Lai Bao High-Tech, with declining net profit, plans to raise no more than 2.5 billion yuan through a private placement; received a letter of concern from the Shenzhen Stock Exchange in 2022

China Economic Net Beijing, April 7 — Lepu High-Tech ( 002106.SZ ) disclosed on April 4, 2026, its plan for a targeted issuance of A-shares. The total amount of funds raised through this targeted issuance will not exceed 2.5 billion RMB (including this amount). After deducting issuance expenses, the funds will be used for the Microcavity Electronic Paper Display Devices (MED) project and to supplement working capital.

The pricing benchmark date for this issuance is the first day of the issuance period. The issuance price will not be lower than 80% of the average trading price of the company’s stock during the twenty trading days prior to the pricing benchmark date (excluding the day of the benchmark date), and not lower than the company’s most recent audited net asset value per share attributable to shareholders before this issuance (if the company has undergone any rights or dividend adjustments between the balance sheet date and the issuance date, the net asset value per share will be adjusted accordingly).

The number of shares issued to targeted investors in this issuance will be determined by dividing the total amount of funds raised by the final inquiry-determined issuance price, and will not exceed 30% of the company’s total share capital before this issuance, i.e., no more than 211.744848 million shares (including this number). The final number will be subject to the approval document for this issuance issued by the China Securities Regulatory Commission.

As of the date of this plan, the company has not yet identified specific targeted investors for this issuance, and therefore cannot determine the relationship between the investors and the company. The company will disclose the relationship between the investors and the company in the issuance report announced after the completion of this issuance.

As of the date of this plan, the company’s total share capital is 7,058.1616 million shares; the company’s largest shareholder — China Energy Conservation and Emission Reduction Co., Ltd. — holds 147.108123 million shares, accounting for 20.84% of the total share capital. The three board members recommended by this shareholder constitute one-quarter of the board of directors; according to Article 84 of the “Administrative Measures for the Acquisition of Listed Companies (2025 Revision)” by the China Securities Regulatory Commission regarding “control of listed companies,” the company has no actual controller.

After this issuance, the company will continue to maintain a governance structure without an actual controller, meaning this issuance will not result in a change of control.

From 2023 to 2025, Lepu High-Tech’s operating revenues are projected to be 705.82M RMB, 5.59B RMB, and 5.9B RMB, respectively; net profits attributable to shareholders are expected to be 376 million RMB, 374 million RMB, and 245 million RMB; net profits attributable to shareholders after deducting non-recurring gains and losses are projected to be 369 million RMB, 369 million RMB, and 245 million RMB; net cash flow from operating activities is estimated at 725 million RMB, 482 million RMB, and 298 million RMB.

The announcement on April 4 regarding regulatory measures or penalties imposed by securities regulatory authorities or stock exchanges over the past five years shows that on March 31, 2022, the company received a “Notice of Concern” (Company Department Concern Letter [2022] No. 191) from the Shenzhen Stock Exchange’s Listing Company Management Department II, requesting the company to explain the communication between independent directors and the auditing firm regarding the 2021 financial data. After receiving the concern letter, the company attached great importance, organized relevant departments for analysis and verification, communicated with the auditing firm and relevant independent directors, responded to the issues raised in the concern letter, and disclosed the “Reply to the Shenzhen Stock Exchange Concern Letter by Shenzhen Lepu High-Tech Co., Ltd.” on April 6, 2022.

( Editor: Cai Qing )