Additional fundraising 1.2 billion St Datang layout 3G Industry

Due to the planning of directional additional issues and suspended a week of St Datang disclosed today, the company intends to be no less than 8.70 yuan/share of the price to include holding shareholders, including not more than 10 specific objects of targeted additional, the number of new shares will not exceed 140 million shares,　　The holding shareholder's Telecommunication Science and Technology Research Institute has no less than 10% of the total amount of the shares, the total amount of capital raised not more than 1.2 billion yuan. St Datang this additional intention is very obvious, that is, through independent research and development and industrial upgrading to enhance their ability to operate from the future 3G market huge development opportunities in the "one Cup of soup."　　In the specific fund-raising investment, St Datang intends to invest 172.016 million yuan in TD-SCDMA data Fusion product development and industrialization projects, another 96.01 million yuan will be invested in new 3G smart card research and development and industrialization projects, in addition, the company will spend 191.72 million yuan to build bank EMV card research and development and industrialization projects. St Datang said that the company's implementation of industrial adjustment has begun to bear fruit, but the leading industries such as microelectronics by external competition and market demand pattern changes, the industrial scale can not achieve breakthroughs, profit space is compressed. To this end, the company urgently needed funds to strengthen the support of Datang microelectronics in new products and fields--3g Telecom smart card and bank EMV card research and development and industrialization, in order to upgrade the smart card field of independent innovation, to consolidate in the field of telecommunications smart card technology leader and market leadership position, and to achieve in the non-telecommunications industry applications in the field of extension. At the same time, with the full start of the domestic 3G network construction, 3G the overall market demand expands rapidly, St Datang also urgently needs to raise more independent research and development efforts, through the provision of differentiated TD-SCDMA data fusion products to seize the market opportunities, rapid expansion of channels, expand production scale, to scale for efficiency,　　TD-SCDMA Data Fusion products to create a new company profit growth point. In addition, in order to get rid of the unreasonable capital structure, high debt ratio situation, St Datang also intends to use the above raised 797 million yuan to repay the bank loans. According to St Datang, as of the end of 2008, the company accumulated total bank loans up to 2.2 billion yuan, the asset-liability ratio of up to 84.7%, the annual heavy burden of financial costs has seriously eroded the company's operating profits.　　It is reported that St Datang 2008 net profit of 45.6464 million yuan, but its financial costs reached 137 million yuan, in this context, the company urgently need to actively broaden the financing channels to reduce financial costs to enhance the ability to resist risk. St Datang said, the implementation of the above additional projects will enhance the company in the field of smart card technology leader and market leadership, to achieve the company 3G industrial layout, while improving the company's capital structure, enhance the overall strength of the company.