Moore Threads wants to raise 7.5 billion for "wealth management," and stock forum users are going crazy

Moore Threads plans to use the funds raised from its IPO for "financial management."

On December 12, Moore Threads announced that the company would use part of the idle raised funds for cash management, planning to use no more than 7.5 billion yuan, with a validity period of 12 months. Within the above limits and time frame, the funds can be used in a revolving manner.

CITIC Securities issued a verification opinion stating that this matter complies with regulations, does not affect the normal progress of the investment projects funded by the raised funds, and does not involve changing the direction of the raised funds or harming shareholder interests. Therefore, CITIC Securities, as the sponsor, has no objections to the company's matter.

Moore Threads stated that the source of the funds for this cash management is the funds raised from the initial public offering of shares. The total amount raised by the company this time is approximately 8 billion yuan, and after deducting issuance fees, the actual net amount raised is 7.58 billion yuan.

According to previous plans, 7 billion yuan of the raised funds will be used for chip R&D projects. Moore Threads stated that conducting cash management will not affect the company's daily operations and the normal development of investment projects funded by the raised funds, while also improving the efficiency of fund utilization, reasonably utilizing part of the raised funds, increasing the company's cash asset returns, and providing more returns for the company and its shareholders.

After the announcement from Moore Threads, it quickly attracted the attention of investors. Some investors questioned in its stock forum, "Why not focus on R&D with 7.5 billion yuan and instead buy financial products?" "Is it being frugal or not focusing on the main business?" However, some investors expressed support for its actions, believing that "reasonably utilizing funds to ensure cash sufficiency is just increasing revenue."

Recently, Moore Threads has become a hot topic in the capital market. It landed on the A-share market on December 5, and during its first six trading days, the stock price once reached 941.08 yuan/share, an increase of 723% compared to its issuance price of 114.28 yuan/share.

On December 11, Moore Threads specially issued a stock trading risk warning announcement stating that the company's stock price has risen significantly, far exceeding the rise of related indices such as the Sci-Tech Innovation Index and the Sci-Tech Innovation 50. There may be a risk of a decline due to the rapid short-term increase in stock price, and investors participating in trading may face significant risks.

At the same time, the company faces performance loss risks. In the first three quarters of this year, the company's operating income was 785 million yuan, and the net profit attributable to the parent company was -724 million yuan. The company expects a full-year net profit attributable to the parent company to be between -1.168 billion yuan and -730 million yuan. The company's future operating income may grow slowly or fail to sustain growth, posing risks of continued losses for a period of time and the risk of not achieving profitability within the management's expected timeframe On December 12th, Moore Threads' stock price fell sharply, closing down 13.41% to RMB 814.88 per share, with a latest market value of RMB 383 billion.

Regarding the use of part of the idle raised funds for cash management, Moore Threads stated that although the company will invest in products with high safety, good liquidity, and capital protection agreements, the financial market is greatly affected by the macro economy. The company will intervene appropriately and in a timely manner based on economic conditions and changes in the financial market, but does not rule out the possibility that this investment may be affected by market fluctuations.

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