Second Extension, Investment Progress Still Below 50% — What's Going On with Jinchun Stock's Fundraising Projects?

Will You Miss the Opportunities in the AI and Degradable Nonwoven Fabric Market?

Reporter: Zhang Baolian    Editor: Wendu

A core fundraising project with an planned investment of over 200 million yuan, after experiencing its first delay, has still not reached half of its progress, and is now announced to be delayed again. On March 16, Jinchun Co., Ltd. (SZ300877, stock price 31.58 yuan, market value 3.79 billion yuan) disclosed that its “Annual Production of 12,000 Tons of Wet Process Degradable Spunlace Nonwoven Fabric Project” (referred to as the Wet Process Spunlace Project) will be delayed by another 8 months to October 2026.

Jinchun Co., Ltd. attributed the project delay in the announcement to some main equipment not meeting expected actual capacity, and plans to add additional equipment investment. Financial data shows that by the end of 2025, the total investment in this project has not reached half of the planned amount.

According to the announcement, Jinchun Co., Ltd. focuses on the research, production, and sales of nonwoven fabric products and chemical fiber products. As of the end of the first half of 2025, the company owns the following production lines: 10 spunlace nonwoven fabric lines with an annual designed capacity of over 60,000 tons; 2 degradable nonwoven fabric lines with an annual designed capacity of 17,000 tons; 6 hot-air nonwoven fabric lines with an annual designed capacity of 15,500 tons; 1 ultrafine fiber nonwoven fabric line with a designed capacity of 2,000 tons; and 2 ES composite short fiber lines with a designed capacity of 30,000 tons.

Data shows that the Wet Process Spunlace Project is a new project established after Jinchun Co., Ltd. changed the use of some of its raised funds. It is known that the company’s initial public offering raised net funds of 847 million yuan, of which 320 million yuan was planned to be invested in the “Annual Production of 20,000 Tons of New Type Sanitary Products Hot-Air Nonwoven Fabric Project.”

In February 2024, the company decided to use 201 million yuan of the raised funds for the “Annual Production of 20,000 Tons of New Type Sanitary Products Hot-Air Nonwoven Fabric Project” to fund the construction of the Wet Process Spunlace Project. Due to the project’s capacity not meeting expectations, the company has terminated the construction of its remaining production lines.

Jinchun Co., Ltd. believes that the Wet Process Spunlace Project aims to increase the company’s production capacity of degradable nonwoven fabrics to meet market demand for high-performance, environmentally friendly nonwoven fabrics.

On March 16, 2026, Jinchun Co., Ltd. announced that the company held a board meeting that day, which approved the proposal for “another delay of some fundraising projects,” agreeing to extend the time for the “Annual Production of 12,000 Tons of Wet Process Degradable Spunlace Nonwoven Fabric Project” to reach the planned usable state to October 2026.

This is the second delay for this project. According to the announcement, the initial planned production date was February 2025, which was adjusted to February 2026, and now it has been postponed by another 8 months.

According to the use of raised funds disclosed by Jinchun Co., Ltd., as of December 31, 2025, the company had invested a total of 97.5583 million yuan in the Wet Process Spunlace Project out of the planned 201 million yuan, with an investment progress of 48.49%, less than half. This means over 100 million yuan of raised funds are still waiting to be used.

Regarding the reasons for the delay, Jinchun Co., Ltd. explained that some main equipment’s actual capacity did not meet expectations, and the company will add additional equipment investment. To ensure the smooth completion of the fundraising projects and the effective use of raised funds, the company carefully studied the current market environment, the actual construction status of the projects, and the investment progress before making this decision.

Daily Economic News