Recently, the board of directors of Wanwei Advanced Materials approved a plan to issue A-share stocks to specific investors, intending to issue stocks privately to its controlling shareholder, Wanwei Group, raising a total of no more than 2.3 billion yuan. This private placement will be fully subscribed by Wanwei Group in cash, without introducing other external investors, and the lock-up period for the subscribed shares is 36 months.

The raised funds will be entirely allocated to two major polyvinyl alcohol (PVA) new material capacity upgrade projects. Among them, the project for producing 30 million square meters of high-generation panel polyvinyl alcohol (PVA) optical films annually plans to invest 300 million yuan in raised funds. The project aims to establish two high-generation polarizer- matching (supporting) optical film production lines, with the first line designed for a width of 4.8 meters and an annual capacity of 13 million square meters; the second line designed for a width of 5.7 meters and an annual capacity of 17 million square meters. The total investment for the project is 661 million yuan.

Another project funded by the raised capital is the 200,000-ton-per-year ethylene-based functional polyvinyl alcohol resin project, which plans to invest 2 billion yuan in raised funds. The total investment for the two projects amounts to 4.318 billion yuan, with any shortfall to be self-financed by the listed company.