Purple Xin Pharmaceutical Industry set to raise 1 billion yuan application for approval by the SFC

NetEase Finance November 24 News of the Purple Xin Pharmaceutical industry in Wednesday issued a notice, according to the SFC issued the audit committee in 2010, the No. 226 meeting, the company's private issue of A shares of the application was approved. Previously announced plans to show that the private issue to announce Day (July 1) as the base day, each share price of 11.29 yuan. The total amount of fund-raising is expected to be 1 billion yuan, net amount not exceeding 986.57 million yuan.　　The company will be in the main ginseng producing areas in Jilin province Yanji, Dunhua, Tonghua, Panshi construction production and processing base, engaged in deep processing and finishing of ginseng, which deep-processing products, including sun ginseng, ginseng, molded red ginseng, finishing products including related proprietary Chinese medicine, ginseng enzyme drinks, construction cycle of two years. Purple Xin Pharmaceutical Industry said that the collection of capital investment projects all up to the postpartum, will form 800 tons/year of ginseng deep processing capacity, and in recent years the total production of ginseng (dry ginseng) basically stable in about 7000 tons, the company in the production of raw materials demand accounted for the total supply of ginseng market, The shortage of raw materials will lead to the total capacity of the company can not be completely released, and the lack of raw material supply caused by price fluctuations will lead to the company's procurement costs and the decline in gross profit margins, and thus affect the company's operating performance. In response to the above risks, the company will pass the "Enterprise + base + farmers" model, to participate in the provision of high-quality seeds and planting technical guidance services, and participate in the signing of long-term procurement agreement. On the other hand, the company has established two Chinese herbal medicine planting bases in Dunhua and Liuhe County, will increase the base construction investment, further expands the ginseng and so on Chinese herbal medicine planting area.