Having Received 400 Million Yuan in State-owned Capital Increase, Shaoneng Green Oasis Is About To Be Upgraded To A State-owned Enterprise

Recently, Guangdong Shaoneng Group Co., Ltd. (000601.SZ) released a "Reply to the Inquiry Letter on the Application for the Issuance of Shares to Specific Targets." According to the reply, the company plans to issue no more than 101 million shares to Shaoguan Jincai Investment Group Co., Ltd. (hereinafter referred to as "Jincai Investment"), raising a total of no more than 400 million yuan, all of which will be used to supplement working capital.

After this issuance is completed, the company's control will change, and the Shaoguan State-owned Assets Supervision and Administration Commission will become the new actual controller. After the capital increase is completed, Shaoneng Oasis will transform into a state-owned holding enterprise in the pulp molding industry.

According to the fundraising report, Shaoneng Co., Ltd. believes that in the field of eco-friendly plant fiber paper tableware, eco-friendly plant fiber molding products have significant market potential as alternatives to plastic products. However, the continuous increase of new market entrants has intensified competition. If the company fails to achieve breakthroughs in core technology, upgrade product quality, and iterate new products, it may lead to a shrinkage in the company's market share and a decline in market position, which could adversely affect the company's operating performance.

The report also pointed out that since 2018, the U.S. government has issued multiple rounds of tariffs on Chinese imported goods. U.S. customers and other overseas clients may demand the company to moderately lower prices to offset costs, which could result in a decline in sales revenue and profitability from the U.S. and other overseas markets, thereby having a certain impact on the company's business operations and development.

On August 23 of this year, Shaoneng Co., Ltd. increased the registered capital of Shaoneng Group Oasis Eco (Xinfeng) Technology Co., Ltd. by 170 million RMB, highlighting the importance of this business within the group. In 2024, the operating performance of Shaoneng Oasis Eco paper tableware increased significantly year-on-year, with the overall business trend being positive.