Beiyuan Group: The company is currently conducting research and technical feasibility analysis on downstream high-value-added products of hydrogen chloride by-product from the 120k-ton/year glycine project.

Every iDaily AI Express, an investor asked on the investor interaction platform: Your company raised 3.5 billion yuan in funds during its IPO, yet dividends have reached 5 billion yuan over these years. In fact, your company could completely go public without raising funds. But the company replied that dividends are actively responding to policy, and fundraising is to drive project construction. The explanation is very reasonable. But I see that among the funds raised at the time, 1.3 billion yuan was for a 120,000-ton/year glycine project. A few days ago, the reply said that a preliminary comprehensive utilization plan has been formed, and that feasibility studies and economic viability calculations are further underway. A project that was studied and determined six years ago after the funds were raised—now only doing the calculations? Your company truly is responsible to investors; it’s simply exemplary. It was confirmed before the funds were raised, yet after the funds were raised it studied again for 6 years—where exactly is the motivation to raise funds first and then proceed?

Beiyuan Group (601568.SH) stated on April 8 on the investor interaction platform that the company’s use of raised funds strictly follows regulatory requirements and the commitments in its prospectus. Currently, what the company is carrying out is research on downstream high-value-added products derived from the hydrochloric acid by-product of the 120,000-ton/year glycine project, as well as argumentation of technical solutions. This is an extension and optimization of the project, not a re-argumentation of the fundraising project itself. All related work aims to enhance the project’s overall benefits and safeguard investors’ interests.

(Reporter Wang Xiaobo)

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