Qumei Home Furnishing’s 800 million yuan fixed increase plan was approved by the Shanghai Stock Exchange

On August 6, Qumei Home Furnishing issued an announcement about the application for issuing stocks to specific objects in 2023, which was approved by the Shanghai Stock Exchange.

On August 4, Qumei Home Furnishings received the "Notice on the Review Opinions on the Issuance of Stocks by Qumei Home Furnishing Group Co., Ltd. to Specific Objects" issued by the Shanghai Stock Exchange. The Shanghai Stock Exchange believes that the matter complies with the issuance conditions, listing conditions and information disclosure requirements.

At the same time, the Shanghai Stock Exchange also required Qumei Home Furnishing to implement two issues and disclose them to the outside world.

about business conditions. (1) According to the development of domestic and overseas businesses, respectively explain the production and operation of Qumei Home Furnishing and the changing trend during the reporting period; (2) Supplementally explain the operation of the overseas subsidiary after the acquisition of Ekornes in 2018, and whether there will be any shareholding reduction in the future Ekornes equity or other arrangements, in order to deal with the large debt problem caused by mergers and acquisitions; (3) In combination with the above situation, supplement and improve relevant business risk warnings in the prospectus according to domestic and overseas situations. At the same time, sponsors and reporting accountants are required to verify and issue clear opinions.

About fundraising projects. Qumei Home Furnishing combines the capacity utilization rate, production-sales rate and profit realization of Henan Qumei Home Furnishing Industry Phase I Project and other major domestic production factories, the distribution of public stores in major cities and the market demand for upholstered furniture in related regions, and the market for upholstered furniture Space and industry competition, etc., explain the difference and connection between the products produced by the second phase of the Henan Qumei Home Furnishing Industry Project and the first phase, whether the scale of new production capacity is reasonable, and whether the expected benefits are prudent, and supplement and improve the raised investment Project-related risk warning. At the same time, the sponsor is required to verify and issue a clear opinion.

Qumei Home Furnishing said that the issuance of stocks to specific objects still needs to be implemented and responded to in a timely manner for the issues raised in the "Notice". The Shanghai Stock Exchange will submit it to the China Securities Regulatory Commission for registration after receiving the reply to the implementation opinions. It can only be implemented after being approved and registered by the China Securities Regulatory Commission.

In another announcement, Qumei Home Furnishing disclosed that due to the implementation of restricted stock repurchase and cancellation, the number of shares issued to specific objects this time has been adjusted from no more than 117,482,109 shares (including the original number) to no more than 117,061,209 shares (including the original number) ).

According to the declaration, the total amount of funds raised by Qumei Home Furnishing is expected to be no more than 800 million yuan (including the original amount), and 560 million yuan after deducting issuance and related expenses will be used for the second phase of Henan Qumei Home Furnishing Industry and Ekornes Norwegian factory For production capacity upgrading construction projects, the remaining 240 million yuan will be used to repay loans and supplement working capital.