Shenyang Machine Tool Co.Ltd(000410) non public offering in 2022
Feasibility analysis report on the use of A-share raised funds
Shenyang Machine Tool Co.Ltd(000410) (hereinafter referred to as “Shenji shares” or “the company”) intends to apply for non-public offering of a shares. Now the feasibility analysis of the investment project of the raised funds in this non-public offering is explained as follows: I. The use plan of the raised funds
The total amount of funds to be raised in this offering shall not exceed 1.5 billion yuan (including this amount), and the number of shares to be issued shall not exceed 30% of the total share capital of the company before issuing shares to specific objects, that is, not more than 505210783 shares. After deducting the issuance expenses, the net amount of funds raised is intended to be used to supplement working capital. 2、 The necessity of using the raised funds (I) the company complies with the national industrial policy. The raised funds will help the company grasp the industry development cycle and help the company develop rapidly
At present, the state is increasing its policy support for the machine tool industry. In the whole intelligent manufacturing industry, the machine tool industry has an important strategic position, and the machine tool industry is facing a rare development opportunity in history. Among them, The outline of the national innovation driven development strategy, the intelligent manufacturing development plan (2016-2020), the three-year action plan for promoting the development of a new generation of artificial intelligence industry (2018-2020), the 14th five year plan for national economic and social development of the people’s Republic of China and the outline of long-term objectives in 2035, and The machine tool industry is listed as a key development industry in important development plans such as the 14th five year plan for national economic and social development of Liaoning Province and the outline of long-term objectives for 2035. The support of industrial policies has promoted the sustained and rapid development of intelligent manufacturing equipment industry.
At present, China is in an important stage of transformation from a large manufacturing country to a powerful manufacturing country. In the new round of industrial upgrading, the high-end manufacturing industry will gradually occupy the leading position, and the manufacturing industry will gradually change from labor-intensive industry to technology intensive industry. Therefore, the intelligent manufacturing equipment industry is the basic guarantee for the adjustment and upgrading of the whole economic structure, and will become the leading industry in the transformation and upgrading of the national economy. The transformation and upgrading of industrial structure will also drive the technological upgrading of intelligent manufacturing equipment industry and greatly increase the market demand for medium and high-grade CNC machine tools.
As the state attaches importance to medium and high-grade CNC machine tools and urges the implementation of the machine tool field to solve the problem of insufficient supply capacity of core parts, the company has stepped into formal business development with strong independent R & D and production capacity and rich experience in machine tool production. However, the company’s machine tool industry is a capital intensive industry. This non-public offering will help the company grasp the industry opportunities brought by the current policy support, closely follow the development cycle of the machine tool industry and improve the company’s performance. (II) support the company’s development strategy, business policy and technology research and development
Shenyang Machinery Co., Ltd. will focus on the main business of the production and sales of its machine tool products, focus on the development of five categories of core machine tool products such as vertical machining center, horizontal machining center, CNC vertical lathe, CNC horizontal lathe and industry special machine, strive to improve the existing production environment of the company and greatly improve the intelligence and automation of core links such as product production, processing and testing. The company will build an intelligent chemical plant, improve the internal management level of the company, and continuously improve product quality and production efficiency, so as to improve market share and reshape brand image.
The company will adhere to the independent research and development of technology, continuously strengthen the research and development of core technology, optimize the procurement and sales chain, improve the production management system and other core operation systems, provide industry-leading process solutions through continuous product upgrading and performance improvement, and promote the transformation of the company’s overall product structure to medium and high-end fields.
The funds raised by the company’s non-public offering will help the company complete the planning of “intelligence, efficiency and automation” in its development strategy; Implement business policies such as improving product quality, strengthening marketing service ability, optimizing supply chain and improving management and manufacturing level; Realize the technical R & D objectives of improving product performance, improving product stability, specialization of general-purpose machine tools and generalization of special machines in the industry. (III) replenish working capital and relieve the company’s operating pressure
After the raised funds are in place, the supplement of working capital will effectively alleviate the capital pressure of the company’s development, improve the company’s daily operation efficiency, further improve the company’s operation scale and comprehensive strength, improve the company’s operation efficiency, lay the foundation for the healthy and rapid development in the future, and meet the common interests of the company and all shareholders.
