. project name total investment amount (ten thousand yuan of proposed raised funds) amount (ten thousand yuan)
1 Ningbo Konfoong Materials International Co.Ltd(300666) annual output of 52000 VLSI 100867127813900 ultra high purity metal sputtering target industrialization project
2. Industrialization project of super 40783183169610 high purity metal sputtering target with an annual output of 18000 VLSI in Haining, Zhejiang Province
3 construction project of Ningbo Konfoong Materials International Co.Ltd(300666) semiconductor material R & D center 719260719260
4. Supplement of working capital and repayment of borrowings 48122304812230
Total 1969652016515000
After deducting the financial investment factor of 1.5 million yuan from the total amount of raised funds, the total amount of raised funds for the issuance of shares to specific objects will be reduced to no more than 1650 million yuan (including this amount). After deducting the issuance expenses, it is planned to be used for the following items:
No. project name total investment amount (ten thousand yuan of proposed raised funds) amount (ten thousand yuan)
1 Ningbo Konfoong Materials International Co.Ltd(300666) annual output of 52000 VLSI 100867127813900 ultra high purity metal sputtering target industrialization project
2. Industrialization project of super 40783183169610 high purity metal sputtering target with an annual output of 18000 VLSI in Haining, Zhejiang Province
3 construction project of Ningbo Konfoong Materials International Co.Ltd(300666) semiconductor material R & D center 719260719260
4. Supplement of working capital and repayment of borrowings 4797230
Total 1968152016500000
After the board of directors deliberates and approves the issuance plan and before the raised funds are in place, the board of directors of the company can choose the opportunity to invest in the raised projects with self raised funds according to the market conditions and its own reality, and replace them after the raised funds are in place. If the actual net amount of raised funds after deducting the issuance expenses is lower than the amount of raised funds to be used, the company will solve it through its own funds, bank loans or other means.
2、 Details of the project invested by the raised funds
(I) Ningbo Konfoong Materials International Co.Ltd(300666) annual production of 52000 ultra-high purity metal sputtering targets for VLSI
1. Project Name: Ningbo Konfoong Materials International Co.Ltd(300666) annual production of 52000 ultra-high purity metal sputtering targets for VLSI
2. Implementation subject: Konfoong Materials International Co.Ltd(300666) (i.e. listed company)
3. Construction site: Yuyao City, Zhejiang Province
4. Construction content: the total investment of the project is 1008671200 yuan, and the raised fund is proposed to be 781.39 million yuan. The project will build the company’s second production base in Yuyao, Zhejiang Province, and further improve the large-scale production capacity of the company’s main products such as high-purity aluminum targets, high-purity titanium targets and rings, high-purity tantalum targets and rings for integrated circuits.
5. Implementation plan and progress: the construction period of the project is 24 months.
6. Project investment overview:
Unit: 10000 yuan
No. investment amount of specific projects and amount of raised funds to be used
1. Land investment 11628001101600
2. Construction investment 33982003240000
3. Equipment investment 3472300
4. Initial working capital 2053412-
The total investment of the project is 100867127813900
7. Economic benefits of the project
The estimated after tax financial internal rate of return of the project is 13.95%, and the after tax static investment payback period is 8.88 years (including the construction period), which has good economic benefits.
8. Project construction land, project filing and environmental impact assessment
The project is located in Yuyao City, Zhejiang Province. As of the date of issuance of this report, the project has obtained the registration (code assignment) information form of enterprise investment projects in Zhejiang Province (project code: 220233028104-01267494) issued by Yuyao development and Reform Bureau, and is actively promoting the purchase of land and environmental impact assessment.
(II) industrialization project of 18000 ultra-high purity metal sputtering targets for VLSI in Haining, Zhejiang Province
1. Project Name: industrialization project of 18000 ultra-high purity metal sputtering targets for VLSI in Haining, Zhejiang Province
2. Implementing entity: Jiaxing Konfoong Materials International Co.Ltd(300666) Materials Co., Ltd. ( Konfoong Materials International Co.Ltd(300666) wholly owned subsidiary)
3. Construction site: Haining City, Zhejiang Province
4. Construction content: the total investment of the project is 4078318 million yuan, and the proposed raised fund is 316961 million yuan. The project will build the company’s production base in Haining, Zhejiang Province, and further improve the large-scale production capacity of the company’s main products such as high-purity copper targets and rings for integrated circuits and copper anodes.
