Sinochem International fixed increase of 4.975 billion yuan! Accelerate the transformation of new chemical materials

On December 7, Sinochem International (Holdings) Co.
, Ltd.
(Sinochem International, 600500), a central enterprise of new chemical materials, disclosed a report on the issuance of non-public A-shares, announcing that the fixed increase would eventually issue 829 million shares to 18 specific institutions at an issue price of 6 yuan per share, raising a total of 4.
975 billion yuan
.

This is the largest single equity refinancing project
of Sinochem International since its listing in 2000.

Founded in 1998 and listed on the Shanghai Stock Exchange in 2000, Sinochem International is a core listed company of Sinochem, focusing on the field of new chemical materials, ranking the industry leader in epoxy resin, polymer additives and other fields, and leading the level
in the field of para-aramid, nylon 66, ABS and other high-performance materials.

In March this year, Sinochem International disclosed its plan for the non-public offering of A-shares, and in September, the proposed fixed increase plan of no more than 5 billion yuan was approved by the China Securities Regulatory Commission
.

Sinochem International received market-oriented capital subscription orders of 3.
188 billion yuan, achieving nearly 40% oversubscription, while Sinochem shares, the company's controlling shareholder, subscribed 2.
698 billion yuan
in the same proportion.

The funds raised will be mainly invested in the first phase of Sinochem International's carbon tertiary industry project and supplementary working capital, which will help the company further accelerate the strategic pace of business transformation of new chemical materials, enhance the profitability of the new chemical materials industry, and further enhance the company's capital strength and optimize the capital structure
.

Sinochem International previously said that the first phase of the carbon tertiary industry project is a key step in the company's strategic transformation to new chemical materials, which will help the company deepen the business layout of new chemical materials, realize effective collaboration between upstream and downstream of the industry, and create industrial chain integration
.

In response to supplementary liquidity, Sinochem International said that the new chemical materials industry in which the company is located is a capital and technology-intensive industry, and there is a greater
demand for capital investment.
With the continuous development of the company's business, while considering the impact of factors such as the implementation of fundraising and investment projects, the growth of the company's future operating income will have a greater demand for working capital, and it is difficult to meet the company's operating needs
by relying only on the cash flow generated by production and operation activities.

The Paper learned that from the end of 2019 to the end of September 2022, the asset-liability ratio of Sinochem International was 52.
01%, 49.
94%, 65.
62% and 68.
18%, respectively, showing a significant upward trend
since 2020.

Among the 18 institutions participating in the private placement, in addition to the controlling shareholder Sinochem Shares, there are not only strategic investment institutions such as Chengtong Fund, Guoneng Fund, Shanghai Shanghai SDIC, Lianyungang Logistics Park Investment, Lianyungang Industrial Investment, Wanneng Capital and other institutions, but also mainstream financial institutions
in the market, such as Changjiang Pension Insurance, Centennial Life Insurance, Caitong Fund, Cathay Leasing, UBS, JP Morgan and so on.

Sinochem International said that the first phase of the Lianyungang carbon tertiary industry project, with a total investment of 13.
913 billion yuan, will open up the whole industrial chain of the company's new materials, realize effective coordination between the upstream and downstream of the industry, form an integrated cost advantage and economies of scale, and greatly increase the company's performance
.
It is estimated that after the project is put into operation, it can achieve an average annual revenue of 11.
011 billion yuan and an average annual profit of 1.
715 billion yuan, and bring more than 1.
2 billion yuan of incremental net profit
attributable to the parent to the company.