Securities code: Hubei Yihua Chemical Industry Co.Ltd(000422) securities abbreviation: Hubei Yihua Chemical Industry Co.Ltd(000422) Announcement No.: 2022021 Hubei Yihua Chemical Industry Co.Ltd(000422)
Announcement on capital increase of Hubei Yihua Chemical Industry Co.Ltd(000422) degradable new materials Co., Ltd
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Overview of capital increase
Hubei Yihua Chemical Industry Co.Ltd(000422) (hereinafter referred to as “the company”) deliberated and adopted the proposal on capital increase of Hubei Yihua Chemical Industry Co.Ltd(000422) degradable new materials Co., Ltd. at the third meeting of the 10th board of directors. In order to meet the capital demand of new degradable materials project and promote the construction of its 60000 T / a biodegradable new materials project, the company plans to increase capital by 130 million yuan to Hubei Yihua Chemical Industry Co.Ltd(000422) degradable new materials Co., Ltd. (hereinafter referred to as “degradable new materials”). This capital increase does not constitute a connected transaction, nor does it constitute a major asset reorganization as stipulated in the administrative measures for major asset reorganization of listed companies. 2、 Basic information of capital increase target
1. Basic information of new degradable materials
Company name: Hubei Yihua Chemical Industry Co.Ltd(000422) degradable new materials Co., Ltd
Legal representative: Song Aihua
Registered capital: 20 million yuan
Date of establishment: February 8, 2021
Domicile: room 5311, No. 57-5, development avenue, Yichang District, China (Hubei) Free Trade Zone business scope: general items: manufacturing and sales of synthetic materials (excluding hazardous chemicals), eco-environmental materials, bio based materials and special chemical products (excluding hazardous chemicals); Sales of chemical products (excluding licensed chemical products); New material technology research and development, technical services, technology development, technical consultation, technical exchange, technology transfer and technology promotion; Engineering and technical research and experimental development (except for projects that must be approved according to law, carry out business activities independently according to law with business license)
Relationship with the company: degradable new materials is a wholly-owned subsidiary of the company.
After inquiry, the degradation of new materials is not a dishonest person.
2. Main financial indicators
As of September 30, 2021, the total assets of degradable new materials are 3446438177 yuan, the total liabilities are 1446738177 yuan, and the net assets are 1999700000 yuan. The project is under construction and has not been officially put into operation.
3. Project progress
The pile foundation construction of the project has been completed, and the civil construction of the main device is being carried out at present; The equipment bidding has been basically completed, and the large equipment required by the project has entered the manufacturing period. It is expected to be fully completed and put into operation around December 2022.
3、 Ways and sources of capital increase
The capital increase of 130 million yuan subscribed by the company will be paid in four phases according to the needs of production and operation by the end of 2022. The sources of funds are all self owned funds.
After the capital increase, degradable new materials is still a wholly-owned subsidiary of the company.
4、 Purpose of capital increase and its impact on the company
1. The purpose of this capital increase is to actively promote the construction of new degradable materials project and strive for the project to be put into operation as soon as possible.
2. Possible risks of the project: the price of raw materials of the project fluctuates greatly, which may lead to the uncertainty of project benefits; The biodegradable polyester industry is developing rapidly, and the project may face more competitors.
3. This capital increase is in line with the development plan and long-term interests of the company and degradable new materials. After the project is completed and put into operation, it can improve the comprehensive competitiveness of the company in the field of fine chemicals and is conducive to the healthy and sustainable development of the company.
5、 Documents for future reference
Resolution of the third meeting of the 10th board of directors of the company.
It is hereby announced.
Hubei Yihua Chemical Industry Co.Ltd(000422) board of directors
March 11, 2022
