How To Use 1 Billion 800 Million Of The Funds Raised By Non-Public Offering? Red Bean Shares Are Detailed To 68 Thousand And 400 Shareholders.

Following the disclosure of the announcement of the Jiangsu red bean industrial Limited by Share Ltd on the use of some of the proceeds raised in May 30th, the Jiangsu red bean industrial Limited by Share Ltd (hereinafter referred to as the "red bean stock") issued a notice again in the afternoon of May 31st to make a supplementary announcement on the use, storage and management of the relevant fund-raising funds.

Approved by the Securities Commission on Approving the approval of Jiangsu red bean industrial Limited by Share Ltd's non-public development bank stock, Hong Kong shares issued 221271393 shares of Renminbi common stock by means of non-public offering, raising total capital of 1809999994.74 yuan. After deducting the issuing expenses of 21360488.84 yuan, the net proceeds actually collected amounted to 1788639505.90 yuan, and the above funds were in August 2016 25. Day to day account.

In order to raise the efficiency of fund raising and reduce the financial cost, the twenty-third meeting of the seventh board of directors held in October 26, 2018 and the fourteenth meeting of the seventh supervisory committee considered and approved the motion on temporarily replenish the working capital with some idle funds raised. The company decided to use the total amount not exceeding the premise of guaranteeing the use of the fund. The idle capital raised by RMB 480 million yuan will be temporarily replenish the working capital, and the term of use will not be returned in 12 months from the date of deliberation and approval by the board of directors.

As of June 13, 2019, the 480 million yuan raised by the Hong Kong Group has been returned to the special account of the raised capital, and the company's sponsor and sponsor representatives have been notified.

According to "Jiangsu red bean industrial Limited by Share Ltd 2015 non public development bank A share stock plan (Revised Draft)", the company raised funds to invest in intelligent design, intelligent products, intelligent supply chain system, intelligent full channel SPA system, intelligent management project.

Red bean shares held the thirty-fourth temporary meeting of the seventh board of directors in May 30, 2019 and the seventeenth provisional meeting of the seventh supervisory board. In June 17, 2019, the third provisional shareholders' meeting was held in 2019. After this change, the company raised funds to invest in smart design, intelligent supply chain system, intelligent SPA system, intelligent management project and new capital raising investment project "purchase office and professional clothing business room", and some of the fund-raising funds are used to permanently replenish liquidity funds.

As of July 30, 2019, the use of the proceeds from Hong Kong's share capital permanently replenish the working capital of 740 million 569 thousand and 200 yuan, of which 610 million yuan is used to repay bank loans, and the remaining amount is used for the daily production and operation of the company. The above mentioned matters that make use of the fund to permanently supplement the working capital are in conformity with the relevant laws and regulations.

The thirty-first interim meeting of the sixth board of directors held in September 7, 2016 and the sixteenth interim meeting of the sixth supervisory committee adopted the "motion on the use of some idle funds raised to purchase financial products". Without affecting the normal operation of the fund raising project, the company decided to use the idle collection fund not exceeding RMB 1 billion yuan to purchase low wind. Insurance, guaranteed financial products. The above funds can not be used for more than 12 months. The company can make investment in the period of use and the amount of money. In 2016, the red bean stock used idle funds to purchase financial products, and achieved a total financial gain of RMB 3476712.33 yuan.

Hong Kong shares held the ninth temporary meeting of the seventh board of directors in September 7, 2017 and the sixth interim meeting of the seventh supervisory board. It passed the "motion on the use of some idle funds raised to purchase financial products". It did not affect the normal progress of the fund raising projects. The company decided to use the idle raised funds not exceeding RMB 1 billion yuan to purchase low risk. Guaranteed financial products increase company profits. The fund shall not be used for more than 12 months, and the company may invest in the period of use and the amount limit. In 2017, the company used idle funds to buy financial products and achieved a total profit of RMB 29901295.89 yuan.

In September 7, 2018, the company held the twenty-first temporary meeting of the seventh board of directors and the twelfth provisional meeting of the seventh supervisory board, and deliberated and adopted the motion on the use of some idle funds to purchase financial products. Without affecting the normal operation of the project, the company decided to use the idle raised funds not exceeding RMB 800 million yuan to purchase low risk. Guaranteed financial products. The fund shall not be used for more than 12 months, and the company may invest in the period of use and the amount limit. In the year of 2018, red bean stocks purchased financial products with idle funds, and achieved a total profit of RMB 43610645.05 yuan.

Red bean shares held the fortieth temporary meeting of the seventh board of directors in September 12, 2019 and the nineteenth provisional meeting of the seventh board of supervisors. It considered and passed the motion on the use of some idle funds to purchase financial products. It decided that the purchase period of idle raised funds not exceeding RMB 680 million yuan would not exceed the time limit when the fund raising project was not affected. Over 3 months of low risk, guaranteed financial products (or structured deposits). The fund shall not be used for more than 12 months, and the company may invest in the period of use and the amount limit. In the year of 2019, red bean stocks purchased financial products with idle funds, and achieved a total profit of RMB 38581983.64 yuan.

As of the date of the announcement, the unused balance of the purchase of financial products (or structured deposits) by Hong Kong beans was 670 million yuan.

