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In line with the actual demands of domestic and international markets as well as its customers, and taking into account the company’s future development plans, Anhui Huaheng Bio-Technology Co., Ltd. aims to improve the efficiency of using the funds raised. Based on the existing succinic acid production facility with an annual capacity of 50,000 tons, the company plans to invest a small amount of its own capital in technical upgrades. Once these upgrades are completed, it will be possible to produce succinic acid, L-valine, and inositol in a flexible manner, with an overall annual capacity of 50,000 tons. The company will decide which products to produce based on market demand. It is planned to carry out technical upgrades using a small amount of own capital, building on the existing malic acid production facility with an annual capacity of 50,000 tons. Once the upgrades are completed, it will be possible to produce either malic acid (50,000 tons per year) or tryptophan (12,000 tons per year) in a flexible manner. The company will decide which product to produce based on market demand. Based on comprehensive factors such as the market prospects at that time, industry development trends, and **policies**, the company planned the succinic acid and malic acid projects, which helps to optimize the company’s product portfolio, enhance its overall competitiveness and sustainability, and is in line with the company’s development strategy. At present, the market demand for bio-based succinic acid and malic acid is gradually increasing in an orderly manner. In order to accelerate the industrialization of tryptophan products and meet the urgent need for expanding production capacity for products such as L-valine and inositol, thereby fully utilizing the potential of existing equipment and facilities to increase project output, the company plans to expand the scope of the investment projects funded by the raised capital. This will enable the use of the production equipment from these projects to generate profits, in line with the company’s operational strategies and future development plans. After thorough evaluation by the company’s technical staff, it has been determined that technical modifications to the existing plant allow for flexible production of products such as L-valine, inositol, and tryptophan on a rotational basis. The implementation of the newly added projects funded by this raise will not only increase the capacity utilization of existing equipment, enable flexible responses to market changes, and promote optimal allocation of resources, but it will also further enhance the company’s profitability and market competitiveness. Previously, Huaheng Biology issued 21,122,510 shares to specific investors at a price of 33.14 yuan per share, raising RMB 699,999,981.40 in funds. After deducting various issuance costs, the net amount of funds actually raised was RMB 683,809,059.49. All the funds raised were received on October 21, 2024. Before the raised funds arrived, Huaheng Biology had already used its own funds to advance investment in the projects slated for financing, in line with the project timeline. The company has actually invested a total of 1,065,502,200 yuan from its own funds in the projects funded through fundraising, with 683,809,100 yuan having been repaid so far.