578 Listed Company Fund-Raising Investment Projects Changed Within the Year

Securities Daily Reporter Gui Xiaosun and Li Haoyue

Data from Wind shows that as of March 19, a total of 578 fundraising projects of listed companies have been changed this year. Among them, 286 projects have altered their fundraising purposes, while other projects have changed matters such as the implementing entity, fundraising amount, and location.

The sources of funds for the 578 changed fundraising projects include additional issuance, convertible bonds, and initial public offerings. Comparing the timing of fundraising and changes reveals that some projects, after funds were received, were not completed as planned within several years, leading to project modifications. Others adjusted matters such as the implementing entity, location, and amount within a few months of receiving funds.

Chen Jingjing, General Manager of Hebei Huanbo Technology Co., Ltd., told Securities Daily that the impact of changes to fundraising projects on listed companies should be viewed dialectically. On one hand, these projects are core initiatives funded through IPOs or refinancing, directly related to the company’s strategic implementation and growth potential. In practice, some companies’ original plans for fundraising projects faced major changes such as industry overcapacity or technological iteration, and continuing with the original projects could risk imbalance between input and output.

“On the other hand, if projects are changed shortly after funds are received, it exposes issues such as insufficient preliminary research and weak compliance awareness among some companies. They lack in-depth investigation into market prospects, technical feasibility, and capacity matching, leading to problems like technical bottlenecks, unmet market demand, and disjointed investment and capacity after project initiation, forcing passive project changes. This contradicts the core requirement that fundraising projects should ‘match the company’s actual situation and conform to external market conditions,’” Chen Jingjing said.

Reviewing announcements from relevant listed companies shows that reasons given for project changes vary. Some companies mention that after funds were received, they actively promoted project implementation, but progress fell short due to industry competition or market changes, or delays caused by litigation. Others stated that due to changes in market environment and demand, as well as technological inadequacies in the original projects, they canceled the initial projects and redirected funds to new ones.

“Listed companies changing fundraising projects based on strategic planning, external market conditions, and internal resource matching can optimize resource allocation. However, they must strictly follow regulatory requirements and internal decision-making procedures,” said Wang Zhibin, lawyer at Shanghai Minglun Law Firm, to Securities Daily. First, changing a fundraising project requires thorough justification, considering market environment changes and industry technological updates, explaining the reasonableness of terminating or adjusting the original project. The feasibility, market prospects, and profitability of the new project should be scientifically assessed to ensure alignment with the company’s main business and long-term development strategy. Second, the review process must be strictly followed to protect investors’ right to information and decision-making.

Wang Zhibin explained that as the core carrier for implementing corporate strategy and a key basis for investor valuation, changes to fundraising projects must adhere to the principles of “compliance, reasonableness, and relevance.” They should fully adapt to market changes and the company’s capabilities while strictly following regulatory rules and internal decision procedures, balancing the efficiency of fund use and the protection of investors’ rights.