Stock Code: Ningbo Zhenyu Technology Co.Ltd(300953) stock abbreviation: Ningbo Zhenyu Technology Co.Ltd(300953) Ningbo Zhenyu Technology Co.Ltd(300953)
Ningbo Zhenyu Technology Co., Ltd.
(Xidian Town, Ninghai County, Ningbo City, Zhejiang Province)
Issue shares to specific objects in 2022
Feasibility analysis report on the use of raised funds
March, 2002
(the same meaning in the plan for issuing shares to specific objects in 2022)
1、 Use plan of the raised funds
The total amount of funds raised in this issuance shall not exceed RMB 800 million (including this amount), which will be used to supplement working capital and repay bank loans after deducting the issuance expenses.
Within the scope of the above-mentioned investment projects with raised funds, the general meeting of shareholders shall authorize the board of directors of the company to appropriately adjust the investment sequence and specific amount of the corresponding investment projects with raised funds according to the actual situation such as the progress and capital demand of the project. Before the raised funds are in place, the company can invest with self raised funds according to the actual situation of the investment project with raised funds, and replace them after the raised funds are in place.
After the raised funds are in place, if the actual net amount of raised funds after deducting the issuance expenses is less than the total amount of raised funds to be invested, the insufficient part shall be solved by the company with self raised funds.
2、 Basic information of the project invested by the raised funds
(I) necessity of replenishing working capital and repaying bank loans
1. The company's business scale has expanded, and its daily production and operation activities have high requirements on working capital. Since its listing, the company's business scale has expanded rapidly. From 2018 to 2020, the operating revenue was 597168500 yuan, 749534500 yuan and 1192781400 yuan respectively, with an annual compound growth rate of 41.33%. From January to September 2021, the operating revenue was 1934408700 yuan, a year-on-year increase of 174.92%. At the same time, the scale of the company's accounts receivable is also growing. The book balance of accounts receivable increased from 208019200 yuan at the end of 2018 to 406203700 yuan at the end of 2020 and 502681900 yuan at the end of September 2021. In 2018, 2019, 2020 and January September 2021, the company's cash outflows from operating activities were 361619300 yuan, 524175300 yuan, 605110800 yuan and 1130577200 yuan respectively, indicating that the company's daily production and operating activities have high requirements for working capital. Therefore, with the further development of the company's future business and the growth of market share, 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's asset liability ratio is higher than the average level of the same industry, and the current ratio is lower than the average level of the same industry
At the end of 2018, 2019, December 2020 and September 2021, the asset liability ratios under the company's consolidated statements were 55.74%, 50.17%, 61.59% and 57.10% respectively. At the end of September 2021, the comparison of asset liability ratio (consolidation criteria) and current ratio between the company and comparable listed companies in the same industry is as follows:
Company name asset liability ratio current ratio
Tianjin Motor Dies Co.Ltd(002510) 59.15% 1.16
Sichuan Chengfei Integration Technology Corp.Ltd(002190) 28.98% 1.70
Ningbo Heli Technology Co.Ltd(603917) 28.03% 2.70
Lucky Harvest Co.Ltd(002965) 44.85% 2.80
Vt Industrial Technology Co.Ltd(300707) 40.36% 4.09
Shenzhen Kedali Industry Co.Ltd(002850) 33.34% 1.66
Jiangsu Tongda Power Technology Co.Ltd(002576) 41.38% 2.04
Changzhou Shenli Electrical Machine Incorporated Company(603819) 45.21% 1.35
Changying Xinzhi Technology Co.Ltd(002664) 57.73% 0.81
Average 42.11% 2.03
Issuer 57.10% 1.19
As can be seen from the above table, Ningbo Zhenyu Technology Co.Ltd(300953) asset liability ratio is higher than the average level of comparable listed companies in the same industry, and the current ratio is lower than the average level of comparable listed companies in the same industry. This issuance of shares to specific objects will help optimize the company's capital structure, reduce operational risks, make the company's business development more stable and enhance the company's anti risk ability.
In recent years, with the expansion of the company's business scale, in order to meet the capital demand, the company's financial burden is also increasing, facing greater debt repayment pressure and higher interest expenditure. By the end of September 2021, the company's short-term loan balance was 505968300 yuan, and the long-term loan balance was 1685484 million yuan. There was no long-term loan due within one year, accounting for 20.18% of the company's total assets. The balance of bank borrowings of the company is relatively large. The repayment of bank borrowings through the issuance of shares to specific objects will help reduce the interest expenditure of the company and improve the future financing ability and profitability.
(II) feasibility of replenishing working capital and repaying bank loans
1. Feasibility of replenishing working capital and repaying bank loans
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 the issuance of shares to specific objects complies with the provisions of laws and regulations. The use of the funds raised by the company's issuance of shares to specific objects 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 on the company's operation and management, financial status, etc
(I) impact of this issuance on the company's operation and management
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 funds raised this time are used to supplement working capital and repay bank loans, which will help to solve the demand for funds in the process of continuous expansion and upgrading of the company's business, further improve the company's capital strength, reduce the company's debt level, enhance the company's risk prevention ability and market competitiveness, enhance the company's main business strength, and help to realize and safeguard the long-term interests of all shareholders, It 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 funds raised from the issuance of shares to specific objects are in place, the total assets and net assets of the company will be increased, and the asset scale of the company will be significantly increased; At the same time, the company's asset liability ratio will be reduced, the current ratio will be improved, the capital pressure will be relieved, the ability to resist financial risks will be enhanced, the financial expenses of debt financing that may occur in the future will be reduced, the company's financial structure will be optimized, the future profitability will be further improved, and the overall strength will be effectively improved.
4、 Feasibility conclusion of investment project with raised funds
To sum up, the use plan of the funds raised by issuing shares to specific objects 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 meet the capital needs of the company's business development, improve the company's overall strength and profitability, enhance the company's follow-up financing ability and 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.
(there is no text on this page, which is the signature page of the feasibility analysis report on the use of funds raised by issuing shares to specific objects in Ningbo Zhenyu Technology Co.Ltd(300953) 2022)
Ningbo Zhenyu Technology Co.Ltd(300953) board of directors March 22, 2022
