Stock Code: Beiqi Foton Motor Co.Ltd(600166) stock abbreviation: Beiqi Foton Motor Co.Ltd(600166) Beiqi Foton Motor Co.Ltd(600166)
Non public offering of A-Shares in 2022
Feasibility analysis report on the use of raised funds
March, 2002
1、 Use plan of the funds raised in this non-public offering
The total amount of funds to be raised in this non-public offering is 29999999880 yuan. The net amount of funds raised after deducting the issuance expenses will be used to supplement working capital and repay debts. 2、 Analysis on the necessity and rationality of the project invested by the raised funds
(I) necessity of raising funds
1. Meet the capital needs of the company's operation and development
The automobile industry has the characteristics of large-scale capital investment. With the increase of the company's R & D investment in new technologies and products, the company's demand for working capital gradually increases. Since the beginning of 2020, the epidemic has spread rapidly in the world. The epidemic has had a great impact on the global automobile industry and challenged the overall liquidity and anti risk ability of the industry. Through this non-public offering of a shares, the use of raised funds to supplement working capital and repay debts will help to enhance the capital strength of the company, meet the capital needs of the company's operation and development, and promote the sustainable and healthy development of the company.
2. Optimize the capital structure and improve the ability to resist risks
In recent years, the company's business has shown good development, but at the same time, the overall debt scale has increased. As of September 30, 2021, the company's total liabilities were 38.983 billion yuan, including current liabilities of 31.741 billion yuan, increasing the company's financial risk and operating pressure. The company's non-public offering of A-Shares to raise funds can optimize the company's capital structure, increase the stability and adequacy of working capital, and improve the company's anti risk ability and market competitiveness.
3. Subscription by controlling shareholders to enhance market confidence
The subscription object of this non-public offering is BAIC group, the controlling shareholder of the company. After the completion of this offering, the control right of the company has been further strengthened. The controlling shareholders' subscription of non-public shares in cash fully shows the controlling shareholders' support for the development of the company and their confidence in the future prospects of the company, which is conducive to maintaining the stability of the securities market, protecting the interests of all shareholders and establishing a good market image 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 from this non-public offering are in place, it is conducive to improving the company's capital structure and liquidity level, reducing financial risks and improving the ability of sustainable operation. The company's use of raised funds to supplement working capital and repay debts is in line with the company's current actual development, conducive to the company's existing business development, consolidate and enhance the company's market competitiveness and sustainable development ability, and in line with the company's long-term development strategy and the interests of all shareholders.
2. The issuer of this non-public offering has standardized governance and improved internal control
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 internal control environment through continuous improvement and improvement. In terms of the management of raised funds, the company has established the management system of raised funds in accordance with the regulatory requirements, which clearly stipulates the storage, use, investment direction change, inspection and supervision of raised funds. After the funds raised from this non-public offering are in place, the board of directors and the board of supervisors 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 non-public offering on the company's operation, management and financial status
(I) impact of this non-public offering on the company's operation and management
All the funds raised in this non-public offering will be used to supplement working capital and repay debts after deducting the issuance expenses. This non-public offering helps to improve the company's capital strength, optimize the capital structure, strengthen the anti risk ability, improve the company's comprehensive competitiveness and consolidate the market position, lay a solid foundation for the company's future market strategic layout, and is in line with the company's long-term development objectives and the fundamental interests of all shareholders.
(II) impact of this non-public offering on the company's financial position
After the funds raised from this non-public offering of shares are in place, the scale of the company's total assets and net assets will be further improved, and the company's financial strength will be further enhanced, providing a strong financial guarantee for the company's future business development. The company's asset liability ratio decreases with the issuance, and the further optimization of the financial structure is conducive to reducing the company's financial risks and enhancing the company's ability to resist risks. 4、 Conclusion of feasibility analysis
To sum up, this non-public offering is conducive to optimizing the company's asset structure, reducing the overall debt scale, reducing financial expenses and enhancing the ability to resist risks; It is conducive to the company's business expansion and improve its sustainable profitability. This non-public offering conforms to the company's development strategy, enhances the company's core competitiveness and comprehensive strength, and conforms to the interests of the company and all shareholders.
After careful analysis and demonstration, the investment direction of the raised funds of the company's non-public offering complies with relevant policies, laws and regulations and the needs of the company's development. The raised funds of the non-public offering are necessary and feasible.
Beiqi Foton Motor Co.Ltd(600166)
Board of directors
March 31, 2002
