The Yellow River whirlwind adjustment strategy actively responds to market changes

Previously, the China Securities Regulatory Commission accepted the company's application for fixed increase on May 3. The company’s reporter told the Shanghai Securities Journal: “The reason for the withdrawal of the application was that the factors that led to the refinancing decision at the time of the shareholders’ meeting had changed, mainly because the average selling price of the artificial single crystal market was significantly lower than that in the original feasibility study report. The price has dropped by more than 15%."

According to the company's scheduled increase plan announced in November last year, the Yellow River whirlwind is planned to increase by no more than 120 million shares at a price of not less than 6.72 yuan per share, and the fundraising will not exceed 774 million yuan to invest in the high-grade super-hard material single crystal industry. Project. Among them, the major shareholder Huanghe Group will subscribe for 10% to 25% of the additional shares. The project plans to use the HWUDS-VA ultra-high pressure synthetic equipment and process technology designed by the company, adding 1389 sets of various types of equipment. The construction period of the fundraising project is 2 years. After the project is completed and put into production, it can form an annual production capacity of 1.411 billion carats of high-grade super-hard material single crystal. The product performance reaches the domestic leading level, and the normal annual sales income can reach 607 million yuan. Achieve a total profit of 120 million yuan. The total profit of the Yellow River Cyclone in 2012 was 196 million yuan and the net profit was 171 million yuan.

The feasibility analysis of the project is: “The high-grade super-hard material single-crystal products produced by the company have obvious price advantages compared with similar imported products, which can meet the demand of more customers for similar products. Therefore, the company expects The project has a good market foundation and a broad prospect. However, according to reports, the average selling price of similar artificial single crystals on the market has fallen by more than 15%. It can be seen that the company's product advantages have faced challenges.

After the company announced the plan to increase the stock price, the stock price trend was not ideal. It was repeatedly inverted with the fixed price. As of yesterday's close, the latest offer of the Yellow River whirlwind was only 6.36 yuan. However, the company believes that the withdrawal of the application and the stock price upside down relationship is not big, the main consideration is the decline in the market price of artificial single crystal.

So, what effect will the withdrawal of the quota application have on the fundraising project? The company once said in the plan for the increase: "If the time for the funds raised is inconsistent with the progress of the project implementation, the company may need to raise funds for initial investment according to the actual situation, and the funds will be replaced in full after the funds are raised." The company told the Shanghai Stock Exchange Reporter, the current high-grade single crystal project has not been put on hold, the company will first use its own funds or additional funds to invest, but the project progress can not be guaranteed.

Regarding whether or not to restart the increase, the above-mentioned person said: "To see the market price trend of artificial single crystals in the second half of the year, there is currently no timetable."