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

Securities Daily Reporter Gui Xiaosun and Li Haoyue

According to data from Wind, as of March 19, this year, a total of 578 listed companies have had changes to their fundraising projects. Among them, 286 projects have altered their fundraising purposes, while others have changed their implementing 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 were received, were not completed as planned within several years, leading to project modifications. Others adjusted their implementation entities, locations, and amounts within 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 that companies invest in after IPO or refinancing, directly related to strategic implementation and growth potential. In practice, some companies’ original projects faced major industry changes such as overcapacity or technological iteration after production began, risking imbalance between input and output if they continued with the original plan.

“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 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 conform to external market conditions,’” Chen Jingjing said.

Reviewing announcements from relevant listed companies shows that reasons for project changes vary. Some companies mention that after funds were received, they actively promoted project implementation, but progress was affected by industry competition or market changes, or delays caused by litigation. Others state that due to changes in market environment and demand falling short of expectations, combined with 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, project changes must be thoroughly justified, considering market environment changes and industry technological updates, explaining the reasonableness of terminating or adjusting the original project. They should also include scientific assessments of the feasibility, market prospects, and profitability of the new project, ensuring 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, project changes 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 capital efficiency and investor rights protection.