Securities code: Huadian Heavy Industries Co.Ltd(601226) securities abbreviation: Huadian Heavy Industries Co.Ltd(601226) Announcement No.: pro 2022016 Huadian Heavy Industries Co.Ltd(601226)
Announcement on temporarily replenishing working capital with some idle raised funds
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
Huadian Heavy Industries Co.Ltd(601226) (hereinafter referred to as "the company") will use the idle raised funds of 150 million yuan to temporarily supplement the working capital. The service life is 12 months from May 27, 2022, and will be returned to the special account for raised funds at the expiration.
The company held the sixth meeting of the Fourth Board of directors on April 21, 2022, and deliberated and adopted the proposal on using some idle raised funds to temporarily supplement working capital. In order to maximize the interests of shareholders and improve the use efficiency of idle raised funds, the company plans to use the idle raised funds of 150 million yuan to supplement the working capital temporarily according to the progress arrangement and capital investment plan of the raised investment project without affecting the construction and use of the raised funds. The term is 12 months from May 27, 2022, and will be returned to the special account for raised funds at the expiration of the term.
1、 Basic information of the raised funds
With the approval of China Securities Regulatory Commission (zjxk [2014] No. 1186), the company issued 150 million shares in the initial public offering, with an issue price of 10 yuan per share and a total raised capital of 150 million yuan. After deducting the issuance cost of 54.2 million yuan, the net raised capital was 144.58 million yuan. The availability of the above raised funds has been confirmed by Daxin Certified Public Accountants (special)
Special general partnership) and issued a capital verification report on December 2, 2014 (dxyz [2014] No. 100082). The company adopts a special account for the raised funds.
2、 Storage and use of raised funds
(I) opening and storage of special account for raised funds
According to the regulations on the management of the raised funds of listed companies and the regulations on the use of funds raised by listed companies and the supervision and administration measures of Shanghai Securities Exchange on December 6, 2014, the regulations on the use of funds raised by listed companies and the supervision and administration measures of Shanghai Huiyuan sub branch China Minsheng Banking Corp.Ltd(600016) the business department of the head office signed the tripartite supervision agreement on the storage of raised funds in the special account. The opening and storage of the company's special account for raised funds are as follows:
Purpose of account number amount of special account for raised funds (yuan)
China Merchants Bank Co.Ltd(600036) Co., Ltd. Huadian Caofeidian heavy industry equipment Co., Ltd. caosi Beijing West Third Ring sub branch 11090678141091873369380000 phase II project of Feidian heavy industry equipment manufacturing base and supplementary engineering project working capital project
Bank Of Beijing Co.Ltd(601169) Co., Ltd. 2 Ping An Bank Co.Ltd(000001) 7039383896 Shanghai Supezet Engineering Technology Corp.Ltd(688121) 6522000000 Huadian Heavy Industries Co.Ltd(601226) R & D center construction project
Sihuiyuan sub branch
China China Minsheng Banking Corp.Ltd(600016) Co., Ltd. has the 69273523754688620000 capacity expansion and supporting projects of the head office business department of Huadian Heavy Industries Co.Ltd(601226) material conveying system core products Co., Ltd., and the capacity expansion project of Huadian Heavy Industries Co.Ltd(601226) high-end steel structure products
On December 29, 2015, the company, Huadian Heavy Industries Co.Ltd(601226) Machinery Co., Ltd. and the sponsor China Merchants Securities Co.Ltd(600999) signed the four party supervision agreement on the storage of special account for raised funds with China Construction Bank Corporation(601939) Tianjin Beichen sub branch of China. As of December 31, 2021, the storage of each special account for raised funds is as follows:
Purpose of account number amount of special account for raised funds (yuan)
China Merchants Bank Co.Ltd(600036) Co., Ltd. Huadian Caofeidian heavy industry equipment Co., Ltd. caosi Beijing West Third Ring sub branch 110906781410918659496084 phase II project of Feidian heavy industry equipment manufacturing base and supplementary engineering project working capital project
Bank Of Beijing Co.Ltd(601169) Co., Ltd. 2 Ping An Bank Co.Ltd(000001) 7039383896 Shanghai Supezet Engineering Technology Corp.Ltd(688121) 797631375 Huadian Heavy Industries Co.Ltd(601226) R & D center construction project
Sihuiyuan sub branch
Huadian Heavy Industries Co.Ltd(601226) core product of material conveying system China China Minsheng Banking Corp.Ltd(600016) Co., Ltd. has 6927352371778092347 capacity expansion and supporting projects (changed), and capacity expansion project of heavy industry high-end steel structure products of the business department of Huadian Co., Ltd. head office (changed)
China China Construction Bank Corporation(601939) Co., Ltd. has 120501815700 China Vanke Co.Ltd(000002) 1815788.25 Huadian Heavy Industries Co.Ltd(601226) material conveying system core products Co., Ltd. Tianjin Beichen sub branch capacity expansion and supporting projects (changed)
(II) use of raised funds in 2021
As of December 31, 2021, according to the investment plan of raised funds, the company has used a total of 3580932 million yuan of raised funds for the phase II project of Caofeidian heavy industry equipment manufacturing base of Huadian Caofeidian heavy industry equipment Co., Ltd., Huadian Heavy Industries Co.Ltd(601226) material conveying system core product expansion and supporting projects, and supplementary engineering projects.
