Jiahe Food's 1-billion-yuan investment project issues a further risk warning: the framework agreement is not legally binding, and there are uncertainties in funding arrangements and construction progress.

Log in to Sina Finance App and search for [Information Disclosure] to see more evaluation levels

【Financial Network News】Jiahe Food Industry Co., Ltd. (Stock Code: 605300, Stock Abbreviation: Jiahe Food) issued a supplementary announcement on March 26, further highlighting risks related to the previously disclosed 1 billion yuan industrial project development framework agreement signed with the Haimen Economic and Technological Development Zone Management Committee. The company clearly states that this agreement is only a framework and intention-based arrangement, not a legally binding document with enforceable obligations, and there are multiple uncertainties in project implementation.

The announcement points out that the cooperation content of this framework agreement is only a preliminary intention between both parties, and specific cooperation details, implementation pathways, execution standards, and timelines have not yet been clarified. Subsequent negotiations and the signing of specialized agreements are required for specific matters, and there is a possibility that cooperation content may change or that an agreement cannot be reached due to demand adjustments. Additionally, the total investment amount of about 1 billion yuan stipulated in the agreement is an initial estimate; the specific investment scale will be determined after feasibility studies.

Regarding risk warnings, Jiahe Food emphasizes three main uncertainties:

First is funding pressure. According to preliminary estimates, the total project investment is about 1 billion yuan, mainly sourced through bank loans and self-raised funds. As of September 30, 2025, the company’s monetary funds amounted to 362 million yuan, mainly used to ensure normal operation of existing businesses. The company admits that if future cash flows from operating activities fall short of expectations or external financing environments worsen, it may face funding pressures, and subsequent financing could increase asset-liability ratios to some extent. Although the company states that its current credit status is good, with sufficient bank credit lines, and plans to scientifically organize financing schemes to control financial risks, the uncertainty of funds being in place still warrants attention.

Second is project construction cycle risk. The announcement shows that the project capacity will be built and put into operation in phases, with an estimated total construction period of 2-3 years. During implementation, there may be issues such as delays in construction progress, procurement, installation, and debugging of equipment, leading to differences between actual investment cycles and expectations.

Additionally, the company notes that the current investment scale of 1 billion yuan is within the board of directors’ decision-making scope and does not require shareholder approval. However, if the total investment amount determined by subsequent feasibility studies significantly increases, it will be submitted for shareholder approval after review by the board of directors, as required.

Jiahe Food emphasizes that the project is still in the planning stage, and the company will continue to monitor progress and fulfill its information disclosure obligations. The company also reminds investors that related information is subject to announcements published in designated media, and urges rational investment and risk awareness. This supplementary announcement is only to highlight uncertainties and risks and does not alter other contents of the original announcement.

Click to view the original announcement>>

Disclaimer: The market carries risks; investment should be cautious. This article is automatically published by an AI large model based on third-party databases and does not represent Sina Finance’s views. Any information appearing in this article is for reference only and does not constitute personal investment advice. Please refer to the actual announcement for any discrepancies. If you have questions, contact biz@staff.sina.com.cn.

Massive information, precise interpretation, all on Sina Finance App

Editor: Xiao Lang Express