5. Implementation plan and progress: the construction period of the project is 24 months.
6. Project investment overview:
Unit: 10000 yuan
No. investment amount of specific projects and amount of raised funds to be used
1. Land investment 153000
2. Construction investment 1219410
3. Equipment investment 1797200
4. Initial working capital 908708-
The total investment of the project is 40783183169610
7. Economic benefits of the project
The estimated after tax financial internal rate of return of the project is 14.40%, and the after tax static investment payback period is 8.79 years (including the construction period), which has good economic benefits.
8. Project filing, environmental impact assessment and land conditions
The project is located in Haining City, Zhejiang Province. As of the issuance date of this report, the project has obtained the registration (code assignment) information form of enterprise investment projects in Zhejiang Province (project code: 220133048104-01956522) issued by Haining development and Reform Bureau, and is actively promoting the purchase of land and environmental impact assessment.
(III) Ningbo Konfoong Materials International Co.Ltd(300666) semiconductor material R & D center construction project
1. Project Name: Ningbo Konfoong Materials International Co.Ltd(300666) semiconductor material R & D center construction project
2. Implementation subject: Konfoong Materials International Co.Ltd(300666) (i.e. listed company)
3. Construction site: Yuyao City, Zhejiang Province
4. Construction content: the total investment of the project is 71.926 million yuan, and the raised fund is proposed to be 71.926 million yuan.
5. Implementation plan and progress: the construction period of the project is 24 months.
6. Project investment overview:
Unit: 10000 yuan
No. investment amount of specific projects and amount of raised funds to be used
1. Equipment investment 719260
The total investment of the project is 719260 yuan
7. Economic benefits of the project
The project cannot calculate the benefits arising from the use of the raised funds separately. After the completion of the project, the benefits are mainly reflected in the improvement of the company’s overall R & D strength and technical level, which is conducive to the company’s international competitiveness. 8. Project filing and environmental impact assessment
The project is located in Yuyao City, Zhejiang Province. As of the date of issuance of this report, the project has obtained the registration (code assignment) information form of enterprise investment projects in Zhejiang Province (project code: 220233028104-01420706) issued by Yuyao development and Reform Bureau, and is actively promoting the EIA.
(IV) supplement working capital and repay loans
The company plans to use 479723 million yuan of the raised funds to supplement working capital and repay loans, so as to meet the company’s daily operating capital needs, reduce the company’s asset liability ratio and financial expenses, and enhance the company’s anti risk ability.
3、 Necessity and feasibility analysis of investment projects with raised funds
(I) necessity of project implementation
1. Grasp the good opportunity of rapid development of integrated circuit industry and domestic substitution of semiconductor targets
With the continuous growth of the application market in the fields of Internet of things, cloud computing, big data, artificial intelligence, driving assistance, Siasun Robot&Automation Co.Ltd(300024) and UAV, the overall market scale of the global integrated circuit industry shows a growth trend. Among them, China’s integrated circuit industry has achieved rapid development thanks to factors such as huge market demand, stable economic growth and favorable industrial policy environment. According to the statistics of China Semiconductor Industry Association, the sales volume of China’s integrated circuit industry increased from 157.2 billion yuan in 2011 to 884.8 billion yuan in 2020, with an average annual compound growth rate of more than 21%; According to the data of the National Bureau of statistics, China’s IC output increased from 71.952 billion in 2011 to 261470 billion in 2020, with an average annual compound growth rate of more than 15%.
As one of the core materials for manufacturing integrated circuits, semiconductor chips set strict standards for the metal material purity and internal microstructure of high-purity metal sputtering targets for semiconductors. Target enterprises need to master the key technologies in the production process and make products that meet the process requirements after long-term practice. Influenced by the development history and technical constraints, semiconductor target manufacturers in the US and Japan still dominate the global market. Chinese mainland semiconductor target manufacturers started late but grew faster. According to SEMI statistics, the market share of semiconductor target market in Chinese mainland has increased from about 10% in 2014 to about 19% in 2019. Benefiting from the accelerated development trend of China’s integrated circuit industry and China’s semiconductor field
