Wuxi Honghui New Materials invested 257 million yuan to build a 60,000-ton water-based paint raw material project

Approved by the China Securities Regulatory Commission on “Approval of the IPO of Wuxi Honghui New Materials (35.120, 0.19, 0.54%) Material Technology Co., Ltd.” (Zheng Jian Xu Xu [2016] No. 1182), Wuxi Honghui New Materials Technology Co., Ltd. (hereinafter referred to as the “Company”) issued 27 million RMB ordinary shares (A shares) for the initial public offering in June 2016, all of which were new shares with a par value of RMB 1 per share and an issue price of RMB 9.52 per share.
The total amount of funds raised from the company’s initial public offering of shares was 257.04 million yuan. After deducting the issuance cost of 28.54 million yuan, the net amount of funds raised was 228.5 million yuan. Among them, the fund-raising investment project “a water-based industrial coating base material-vinyl chloride copolymer emulsion project with an annual output of 60,000 tons” (hereinafter referred to as the “60,000 tons project”). It promised to use the actual raised funds of 198,992,200 yuan; the “New Material R&D Center Project” promised to use the actual raised funds of 29.5080 million yuan.
The availability of the above-mentioned raised funds was verified by Jiangsu Gongzheng Tianye Certified Public Accountants (special general partnership) Su Gong W[2016] B099 “Capital Verification Report” on June 24, 2016.
The construction of the 60,000-ton project was carried out in phases: On August 16, 2016, the Xishan District Housing and Urban-Rural Development Bureau of Wuxi City approved and issued the Construction Permit for the 60,000-ton project (No. 320205201608160101). The construction scale is 4,224 square meters. The construction of the project is expected to meet the needs of about 30,000 tons of production plants in the 60,000-ton project (for details, please refer to the Announcement on the progress of the production of 60,000 tons of water-based industrial coatings base material-vinyl chloride copolymer emulsion project”, announcement number: 2016-029).
At present, the construction of this batch of factories and related supporting projects is in the final stage, and the relevant inspection and acceptance and equipment purchase are being actively promoted.
In the 60,000-ton project, the construction of the production plant required for the production capacity of about 30,000 tons was obtained in April 2017 with the “Construction Project Planning Permit” (Building No. 3202052017A0022) issued by the Wuxi City Planning Bureau, and recently obtained Wuxi The “Building Project Construction Permit” (No. 320205201706070101) issued by the Housing and Urban-Rural Development Bureau of Xishan District, Shanghai has a construction scale of 3,816 square meters. The obtaining of the permit indicates that the project meets the construction conditions and the construction is approved.
For the follow-up progress of fundraising projects, the company will perform its information disclosure obligations in a timely manner in accordance with relevant information disclosure regulations.