Guangdong Yowant Technology Group Co.,Ltd. (002291) announced on the evening of September 9 that the company intends to terminate two projects from its 2020 private placement of A-shares: the "YOWANT Digital Marketing Cloud Platform Construction Project" and the "Innovation Technology Research Institute Construction Project." The company will permanently use the unused raised funds (including remaining funds, accumulated bank deposit interest, and net amount after deducting bank handling fees, with the actual amount determined by the balance in the fundraising account on the date of transfer and account closure) to supplement working capital for daily production and operations.
The original private placement plan involved issuing 166 million ordinary shares to specific investors at 17.9 yuan per share, raising a total of 29.72 billion yuan. After deducting issuance expenses, the net proceeds were 29.21 billion yuan, intended for the YOWANT Digital Marketing Cloud Platform Construction Project, Social E-commerce Ecosystem Construction Project, Innovation Technology Research Institute Construction Project, supplementing working capital, and repaying bank loans.
As of August 31, 2025, the Social E-commerce Ecosystem Construction Project has been completed, and the surplus funds have been permanently used to supplement working capital. Additionally, the company had allocated 12.91 billion yuan in adjusted fundraising investment for the "YOWANT Digital Marketing Cloud Platform Construction Project" and "Innovation Technology Research Institute Construction Project," with cumulative investment of 5.45 billion yuan. Interest income and expenses from the raised funds totaled 200.61 million yuan, leaving a remaining balance of 7.66 billion yuan (actual amount determined by the account balance on the closure date).
According to disclosures, the YOWANT Digital Marketing Cloud Platform Construction Project involved constructing a self-built building and purchasing necessary hardware facilities, office equipment, platform software, and professional software to establish a comprehensive new internet advertising business platform. The project's total investment was 10.63 billion yuan, with planned use of 9.06 billion yuan in raised funds. The implementation entities were Hangzhou Shien Asset Management Co., Ltd. and Hangzhou Xunxi Network Technology Co., Ltd. The Innovation Technology Research Institute Construction Project mainly included construction and renovation of R&D office spaces, software and hardware facility setup, and R&D talent recruitment. This project had a total investment of 3.91 billion yuan, with planned use of 3.85 billion yuan in raised funds. The implementation entities were Hangzhou Shien Asset Management Co., Ltd. and Hangzhou Lingliang Network Technology Co., Ltd.
Guangdong Yowant Technology Group explained that regarding hardware facilities and software investment, the rapid iteration of AI technology has brought significant impact. The hardware facilities and supporting software originally planned for these two projects have become difficult to adapt to technological development needs due to continuous optimization of AI algorithms and upgrade iterations of computing power architecture over the past two years, making the original hardware investment plan unnecessary for implementation. Based on this adjustment in technological development path, the company has shifted toward increasing R&D and investment in its self-developed AI system "V5chat," gradually replacing traditional server hardware incremental investment through strengthening computing power construction and algorithm optimization. Meanwhile, the company is increasing the proportion of self-developed team personnel to enhance system core capabilities through independent R&D, reducing dependence on external software purchases, thereby achieving technological autonomy and cost structure optimization. Under these circumstances, continuing to invest in hardware according to the original fundraising plan would not only cause resource waste but also fail to meet project cost-benefit principles.
On the other hand, considering the company's business focus adjustment, the company has now shifted its development focus toward social e-commerce operations and self-owned brand development, which has correspondingly reduced the business proportion of the digital marketing cloud platform construction project. At the same time, this field faces external pressure from intensifying market competition, and the rapid development of AI technology is bringing profound changes to content creation, with multiple factors jointly affecting the project's advancement pace. If the company continues to invest substantial funds for copyright purchases to support project operations according to the original plan, comprehensive calculations show that the input-output ratio would be low, making it difficult to achieve expected economic benefits. From the perspective of the company's overall resource allocation and strategic priorities, continuing to advance related fundraising projects no longer meets current development needs.
The company's termination of these fundraising investment projects is a prudent decision made based on the company's development strategic planning and the construction status of fundraising investment projects, conforming to the company's actual situation and project operational needs. The related matters do not involve damage to shareholder interests and will not adversely affect the company's normal business development. The remaining funds from the terminated fundraising projects will be used to match the company's long-term strategic planning, support the development of the company's main business, enhance the company's comprehensive competitiveness, protect the interests of the listed company and shareholders, and benefit the company's long-term development.
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