Another 4268868 million yuan of raised funds will be used for permanent replenishment of working capital projects. As of December 31, 2021, the details of the balance of funds raised by each raised investment project are as follows:
Unit: 10000 yuan
Project Name: total amount of original investment adjusted, total amount of funds raised in previous years and balance of funds used in 2021
Huadian Caofeidian heavy industry equipment Co., Ltd
Caofeidian heavy industry equipment manufacturing base phase II 5476 Addsino Co.Ltd(000547) 6 Chang Jiang Shipping Group Phoenix Co.Ltd(000520) 000 0.004956000 project
Huadian Heavy Industries Co.Ltd(601226) material conveying system core production 307520011999941199994 0.00 0.00 0.00 product expansion and supporting projects
Huadian Heavy Industries Co.Ltd(601226) high end steel structure product expansion 2393662 0.00 0.00 0.00 0.00 capacity project
Huadian Heavy Industries Co.Ltd(601226) R & D center construction project 16522001652200 0.001652200
Supplementary engineering project working capital project 186093818609381860938 0.00 0.00
Permanent supplementary working capital 0.0042688684268868 0.00 0.00
Total 14458000144580007849800 0.006608200
In 2021, according to the resolution of the third meeting of the Fourth Board of directors, the company used the idle raised funds of 150 million yuan to supplement the working capital temporarily and used the idle raised funds of 500 million yuan to carry out cash management on a rolling basis. The maturity and return date of the above temporary supplementary working capital and cash management funds is before May 27, 2022.
As of December 31, 2021, the balance of raised funds temporarily idle by the company was 66.82 million yuan (excluding interest).
3、 The plan of temporarily replenishing working capital by borrowing some idle raised funds this time
(I) purpose of borrowing raised funds
The business processes of the company's material conveying system engineering, thermal engineering, high-end steel structure engineering, marine and environmental engineering and other sectors have slight differences in some links, but the overall structure is consistent. They all need to go through several major links, such as early tracking or bidding, contract signing, project implementation, completion acceptance and settlement. Some of them need working capital:
1. Working capital demand in bidding process
Most engineering projects of the company need to be obtained by bidding. According to industry practice, the company needs to pay a certain amount of bid security to the project owner at the time of bidding, which is generally 0.5% of the contract amount of the engineering project, and the occupation period is generally 6 months.
2. Working capital demand in project implementation
When the project enters the implementation stage, the owner pays the project payment according to the contract node. Because the owner's payment and settlement time cycle is long, the company needs to advance some equipment procurement, materials and subcontracting expenses, which are generally advanced by the company and suppliers.
3. Working capital demand in completion acceptance
After the completion of the project, the owner generally retains the quality assurance deposit at 5% - 10% of the contract amount. The quality assurance deposit is paid at the expiration of the quality assurance period, which is generally 1 year from the date of project completion; For some supporting or divisional projects contracted by the company, the starting point of the warranty period may be the acceptance time of the whole project, and the corresponding warranty period may be extended.
According to the current occupation of bid security and quality assurance deposit and the demand for working capital of the project, and comprehensively considering the capital source formed through its own accumulation, the company has a working capital gap.
(II) amount and term of supplementary working capital
The company plans to use the temporarily idle raised funds of 150 million yuan to temporarily supplement the working capital for the production and operation related to the company's main business. The term is 12 months from May 27, 2022, and will be returned to the special account for raised funds at maturity.
In order to ensure the normal progress of the fund-raising project, if the fund-raising project needs, the company can also return this part of the fund to the special account for fund-raising in advance.
(III) information disclosure
The company will return this part of the funds to the special account for raised funds before the due date of replenishing working capital with the raised funds, and make a timely announcement after all the funds are returned.
4、 Impact on the company
According to the project schedule and capital investment plan, the company uses 150 million yuan of idle raised funds to temporarily supplement working funds for production and operation related to the company's main business, which will not change the purpose of raised funds and affect the normal progress of the investment plan of raised funds. It can improve the use efficiency of raised funds. Calculated according to the LPR interest rate of bank loans in the same period, it is expected to save 5.55 million yuan of financial expenses in one year, In line with the interests of all shareholders.
5、 Implementation of decision-making procedures and opinions of independent directors, board of supervisors and recommendation institutions
The plan to use some idle raised funds to temporarily supplement working capital has been reviewed and approved at the sixth meeting of the Fourth Board of directors of the company. The independent directors, the board of supervisors and the recommendation institution China Merchants Securities Co.Ltd(600999) (hereinafter referred to as the "recommendation institution") of the company have expressed clear consent, which is in line with the requirements of the regulatory authority.
Opinions of independent directors: "(I) the company's decision-making procedures for temporarily replenishing working capital with idle raised funds comply with the relevant provisions of the guidelines for the supervision of listed companies No. 2 - regulatory requirements for the management and use of raised funds of listed companies, the guidelines for the self discipline supervision of listed companies on Shanghai Stock Exchange No. 1 - standardized operation and the articles of association of the company of China Securities Regulatory Commission. (II) Under the condition of ensuring that the investment and construction of the raised funds and the use of the raised funds are not affected, the company temporarily replenishes the working capital with the idle raised funds of 150 million yuan according to the schedule of the raised investment project and the capital investment plan, which is conducive to maximizing the interests of shareholders, improving the use efficiency of the idle raised funds, not affecting the normal development of the company's main business and the normal progress of the investment plan of the raised funds, There is no direct or disguised change in the purpose of the raised funds, which will not damage the interests of the company and all shareholders, especially minority shareholders. To sum up, we agree
