On the evening of April 10th, Hesheng Silicon Industry (603260. SH) announced that the company's first extraordinary shareholders' meeting in 2026 had approved the proposal to issue A-shares to specific targets in 2026. The funds raised from this issuance will be mainly invested in the Shanshan silicon-based energy supporting project and supplementary working capital, closely following the opportunities of industry cycle bottom layout, and strengthening the company's cost advantage throughout the entire industry chain.

According to the company's previously disclosed issuance plan, the issuance of stocks to specific targets this time is limited to no more than 35 (including 35) eligible specific investors. The issuance price shall not be lower than 80% of the average trading price of the company's stocks in the 20 trading days before the pricing benchmark date, and the number of issued stocks shall not exceed 30% of the company's total share capital before this issuance, that is, no more than 354662082 shares.

After deducting the issuance expenses, the funds raised this time will be focused on two core directions. Among them, the total investment of the 8 ? 75MW back pressure unit project (Phase I) in Shanshan Silicon based New Materials Industrial Base is 5.728 billion yuan, and it is planned to use the raised funds of 4.1 billion yuan. As the core fundraising project of this private placement, this project embodies the company's long-term strategic layout of "coal electricity silicon integration". The announcement clearly states that the project is based on the endowment of coal resources in Xinjiang, and uses the innovative technology of "graded transformation and clean comprehensive utilization of low-quality coal" as the basis to carry out graded cascade utilization of low-quality coal, achieve integrated development of coal, chemical and thermal industries, and create a demonstration project for clean and efficient utilization of coal. The cogeneration mode adopted in the project is highly compatible with the continuous and stable heat load demand of the park, which can achieve the tiered utilization of energy and maximize efficiency.

For the strategic value of the project, the company stated that electricity is one of the most important cost components in the industrial silicon and organic silicon industries, with electricity costs accounting for approximately 30% to 40% of production costs. After the completion of this project, it will directly supply electricity and heat to Shanshan Silicon based New Materials Industrial Park, effectively filling the company's energy supply gap, improving the self-sufficiency rate of electricity and steam, hedging the risk of external energy market price fluctuations, stabilizing production costs, and enhancing profitability. At the same time, the electricity, steam, synthesis gas, tar and other products produced by the project can form an efficient and closed-loop consumption network within the overall industry, achieving the maximization of resource value.

At the same time, a portion of the private placement funds will be used to supplement working capital and repay bank loans, which also serves the company's strategic goal of stable operation. The contingency plan points out that in recent years, with the continuous expansion of the company's scale and the large scale of interest bearing debt, the asset liability ratio has shown an upward trend. Injecting equity funds through private placement will help optimize the company's capital structure, enhance financial stability, improve debt repayment and risk resistance capabilities, and provide a stable funding base for the company's subsequent capacity release and research and development investment. A person close to the company stated that the management has clear goals for reducing leverage and optimizing debt structure, and this private placement is one of the most important steps.

At present, the industrial silicon and organic silicon industries are at the bottom of the cycle, and leading enterprises with leading cost control capabilities will be the first to achieve profit recovery and share increase. Cost advantage will become an important moat for the sustainable development of silicon-based new material enterprises. The implementation of this private placement project will further consolidate the core competitive advantage of the company's integration, laying a solid foundation for seizing industry recovery opportunities and promoting high-quality development of the company during the 15th Five Year Plan period.

After the approval of the shareholders' meeting, the private placement matters still need to be reviewed and approved by the Shanghai Stock Exchange, and obtain the approval of the China Securities Regulatory Commission for registration before they can be implemented. The shareholders' meeting has authorized the board of directors to handle all matters related to this private placement. The company will strictly comply with the requirements of relevant laws and regulations and fulfill its information disclosure obligations in a timely manner based on the subsequent progress.