Latest News: On June 29, Hubei Yihua announced that the company plans to raise funds by non-public offering of shares to no more than 35 specific objects, including the company's controlling shareholder, Yihua Group. More than 2.5 billion yuan for the clean coal pressurized gasification polygeneration technology transformation and upgrading project.
The announcement shows that the pricing base date of this non-public offering is the first day of the offering period, and the offering price is not lower than 80% of the company's average stock trading price 20 trading days prior to the pricing base date. It is worth noting that the controlling shareholder Yihua Group will also participate in the subscription. It will subscribe for this non-public offering of shares with a total cash amount of not less than 300 million yuan and not more than 500 million yuan. After the issuance, Yihua Group will hold no less than 17.08% and no more than 30%.
In response to the national Yangtze River protection policy, the company shut down the liquid ammonia and methanol plant with an annual output of 220,000 tons (the production capacity index is reserved) according to the relevant requirements of the higher authorities. The installation must be relocated by the end of 2025. The clean coal pressurized gasification polygeneration technology transformation and upgrading project used for this fixed increase is based on the company's main business. It seems more logical.
It is understood that the company's original annual production of 550,000 tons of liquid ammonia and methanol production plant is located in Xiaoting Chemical Park, Yichang City, which is close to the Yangtze River. This fundraising project will relocate the original production capacity to the Tianjiahe area of Yaojiagang Chemical Park, Yichang City, which is farther from the Yangtze River, and upgrade it, which meets the requirements of the industrial regional layout of the Yangtze River Economic Belt. After this fundraising project is put into production, the annual production capacity will be 46 tons of liquid ammonia, 9 10,000 tons of methanol, and an annual output of 21,300 tons of sulfuric acid as a by-product, the liquid ammonia and methanol produced by it mainly meet the company's own needs, the company's production costs of liquid nitrogen and methanol are also reduced, and the supply of raw materials is further guaranteed. The fundraising projects mainly build coal gasification, transformation, low-temperature methanol washing, liquid nitrogen washing, sulfur recovery, methanol synthesis and rectification, ammonia synthesis and refrigeration, and air separation units and other major production units, and build corresponding auxiliary production projects and public works. projects etc. The construction period of the project is expected to be 24 months, and the total investment rate of return is 12.36%.
This private capital increase is an important step for Hubei Yihua to continuously improve its profitability and improve its financial structure under the premise of optimizing its revenue capacity. According to public information, Hubei Yihua's main business is the production and sales of fertilizer products and chemical products. In 2021, the prosperity of the chemical and fertilizer industries will continue to improve. Against this background, Hubei Yihua will achieve an operating income of 18.544 billion yuan from January to December 2021, a year-on-year increase of 34.44%. In the first quarter of 2022, Hubei Yihua's operating income and net profit attributable to shareholders of listed companies reached 5.524 billion yuan and 638 million yuan respectively, an increase of 55.10% and 200.65% over the same period of the previous year.
Hubei Yihua stated in the announcement that this fundraising project is in line with the company's strategy of transforming and upgrading the coal chemical industry, which will help the company give full play to its own industrial advantages, improve quality and efficiency, and help the long-term sustainable development of the company's business.