Keda Industrial Group Co.Ltd(600499) ( Keda Industrial Group Co.Ltd(600499) ) recently issued a series of announcements, mainly involving the termination of the non-public offering of A-Shares in 2022, the application for overseas issuance of global Depositary Receipts (GDR) and listing on the Swiss stock exchange and conversion to overseas offering Co., Ltd. The funds raised from the Keda Industrial Group Co.Ltd(600499) issuance of GDR, after deducting the issuance expenses, will be used to expand the main business and strategic investment business, promote the global layout and supplement the company’s working capital.
Different from the fixed increase in a shares, the issuance of GDR will face global investors. According to the annual report, by the end of 2021, Keda Industrial Group Co.Ltd(600499) overseas revenue was 4.116 billion yuan, accounting for 47% of the overall revenue. At the same time, Keda Industrial Group Co.Ltd(600499) two main businesses, construction ceramic machinery and African building materials, have been cultivated overseas for many years, and their products and brands have been recognized by local customer groups.
For example, in the field of building ceramic machinery, as a wholly-owned subsidiary of Keda Industrial Group Co.Ltd(600499) the Italian high-precision manufacturing enterprise, Weigao has effectively supplemented Keda Industrial Group Co.Ltd(600499) product structure to meet the needs of customers in different markets. Through the three brands of “Keda”, “Litai” and “Weigao”, Keda Industrial Group Co.Ltd(600499) in 2021, the overseas ceramic machinery business received orders and delivered more goods than the same period of the previous year. The market performance of India, Africa and Turkey increased significantly, consolidating Keda Industrial Group Co.Ltd(600499) building ceramic machinery business’s first market position in Asia and second in the world. In addition, Keda Industrial Group Co.Ltd(600499) entered the African market in 2016. By the end of 2021, Keda Industrial Group Co.Ltd(600499) ‘s African building materials business had taken root in Kenya, Ghana, Tanzania, Senegal and Zambia, and operated 12 production lines in five countries. The total output of building ceramics was 91 million square meters, radiating sub Saharan Africa, with a revenue of 2.345 billion yuan and a net profit of 819 million yuan Keda Industrial Group Co.Ltd(600499) in 2021, the South American architectural ceramics project was investigated, and its overseas business layout is expected to be further expanded.
According to the announcement, the issuance of GDR, Keda Industrial Group Co.Ltd(600499) is planned to be sold worldwide and issued to qualified international investors and other investors in line with relevant regulations. The fund-raising of this offering is mainly to expand Keda Industrial Group Co.Ltd(600499) ‘s main business and strategic investment business. The main business is construction ceramic machinery and African building materials business, which can further deepen the original global layout. At the same time, with the increasing participation of Keda Industrial Group Co.Ltd(600499) in the global capital market, there will be more opportunities to contact excellent overseas enterprises, which will have a positive significance for their expansion of strategic investment layout and better implement their globalization strategy. For A-share investors, the new underlying securities represented by the issuance of GDR this time shall not exceed 100 million A-share shares (including the securities issued due to the exercise of any over allotment right (if any)), and shall not exceed 5.30% of the total share capital of Keda Industrial Group Co.Ltd(600499) ordinary shares before the issuance.
