Shanghai Mercury Home Textiles Limited By Share Ltd Announcement

Stock Code: 603365 securities short: Mercury home textiles Announcement No.: 2019-050

Shanghai mercury home textiles Limited by Share Ltd

Announcement on the part of the equity investment projects and the savings raised for other investment projects

The board of directors and all directors of the company guarantee that there is no false record, misleading statement or major omission in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.

Shanghai mercury home textiles Limited by Share Ltd (hereinafter referred to as "company" or "Mercury home textiles") held the second meeting of the Fourth Board of directors and the second meeting of the four supervisory board in August 26, 2019. It passed the "motion on the part of the investment and investment project and raised funds for other recruitment projects", agreed to raise the investment project "technology R & D center upgrade project", and put the savings to raise funds for the "production base and warehousing logistics information construction project". The specific circumstances are as follows:

1. The basic situation of raising funds and raising investment projects.

According to the company's third provisional shareholders' meeting and the first provisional shareholders' meeting resolution in 2017, and approved by the China Securities Regulatory Commission (CSRC) "[2017]1920", "approving the initial public offerings of Shanghai mercury home textiles Limited by Share Ltd", the company issued 66670000 ordinary shares of the Renminbi (A shares) to the public, with a face value of 1 yuan per share, the issue price of 16 yuan per share, the total amount of the total fund raised was RMB 1066720000 yuan, and the issuance cost of the underwriting expenses was 118777700 yuan (including: the underwriting agency's sponsorship cost of RMB 95300000 yuan and other issuance expenses 23477700 yuan), and the net amount of the raising fund was RMB 947942300 yuan (A). The above fund-raising funds were all in place in November 14, 2017. They have been examined by Lixin Accounting firm (special general partnership) and issued a capital verification report of [2017] ZA16341. The company has adopted a special account storage system to raise funds.

The total investment of the company's initial public offering is 947942300 yuan, and the specific projects to be invested are as follows:

Unit: Yuan

Exergy

Two, the use and savings of fund-raising funds.

As of August 20, 2019, the upgrading of technology R & D center has been completed and the project objectives have been achieved. The total investment of the project is 56828500 yuan, the actual investment is 38097509 yuan, and the actual usage accounts for 67.04% of the original planned investment. The balance of the project is 18730011 yuan, and the interest income is 741222.73 yuan, with a total balance of 19472213.73 yuan.

Three, the main reason for saving money

1, in the process of project implementation, the company strictly according to the relevant provisions of the use of raised funds, proceeding from the actual situation of the project, in the light of the principle of reasonable, economical and effective, in the premise of guaranteeing the quality of the project, prudently using the fund raising, strengthening the control, supervision and management of the cost of each link of the project construction, rationally scheduling and optimizing the various resources, and reducing the cost and cost of the project construction.

2, in order to improve the efficiency of raising funds, and ensure that the investment and investment projects do not affect the safety of investment projects, the company uses part of the temporary idle funds raised for cash management to obtain a certain investment income. At the same time, during the period of raising funds, interest income was generated.

Four. The plan for the use of savings raised funds.

In accordance with the relevant regulations of the Shanghai Stock Exchange listed company management measures for raising funds, in order to improve the efficiency of the use of raised funds, the company plans to upgrade the savings fund of the technology development center by 19472213.73 yuan (the actual amount is based on the balance of bank balances on the day of the transfer), and turn it into the construction of the "production base and warehousing logistics information construction project" in the construction and investment project, and to sell the fund for the project.

Five. Special opinions

1. Views of independent directors

The company raised funds to raise funds for other fund-raising investment projects this time is based on the actual situation of the project, which is conducive to the rational allocation of resources, raising the efficiency of the raising funds, helping the company to strengthen its main business, not affecting the normal progress of the investment projects raised, nor does it exist in disguised form to change the situation of raising funds to invest and damage the interests of shareholders. The company's decision-making process is consistent with the relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange on the relevant laws and regulations governing the use of raised funds by listed companies, as well as the relevant provisions of the articles of association and the measures for the management of company raised funds. All the independent directors unanimously agreed to conclude the project of "upgrading the technology R & D center" and invest the savings raised to "production base and warehousing logistics information construction project".

2, board of supervisors opinion

The company will raise the investment project "technology R & D center upgrade project" knot and save the proceeds raised to the "production base and warehousing logistics information construction project", which is conducive to raising the efficiency of the use of the funds raised, in line with the company's business development needs, does not affect the normal operation of the fund-raising capital investment projects, and does not exist in a disguised way to change the situation of the fund-raising investment and damage the interests of shareholders. In order to standardize the decision-making procedure, the board of supervisors agreed to conclude the project of "upgrading the technology R & D center" and raise the funds raised to the "production base and warehousing logistics information construction project".

3, sponsor's opinion

After verification, CITIC Securities Limited by Share Ltd believes that the savings raised by the mercury home textile project will be used in the "production base and warehousing and logistics information construction project". It is a decision made according to the actual implementation of the project and the company's own business situation, which is conducive to raising the efficiency of the use of the funds raised, in line with the company's development strategy, and the company has fulfilled the necessary deliberation procedures. Mercury home textiles has complied with the relevant provisions of the China Securities Regulatory Commission and the Shanghai Stock Exchange on the management of raising funds and the company's fund raising management system. There is no disguised change in the use of funds and the interests of shareholders. There is no case of illegal use of funds raised.

In conclusion, CITIC Securities Limited by Share Ltd has no objection to the savings raised in the "technology R & D center upgrading project" of the mercury home textile project, which will be used for the "production base and warehousing logistics information construction project".

Six. Reference documents

1, resolution of the second session of the Fourth Board of directors of the company;

2, the fourth session of the fourth meeting of the board of supervisors resolution;

3. Independent directors' independent opinions on matters related to the second meeting of the Fourth Board of directors of the company;

4. CITIC Securities Limited by Share Ltd's Limited by Share Ltd raised funds on Shanghai mercury home textiles Limited by Share Ltd part of its equity investment projects for verification purposes of other recruitment and investment projects.

Notice hereby.

Shanghai mercury home textiles Limited by Share Ltd

Board of directors

August 27, 2019