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

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Staff Reporter Gui Xiaosun and Li Haoyue

Data from Tonghuashun shows that as of March 19, there have been 578 changes to listed companies’ fundraising projects this year. Among them, 286 projects have altered their fundraising targets, while others have changed their implementation entities, fundraising amounts, locations, and other matters.

The sources of funds for these 578 changed projects include additional issuance, convertible bonds, and initial public offerings. Comparing the timing of fundraising and changes reveals that some projects, after funds are received, fail to complete construction as planned within several years, leading to project modifications. Others have adjusted their implementation entities, locations, amounts, and other details within just a few months of receiving funds.

Chen Jingjing, General Manager of Hebei Huanbo Technology Co., Ltd., told Securities Daily that the impact of project changes on listed companies should be viewed dialectically. On one hand, fundraising projects are core initiatives financed through IPOs or refinancing, directly related to the company’s strategic implementation and growth potential. In practice, some companies’ original projects faced major industry changes such as overcapacity or technological iteration after planned production start, risking imbalance between input and output if they continue with the original plan.

“On the other hand, if projects are changed shortly after funds are received, it also reveals issues like 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 technical bottlenecks, unmet market demand, and disjointed investment and capacity after project initiation, forcing passive modifications. This contradicts the core requirement that fundraising projects should ‘match the company’s actual situation and align with external market conditions,’” Chen Jingjing said.

Review of announcements from related listed companies shows that reasons given for project changes vary. Some companies mention that after funds are received, they actively promote project implementation, but progress falls short due to industry competition or market changes, or delays caused by litigation. Others state that due to changes in market environment and demand, along with industry trend shifts, the original projects’ technical conditions were insufficient, leading to cancellation and redirection of funds to new projects.

“Listed companies adjusting fundraising projects based on strategic planning, external market conditions, and internal resource capabilities 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, project changes must undergo thorough justification, considering market environment shifts and industry technological updates, explaining the reasonableness of termination or adjustment. The feasibility, market outlook, and profitability of new projects should be scientifically assessed to ensure alignment with the company’s main business and long-term development strategy. Second, review procedures must be strictly followed to protect investors’ right to information and decision-making.”

Wang Zhibin explained that fundraising projects are key carriers for implementing corporate strategy and critical bases for investor valuation. Changes must adhere to the principles of ‘compliance, reasonableness, and relevance,’ ensuring they are compatible with market changes and the company’s capabilities, while strictly following regulatory rules and internal decision procedures, balancing fund utilization efficiency and investor rights protection.

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Editor: Gao Jia