Guangzhou Lang Qi proposed private offering 520 million

Guangzhou lang Qi (000523) notice, the Company intends to plan to not more than 10 specific investors in the private issue of no more than 50 million shares, the issue price is not less than 8.79 yuan/share, the total amount of funds planned to raise not more than 520 million yuan.　　After the completion of this issue, light industrial Group Holdings of the company's shares of the total share of the company is not less than 35.22%, is still the company's controlling shareholder, the company's ownership structure will not change significantly. The Non-public offering fund-raising plan for the Nansha production base project and the National Marketing Network construction project, respectively, investment funds 430 million and 70 million, will be conducive to the company to expand the production capacity of green environmental protection products.　　This non-public offering programme is subject to approval by the shareholders ' General Assembly and approved by the CSRC. Expand the production capacity of green products in China now the total amount of washing products has reached 5 million tons, the company expects the total annual demand should reach 9.75 million tons, detergent demand still have greater potential to dig.　　Conservatively estimated at the current annual growth rate of 12% of the speed to calculate, the need to add at least 480,000 tons of detergent each year, and the trend is rising year by decade, the market prospects are very broad. The company said that after the construction of the Nansha production base project was put into production, the capacity would be enlarged by one fold. The new production base will mainly use MES as the active ingredient, mes to renewable natural oil resources as raw materials, as a new source of raw materials washing industry, will be more competitive than oil.　　The project can greatly reduce production costs for the company, by the company's calculation, the use of MES washing supplies, the overall cost will be lower than 10% now, but also more environmentally friendly. The project will be implemented by the company's wholly owned subsidiary Guangzhou Lang Qi Commodity Co., Ltd. will build 200,000 tons/year washing powder, 80,000 tons/year liquid wash, 20,000 tons/year cosmetics, 30,000 tons/year sulfur trioxide and 50,000 tons/year SOAP production line. The project construction area of 98,000 square meters, of which the plant 50,000 square meters, warehouse 43,000 square meters, office room 5000 square meters. Investment is expected to be 450 million, the plan to raise funds about 430 million.　　After the project is completed and put into production, the average annual sales is expected to reach 2.38 billion yuan, which is expected to achieve an average annual profit of 640 million yuan, the internal rate of return is 23.8%. The company pointed out that according to the Guangzhou government's plan, the company's existing plant will be fully discontinued in 2012.　　Nansha Production base project from construction to production needs a certain period of time, is expected to be completed in 2012, if the Nansha production base project due to a variety of reasons for the failure of the scheduled completion, or the completion of the expected capacity to achieve timely, the company's production capacity may be temporarily affected.　　The company also said that raw material prices, technical problems, environmental costs and new product marketing are likely to face unpredictable risks. Construction of the National marketing network Canton Wave, said the company will be "Township deep channel" and "modern retail channels" for the nationwide upgrading of the construction plan in the country to build 5 major division and 4 logistics distribution centers, and in two channels respectively to build "shapeLike shop "8,000 and" counter 1000, and supporting the upgrading of the company's SAP system, the introduction of CRM Customer relationship management software, to establish the implementation of E-commerce operations.　　The formation of a clear hierarchy, orderly division of labor, reasonable layout of the efficient operation of the national marketing Network.　　National Marketing Network construction project Total investment of 103.18 million yuan, the project to be used to raise funds to invest 70.23 million yuan, insufficient part of the company self-financing solution. After the completion of the project, the company through the expansion of sales scale, improve logistics and distribution capacity, reduce sales costs, in five-year calculation period, the annual sales of private brands are expected to increase revenue of 229.09 million yuan, the average annual new profit is 21.49 million yuan. The total investment in the project's internal rate of return (after-tax) is 22.69%.