Issue 140 million shares

Zheng Coal Machine (601717) SH) announced that the company officially launched the IPO. The company plans to issue 140 million shares publicly, with a total share capital of 700 million shares.　　The unit will implement an online subscription on July 20 and will be listed on the Shanghai Stock Exchange. Zheng Coal machine main business for coal comprehensive mining equipment fully mechanized hydraulic support and its parts production sales and services, the plan in SSE issued 140 million shares, listing will raise capital of 1.49 billion yuan.　　And this access to the capital market will be all the funds raised to invest in high-end hydraulic support production base construction projects, including construction investment of 1.1 billion yuan, bedding liquidity 390 million yuan. Zheng Coal machine related people believe that the collection of funds in place, the company's net assets and net assets per share will increase significantly. Due to the existence of the project construction period, the company's equity rate of return in the short term there is a possibility of decline; but in the long run, with the gradual production of investment projects, the company will gain a steady increase in production capacity, the company's technology and brand advantages will be fully developed, the company's profitability and market competitiveness will be further enhanced,　　To achieve long-term sustainable development of the company. However, it is noteworthy that the Zheng Coal machine after the meeting, has been questioned by the market, the company's restructuring process allegedly lost state assets. Data show that Zheng Coal machine was founded in 1958, after 3 major restructuring. And workers 40 million stake in holding 49% of the equity, in 2007 to 740 million yuan to resell the price.