Changjiang & Jinggong Steel Building(Group)Co.Ltd(600496) ( Changjiang & Jinggong Steel Building(Group)Co.Ltd(600496) ) announced on April 19 that the company plans to issue 2 billion yuan of convertible bonds, which are referred to as “Seiko convertible bonds” for short. The bond code is “110086”, and the term is six years from the date of issuance, that is, from April 22, 2022 (t day) to April 21, 2028. The initial conversion price is 5 yuan / share. The preferred placement date and online subscription date of the original shareholders of this offering are both april222022 (t day).
After deducting the issuance expenses, the funds raised by the convertible bonds will be used for the comprehensive industry education integration municipal demonstration and training base (the second campus) project of Lu’an technician college, the Changjiang Seiko Intelligent Manufacturing Industrial Park project and supplementary working capital respectively.
Changjiang & Jinggong Steel Building(Group)Co.Ltd(600496) said that the issuance of convertible bonds will help the company further accelerate the transformation from professional subcontracting to general contracting, expand the company’s market influence in the field of prefabricated construction, improve the company’s comprehensive competitiveness, consolidate its market position, improve its business performance and lay a foundation for sustainable development. After the issuance, the company’s capital strength will be further enhanced, which will help to further enhance the competitiveness of its main business and promote sustainable development. Meanwhile, after the funds raised from this public offering of convertible bonds are in place, the company’s total assets and total liabilities will increase accordingly, which can enhance the company’s financial strength and provide a strong guarantee for the company’s subsequent development. Before the conversion of convertible bonds into shares, the financial cost of the company using the raised funds is low and the risk of interest repayment is small. As the holders of convertible bonds convert their shares one after another, the asset liability ratio of the company will gradually decrease, which is conducive to optimizing the company’s capital structure and improving the company’s anti risk ability.
In addition, the project of Lu’an technician college comprehensive industry education integration municipal demonstration training base (the second campus) is a fabricated steel structure construction project, with a total construction area of more than 300000 square meters. It is the largest fabricated school project undertaken by the company. The project has complex functions, many single buildings, many large-span and tall spatial structures, and has high technical difficulties. It puts forward higher requirements for design, management and operation in the implementation process. The company will break through the traditional mode in many aspects such as collaborative design, deepening design, digital manufacturing and operation management, and use the Seiko green building prefabricated school technology system, Finally, the overall assembly rate of the project will reach more than 50%. Expand the company’s influence in the field of fabricated steel structure construction by undertaking the project of comprehensive industry education integration municipal demonstration and training base (the second campus) of Lu’an technician college.
At the same time, the Changjiang Seiko Intelligent Manufacturing Industrial Park project is the specific implementation of the company’s opinions on accelerating the industrialization of new buildings by the Ministry of housing and urban rural development and other departments. After the completion of the project, the company will add 200000 tons of fabricated steel structure production capacity, which is conducive to further improving the company’s industrial chain layout in the field of steel structure and increasing the scale of the company undertaking fabricated buildings, Comprehensively improve the company’s service capacity.
Changjiang & Jinggong Steel Building(Group)Co.Ltd(600496) said that the steel structure industry is a capital and technology intensive industry. The whole production and operation process has the characteristics of long production and payment collection cycle, large resource occupation, large demand for working capital, and the competitive advantage of market players with strong capital strength in undertaking large-scale projects will be more obvious. Therefore, it is necessary for the company to conduct equity financing while making rational use of debt financing, enhance capital strength and provide sufficient capital guarantee for the sustainable development of the company.
