ST Ganhua (000576) announced that on February 22, the company received the notice from the controlling shareholder Delixi Group Co., Ltd., and the Delixi Group signed the "forestry-pulp-paper integration" with the Xianning Municipal People's Government on February 18, 2012. The letter of intent "is expected to have a total investment of about 11.3 billion yuan. Delixi will recommend the forestry-pulp paper integration project to Hubei Deli Paper Co., Ltd., a holding subsidiary of ST Ganhua.
ST Ganhua has proposed in the previous issuance plan that it intends to transform and concentrate on developing the LED industry. The company is also expected to "master" Delixi's huge amount of forestry-pulp-paper integrated investment projects, and the future business focus will become confusing.
Looking forward to the forestry pulp and paper industry again
According to the ST Ganhua announcement, the latest letter of intent signed by Delixi and Xianning Municipal People's Government shows that under the premise of approval of environmental protection approval procedures, the forestry-pulp-paper integration project is expected to have a total investment of about 11.3 billion yuan, which is planned to be divided into three phases. The total planned area is about 2,300 mu, of which the initial investment is 4.5 billion yuan. It is planned to build an auxiliary facility with an annual output of 500,000 tons of white cardboard production line. In order to protect the source of raw materials for the project, the Xianning Municipal Government agreed to supply 1.6 million mu of paper-making raw material forest base.
The Xianning Municipal Government has given Delixi a certain tax preferential policy and is responsible for the "four links and one leveling" of the land for forestry-pulp-paper integration projects.
Delixi "Recommended" project implementation company Deli Company is a joint venture between ST Ganhua and Chibi Chenming Paper. The registered capital is 100 million yuan, of which ST Ganhua invested 70 million yuan, accounting for 70%. The company's related registration work is being processed. The company was established after ST Ganhua's pulp and paper industry suffered a "three old" transformation and was discontinued, which was used to continue the further development of the company's pulp and paper industry, hoping to form a new profit growth point.
ST Ganhua said that the above-mentioned letter of intent is a preliminary intentional document, and the projects involved are in line with the company's business development strategy. The company can take this opportunity to vigorously develop the forestry-pulp paper industry.
The transformation LED industry has not been approved
In fact, at the end of 2011, ST Ganhua's pulp and paper industry had suffered losses for several years, and the pulp and paper business of the headquarters had just stopped production. The company admitted that it would be beneficial to "reduce the burden and lightly install" and intend to transform and develop the LED optoelectronic industry. Compared with the statement of "Developing the forestry-pulp paper industry", the future of the company's business strategy seems to be difficult to determine.
On December 2, 2011, ST Ganhua received the “Three Old†Reconstruction Office documents of Jiangmen City. The pulp and paper production and auxiliary production systems of the company's headquarters were all discontinued before December 31, 2011. The operating income related to the discontinued assets accounted for 74% of the company's main business income in the first three quarters of 2011, but ST Ganhua said that due to the decreasing sugarcane resources in the Pearl River Delta and surrounding areas, it is very difficult for the company to purchase fiber raw materials from different places. As a result of insufficient supply of pulp and paper raw materials and rising procurement costs, the company's pulp and paper business suffered losses in successive years. The company believes that the suspension of production will help the company to reduce the burden and go into battle. At the same time, it said that in the future, we will concentrate on the implementation of the LED project to be funded and the industrial upgrading of the pulp and paper business to promote the sustainable and healthy development of the company.
ST Ganhua's additional issuance plan at the beginning of 2011 showed that it intends to issue 120 million shares to the new major shareholder Delixi Group Co., Ltd., and the issue price is determined to be 6.78 yuan/share. The total amount of funds raised does not exceed 810 million yuan, after deducting the issuance expenses. Invested in LED epitaxial wafer production and yeast bioengineering technical transformation and expansion projects. Among them, the total investment of LED epitaxial wafer production projects is about 700 million yuan.
The additional issuance plan was revised on October 14, 2011, and the total investment in LED epitaxial wafer production projects will be adjusted from 700 million yuan to 836 million yuan. The additional issuance price is still 6.78 yuan / share.
