Yunding Technology Co.Ltd(000409)
Feasibility analysis report on the use of funds raised by non-public offering of shares
In order to promote the sustainable and stable development of Yunding Technology Co.Ltd(000409) (“the company”) and improve the profitability, the company plans to issue 153279347 ordinary shares in RMB to Shandong Energy Group Co., Ltd. (“shanneng group”), the controlling shareholder of the company, in a non-public offering, and plans to raise RMB 86756110402 (“this non-public offering”). The feasibility analysis of the company’s board of directors on the use of funds raised in this non-public offering is as follows:
1、 Use plan of raised funds
The total amount of funds raised from this non-public offering of shares does not exceed 86756110402 yuan, which will be used to repay debts and supplement working capital after deducting the issuance expenses.
2、 Necessity and feasibility analysis of the raised funds
(I) necessity of raising funds
1. Replenish working capital to meet business development needs
The company’s main business focuses on the Internet and intelligent construction of coal industry. Facing the requirements of energy transformation under the fourth industrial revolution, carbon peak, carbon neutralization policy, complex and changeable market situation and the major opportunity and window period for the country to vigorously develop the industrial Internet and promote the intelligent construction of coal mines, the company will further increase the investment in its main business. With the expansion of the company’s business scale in the future, the company’s capital demand will also increase.
2. Repay the company’s debts and reduce financial risks
The debt scale of the company is large, and the asset liability ratio is higher than the industry average. The funds raised through this non-public offering can significantly increase the scale of the company’s net assets, reduce the asset liability ratio and improve the company’s solvency. At the same time, it is conducive to reducing the company’s financial risk and improving the company’s anti risk ability and sustainable operation ability.
3. Increase the shareholding ratio of controlling shareholders and consolidate control
Before the non-public offering, the controlling shareholder dongshanneng group held 85356551 shares of the company, accounting for 16.71% of the total share capital of the company. By fully subscribing for the non-public offering, the control of shanneng group will be consolidated. Shanneng group can make use of many years of operation and management experience and resource advantages to better support the company’s business development, promote the company to become bigger and stronger in the field of Internet and intelligent construction of coal industry, and realize the sustainable and stable development of the company.
(II) feasibility of the raised funds
1. The use of the funds raised in this non-public offering complies with the provisions of laws and regulations
The use of the funds raised by the company’s non-public offering complies with relevant policies, laws and regulations and is feasible. After the funds raised this time are in place, it will help to improve the scale of the company’s net assets, alleviate the company’s debt repayment pressure, reduce the company’s asset liability ratio, optimize the company’s capital structure, and provide sufficient capital guarantee for the company’s operation and development.
2. The use of the funds raised in this non-public offering has the implementation subject of standardized governance and perfect internal control
The company has formulated the management measures for Yunding Technology Co.Ltd(000409) raised funds in accordance with the regulatory requirements, which clearly stipulates the storage, use, investment direction change, management and supervision of raised funds. After the funds raised from this non-public 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, ensure the reasonable and standardized use of the raised funds and prevent the use risks of the raised funds.
3、 The impact of the use of funds raised in this non-public offering on the company’s operation, management and financial situation
(I) impact on the company’s operation and management
After deducting the issuance expenses, the funds raised from this non-public offering of shares are intended to be used to repay debts and supplement working capital. This non-public offering helps to improve the company’s capital structure, alleviate the company’s debt repayment pressure, solve the company’s working capital needs in the process of business expansion, improve the company’s sustainable profitability, anti risk ability and comprehensive competitiveness, and enhance the stability of the company’s controlling stake, which is in line with the interests of the company and all shareholders. After the completion of this non-public offering, the company will still have a perfect corporate governance structure and maintain the independence and integrity of personnel, assets, finance, business, institutions and other aspects.
(II) impact on the company’s financial position
After the completion of this non-public offering, the company’s immediate return (earnings per share, return on net assets and other financial indicators) may be diluted in the short term. However, with the use of the funds raised in this non-public offering, the company’s debt scale will decline, which is conducive to reducing the financial cost and improving the profitability of the company. At the same time, the company’s total assets and net assets will increase simultaneously, and the asset liability ratio will decline. This non-public offering will further optimize the company’s capital structure and enhance the company’s ability to resist financial risks.
In conclusion, the funds raised by the company in this non-public offering are used to repay debts and supplement working capital, which comply with the provisions of laws, regulations and normative documents; It is conducive to optimizing the operation and management of the company, improving the financial situation and laying the foundation for the sustainable and stable development of the company. Therefore, the plan for raising funds in this non-public offering and the use of funds are reasonable and feasible, which is in line with the interests of the company and all shareholders.
Yunding Technology Co.Ltd(000409) board of directors
March 24, 2022
