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Central Co., Ltd.:it is proposed to use the remaining 976 million yuan of fund-raising for DW phase IV project

On the evening of May 25, Zhonghuan Co., Ltd. announced that the company decided to adjust the original raised investment projects and the use of some raised funds in combination with the current stage and future industrial development trend, The company plans to use the remaining 976 million yuan of raised funds originally planned to be invested in the”production line project of 8-12 inch semiconductor silicon chips for integrated circuits” (as of the date of this announcement, including accumulated interest, etc., and the specific amount shall be subject to the actual amount after bank interest settlement on the date of capital transfer out), all for the construction of”DW phase IV Project”. The amount of raised funds in this change accounts for 19.86%of the net funds raised from this non-public offering of shares.

Zhonghuan Co., Ltd. said that the company changed the investment project of raised funds to DW phase IV project, which will increase the annual production capacity of 30GW solar photovoltaic silicon wafer (G12). DW phase IV Project of the new raised investment project has good market advantages in economy and efficiency, and is more in line with the changes and development trend of the current industry and market. The new raised investment project has broader market space and can better realize economic benefits.

According to the data, the total investment of the project is planned to be 3.104 billion yuan. The sources of funds include:all the remaining funds in the special account for raising funds through the non-public offering of”8-12 inch semiconductor silicon wafer production line project for integrated circuits” and the self raised funds of Zhonghuan shares. The main body of the project implementation is Wuxi Zhonghuan Applied Materials Co., Ltd. (hereinafter referred to as”Zhonghuan applied materials”), in which Zhonghuan shares hold 98.08%and has control.

In view of the impact of the change of the raised capital investment project on Zhonghuan shares, Zhonghuan shares frankly said that the change of the purpose of the raised capital and the change of the raised capital investment project will help promote the release of the company’s G12 silicon wafer production capacity, give full play to the competitive advantage of G12 silicon wafer, further consolidate the company’s leading position and market share in the photovoltaic silicon wafer market, and alleviate the situation that the industry is in short supply of high-quality production capacity, Promote the continuous reduction of lcoe (kilowatt hour cost) of photovoltaic power generation and the optimization of BOS cost, so as to realize the comprehensive parity of photovoltaic power generation on the Internet all over the world.