605009.SH announced that the company held the second meeting of the third session of the Board of Directors and the second meeting of the third session of the Supervisory Committee on September 23, 2023 to consider and pass the motion on the termination and closure of some fund-raising projects and the permanent replenishment of current funds with savings. In order to meet the needs of the company's business development and improve the efficiency of the use of the raised funds, combined with the market and the actual operation of the company, it is proposed to conclude the construction project of intelligent manufacturing and production base of 1.2 billion pieces of absorbent sanitary products and the construction project of R & D and operation support center, and terminate the brand building and promotion project. At the same time, the raised funds and interest income from the savings of the above-mentioned projects shall be permanently replenished with the current funds, and the corresponding fund-raising accounts shall be cancelled at the same time.
The balance of the "Intelligent Manufacturing and production Base Project of 1.2 billion pieces of absorbent Sanitary products", "R & D Operation support Center Construction Project" and "Brand Building and Promotion Project" to be terminated totaled 239 million yuan (as of June 30, 2023). The matter still needs to be examined and approved by the shareholders' meeting, and the specific amount will prevail after the bank settlement on the day when the funds are transferred out. The company intends to use the balance to raise funds to permanently replenish the working capital for production and operation activities related to the company's main business.