With the continuous development of China's capital market, an increasing number of enterprises are determined to raise funds through the capital market to expand their business. The feasibility study report on the fundraising project for metal tubular electric heating tubes is a written report that assists companies preparing for IPO in completing the filing and approval of fundraising projects before listing, and coordinates with securities firms to provide necessary support for the prospectus.
The design of fundraising projects should combine market segment reports and the company's own characteristics, reasonably forecast project prospects and profitability, accurately describe the logical relationship with the company's core competitive advantages and sustainable profitability, and demonstrate its feasibility, necessity, and controllability, fully aligning with the CSRC's review thinking to ensure approval. Issues related to the use of raised funds, insulation electric heating plate including the necessity of financing, electric heat tracing explosion-proof whether the raised funds have a clear direction of use, whether the fundraising project has a clear profit prospect, whether the preparation for the use of over-raised funds is sufficient, and whether there will be blind expansion, etc. Among the rejected GEM IPO companies, nearly half had issues with the use of raised funds, indicating that fundraising projects are a critical part of the CSRC review process.
However, the road to listing has never been smooth, and many companies have failed along the way. Statistics show that from 2007 to 2011, the CSRC reviewed 1,226 initial public offerings, of which 228 were rejected, with a rejection rate of 18.6%, making strict review the norm.
Many companies have broken through their previous understanding of main business during the design of fundraising projects. For example, a company leveraged its GEM listing to extend from subway business to high-speed rail; another company expanded from building intelligent services to building energy-saving services; another transformed from vaccine marketing to independent vaccine R&D and production. For instance, an IT company's R&D center investment accounted for about 50% of total raised funds, and a biopharmaceutical company's R&D center investment accounted for over 40% of total fundraising. In fact, for certain fields, R&D capability equals sustainable profitability.
The rationality of fundraising projects has always been a focus of the CSRC. Reasonable and scientific feasibility studies of fundraising projects are an important part of supporting a company's successful listing.
The feasibility study of fundraising projects must start from the overall system, analyzing and demonstrating aspects such as technology, economy, commerce, environmental protection, and law to determine whether the construction project is feasible, providing a scientific basis for correct investment decisions. The feasibility study of a project is a continuous process of analysis, evaluation, and decision-making for a multi-factor, multi-objective system. It requires the collaboration of professionals with knowledge in various fields. It should fully consider the CSRC's requirements on the use of raised funds, market prospects, product technology content, environmental impact, and matching with the company's existing management capabilities and electric heating wire price sales capabilities. A reasonable feasibility study of fundraising projects is key to passing the review.
15.10 Necessity and Rationality of Substantially Increasing Investment in Fixed Assets, Intangible Assets, and R&D Expenses (Key Point)
