On the evening of May 19, Hoshine Silicon Industry Co.Ltd(603260) ( Hoshine Silicon Industry Co.Ltd(603260) ) launched the private placement scheme. The company plans to issue no more than 106 million shares at the price of 66.3 yuan / share. It is expected that the fund-raising will not exceed 7 billion yuan, and the raised funds will be used to supplement liquidity.
It is worth noting that the opposite party of this fixed increase is Luo Yu and Luo Yedong, who are the actual controllers of Hoshine Silicon Industry Co.Ltd(603260) . At the same time, Luo Yi served as the vice chairman of the company, and Luo Yedong served as the director and general manager of the company. Luo Ying and Luo Yedong are also the children of Luo Liguo, the chairman of the company.
Hoshine Silicon Industry Co.Ltd(603260) said that Luo Ying and Luo Yedong subscribed for non-public shares in cash, which fully demonstrated the actual controller’s support for the development of the company and confidence in the future prospects of the company, which was conducive to maintaining the stability of the securities market, protecting the interests of all shareholders and establishing a good market image of the company.
Hoshine Silicon Industry Co.Ltd(603260) is the “double material leader” of industrial silicon and organic silicon. At present, it has an industrial silicon production capacity of 730000 tons / year and an organic silicon monomer production capacity of 930000 tons / year, both ranking first in China. In 2021, the company achieved an operating revenue of 21.343 billion yuan, an increase of 137.99% over the previous year; The net profit attributable to the shareholders of the parent company was 8.212 billion yuan, an increase of 484.74% over the previous year.
Behind the fixed increase of 7 billion yuan to raise funds for replenishment, Hoshine Silicon Industry Co.Ltd(603260) is on the road of expanding production.
It is reported that in order to further expand the layout of the whole industrial chain and enhance the competitive advantage of the company, Hoshine Silicon Industry Co.Ltd(603260) plans to invest and construct the “silicon-based new material industry integration project of Hoshine Silicon Industry Co.Ltd(603260) Co., Ltd. in central Xinjiang (200000 ton high-purity polysilicon project)” in ganquanpu economic and Technological Development Zone (Industrial Zone) of Urumqi, Xinjiang through its wholly-owned subsidiary Hoshine Silicon Industry Co.Ltd(603260) Co., Ltd. The estimated investment amount of the project is 17.5 billion yuan. The construction content of the project is 200000 t / a polysilicon unit, 100000 t / a caustic soda unit, as well as supporting public works and auxiliary works.
In September 2021, Hoshine Silicon Industry Co.Ltd(603260) issued a production expansion plan of 7.6 billion yuan, and plans to invest in the construction of 400000 tons of industrial silicon project in phase II of coal power silicon integration project, 200000 tons of siloxane in phase III of coal power silicon integration project and downstream deep processing project. In April 2021, Hoshine Silicon Industry Co.Ltd(603260) also announced to invest in the construction of 800000 T / a industrial silicon production and supporting Shanghai Pudong Development Bank Co.Ltd(600000) t briquette processing and production (phase I) project, and invest in the construction of phase II of coal electricity silicon integration project with an annual output of 200000 t siloxane and downstream deep processing project.
With the rapid expansion, Hoshine Silicon Industry Co.Ltd(603260) ‘s debt scale has also increased. As of March 2022, the total liabilities according to the consolidated statement at the end of Hoshine Silicon Industry Co.Ltd(603260) year are RMB 11.596 billion, current liabilities are RMB 9.005 billion, and interest expense in 2021 is RMB 188 million.
If the additional issuance can be successfully completed, the asset scale of Hoshine Silicon Industry Co.Ltd(603260) will be further expanded. According to the data in the first quarter of this year, the asset liability ratio will be reduced from 34.20% to 28.35%, and the current ratio and quick ratio will be increased to 1.93 and 1.36 respectively, enhancing the overall solvency.
Hoshine Silicon Industry Co.Ltd(603260) believes that with the continuous growth of business scale and production capacity in the future, the company’s demand for working capital is increasing. After the raised funds are in place, the replenishment of working capital will effectively alleviate the capital pressure of the company’s development, improve the company’s operating efficiency and lay a solid foundation for the continuous expansion of the company’s business scale.
