CSRC: Strictly regulate changes in the use of funds raised and slow progress in their utilization.

The China Securities Regulatory Commission (CSRC) has issued the "Regulations on the Supervision of Raised Funds by Listed Companies". The regulations aim to strictly regulate changes in the use of raised funds and slow progress in their utilization. Firstly, the regulations specify situations in which the use of raised funds is changed, including cancelling or terminating the original fundraising project and implementing a new project or permanently supplementing working capital, changing the entity or method of implementing the fundraising project. It emphasizes penalties for unauthorized changes in the use of raised funds. Secondly, it emphasizes that controlling shareholders, actual controllers, and other related parties are not allowed to misuse raised funds. Listed companies should proactively disclose relevant information when such situations are discovered, in order to prevent disguised changes in the use of raised funds. Thirdly, for fundraising projects that require a delay in implementation, strict approval procedures and disclosure obligations must be followed.