Stock Code: Zhejiang Qianjiang Motorcycle Co.Ltd(000913) stock abbreviation: Zhejiang Qianjiang Motorcycle Co.Ltd(000913) Zhejiang Qianjiang Motorcycle Co.Ltd(000913)
(Wenling Economic Development Zone, Zhejiang Province)
Feasibility analysis report on the use of funds raised by non-public offering of shares in 2022
May, 2002
1、 The use plan of the funds raised in this non-public offering
The total amount of funds raised from this non-public offering of A-Shares does not exceed 506.4 million yuan (including this amount). After deducting the issuance expenses, the net amount of funds raised is intended to be used to supplement working capital.
2、 Necessity and feasibility analysis of the use of the raised funds
(I) necessity of project implementation
1. Increase the shareholding ratio of actual controllers and boost market confidence
As of the issuance date of this plan, Geely technology, the controlling shareholder of the company, holds 13500000000 shares of the company, accounting for 29.77% of the total share capital of the company. Because the company is optimistic about its future development prospects, earnestly supports the business development of listed companies and enhances the confidence of small and medium-sized investors, Geely maijie, controlled by Li Shufu, the actual controller, plans to subscribe for the shares issued to specific objects in cash. This issuance will further consolidate the stability of the control right of the actual controller and boost market confidence.
2. Supplement the company’s working capital to meet the needs of business growth
With the superposition of industry upgrading and consumer market expansion, the company’s business scale has maintained rapid development in recent years. From 2017 to 2021, the average annual compound growth rate of motorcycle manufacturing business income was 15.68%. In the future, the company plans to increase the production capacity of medium and large displacement motorcycles and electric motorcycles. With the further expansion of the company’s business scale, the demand for working capital of the company will also be further expanded. Compared with the operation demand brought by the expansion of the company’s business scale, there is still a gap in the company’s current working capital. Therefore, the funds raised from this non-public offering to supplement the company’s working capital can effectively alleviate the company’s capital pressure, enhance the company’s competitiveness and reduce business risks, which is a practical guarantee for the company to achieve sustainable and healthy development.
3. Optimize asset structure and improve anti risk ability
As of March 31, 2022, the total liabilities of the company are 2099932600 yuan, of which the current liabilities are 1976025800 yuan, and the asset liability ratio (consolidated statement) is 41.65%. The company’s use of raised funds to supplement working capital can expand the company’s financial strength, improve the company’s anti risk ability, financial security level and financial flexibility, provide a strong guarantee for the company’s subsequent development, reduce the company’s operating risk, increase the stability and sufficiency of working capital, and enhance the company’s market competitiveness.
(II) feasibility of project implementation
1. The use of the funds raised in this non-public offering complies with the provisions of laws and regulations
The use of the raised funds issued by the company to specific objects this time complies with relevant policies, laws and regulations and is feasible. After the funds raised from this issuance to specific objects are in place, the company’s net assets and working capital will increase, which is conducive to enhancing the company’s capital strength, promoting the company to actively and steadily layout relevant businesses in the industrial chain, improving the company’s profitability and market competitiveness, and promoting the sustainable and healthy development of the company’s business.
2. The use of the funds raised in this non-public offering has the implementation subject of standardized governance and perfect 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 a perfect internal control environment through continuous improvement and perfection. 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 raised funds issued 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 company’s main business reserves technology and talents, which has a strong competitive advantage
Since its establishment, the company has always been deeply engaged in the motorcycle industry, formed an operation and management team with long-term experience and rich industry experience, and accumulated rich experience in production, R & D and other main links. At the same time, the company has relatively strong technical accumulation, perfect motorcycle powertrain technology and vehicle design ability, and has established “powertrain Research Institute”, “vehicle research institute”, “Electrical Research Institute” and other institutions. The company’s technology and talent reserve can support the sustainable development of the company’s motorcycle related business.
3、 The impact of this non-public offering on the company’s operation, management and financial status
(I) impact of this issuance on the company’s operation and management
After deducting the issuance expenses, the funds raised from the issuance of shares to specific objects are intended to be used to supplement working capital, which can further enhance the company’s capital strength, enhance the company’s R & D, production and service strength, help to expand the company’s market share, consolidate the company’s industry position and improve the profitability, so as to further enhance the company’s competitiveness and sustainable development ability, which is in line with the interests of the company and all shareholders. After the completion of this offering, the company will still have a relatively perfect corporate governance structure, maintain the integrity of personnel, assets, finance, R & D, procurement, production, sales and other aspects, and maintain the independence of personnel, assets, finance, business and other aspects with the company’s related parties.
(II) impact of this issuance on the company’s financial position
After the issuance, the total assets and net assets of the company will increase at the same time, and the proportion of current assets, especially monetary funds, will increase, which is conducive to optimizing the company’s capital structure, reducing the company’s financial cost and financial risk, improving the company’s solvency and subsequent financing ability, and enhancing the company’s sustainable operation ability. After the implementation of this non-public offering, it will further improve the asset quality of the company, enhance the core competitiveness of the company, and promote the sustainable and healthy development of the company, which is in line with the interests of the company and all shareholders.
4、 Conclusion of feasibility analysis
In conclusion, after careful analysis and demonstration, the board of directors of the company believes that the use plan of the funds raised by issuing shares to specific objects complies with relevant policies, laws and regulations and the overall strategic development plan of the company in the future, which is necessary and feasible. The availability and use of the raised funds will help to improve the company’s profitability and overall competitiveness, enhance the company’s sustainable development ability and anti risk ability, and optimize the company’s financial structure, so as to provide important support and guarantee for the company’s subsequent development. Therefore, the use of the funds raised by issuing shares to specific objects is reasonable and in line with the interests of the company and all shareholders.
Zhejiang Qianjiang Motorcycle Co.Ltd(000913) board of directors may 20, 2022