For the storage and management of the proceeds, Hong Kong shares further explained:

As of May 20, 2020, Hong Kong shares accumulated 1086455603.42 yuan in raising funds, and the payment of issuance expenses could deduct 1214660.38 yuan of the value added tax input tax, received 121103662.03 yuan in investment and financial income, 26628307.45 yuan in bank deposit interest and bank charges, and raised the fund balance of 848701211.58 yuan (of which 670000000 yuan was not yet purchased for financial products. The balance of fund raising accounts is 178701211.58 yuan.

Earlier, on the evening of May 28th, Hong Kong shares announced that in view of the great changes in the market environment in recent years, the company has fully demonstrated that it intends to experience the investment fund of the flagship store which has not been invested in the central line of the SPA system under the wisdom of the whole channel, 664 million 296 thousand and 600 yuan, and the total interest income received by the raising fund is 26 million 628 thousand and 300 yuan, and the amount of investment and financial revenue is 121 million 103 thousand and 700 yuan. For permanent replenish of working capital.

Under the red bean line, the flagship store project will be invested 679 million yuan, including 8 million 240 thousand yuan for equipment or hardware (Bao Hanyun miscellaneous installation fee), 671 million yuan for civil construction and housing purchase. The company originally planned to build 10 large offline experience flagship stores in 10 cities such as Beijing, Shanghai, Nanjing, Wuxi, Xi'an, Chengdu, Wuhan, Zhengzhou, Shenyang, Ji'nan and so on. The total area is 4400 square meters. The offline experience flagship store will be equipped with high-tech products such as robot attendants, 3D body feel fitting, intelligent volume equipment, holographic 3D life scene experience, etc., aiming to enhance customer experience and brand image through various new technologies and devices, and drive the overall sales volume of products.

However, under the original line, the location of flagship stores is relatively small and the location is difficult to implement. Red bean shares issued a notice in October 19, 2018. They decided to experience the location of the flagship store project under the line, and expand it to Beijing, Shanghai, Chongqing, Jiangsu, Shaanxi, Sichuan, Hubei, Henan, Liaoning, Shandong, Shandong, Shandong, convergence, and so on. Western, Shanxi, Hainan and other provinces and cities.

Reporters learned that the red bean line under the experience of flagship store projects in 2015, in recent years, the market environment has changed considerably, the company has carried out a careful assessment of the future development of the project, that the large offline stores have been difficult to achieve the expected benefits, because: (1) the cost of property acquisition increased significantly, nearly 5 years growth is obvious, and the future value of the shops is larger. Uncertainty; (2) the development of e-commerce platform has a great impact on the traditional line business, including the emergence of marketing methods such as live broadcast, so that consumers do not need to go to the store in person, they can interact with the merchandise and get real-time feedback to complete the purchase decision. (3) at the beginning of 2020, the epidemic further accelerated the online shopping channel of consumers, and online penetration continued to rise, leading to a bigger challenge for offline stores.

At the same time, during the epidemic period, the men's chain stores under the line of red beans were basically in a state of suspension, and sales of chain stores fell. During this period, although the company responded positively, it took the form of live broadcast and WeChat applet to expand sales channels to make up for the loss of passenger flow under the line, but it was still greatly affected. Due to the fact that the sales of clothing in the spring haven't been basically realized, the suppliers' payment has not been recovered. The suppliers of autumn and winter goods must be put into operation in 5-6 months. Therefore, in order to ensure the normal listing of the company's commodities in August, some suppliers should pay part of the advance payment. Therefore, the company's demand for supplementary liquidity is more urgent.

Red beans share frankly, in line with the principle of prudent use of fund-raising funds, in order to reduce investment risk, the company intends to no longer use the fund-raising line to experience the flagship store project, and use the remaining proceeds from the project and the total interest income received from the fund-raising fund and the amount of investment and financial proceeds to be used for permanent supplementary liquidity. The 465 million yuan of the current fund will be used to return the bank. Loans and daily production and operation activities.

Public information shows that the red bean stock is a leading male fashion leader in China. It was established in 1995 and listed on the main board of the Shanghai Stock Exchange in January 2001. As an early established domestic private apparel enterprise, its brand influence is strong. The trademark "red bean" and "Hodo" have been identified as well-known trademarks in China.

The main business of the red bean stock is the red bean men's wear chain Monopoly and the red bean professional attire customization. Among them, the red bean men's clothing is positioned as a mass consumer group, and the price range is wide. The products include suits, shirts, T-Shirts, jackets, trousers, sweaters, down garments and so on. It can provide a one-stop shopping experience for the men of all sizes. The red bean professional clothing mainly tailor all kinds of middle and high class professional clothing for group customers, providing customers with a comprehensive customized product design, production and distribution. And after-sale ancillary services.

According to the financial report, in 2019, the red bean stock realized 2 billion 540 million yuan of business revenue, an increase of 2.31% over the same period, including 2 billion 380 million yuan for men's clothing business and 170 million yuan for shareholders of listed companies, down 18.14% from the same period last year. The net profit attributable to shareholders of listed companies was 134 million yuan, down 19.58% from the same period last year. Up to the end of the reporting period, there were 1376 stores under the Hong Kong stock chain, a net increase of 38 compared to 2018. In the first quarter of 2020, the next store of the red bean line decreased by 24 to 1352 at the end of 2019.

In the first quarter of 2020, Hong Kong shares realized 664 million yuan in business revenue, down 12.70% compared to the same period last year. The net profit attributable to shareholders of listed companies was 61 million yuan, an increase of 19.17% over the same period last year. The net profit attributable to shareholders of listed companies was 56 million yuan, up 32.21% over the same period last year.

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