With the continuous development of China's capital market, an increasing number of enterprises aspire to raise funds through the capital market to continuously expand and strengthen their business. The feasibility study report on the fundraising investment project for AC/DC withstand voltage and insulation resistance tester is a written report that assists enterprises planning to go public in completing the filing and approval of fundraising investment projects before IPO, coordinating with securities firms, and providing necessary support for the company's prospectus.
The design of fundraising investment projects should combine market research reports and the company's own characteristics, reasonably forecast project prospects and profitability, accurately describe the logical relationship with the company's core competitive advantages and sustained profitability, and demonstrate its feasibility, necessity, and controllability, fully aligning with the CSRC's review approach to ensure approval. Issues related to the use of raised funds include the necessity of financing, whether there is a clear direction for the use of raised funds, whether the fundraising investment project has clear profit prospects, whether preparations for the use of over-raised funds are sufficient, and whether there is a risk of blind expansion. Among the companies rejected for ChiNext IPOs, nearly half had issues with the use of raised funds, indicating that fundraising investment projects are a critical part of the CSRC review process.
However, the road to listing has never been smooth, and many companies have failed in their listing attempts. Statistics show that from 2007 to 2011, the CSRC reviewed 1,226 initial public offerings, of which 228 were rejected, with a rejection rate of 18.6%. Strict review has become the norm.
Many companies have broken through previous understandings of their main business in the design of fundraising investment projects. For example, one company leveraged its ChiNext listing, another extended from building intelligent services to building energy-saving services, and another transformed from vaccine marketing to independent vaccine R&D and production, among others.
Many companies have also made significant breakthroughs in the proportion of raised funds allocated to R&D centers. For instance, an IT company allocated about 50% of total raised funds to its R&D center, and a biopharmaceutical company allocated over 40% of its fundraising investment to R&D. In some fields, R&D capability is equivalent to sustained profitability.
The rationality of fundraising investment projects has always been a focus of the CSRC, and a reasonable and scientific feasibility study of fundraising investment projects has become an important part of supporting a company's successful listing.
The feasibility study of fundraising investment projects must start from the overall system, analyzing and demonstrating various aspects such as technology, economy, finance, commerce, environmental protection, and law to determine whether the construction project is feasible, providing a scientific basis for correct investment decisions. The feasibility study of a project is a process of multi-factor evaluation and decision-making. It requires the collaboration of professionals with knowledge in various fields to complete. It should fully consider the CSRC's requirements on the use of raised funds, market prospects, product technology content, environmental impact, and compatibility with the company's existing management and sales capabilities. A reasonable feasibility study of fundraising investment projects is the key to passing the review.
China Economic Vertical & Horizontal has a very solid research foundation in fundraising investment feasibility studies and can provide clients with high-quality services:
15.10 Necessity and Rationality of Substantially Increasing Investments in Fixed Assets, Intangible Assets, and R&D Expenses (Key Point)
