Huayi Technology (688071.SH) closed at 32.72 yuan today, up 6.96.

Huayi Technology last night released a plan to issue shares to specific targets in 2024. The total amount of funds raised from the issuance of shares to specific objects shall not exceed 381.045 million yuan (inclusive), and the net amount of funds raised after deducting relevant issuance expenses is intended to be used to supplement working capital.

The type of shares to be issued is domestically listed RMB ordinary shares (A shares) with a par value of RMB 1.00 per share. The issuance of shares will be issued to specific targets, and the company will choose an appropriate time to implement it within the validity period of the approval approved by the Shanghai Stock Exchange and approved by the China Securities Regulatory Commission. If there are new provisions in national laws, regulations and other systems, the company will adjust according to the new provisions.

According to the "Administrative Measures for the Registration of Securities Issuance of Listed Companies" and other relevant regulations, the pricing benchmark date of this issuance is the announcement date of the company's board of directors resolution on this issuance (that is, the announcement date of the resolution of the 15th meeting of the fourth board of directors: February 29, 2024). The issue price is not less than 80% of the average trading price of the Company's shares for the twenty trading days prior to the pricing benchmark date. According to the above provisions, the issue price is determined to be 22.47 yuan/share, which is not less than 80% of the average trading price of the company's shares in the 20 trading days before the pricing benchmark date.

The object of this issue is Shanghai Xizejia, which is an enterprise controlled by the controlling shareholder and actual controller of the company. The shares issued to a specific target will be subscribed for in cash. Shanghai Xizejia subscribed for the shares issued by the Company in cash, which constituted a related transaction with the Company. The Company strictly complies with laws and regulations as well as internal regulations to perform the approval procedures for connected transactions.

The number of shares issued to a specific object is calculated by dividing the total amount of funds raised by the final issue price, and the remainder of less than one share shall be discarded, that is, the number of shares issued shall not exceed 16,957,944 shares (including the number), accounting for 20% of the total share capital of the company before the issue. If the number of issues finally registered by the CSRC is inconsistent with the number in the preceding paragraph, the number of shares to be issued to a specific target shall be subject to the number of issues finally registered by the CSRC, and the total amount of funds raised shall be adjusted accordingly.

The shares subscribed by the object of this issue shall not be transferred within thirty-six months from the date of the end of the issue. The shares acquired by the Company to a specific target as a result of the distribution of stock dividends, capital accumulation and other circumstances shall also comply with the above-mentioned share restriction arrangement. Where laws and regulations provide otherwise for the limited sale period, such provisions shall prevail. The transfer after the expiration of the sales restriction period shall be carried out in accordance with the relevant provisions of the China Securities Regulatory Commission and the Shanghai Stock Exchange.

After the completion of the Offering, the undistributed profits rolled over by the Company up to the completion of the Offering will be shared by the new and old shareholders after the completion of the Offering in proportion to their shareholdings after the Offering.

The shares to be issued will be listed and traded on the Shanghai Stock Exchange. The resolution on the issuance of shares to a specific target is valid for 12 months from the date of approval by the general meeting of shareholders.

Before the issuance, Liyin directly held 17,844,546 shares of the company, accounting for 21.05 of the company's total share capital, and was the controlling shareholder and actual controller of the company. In order to facilitate the relative concentration of control and stable operation and management, the company's controlling shareholder and actual controller Li Yin and the company's shareholders holding more than 5% of the company's shares Huang Daqing and Qin Ligang signed the ''Concerted Action Agreement'' on September 30, 2019 to confirm the three people. The concerted action relationship, and make agreements on the concerted action matters, the realization method of concerted action, the validity period of the concerted action relationship, dispute resolution measures and the liability for breach. According to the relevant provisions of the Measures for the Administration of Acquisitions of Listed Companies, Li Yin and Huang Daqing and Qin Ligang constitute a concerted action relationship. If calculated according to the number of 16,957,944 shares issued this time, after the completion of this issuance, Liyin directly holds 17,844,546 shares of the company, and indirectly holds 16,957,944 shares of the company through Shanghai Xizejia. Liyin directly and indirectly holds the company The number of shares is 34,802,490 shares, accounting for 34.20 of the company's total share capital after the issuance, and it is still the actual controller of the company, and the actual controller of the company has not changed.

Huayi Technology was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange on July 29, 2021. The number of shares issued this time is 18.2112 million, accounting for about 25.00 of the total share capital after the issuance. All of them are new shares issued by the public without the transfer of old shares. The issue price is 13.73 yuan per share. The sponsor (lead underwriter) is CITIC Securities Co., Ltd., and the sponsor representatives are Yang Ling and Wang Qiaoqiao.

The total amount of funds raised in the initial public offering of Huayi Technology is 250.0398 million yuan, and the net amount of funds raised is 193.8971 million yuan. According to the company's disclosure prospectus on July 23, 2021, the company plans to raise 391.6916 million yuan, which is planned to be used for intelligent testing equipment capacity expansion and upgrading construction projects, testing center construction projects, R & D center construction projects, repayment of bank loans and supplementary working capital.

the total cost of the initial public offering of Huayi Technology is 56.1427 million yuan, of which the underwriting and sponsorship fee is 35 million yuan.

Huayi Technology will issue A shares to specific targets in 2022 to raise funds. With the approval of the China Securities Regulatory Commission on the approval of Shanghai Huayi Technology Group Co., Ltd. to issue shares to specific targets (Securities Regulatory Commission [2023] No. 160), Huayi Technology will issue 11,923,509 RMB common shares (A shares) to specific targets at an issue price of RMB 47.46 yuan per share and a total amount of 565,889,737.14 yuan raised, after deducting the issuance fee (excluding VAT) of RMB 11,527,958.82, the net proceeds were RMB 554,361,778.32. The above-mentioned fund-raising situation has been examined by the accounting firm (special general partnership), and issued on April 18, 2023 on the meeting of the division of the word (2023) No. 5098 "capital verification report". The company has adopted a special account storage system for the raised funds.

The announcement of the 2022 issuance of A- shares to specific targets disclosed by Huayi Technology on April 28, 2023 shows that the sponsor (co-lead underwriter) of Huayi Technology's issuance of A- shares to specific targets in 2022 is CITIC Securities Co., Ltd., the sponsor representatives are Wang Qiaoqiao and Ruan Yuan; the joint lead underwriter is China International Capital Corporation.

according to the "verification report" issued by shanghui accounting firm on April 18, 2023 (shanghui shbao zi (2023) no 5097), as of April 17, 2023, citic securities has received a total of 565,889,737.14 yuan of subscription funds from subscribers to this issue to specific targets.

according to statistics, huayi technology has raised funds twice since its listing, totaling 815.9295 million yuan.

Huayi Technology's 2023 annual performance forecast shows that according to preliminary calculations by the financial department, the net profit attributable to the owner of the parent company is expected to be 15 million yuan to 22 million yuan in 2023, which is compared with the same period last year (statutory disclosure data)., Will decrease by 14.3634 million yuan to 21.3634 million yuan, a year-on-year decrease of 39.50 to 58.75. The net profit attributable to the owner of the parent company after deducting non-recurring gains and losses is 5.5 million yuan to 11.5 million yuan, which will decrease by 18.393 million yuan to 24.393 million yuan compared with the same period last year (statutory disclosure data), a year-on-year decrease of 61.53 to 81.60.%.