This afternoon (May 20), Bingyang Technology (836675. BJ) issued an announcement on changing the purpose of the raised funds.
On December 28, 2020, Bingyang Technology issued 35.6 million ordinary shares in a combination of strategic placement and online and offline issuance. The issuance price was 7.2 yuan / share, the total amount of funds raised was 256.32 million yuan, and the net amount of funds actually raised was 2407526 million yuan.
According to the previous plan, the fund-raising of the company is mainly used for three projects: replenishing working capital and repaying bank loans, the technical transformation and capacity expansion project of clay mine with an annual output of 400000 tons, and the development and utilization project of shanmudong refractory clay mine in Deshi Town, Miyi County (with an annual output of 100000 tons). The amount to be invested by the three projects is 150 million yuan, 784167 million yuan and 12.336 million yuan respectively. As of May 16, 2022, the above three projects have invested 150 million yuan, 141561 million yuan and 749200 yuan respectively, and the corresponding investment progress is 100%, 18.05% and 6.07% respectively.
After the change, the company will not continue to invest in the “technical transformation and capacity expansion project of clay ore with an annual output of 400000 tons of ceramsite”, but will also add the “quartz sand proppant project with an annual output of Shanghai Pudong Development Bank Co.Ltd(600000) tons of fracturing – housing construction, civil engineering and supporting equipment” project, The fund of the project comes from the unused raised fund of RMB 118637 million (including net interest, and the actual amount shall be subject to the balance of the special account on the day of fund transfer out) of the “technical transformation and capacity expansion project of clay ore with an annual output of 400000 tons”. The insufficient part (the total investment of the project is RMB 12 million) will be solved by the company through self financing.
Source: screenshot of announcement
The announcement said that at present, from the perspective of the market demand for ceramsite proppant in 2021 and in the near future, the demand for high-density ceramsite proppant products has decreased significantly. Combined with the bidding situation of PetroChina and Sinopec in 2022, the current market demand is mainly concentrated in medium, low and ultra-low-density ceramsite proppant products. Continue to implement the company’s original raised investment project “shanmudong refractory clay mine development and utilization project (annual output of 100000 tons) in Deshi Town, Miyi County”, which does not meet the existing market demand. In order to give full play to the use efficiency of raised funds and protect shareholders’ rights and interests, the company has changed the raised investment project in combination with the development strategy, progress of raised investment project and capital demand.
On May 18, 2022, the company held the 8th meeting of the 3rd board of directors and the 7th Meeting of the 3rd board of supervisors to review and approve the proposal on changing the purpose of raised funds. The independent directors of the company have expressed their explicit consent, and the above proposal needs to be submitted to the general meeting of shareholders of the company for deliberation. The change of the purpose of the raised funds does not require the approval of relevant departments.
