Directed additional 140 million shares proposed to raise capital of 1.2 billion yuan

St Datang 3G Industrial St Datang (600198) announcement, the company intends to non-public offerings not more than 140 million shares, the issue price is not less than 8.70 yuan/share, raise funds not more than 1.2 billion yuan. The fund-raising is to invest in 3G Telecom smart card and bank EMV card research and development and industrialization projects, and TD-SCDMA data Fusion products research and development and industrialization projects, thereby enhancing the company in the field of smart card technology leading and market leadership, to achieve the company 3G industrial layout, while improving the company's capital structure,　　Enhance the overall strength of the company.　　The company's controlling shareholder, the Institute of Telecommunications Science and technology, intends to subscribe cash to 10% of the total number of shares issued.　　The annual income of the three projects is over 2 billion, the announcement shows that the total annual sales income of St Datang's non-public offering is estimated to be 2.05 billion yuan, and the industrial scale of the three major projects is 2.8 billion yuan. Among them, the new 3G Smart card research and development and industrialization project total investment amount of 96.01 million yuan, mainly for new 3G smart card product development and related qualification certification as well as to meet the industrialization of new products, the original production equipment transformation and capacity expansion.　　In the birth of the formation of annual sales of 400 million of the industrial scale. The project investment period from 2009 to 2011, the product began sales in 2010, 2012 project into the formal birth and achieve mass sales.　　Project in the next 8 years (including investment period) can achieve annual sales income of 231.75 million yuan, the internal rate of return is 24%, the project static investment recovery period of 3.95 years. Bank EMV card research and development and industrialization project total investment amount of 191.72 million yuan, mainly used in line with EMV Standard Bank IC card chip and solution development, as well as the Bank IC card production environment and production line construction. Project investment period from 2009 to 2011, the input period from 2010 to achieve sales, 2012 project into the formal birth and achieve bulk shipments.　　Up to the postpartum formation of annual sales of 600 million of the industrial scale.　　The project in the next 10 years can achieve an average annual sales income of 368.45 million yuan, inclusive rate of return 17%, the project static investment recovery period of 5.35 years. TD-SCDMA Data Fusion product development and industrialization Project total investment of 17,201 600,000 yuan, mainly used in TD Data fusion product research and development, marketing, after-sale service system construction and operating liquidity. The project input period is from 2009 to 2011, the investment period starts in 2009, and the 2012 project enters the formal birth.　　By then, the industrial scale of 1.8 billion annual sales will be formed.　　The project in the next 8 years can achieve an average annual sales revenue of 144,993 80,000 yuan, inclusive return rate of 53%, the project static investment recovery period of 3.01 years. Six to raise money for the repayment of the St Datang's targeted additional funds, 74,025.40,000 yuan is used to repay bank loans, accounting for 62% of total planned fundraising. The announcement shows that St Datang will beOctober 27, 2009-March 30, 2010, the bank loans due to the total amounted to 797 million yuan. St Datang said that in recent years, the company has maintained a high asset-liability ratio. From 2006 to 2008, the ratio of assets and liabilities (combined statements) was 88.43%, 87.83%, 84.66%, which was much higher than the domestic asset-liability ratio.　　As of December 31, 2008, the total amount of bank loans reached 2.203 billion yuan. High debt levels keep companies ' interest payments high.　　2007 and 2008 total corporate profits of 133 million yuan and 82 million yuan respectively, and the interest expenses are 139 million yuan, respectively, the total profit of the year 104.5% and 171%, directly affect the company's operating performance. After the Non-public offering is completed, the company's financial position will be optimized and improved. 740 million Yuan bank loans, if fully repaid, are expected to reduce the company's asset-liability ratio to 56.49%, compared with the end of 2008 88.46% of the asset-liability ratio fell by 28.17%. The annual interest rate of one-year bank loan, which is adjusted for December 23, 2008, is calculated as a reference interest rate, and the company can save about 42 million yuan per year after raising funds to repay bank loans.