Recently, Hengtong Optoelectronics issued a plan to announce that the company intends to issue no more than 381 million shares to no more than 10 specific investors including the controlling shareholder Hengtong Group. The total amount of fundraising does not exceed 5.2 billion yuan, after deducting the issuance expenses. The net proceeds are used to invest in PEACE transoceanic cable communication system operation projects, 100G/400G silicon optical module research and development and mass production projects and to supplement liquidity.
The reporter called Hengtong Optoelectronics on related matters. The relevant staff of the Secretary-General of the Board of Directors said in an interview with the "Securities Daily" reporter that "the company as the industry's leading optical communication system integrated operation service provider, while consolidating the existing core advantages, constantly 'Bar-fiber-cable-optical device-marine communication and equipment-communication service' industrial chain layout. The implementation of this non-public offering fundraising project will further consolidate, improve and extend the optical communication industry chain and improve the company's light The core competitiveness of the communications field."
The reporter noted that the total investment of PEACE transoceanic cable communication system in this fundraising investment project was 2.835 billion yuan, all of which were fixed assets investment. The proceeds from the issuance of the issuance will be 2.73 billion yuan.
For the operation of submarine cable system, the relevant staff said that “the operation of submarine cable system is the national strategy and the development of the industry. The submarine cable system is the main transoceanic transmission method in international and regional communication, and is the most important global communication. Information carrier."
According to the reporter, the PEACE transoceanic cable communication system operation project is to build and operate a submarine cable system connecting Asia, Africa and Europe.
Hengtong Optoelectronics said that after the completion of the above projects, by connecting China-Pakistan cross-border land cable, PEACE submarine cable system will become the shortest route connecting China and Africa, China and Europe, which greatly meets the rapid growth of China to Europe and Africa. International business traffic demand to promote the development of China's international submarine cable.
In recent years, Hengtong Optoelectronics' performance has been in a state of high profit growth. In 2014, 2015, 2016 and 2017, revenues were 10.42 billion yuan, 13.563 billion yuan, 19.301 billion yuan, and 25.950 billion yuan respectively; the corresponding net profit was 344 million yuan, 573 million yuan, and 1.316 billion yuan. 2.109 billion yuan.
The company plans to use 1.55 billion yuan to raise funds to supplement its working capital. According to Hengtong Optoelectronics, in recent years, the company has obtained certain funds through various financing methods such as bank lending, equity financing, and corporate bond issuance. However, with the growth of the company's scale of operation, the company is still unable to meet the growing demand for working capital by relying on its own accumulation and limited bank loans.
The reporter noted that from 2015 to September 2018, the company's asset-liability ratio at the end of each period was 65.72%, 65.60%, 60.81% and 64.61%, respectively, at a relatively high level.
The relevant staff said that the company can reduce the asset-liability ratio, optimize the company's capital structure, reduce the financial burden and reduce the financial expense ratio by supplementing the working capital through the issuance of funds.