Almost 200 million! Donglai is used for 10,000 tons of automotive coating project

 On January 10, Donglai Coating Technology (Shanghai) Co., Ltd. (hereinafter referred to as "Donglai Technology" or the "Company") announced that the company intends to terminate the "Caiyun Intelligence" and "High-performance Color Paint" projects, and will use the remaining raised funds of 198.8316 million yuan (including 10.8541 million yuan as of September 30, 2022) for the "10,000 tons of waterborne environmental protection automotive coatings" project.

According to the announcement, the investment scale of the "10,000 tons of waterborne environmental protection automotive coatings" project was adjusted from 142.2 million yuan to 400 million yuan, and the source of funds was 346.0842 million yuan, raised funds (including 16.1067 million yuan of fruits as of September 30, 2022) and the company's own or self-financing.

According to Donglai Technology, due to the impact of the epidemic and the characteristics of the industry, the preliminary preparation and government approval of the "10,000 tons of waterborne environmental protection automotive coating" project are close to completion, and it is planned to enter the construction process in the first quarter of 2023, and the project construction period is expected to be 24 months, and the project construction will be completed in the first quarter of 2025. It is expected that the project completion acceptance process will be completed in the first quarter of 2026 and will reach the scheduled state of use.

The expansion of the scale of this investment is mainly due to the change in the scale of construction and the increase in the content of construction. The original fundraising and investment project is planned to be implemented on the company's own land, covering a total area of 7,833 square meters (about 12 acres). The total area was greatly increased to 41,380.5 square meters (about 62 acres), and the land purchase cost increased by 50 million yuan. At the same time, the investment in building civil engineering, auxiliary facilities and equipment has increased significantly.

Donglai Technology said that the change and adjustment of the company's fundraising project is a reasonable decision made prudently in combination with the current market environment and the company's strategic layout, which meets the actual business needs of the company, is conducive to improving the efficiency of the use of raised funds, optimizing the allocation of funds and resources, ensuring the smooth implementation of the changed fundraising and investment projects, maintaining the company's industry leadership and long-term development, and safeguarding the interests of all shareholders.