On February 23, ST Ganhua's share price closed at 7.32 yuan / share, still higher than the additional price. However, the delay in the issuance of additional projects has also made the company's transformation of the LED industry more uncertain.
ST Ganhua has proposed in the previous issuance plan that it intends to transform and concentrate on developing the LED industry. The company is also expected to "master" Delixi's huge amount of forestry-pulp-paper integrated investment projects, and the future business focus will become confusing.
Looking forward to the forestry pulp and paper industry again
According to the ST Ganhua announcement, the latest letter of intent signed by Delixi and Xianning Municipal People's Government shows that under the premise of approval of environmental protection approval procedures, the forestry-pulp-paper integration project is expected to have a total investment of about 11.3 billion yuan, which is planned to be divided into three phases. The total planned area is about 2,300 mu, of which the initial investment is 4.5 billion yuan. It is planned to build an auxiliary facility with an annual output of 500,000 tons of white cardboard production line. In order to protect the source of raw materials for the project, the Xianning Municipal Government agreed to supply 1.6 million mu of paper-making raw material forest base.
The Xianning Municipal Government has given Delixi a certain tax preferential policy and is responsible for the "four links and one leveling" of the land for forestry-pulp-paper integration projects.
Delixi "Recommended" project implementation company Deli Company is a joint venture between ST Ganhua and Chibi Chenming Paper. The registered capital is 100 million yuan, of which ST Ganhua invested 70 million yuan, accounting for 70%. The company's related registration work is being processed. The company was established after ST Ganhua's pulp and paper industry suffered a "three old" transformation and was discontinued, which was used to continue the further development of the company's pulp and paper industry, hoping to form a new profit growth point.
ST Ganhua said that the above-mentioned letter of intent is a preliminary intentional document, and the projects involved are in line with the company's business development strategy. The company can take this opportunity to vigorously develop the forestry-pulp paper industry.
The transformation LED industry has not been approved
In fact, at the end of 2011, ST Ganhua's pulp and paper industry had suffered losses for several years, and the pulp and paper business of the headquarters had just stopped production. The company admitted that it would be beneficial to "reduce the burden and lightly install" and intend to transform and develop the LED optoelectronic industry. Compared with the statement of "Developing the forestry-pulp paper industry", the future of the company's business strategy seems to be difficult to determine.
On December 2, 2011, ST Ganhua received the “Three Old†Reconstruction Office documents of Jiangmen City. The pulp and paper production and auxiliary production systems of the company's headquarters were all discontinued before December 31, 2011. The operating income related to the discontinued assets accounted for 74% of the company's main business income in the first three quarters of 2011, but ST Ganhua said that due to the decreasing sugarcane resources in the Pearl River Delta and surrounding areas, it is very difficult for the company to purchase fiber raw materials from different places. As a result of insufficient supply of pulp and paper raw materials and rising procurement costs, the company's pulp and paper business suffered losses in successive years. The company believes that the suspension of production will help the company to reduce the burden and go into battle. At the same time, it said that in the future, we will concentrate on the implementation of the LED project to be funded and the industrial upgrading of the pulp and paper business to promote the sustainable and healthy development of the company.
ST Ganhua's additional issuance plan at the beginning of 2011 showed that it intends to issue 120 million shares to the new major shareholder Delixi Group Co., Ltd., and the issue price is determined to be 6.78 yuan/share. The total amount of funds raised does not exceed 810 million yuan, after deducting the issuance expenses. Invested in LED epitaxial wafer production and yeast bioengineering technical transformation and expansion projects. Among them, the total investment of LED epitaxial wafer production projects is about 700 million yuan.
The additional issuance plan was revised on October 14, 2011, and the total investment in LED epitaxial wafer production projects will be adjusted from 700 million yuan to 836 million yuan. The additional issuance price is still 6.78 yuan / share.
On February 23, ST Ganhua's share price closed at 7.32 yuan / share, still higher than the additional price. However, the delay in the issuance of additional projects has also made the company's transformation of the LED industry more uncertain.
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