Stock Code: 300461 stock abbreviation: Tanac Automation Co.Ltd(300461) Tanac Automation Co.Ltd(300461)
Issue shares to specific objects
Feasibility analysis report on the use of raised funds
January 2002
Tanac Automation Co.Ltd(300461) (hereinafter referred to as ” Tanac Automation Co.Ltd(300461) “, “the company” and “the company”) are companies listed on the gem of Shenzhen Stock Exchange. In order to meet the needs of the company’s business development and the implementation of its business strategy, further enhance the company’s capital strength and enhance its profitability, the company, in accordance with the company law, the securities law, the measures for the administration of securities issuance and registration of companies listed on the gem (for Trial Implementation) (hereinafter referred to as the “registration management measures”) and the articles of association and other relevant laws According to the provisions of laws and regulations and normative documents, the total amount of funds to be raised by issuing shares to specific objects shall not exceed 469766863.44 yuan, which is intended to be used to supplement working capital after deducting the issuance expenses. (unless otherwise specified in this report, relevant terms have the same meanings as those in Tanac Automation Co.Ltd(300461) plan for issuing shares to specific objects).
1、 Use plan of the raised funds
The total amount of funds raised by this issuance to specific objects does not exceed 469766863.44 yuan. After deducting the issuance expenses, it is planned to be used to supplement the working capital.
2、 Necessity and feasibility analysis of the use of the raised funds
(i) Necessity of raising funds this time
1. Reduce the debt level, optimize the capital structure and enhance the ability to resist risks
At the end of 2018, 2019, 2020 and September 2021, the company’s asset liability ratios were 75.54%, 97.63%, 74.05% and 63.79% respectively, at a high level. The issuance of shares to specific objects to raise funds can supplement the company’s capital, reduce the company’s asset liability ratio, enhance the solvency, optimize the capital structure, enhance the company’s anti risk ability, and lay a foundation for the healthy and stable development of the company.
2. Improve follow-up financing capacity and expand development space
With the development of the company’s business, the company needs to invest more funds to meet the needs of the company’s market expansion, production and business activities. The company’s debt structure has high interest bearing liabilities, which limits the company’s financing ability. After the issuance of shares to specific objects is completed, the company’s net asset scale will be greatly improved and its capital strength will be enhanced, which will help to improve the company’s credit rating, enhance the follow-up financing ability and expand the development space. （2） Feasibility of the raised funds
1. The use of the funds raised by this issuance of shares complies with the provisions of laws and regulations
The use of the funds raised by this issuance of shares complies with the provisions of relevant policies, laws and regulations, and is feasible. The issuance of shares to specific objects to raise funds can meet the company’s demand for working capital, increase the company’s net assets and working capital, help the company further optimize its capital structure, enhance its capital strength, enhance its market competitiveness and anti risk ability, promote the company’s positive and stable layout of relevant businesses, and promote the company’s sustainable and healthy development. 2. The company has a standardized fund-raising management system
According to the governance standards of listed companies, the company has established a modern enterprise system with the corporate governance structure as the core, and formed a more standardized corporate governance system and a perfect internal control environment through continuous improvement and improvement. In terms of the management of raised funds, the company has formulated the management system for special storage and use of raised funds in accordance with the regulatory requirements, which clearly stipulates the availability, storage, use and management, change, report and supervision of raised funds. 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 the use of the raised funds on the company’s operation, management and financial situation
(i) Impact of this issuance on the company’s operation and management
The use of the raised funds complies with relevant national industrial policies, industrial development plans and the company’s future overall development strategy, which is conducive to the implementation of the company’s future overall development strategy. The raised funds can enhance the company’s capital strength, meet the company’s capital needs, further consolidate the company’s competitive position in the industry, improve market share and scale advantages, enhance the company’s overall operation efficiency, promote business integration and synergy, so as to improve the company’s profitability and comprehensive competitiveness.
（2） Impact of this issuance on the company’s financial position
After the funds raised by issuing shares to specific objects are in place, the company’s total assets and net assets will increase, and the working capital will be further enriched, providing a strong financial guarantee for the company’s sustainable, stable and healthy development. At the same time, the company’s financial structure will be more reasonable, and its ability to resist risks and sustainable development will be enhanced.
4、 Feasibility analysis conclusion of the project invested by the raised funds
To sum up, the purpose of the raised funds is in line with the overall strategic development plan of the company in the future, as well as relevant policies, laws and regulations, which is necessary and feasible. The availability and use of the raised funds will help to enhance the company’s overall competitive strength, enhance the company’s sustainable development ability, lay a foundation for the realization of the company’s development strategic objectives, and meet the interests of the company and all shareholders.
Tanac Automation Co.Ltd(300461) board of directors January 7, 2022
