Second Extension, Investment Progress Still Below 50% — What's Going On with Jinchun Stock's Fundraising Projects?

Everyday News Reporter | Zhang Baolian
Everyday Editor | Wendu

A core fundraising project with planned investments of over 200 million yuan, after experiencing its first delay, still has less than half of its progress completed, and has now announced another delay. On March 16, Jinchun Co., Ltd. (SZ300877, stock price 31.58 yuan, market value 3.79 billion yuan) disclosed that its “Annual Production of 12,000 Tons of Wet Process Degradable Spunlace Nonwoven Fabric Project” (referred to as the Wet Process Spunlace Project) will be delayed again by 8 months to October 2026.

In the announcement, Jinchun attributed the project delay to some main equipment not achieving expected actual capacity, and plans to add additional equipment investment. Financial data shows that by the end of 2025, the total investment in this project has not reached half of the planned amount.

According to the announcement, Jinchun focuses on the research, production, and sales of nonwoven fabric products and chemical fiber products. As of the end of the first half of 2025, the company owns the following production lines: 10 spunlace nonwoven fabric lines with an annual designed capacity of over 60,000 tons; 2 degradable nonwoven fabric lines with an annual designed capacity of 17,000 tons; 6 hot-air nonwoven fabric lines with an annual designed capacity of 15,500 tons; 1 ultrafine fiber nonwoven fabric line with a designed capacity of 2,000 tons; and 2 ES composite short fiber lines with a designed capacity of 30,000 tons.

Data shows that the Wet Process Spunlace Project was established after Jinchun changed some of its fundraising use plans. It is reported that the company’s initial public offering raised net funds of 847 million yuan, of which 320 million yuan was planned to be invested in the “Annual Production of 20,000 Tons of New Type Sanitary Products Hot-Air Nonwoven Fabric Project.”

In February 2024, the company decided to use 201 million yuan of the raised funds allocated for the “Annual Production of 20,000 Tons of New Type Sanitary Products Hot-Air Nonwoven Fabric Project” to fund the construction of the Wet Process Spunlace Project. Due to the project’s capacity not meeting expectations, the remaining production line construction was terminated.

Jinchun believes that the Wet Process Spunlace Project aims to increase the company’s production capacity of degradable nonwoven fabrics to meet market demand for high-performance, environmentally friendly nonwoven fabrics.

On March 16, 2026, Jinchun announced that the company held a board meeting that day, during which the proposal for another delay of some fundraising projects was approved. The company agreed to extend the time for the “Annual Production of 12,000 Tons of Wet Process Degradable Spunlace Nonwoven Fabric Project” to reach the planned usable state to October 2026.

This is the second delay for this project. According to the announcement, the initial planned commissioning date was February 2025, which was later adjusted to February 2026, and now it has been postponed again by 8 months.

As of December 31, 2025, according to Jinchun’s disclosed use of raised funds, the company had invested a total of 97.5583 million yuan in the Wet Process Spunlace Project out of the planned 201 million yuan, with an investment progress of 48.49%, less than half. This means over 100 million yuan of raised funds are still waiting to be used.

Regarding the reasons for the delay, Jinchun explained that some main equipment did not achieve expected actual capacity, and additional equipment investment will be made. To ensure the smooth completion of the fundraising projects and the effective use of raised funds, the company carefully studied the current market environment, the actual construction status of the projects, and the investment progress before making this decision.

Cover image source: Caijing Media Library