Hainan Rubber plans to raise additional funds to invest in special rubber parks

It plans to raise 3.
9 billion yuan

In terms of the purpose of the raised funds, according to the announcement, the tropical high-efficiency non-glue agricultural project intends to use the raised funds of 100000 yuan; The special rubber garden renewal planting project intends to use the raised funds of 150000 yuan; The equity acquisition project of R1 Company intends to use the raised funds of 403.
1081 million yuan and supplementary liquidity of 1000000 yuan
.
All specific objects are subscribed
in cash.

According to the announcement, R1 Company is a company controlled by the company's original controlling shareholder, Nongken Group, and the company owns 15% of the equity
of R1 Company through its wholly-owned subsidiary Haijiao Singapore.
The proceeds from this private offering will be used to acquire 60% of the equity of
R1 Company held by Nongken Group.
Therefore, the private offering constitutes a connected transaction
.
According to the Equity Transfer Agreement signed between the listed company and Nongken Investment Company, a shareholder of R1 Company, the proposed transaction consideration is US$65.
2 million to acquire 60% of
the equity of the target company.
As a result of the cash dividend of US$3,122,300 received by Agricultural Reclamation Investment Company on May 18, 2016, the transaction amount after deducting this amount is US$62,077,700.

The company said that Singapore's R1 company is the world's largest rubber trading company
.
As the largest natural rubber enterprise in China, the listed company intends to increase the volume of natural rubber trading business through the acquisition of R1 Company, deepen its impact on the natural rubber raw material market in Southeast Asia, and further enhance its market discourse power and industry position
.

Realize industrial adjustment and upgrading

The company said that affected by the decline in demand growth, the global natural rubber price fluctuated at a low level, and natural rubber companies faced greater performance pressure
.
In 2015, Hainan Rubber suffered a net loss of 983 million yuan
.
The listed company has 3.
53 million mu of rubber forest and shelter forest, and the land resources are very rich
.
On the basis of the strategy of "building 2 million mu of core rubber parks", it is urgent to rationally use the remaining land resources, realize industrial structure adjustment and upgrading, and enhance the profitability
of listed companies.

According to the announcement, through the implementation of this tropical high-efficiency non-rubber agricultural project, the listed company plans to use 190,000 mu of land to target the mid-to-high-end market and produce green ecological fresh fruits
such as pineapples, pomelos, mangoes, and bananas.
Through the implementation of this project, the listed company will gradually diversify its business and effectively improve profitability
.

In addition, the products produced by the special rubber garden will focus on large rubber products enterprises and international large traders with large demand for natural rubber
.
According to its high product quality requirements and relatively low price sensitivity, it provides customized, differentiated and high-end products
.
The listed company plans to plant about 300,000 mu of special rubber gardens in the 2 million mu core rubber garden, and take measures from various links such as seedling selection, planting, pipe care, and rubber tapping to ensure the quality
of the latex produced in the rubber garden.

In the future, there is a large room for natural rubber prices to rise, and the expansion of rubber consumption driven by economic recovery is clear, which will form a strong support for the sales of rubber products of listed companies; Under the background of the localization of military aviation tire rubber, the company actively uses the platform of the Advanced Rubber Industry Alliance to develop high value-added products such as special rubber and special rubber to further strengthen its core competitiveness
.