Goody Science & Technology Co.Ltd(002694)
Feasibility analysis report on the use of funds raised by non-public offering of shares
1、 Use plan of the raised funds
The total amount of funds raised in this issuance is RMB 467804160.00. The net amount of funds raised after deducting the issuance expenses will be used to supplement working capital and repay bank loans.
2、 Necessity and feasibility analysis of the use of the raised funds
(i) Necessity analysis of the use plan of the raised funds
1. The need to enhance the company’s capital strength and enhance the company’s profitability
After deducting the issuance expenses, all the funds raised by the company’s non-public offering are used to supplement working capital and repay bank loans, so as to provide strong financial support for the company’s R & D and optimization of production process, which will help the company alleviate the pressure of working capital, reduce financial expenses, improve the company’s financial situation and capital structure, and promote the sustainable and healthy development of the company’s business, It is conducive to improving the company’s competitiveness and profitability.
2. Meet the capital needs of the company’s production and operation and product technology innovation
The funds raised in this non-public offering will enrich the company’s working capital level, improve the R & D investment of the company’s products in green ecological attributes, functional attributes and scientific and technological attributes, promote the renewal of product production equipment and the optimization of production process, be conducive to the market expansion and industry competition of the company’s plastic pipeline products, and improve the company’s industry competition level. （2） Feasibility analysis of the use plan of the raised funds
1. The use of the funds raised in this offering complies with the provisions of laws and regulations
After deducting the issuance expenses, all the raised funds are used to supplement working capital and repay bank loans, which is in line with the provisions of relevant policies, laws and regulations and the current actual development of the company. After the funds raised in this issuance are in place, they will be used to supplement working capital and repay bank loans, and the company’s liquidity risk will be further reduced, which can meet the company’s demand for working capital, promote the improvement of the company’s production and operation capacity and profitability.
2. The use of the funds raised by this non-public offering has the implementation subject of standardized governance and perfect internal control
According to the governance standards of listed companies, the company has established and improved the corporate governance structure and the independent operation mechanism of the general meeting of shareholders, the board of directors, the board of supervisors and the management. Through continuous improvement and improvement, the company has formed a more standardized and standard corporate governance system and perfect internal control procedures.
In terms of the management of raised funds, the company has established the measures for the management of raised funds in accordance with the regulatory requirements, and has made clear provisions on the custody, use, investment direction and supervision of raised funds. After the funds raised in this offering 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 standardized and reasonable use of the raised funds and prevent the use risk of the raised funds.
3、 Impact of this issuance on financial status and operation management
(i) Impact of this issuance on the company’s operation and management
After deducting relevant issuance expenses, all the funds raised in this issuance will be used to supplement working capital and repay bank loans. The use of the raised funds is in line with the company’s overall development strategy in the future. After the raised funds are in place and implemented, the company’s capital will be further enriched, which will help alleviate the pressure of the company’s working capital, improve the company’s financial situation and capital structure, promote the sustainable and healthy development of the company’s business, and improve the company’s competitiveness and profitability.
（2） Impact of this issuance on the company’s financial position
After the issuance, the company’s net assets can be increased; After the funds raised in this issuance are used to repay bank loans and supplement working capital, the asset liability ratio of the company will decline to a certain extent, which is conducive to optimizing the capital structure, reducing interest expenses and improving the profitability of the company.
In conclusion, the use of the raised funds is necessary and feasible. The availability and use of the raised funds will help alleviate the pressure on the company’s working capital, improve the company’s financial situation and capital structure, promote the sustainable and healthy development of the company’s business, and further enhance the company’s comprehensive competitiveness, which is in line with the interests of the company and all shareholders.
Goody Science & Technology Co.Ltd(002694) board of directors December 29, 2021
