Hengxin Life (301501) adjusts the funding project payment method to use its own funds and banker's acceptance drafts for advance payment, followed by an equivalent replacement.

[Finance News] Hefei Hengxin Life Technology Co., Ltd. (Stock Code: 301501, Stock Abbreviation: Hengxin Life) announced on March 17 that the company’s 10th meeting of the second board of directors approved the proposal on using self-owned funds and bank acceptance bills to pay for the funds needed for the fundraising projects and to replace the same amount of raised funds. The company agreed that during the implementation of the fundraising projects, it may use self-owned funds and bank acceptance bills to make advance payments based on actual conditions, and then periodically replace the funds with an equivalent amount of raised funds.

Basic Information on Raised Funds

Hengxin Life raised a total of 1,017.96 million yuan through an initial public offering in 2024. After deducting issuance costs of 119.05 million yuan, the net amount of funds raised was 898.91 million yuan. The above funds were transferred to the company’s designated account on March 13, 2025, and a special account for raised funds has been opened for deposit.

Investment Projects Funded by Raised Funds

The company’s initial plan for the use of the raised funds included the following projects:

It is noteworthy that the net amount of funds raised exceeds the investment amount of the above projects by 70.59 million yuan, which is excess fundraising. The company announced on the same day that it plans to modify some of the fundraising projects, integrating the “Intelligent Upgrade and Transformation Project” and the “R&D Technology Center Project” into a new project called the “Green Degradable Product Production Base Project,” and will allocate the relevant raised funds and all excess funds to this new project. This proposal is subject to approval at the company’s first extraordinary general meeting in 2026.

Reasons for Adjusting the Payment Method

The company stated that during the implementation of the fundraising projects, in accordance with the principle of dedicated use of raised funds, all expenses should generally be paid directly from the dedicated account for raised funds. However, there are situations requiring the use of some self-owned funds and bank acceptance bills for advance payments, mainly due to:

2. Salaries and bonuses need to be paid through the company’s basic deposit account or general deposit accounts; direct payment from the raised funds account does not comply with banking regulations.
3. Social security contributions and various taxes are paid via bank collection; using multiple bank accounts for payments is inconvenient.
4. Small and scattered expenses such as renovation costs, consumables, and travel expenses related to the projects are cumbersome to pay directly from the raised funds account.
5. Using bank acceptance bills to pay for project funds can accelerate bill turnover, improve fund utilization efficiency, and reduce financial costs.

Fund Replacement Process

The company’s main operational procedures are as follows:

2. Relevant departments submit payment requests, and after internal approval, the finance department makes advance payments using self-owned funds and bank acceptance bills.
3. The finance department establishes a project accounting ledger, summarizing details of funds paid in advance from self-owned funds and bank acceptance bills on a quarterly basis.
4. The finance department compiles quarterly statistics of the advance payments, and after internal approval, transfers an equivalent amount from the dedicated raised funds account to the company’s general account.
5. The sponsor agency continuously supervises the replacement of raised funds with the same amount.

Impact on the Company and Review Status

The company stated that this adjustment in the payment method for fundraising project funds will help improve operational management efficiency and ensure the smooth progress of the projects. It will not affect the normal implementation of the projects, nor will it covertly change the use of raised funds or harm the interests of the company and shareholders.

This proposal has been approved by the company’s board of directors. The sponsor, Huatai Securities Co., Ltd., agreed and believes that the decision-making procedures have been properly followed, and there is no covert change in the use of raised funds, aligning with the interests of the company and all shareholders.

Click to view the original announcement>>

Disclaimer: The market carries risks; investment should be cautious. This article is automatically published by an AI model based on third-party databases and does not represent Sina Finance’s views. All information in this article is for reference only and does not constitute personal investment advice. Please refer to the actual announcement for accuracy. If you have questions, contact biz@staff.sina.com.cn.