On January 7, Fujia Industrial announced that, in order to enhance its core competitiveness and strengthen profitability, the company plans to issue convertible corporate bonds to unspecified investors, raising no more than RMB 700 million.
According to the announcement, after deducting issuance-related expenses, all net proceeds will be used for three designated projects: the Phase II construction of the Vietnam manufacturing base, the industrialization project for commercial & industrial (C&I) and residential energy storage systems, and the industrialization project for intelligent grain warehouse robots.
Among these projects, the C&I and residential energy storage system industrialization project has a total investment of approximately RMB 266 million, of which RMB 239 million is planned to be funded by the proceeds from the convertible bond issuance. The planned product mix mainly includes 8,000 battery PACK units, 1,800 C&I cabinet-type energy storage systems, 900 containerized energy storage systems, as well as related power distribution equipment.
With respect to the compliance of fund utilization, Fujia Industrial specifically stated that, considering the surplus funds from the company’s previous initial public offering (IPO) projects have already been permanently used to supplement working capital, and based on a prudent approach, the proceeds from this convertible bond issuance will not be used for working capital replenishment or bank loan repayment. Instead, all funds will be fully allocated to the aforementioned investment projects.
As of the date of the announcement, the three proposed fundraising projects have not yet obtained the relevant project filing approvals or environmental impact assessment documents. Should the actual funds raised fall short of the planned investment amounts, the company noted that it will cover any shortfall through self-raised funds.
Source：EnergyTrend