On November 12, Wrigley Home Group Co., Ltd. (hereinafter referred to as "Wrigley Home") issued an announcement about using raised funds to increase capital in its wholly-owned subsidiaries to implement fundraising projects. The announcement stated that Wrigley Home Furnishings reviewed and approved the "About using raised funds to increase capital for wholly-owned subsidiaries" at the 25th meeting of the first board of directors and the 21st meeting of the first board of supervisors held on November 11, 2022. Proposal for Implementing Raised Investment Projects", agreeing to use the raised funds of RMB 350 million to increase the capital of the company's wholly-owned subsidiary Foshan Lehua Hengye Kitchen and Bathroom Co., Ltd. (hereinafter referred to as "Hengye Kitchen and Bathroom") to implement the raised investment projects "Smart home product production capacity technological transformation project".
Previously, Wrigley Home was officially listed on the main board of the Shenzhen Stock Exchange, raising a total of 1.156 billion yuan in funds, which will be used for the "Smart Home Product Production Capacity Technology Transformation Project", "Annual Production of 10 Million Faucets and 3 Million Sets of Showers" and "Smart Home Products". "Home Furnishing R&D and Testing Center Technical Transformation Project", "Digital Intelligence Upgrading Technical Transformation Project" and "Supplementary Working Capital".
Among them, the "Smart Home Product Production Capacity Technical Transformation Project", "Smart Home R&D and Testing Center Technical Transformation Project", and "Digital Intelligence Upgrading Technical Transformation Project" are all implemented by Hengye Kitchen and Bathroom, a wholly-owned subsidiary of Arrow Home. This "smart home product production capacity technological transformation project" plans to invest 450 million yuan in raised funds. In order to ensure the smooth implementation of the investment project with raised funds, Wrigley Home Furnishing plans to use the raised funds of 350 million yuan to increase cash investment in Hengye Kitchen and Bathroom to implement the raised investment project. All the above capital increase funds will be used as the registered capital of Hengye Kitchen and Bathroom.
It is understood that in order to ensure the smooth implementation of the investment project construction, Hengye Kitchen and Bath has invested approximately 204 million yuan in self-raised funds in the construction of the "Smart Home Product Production Capacity Technology Transformation Project" in advance.
