Kyushu Tong will increase 2.08 billion "join in" Yunnan Baiyao Holding Co., Ltd

Kyushu Tong (600998) suspended trading for one day yesterday, and today issued a plan for non-public issuance of shares According to the plan, this fixed increase will raise no more than 2.082 billion yuan, which will be used to supplement working capital after deducting the issuance cost, and there is no specific investment project It is worth mentioning that Baiyao holding, one of the objects of this non-public offering, is not only the controlling shareholder of Yunnan Baiyao (000538), but also an important supplier of Jiuzhoutong Data shows that from July 2011 to the end of June this year, the total amount of commodities purchased by Jiuzhoutong from Baiyao holding subsidiary Yunnan Baiyao is about 914 million yuan Jiuzhoutong's director and Dong Milin Xinyang said that the four investors' subscription for the fixed increase shares must be based on their good prospects for the company's development; in addition, the introduction of supplier Baiyao holdings also makes the relationship between the two sides more "intimate", and the two sides are also discussing further strategic cooperation According to the plan, Kyushu Tong plans to issue no more than 189 million shares in private at the price of 11.01 yuan per share Four institutional investors will subscribe in cash Among them, Baiyao holding plans to subscribe about 27.25 million shares, Qilu Securities about 80.11 million shares, Hua'an fund about 45.41 million shares, and Jianxin fund about 36.33 million shares After the issuance, the shareholding ratio of Shanghai Hongkang to Jiuzhoutong will be reduced from 30.49% to 26.91%, which is still the largest shareholder of the company The reason given by Kyushu Tong for this fixed increase is that the company hopes to improve its capital strength through this fixed increase, take the opportunity of rapid development of the domestic pharmaceutical industry, strengthen the core business of pharmaceutical distribution, do strategic business such as pure sales of large and medium-sized high-end hospitals, expand market share and increase market share; meanwhile, the fixed increase will optimize the capital structure of the company and improve the market share Financial position Public information shows that in the past three years, the asset liability ratio of Jiuzhoutong has been 50.71%, 63.65% and 67.33% respectively, showing an increasing trend year by year Kyushutong said that this was mainly because the company's business scale expanded rapidly in recent years, and the company used the way of increasing liabilities to meet the needs of business expansion; at the same time, with the company's closer relationship with suppliers, more and more funds were occupied by suppliers After the raised funds are in place, the asset liability ratio of kyushutong will drop to 59.03%