Hengxin Life Plans to Integrate Two Major Fundraising Projects to Construct a Green Biodegradable Products Manufacturing Base

[Finance.com News] On March 17, Hefei Hengxin Life Technology Co., Ltd. (Stock Code: 301501, Stock Abbreviation: Hengxin Life) announced the resolution of the 10th meeting of the second board of directors, stating that the company will optimize and integrate some of its fundraising projects and use oversubscribed funds to invest in the construction of a new green biodegradable products manufacturing base project.

The announcement shows that the 10th meeting of the second board of directors of Hengxin Life was held on March 17, 2026, through a combination of on-site and teleconference voting. Seven directors were expected to attend, and all seven attended. The meeting was chaired by Chairman Yan Deping. The meeting approved three major proposals, among which the proposal to change some of the fundraising projects and use oversubscribed funds to invest in new projects drew particular attention.

According to the resolution, the company decided to consolidate the “Intelligent Upgrade and Renovation Project” and the “R&D Technology Center Project,” originally funded by the initial public offering (IPO), into a new “Green Biodegradable Products Production Base Project.” The company plans to invest all the funds raised for the original two projects, as well as all oversubscribed funds (including interest income and financial gains), into the new project.

The new fundraising project will be implemented by the company’s wholly owned subsidiary, which will be funded through capital increase or interest-free loans (combining both methods) provided by the company using the raised funds. Additionally, the new project will open a dedicated account and sign a regulatory agreement in accordance with fundraising management requirements to ensure proper use of the funds. This proposal was approved unanimously by the board (7 votes in favor, 0 against, 0 abstentions), but it still needs to be submitted for review at the company’s first extraordinary general meeting in 2026.

Furthermore, the meeting approved the proposal titled “Using Own Funds and Bank Acceptance Bills to Pay for Fundraising Projects and Replacing the Same Amount of Funds with Raised Funds,” which allows the company to use its own funds and bank acceptance bills to pay for project expenses during the implementation period, with subsequent periodic replacement of the same amount of funds from the raised capital. This arrangement aims to improve the efficiency of fund utilization and ensure smooth project progress.

To facilitate the review of these proposals, the board decided to hold the first extraordinary general meeting of 2026 on April 2, 2026, at 3:00 PM.

Huaxin Securities, as the company’s sponsor institution, issued a clear and unopposed verification opinion on the above-mentioned changes to the fundraising projects and fund replacement.

The main proposals approved at the meeting are summarized as follows:

Hengxin Life stated that the integration of the fundraising projects is based on the company’s overall strategic layout and future operational development plan, aiming to improve the efficiency of fund use and further focus on the development of the green biodegradable products main business. Market analysts believe that this move will help the company optimize resource allocation, enhance core competitiveness, and lay a solid foundation for long-term growth.

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