With the continuous development of China's capital market, more and more enterprises are determined to raise funds through the capital market to continuously expand and strengthen their business. The feasibility study report on the metal electric heating tube investment project is a written report that assists companies planning to go public in completing the filing and approval of the investment project before IPO, and coordinates with securities firms to provide necessary support for the company's prospectus. The design of the investment project should combine the market segment report and the company's own characteristics, reasonably predict the project's 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. Issues related to the use of raised funds include the necessity of financing, whether the raised funds have a clear direction of use, whether the investment project has clear profit prospects, whether the preparation for the use of over-raised funds is sufficient, and whether there will be blind expansion. Among the companies rejected for ChiNext IPO, nearly half had issues with the use of raised funds, indicating that the investment project is 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, a total of 228 companies were rejected, with a rejection rate of 18.6%, and strict review has become the norm. Many companies have broken through their previous understanding of main business in the design of investment projects. For example, a company leveraged its ChiNext listing to extend from subway business to high-speed rail; another company extended from building intelligent services to building energy-saving services; another company transformed from vaccine marketing to independent vaccine R&D and production.
Many companies have also made significant breakthroughs in the proportion of raised funds invested in R&D centers. For instance, an IT company invested about 50% of its total raised funds in its R&D center, while a biopharmaceutical company invested over 40% of its total raised funds in its R&D center. In fact, for certain fields, R&D capability equals sustainable profitability.The rationality of the investment project has always been a focus of the CSRC, and a reasonable and scientific feasibility study of the investment project has become an important link supporting the successful listing of a company.The feasibility study of the investment project must start from the overall system, analyzing and demonstrating multiple aspects such as technology, economy, finance, commerce, environmental protection, and law, to determine whether the construction project is feasible and provide a scientific basis for correct investment decisions. The feasibility study of a project is a continuous process of analysis, research, evaluation, and decision-making for a multi-factor, multi-objective system. It requires the cooperation of professionals with knowledge in various fields to complete. It should fully consider the CSRC's requirements for the use of raised funds, market prospects, product technology content, environmental impact, and alignment with the company's existing management and sales capabilities. A reasonable feasibility study of the investment project is key for the company to pass the review.
Huajing Zongheng has a very solid research foundation in investment project feasibility studies and can provide high-quality services to clients: 15.10 Necessity and Rationality of Significantly Increasing Investment in Fixed Assets, Intangible Assets, and R&D Expenses (Key)
