China Water Resources Website, August 6 (Reporter Yang Fei, Correspondent He Yunwen) On August 3, Dayu Irrigation Group successfully sold convertible corporate bonds (hereinafter referred to as "convertible bonds") and obtained a total amount of 638 million yuan. The company landed on the Growth Enterprise Market in 2009 and has raised 1.611 billion yuan from the capital market so far.

Dayu Irrigation Group public offering of convertible bonds was reviewed and approved by the company's 24th (interim) meeting of the fifth board of directors on November 28, 2019, and the 2019 second extraordinary general meeting of shareholders on December 16, 2019. Since the company's internal review and approval, the company has actively arranged and mobilized internal resources, collected various materials required for the issuance of convertible bonds, and closely communicated and connected with external intermediaries to promote the procedures for the issuance of convertible bonds. On July 1, 2020, Dayu Irrigation Group received the "Approval for the Public Issuance of Convertible Corporate Bonds by Dayu Irrigation Group Co., Ltd." issued by the China Securities Regulatory Commission, which approved the company’s public offering to the public with a total face value of 638-million-yuan convertible bonds with a maturity of 6 years. After the public issuance of convertible bonds was approved by the China Securities Regulatory Commission, Dayu actively coordinated with brokers to save water. After online roadshows, major shareholder allocations, T-day allotment, online subscription and other procedures, the convertible bonds were finally sold successfully on August 3.

Dayu's water-saving issuance of convertible bonds to raise funds is mainly used for high-end water-saving irrigation products smart factory construction projects, modern agricultural operation services and technology research and development center construction projects and supplementary working capital. The construction of a smart factory construction project for high-end water-saving irrigation products will help improve the company’s production intelligence level, promote the company’s water-saving irrigation products to catch up with the world’s advanced level, enhance the company’s water-saving irrigation products’ ability to serve the high-end market, and further consolidate the company’s Position in the world's water-saving market. The construction of modern agricultural operation services and technology R&D center construction projects will, on the one hand, enhance the company's feasibility research level in the entire industry chain, increase the company's research and development capabilities, further catch up with the international advanced level, increase the company's core competitiveness, and continue to meet the company's future business The need for sustainable development; on the other hand, the company will make full use of the "Internet + agricultural technology" through the operating service platform to promote the company's transformation and upgrading to a modern agricultural technology service company. Supplementary working capital aims to optimize the capital structure, improve the ability to resist risks, and provide financial support for the company's future business development, which is conducive to consolidating the company's market position and enhancing its comprehensive competitiveness.

The fundraising project is in line with relevant national industrial policies and the company's overall strategic development direction and is closely related to the company's main business. It is conducive to listed companies to seize market opportunities, further enhance the company's core competitiveness and sustainable development capabilities, and consolidate the company's industry position, open up new space for improving profitability. After the completion of this fundraising project, Dayu capital strength will be significantly enhanced, and the product structure will be further optimized, which is conducive to the continuous improvement of the company's profitability. At the same time, after the funds raised from the issuance of convertible bonds are in place, the company's monetary funds, total assets and total liabilities will increase correspondingly, and the capital strength will be further enhanced, which can provide a strong guarantee for the company's subsequent development. With the successive conversion of convertible bonds, the company's net assets will gradually increase, and the company's debt-to-asset ratio will gradually decrease, which will help optimize the company's capital structure and enhance the company's ability to resist risks. Subsequent companies will actively and orderly advance bond registration and bond listing and trading procedures to ensure the successful completion of the issuance of convertible bonds.

Dayu Adhering to the corporate spirit of "using the spirit of Dayu to control water and doing Dayu's water conservation business", and fulfilling the corporate mission of "making agriculture smarter, rural areas better, and farmers happier", it has always been focused and committed Solutions and services for global agriculture, rural areas, and water resources. It is a full-industrial chain solution provider that integrates agricultural water-saving irrigation, rural sewage treatment, farmer drinking water safety "three rural three-water" business, water conservancy informatization, and smart water services. Provide systematic solutions from project planning, investment and financing plans, engineering design, construction, management, and service. It has jurisdiction over Dayu Research, Dayu Capital, Dayu Design, Dayu Intelligent Manufacturing, Dayu Engineering, Dayu Wisdom, Dayu Agriculture, Dayu Environmental Protection and other eight major sectors, with 8 production bases, 3 hydropower design institutes, Beijing Huitu Technology Smart Water Company and more than 300 marketing service branches. International business covers more than 50 countries and regions such as South Korea, Thailand, South Africa and Australia.

Dayu Water Saving Chairman Wang Haoyu said that the company will take this successful sale of convertible bonds as an opportunity to continue to take the national economy and people’s livelihood, rural revitalization as its mission, and to ensure the country and the world’s food security and water security as its purpose to solve agricultural and rural development. The goal is to improve the efficiency of agricultural water and fertilizer utilization, production efficiency, and improve the ecological living environment of human beings, and adhere to scientific and technological innovation, model innovation, and management innovation, and make unremitting efforts to build a century old famous enterprise in the world of water-saving irrigation.