The hottest West axis raised non-public shares aga

West axis will raise non-public shares again to alleviate the pressure of short-term operation

West axis will raise non-public shares again to alleviate the pressure of short-term operation

China Construction machinery information

Guide: on September 17, it was learned that West axis will issue 54.12 million A-shares through non-public issuance, with a price of 5.11 yuan per share and a raised capital of 277 million yuan, which will be used to supplement working capital and alleviate the pressure of short-term funds after deducting the issuance expenses, Lay a solid foundation for the long-term and steady development of the West axis. According to relevant laws and regulations

on September 17, it was learned that West axis will issue 54.12 million A-share shares through non-public offering, with a price of 5.11 yuan per share and a raised capital of 277 million yuan. After deducting the issuance expenses, it will be used for vertical cruise and comfort to supplement working capital, alleviate short-term capital pressure, and lay a solid foundation for the long-term steady development of West axis. According to relevant laws and regulations, this non-public offering plan can be implemented only after being approved by the CSRC

West axis is the first A-share listed company in China's bearing industry. It has failed to carry out market financing since 1998. Only last year, it issued an additional 178million yuan to Baota petrochemical, the major shareholder, to supplement its working capital. In recent years, the West axis has been in high debt operation. As of June 30, 2013, the asset liability ratio of West axis was 63.39%, and the debt level was at a high level among Listed Companies in the same industry, so there was a certain debt repayment risk. West axis needs to spend a lot of cash in order to maintain its daily operations. In addition to its own funds, it mostly makes up for it by means of short-term loans, which makes the financial cost burden heavier. A large amount of interest expenditure has become a "that affects the sustainable profitability of West axis; Resolving production capacity must mainly rely on market mechanism, which is one of the main factors to realize market clearing of excess production capacity. To this end, Ningxia Baota Petrochemical Group, the controlling shareholder, subscribed 23.48 million shares with its creditor's rights and cash of 120 million yuan to West axis, and China Great Wall Asset Management Company, the second largest shareholder, subscribed 30.64 million shares with its creditor's rights of 157 million yuan to West axis. These two major shareholders have signed a non-public offering share subscription agreement with West axis, which shall not be transferred within three years

West axis mainly provides supporting and maintenance basic parts bearing products for large machinery in petroleum, metallurgy, mining and other industries. The industry in which it is located has a highly positive correlation with the macro-economy of the travel range analysis diagram of plastic tensile machine. If the macroeconomic development trend is good and the infrastructure investment is increased, the development of the bearing industry will be stimulated, and vice versa. The international financial crisis in 2008 led to a downturn in the domestic and international macro-economy, and the growth rate of the bearing industry also fell, affecting the operating performance of West axle in recent years. West axis achieved profits in 2011 and 2012 by relying on debt interest free and tax-free policies. According to the announcement in the first half of this year, West axis still suffered losses. At present, in addition to the production and operation supported by leading products such as petroleum machinery, metallurgical rolling mills, heavy-duty vehicles, engineering machinery bearings, etc., the railway bearing project of the West axle is actively preparing for the preliminary work, the subway bearings have been loaded and tested, and the military bearings are actively creating conditions for relevant national standard certification. Recently, the West axis plans to invest nearly 200million yuan in the construction of rail transit bearings. These measures are to stimulate business vitality and accelerate the pace of development

according to Mr. Gao, Secretary of the board of directors of West axis, if the cash raised is used to supplement the working capital after the completion of this non-public offering of a shares, it will effectively reduce the borrowing from banks due to capital needs, reduce the interest expenditure by about 25million yuan per year, and reduce the asset liability ratio from 63.39% to 26.95%; It will also optimize the capital structure, reduce the financial burden, improve the profitability, and effectively improve the solvency and risk resistance. The proportion of shares held by Ningxia Baota petrochemical group increased from 29.97% to 32.38%, and its holding position has been strengthened. The proportion of shares held by China Great Wall Asset Management Company in West axis increased from 8.5% to 17.19%. This can effectively protect the interests of minority shareholders and maximize the interests of shareholders