With the accelerated development of the machine tool industry and intensified competition, the company’s demand for working capital will also increase day by day. Since the judicial reorganization of the company in 2019, the company has gradually got out of the mire of loss and recovered its self hematopoietic ability through the continuous adjustment of business sector, personnel arrangement and product development strategy, but its cash flow is still in a tight state. Therefore, the company will expand the scale of direct financing and use the funds raised from this non-public offering to supplement working capital to support the operation and development of the company.
(IV) subscription by controlling shareholders and actual controllers to support the development of listed companies and enhance market confidence
The controlling shareholder and actual controller of the company is general technology group. As of the announcement date of this plan, the direct shareholding ratio of general technology group is 29.99%. The total amount of funds to be raised in this issuance shall not exceed 1.5 billion yuan, and the number of shares issued shall not exceed 30% of the total share capital of the company before issuing shares to specific objects. General Technology Group’s subscription to the non-public offering of shares can, on the one hand, increase its shareholding ratio in the company, enhance its position as a controlling shareholder and improve the decision-making efficiency of the company; On the other hand, it can also inject funds into the company, support the development of listed companies, and highlight the firm confidence of controlling shareholders in the development prospect of the company, which is conducive to maintaining the stability of the securities market, protecting the interests of all shareholders and establishing a good market image of the company. 3、 Feasibility of the use of the raised funds (I) the company’s non-public offering complies with the provisions of laws and regulations
The organization of the company is sound, the operation is stable, and there are no false records in the financial and accounting documents. The funds raised from this non-public offering of shares are used to supplement working capital, which complies with the provisions of relevant policies, laws and regulations and is feasible. (II) the implementation subject of the use of the funds raised by this non-public offering has standardized governance and improved internal control
According to the governance standards of listed companies, the company has established a modern enterprise system with the corporate governance structure as the core, and formed a more standardized corporate governance system and a perfect internal control environment through continuous improvement and perfection. In terms of the management of raised funds, the company has established the management measures for the use of Shenyang Machine Tool Co.Ltd(000410) raised funds in accordance with the regulatory requirements, which clearly stipulates the storage, use, investment direction change, inspection and supervision of raised funds. After the funds raised in this offering are in place, the board of directors of the company will continue to supervise the company’s storage and use of the raised funds, so as to ensure the rational and standardized use of the raised funds and prevent the use risks of the raised funds. 4、 Impact of the use of the raised funds on the company (I) impact on the company’s operating conditions
After the raised funds are in place, it can improve the company’s capital strength, supplement the company’s daily working capital, and alleviate the capital flow pressure in the process of business operation and R & D investment, so as to improve the operation efficiency, lay the foundation for the effective implementation of the company’s future strategic development, and create opportunities for the company to improve its profitability and comprehensive competitive strength. The raised funds are in line with the interests of the company and all shareholders. (II) impact on the company’s financial position
The raised funds are used to supplement the working capital. After the issuance, it will effectively reduce the asset liability ratio, improve the company’s solvency, and improve the current ratio and quick ratio, so as to further enhance the company’s liquidity, reduce the company’s financial expenses and optimize the company’s capital structure. Since the scale of net assets will rise sharply after fund-raising, the return on net assets of the company will be affected in the short term. However, in the medium and long term, with the business developing in accordance with the strategic planning direction, the product technical indicators will be steadily improved, the company’s income and profit level will gradually rise, and the profitability and profit stability of the company will be enhanced. 5、 Conclusion
To sum up, the use of the funds raised in this non-public offering to supplement working capital is in line with the national industrial policies and regulations and the overall strategic development direction of the company in the future, which is conducive to further optimizing the company’s capital structure and financial anti risk ability, in line with the requirements of relevant laws and regulations, and in line with the interests of the company and all shareholders of the company.
Shenyang Machine Tool Co.Ltd(000410) board of directors January 27, 2022
