Jiangshan Chemical: Proposed to raise 900 million yuan for additional funds

Events: Jiangshan Chemical (002061) notice the non-public offering scheme, the company intends to non-public offering of not more than 82.5 million shares, the issue price is not less than 10.92 yuan/unit, the total amount of funds raised not more than 900 million yuan. Pure Light Analysis: 1, the non-public issue of the issue for the company's controlling shareholders, the actual control of Zhejiang Province Railway investment group, including not more than 10 specific investors.　　Zhejiang Railway Investment Group is not less than 200 million yuan in the amount to be subscribed for shares, and the number of subscribed shares is not more than 18.5 million shares (currently holding 51 million shares, shares accounted for more than 36.43%). 2, the collection of funds will be used for 80,000 tons/year maleic anhydride and derivative integration projects, insufficient part by the company self-financing solution. After the implementation of the project, can further expand the company's industrial chain layout, enrich the company's product structure, promote the company's product upgrades. Maleic anhydride is an important organic chemical material, and is the third largest anhydride after phthalic anhydride and acetic anhydride.　　Mainly used in the production of unsaturated polyester resin, but also used in coatings, agrochemicals, BDO, GBL, etc., in recent years, maleic anhydride demand, good market prospects. 3, the company is one of the world's largest DMF production enterprises and China's largest dmac production enterprises, is the main organic amine production base. 09 DMF Domestic market share of 30% (Hua Lu Rise market share 40%), Dmac domestic market share of 55%.　　Company and far-Hing Energy joint venture (company holding 51%) of Inner Mongolia far Hing Jiangshan Chemical Co., Ltd. 100,000 tons/year two methyl formamide (DMF) project at the end of 2010 has entered the trial production phase, will further enhance the company in the two methyl formamide industry status. 4, as the company's main raw materials prices increased significantly, the company expects 2010 net profit fell 30-50%, per share earnings of about 0.25-0.35 yuan, dynamic P/E ratio of about 40 times times. Due to high crude oil prices, the company's raw material costs in the short term difficult to decline, future earnings are still not optimistic.