Lanshi Heavy Equipment issues A-share stocks privately to fund a project for the deep processing of coal tar

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Lanshi Heavy Equipment Issues A Shares via Private Placement; Funds to Be Used for Coal Tar Deep Processing Projects. Author/Source: Coal Tar Deep Processing and Hydrogenation Technology Collaboration Group. Date: 2020-11-26. Clicks: 9. On the evening of November 24, Lanshi Heavy Equipment announced that it had received from the China Securities Regulatory Commission a document confirming that its application for administrative approval for private stock issuance had been accepted (acceptance number: 203175). The China Securities Regulatory Commission reviewed the application materials submitted by the company in accordance with the law, found them to be complete, and decided to accept the application for such administrative approval. Previously, Lanxi Heavy Equipment disclosed a plan for a private stock issuance on September 18. The company intends to issue up to 283 million shares to no more than 35 specific investors who meet the requirements set by the China Securities Regulatory Commission. The total amount of funds raised will not exceed 1.34 billion yuan, which will be used for the 3.6 million tons per year heavy oil hydrogenation EPC project at Panjin Haoye, the 500,000 tons per year EPC project for upgrading hazardous waste coal tar at Xuan Dong Energy, the development of new intelligent models for the production and management of heavy-duty pressure equipment, as well as to supplement working capital. According to the plan, the total investment for Panjin Haoye’s 3.6 million tons per year heavy oil hydrogenation EPC project is 1.15 billion yuan; 320 million yuan of funds raised through financing are intended to be invested in this project, with an expected gross profit margin of no less than 11% ； The total investment for Xuan Dong Energy’s EPC project for the upgrading of 500,000 tons per year of hazardous waste coal tar is 1.2 billion yuan; 280 million yuan of funds raised through financing are planned to be invested in this project, with an expected gross profit margin of no less than 7% ； The total investment for the project to establish a new intelligent model for the production and management of heavy-duty pressure-bearing equipment is 350 million yuan; 340 million yuan of funds raised through fundraising will be invested in this project, with an expected return rate of no less than 18%. Additionally, the remaining 400 million yuan in raised funds will be used to supplement working capital and repay bank loans, thereby meeting the company’s working capital needs for business development and reducing its financial risks. “Intelligently upgrading the traditional pressure vessel manufacturing process helps to strengthen the company’s manufacturing foundation ； EPC projects help companies upgrade their business models and enhance their profitability. ”Lanshi Heavy Equipment stated that once the aforementioned projects are successfully implemented, the company’s revenue levels will increase steadily, its profitability and risk resistance capabilities will be further enhanced, and its overall strength will be significantly improved.