Changzhou Tiansheng New Materials Co.Ltd(300169)
No. 508, Longjin Road, Changzhou City, Jiangsu Province
Use of funds raised by issuing shares to specific objects
Feasibility analysis report
January, 2002
1、 Use plan of the raised funds
The proposed fund-raising for this issuance of shares to specific objects shall not exceed 529999800 yuan. After deducting the issuance expenses, it is planned to be used to supplement the working capital. 2、 Feasibility analysis of the project invested by the raised funds
(I) necessity of using the raised funds
1. Jucheng smart (to be established) becomes the controlling shareholder to ensure the long-term sustainable and stable development of the company
After Jucheng intelligence (to be established) subscribes for the issuance of shares to specific objects, Jucheng intelligence (to be established) will become the controlling shareholder of the company, make full use of the advantages of capital and resources to support the business development of listed companies, and also make full use of the platform of listed companies to effectively integrate resources, give full play to its own advantages and improve the asset quality and profitability of listed companies, Enhance the value of listed companies and strive to bring more rich returns to the majority of shareholders, especially small and medium-sized shareholders.
2. Meet the capital needs of the company’s business layout and improve the company’s profitability and financial situation
The company’s polymer foam materials have successfully entered the fields of wind power generation, rail transit, shipbuilding, aerospace, building energy conservation and so on. The company’s demand for working capital in future market development, R & D investment, daily operation and other links will further expand. The net funds raised this time will be used to supplement the working capital, so as to realize the in-depth layout of the company in the field of polymer foam materials, improve the industry status and core competitiveness of the company, and ensure the sustainable development of the company. At the same time, the fund raised this time will alleviate the capital pressure of the company, optimize the capital structure, reduce financial expenses, reduce the level of financial leverage, and ensure the capital demand for the long-term development of the company.
(II) feasibility of using the raised funds
1. This issuance complies with the provisions of laws and regulations and the company’s own development needs
This issuance complies with relevant policies, laws and regulations and is feasible. After the funds raised in this offering are in place, it can effectively alleviate the working capital demand pressure faced by the company’s business development, provide necessary capital reserves for the development of the company’s core business and the improvement of competitiveness, effectively improve the company’s capital structure and improve its anti risk ability, which is in line with the company’s own development needs.
2. The corporate governance and internal control of this issuance are standardized and perfect
According to the governance standards of listed companies, the company has established a modern enterprise system with the corporate governance structure as the core. Combined with its own actual situation, through continuous improvement and perfection, the company has formed a more standardized and standard corporate governance system and more perfect internal control procedures.
The company has formulated the measures for the management of raised funds in terms of the management of raised funds. In terms of the management of raised funds, the company has made clear provisions on the storage, use, investment direction change, inspection and supervision of raised funds in strict accordance with the regulatory requirements of listed companies. 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 standardized and rational use of the raised funds and prevent the use risks of the raised funds. 3、 The impact of this issuance to specific objects on the company’s operation and management and financial status (I) the impact of this issuance on the company’s operation and management
The funds raised from the issuance of shares to specific objects are intended to be used to supplement working capital after deducting the issuance expenses. The use of the raised funds will help the company enhance its capital strength, enrich its working capital, solve the demand for funds in the process of continuous business expansion, boost the development of the company’s core business and the improvement of its core competitiveness, and be conducive to the long-term operation and development of the company.
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 funds raised in this offering are in place and put into use, the total assets and net assets of the company will increase at the same time, the working capital will be enriched, the capital strength will be effectively enhanced, the asset liability ratio will be improved, the capital structure will be more reasonable, and the financial expenses will be reduced, which is conducive to optimizing the financial structure of the company and reducing financial risks, Further improve the company’s solvency and anti risk ability. 4、 Conclusion of feasibility analysis
In conclusion, after careful analysis and demonstration by the board of directors, it is believed that the funds raised by the company’s issuance of shares will effectively supplement the working capital, help to meet the capital needs of the sustainable development of the company’s business, provide financial support for the development of core business and the improvement of core competitiveness, effectively improve the company’s capital structure and enhance its anti risk ability. This issuance complies with the provisions of laws and regulations and the company’s own development needs, is conducive to the long-term and healthy development of the company, and is in line with the interests of the company and all shareholders.
Changzhou Tiansheng New Materials Co.Ltd(300169) board of directors
January 26, 2002
