Shuguang Co., Ltd. plans to increase the fundraising of RMB 1.5 billion to lay the foundation for axles

On the evening of February 22, 2012, Shuguang Co., Ltd. announced plans for non-public issuance of stocks. It intends to issue no more than 235 million shares to major shareholder Liaoning Shuguang Group and 9 other specific targets, and to raise no more than 1.5 billion yuan for expansion of high-end light vehicles. Bridges, heavy axles, etc.

The issue price is not less than 637 million yuan. Shuguang Group promised to participate in subscriptions from RMB 225 million to RMB 310 million. Shuguang Group currently holds 119 million shares, which is 20.65% of the total share capital.

The funds raised will be used for four projects. They are the high-end light axle construction project of Liaoning Shuguang Automobile Group Co., Ltd., the heavy axle construction project of Dandong Shuguang Heavy-duty Vehicle Bridge Co., Ltd., and the axle technology of Liaoning Shuguang Automotive Group Co., Ltd. R&D center construction projects, additional liquidity and repayment of some bank loans.

Shuguang's main business is the production and sales of automotive front and rear axles , automotive chassis, auto parts, passenger cars, and special vehicles. It is one of the major independent manufacturers of light axles in China. The company said that raised investment projects will not lead to changes in the main business, will enhance the company's parts and components business centered on axle products, and further optimize the product structure of axles, which will help improve profitability.