Dohia Group revises asset acquisition and fundraising report after exchange inquiry

Zhejiang Provincial Construction Investment Group Co., Ltd. (Dohia Group) has revised its report concerning the issuance of shares to acquire assets and raise supporting funds. This revision, prompted by an audit inquiry letter from the Shenzhen Stock Exchange, updates the report to include enhanced descriptions of major risk factors, procurement and supplier changes for target companies, sufficiency of bad debt provisions for accounts receivable, and risk factors related to the fundraising.

The transaction involves acquiring minority stakes in three subsidiaries—Zhejiang No. 1 Construction Group, Zhejiang No. 2 Construction Group, and Zhejiang No. 3 Construction Group—from Guoxin Yuanyuan Equity Investment Fund (Chengdu) Partnership. The deal also includes raising supporting funds from Zhejiang Provincial State-owned Capital Operation Co., Ltd. These funds, totaling 450 million yuan, will be allocated towards the Zhejiang Provincial National Fitness Center project (150 million yuan) and supplementing working capital (300 million yuan). This move aims to increase Dohia Group's control over its subsidiaries, improve financial health, and enhance overall competitiveness.

The revisions also clarify that the fundraising is contingent on the share issuance for asset acquisition. Should the fundraising fall short, Dohia Group plans to use its own funds to cover any deficits, ensuring the overall transaction proceeds as planned. The company confirmed that previous capital transfers and increases in its subsidiaries were lawful and compliant with relevant procedures.