SMIC has been injected with 450 million yuan in Datang

Wang Ruichen, the largest local semiconductor foundry Enterprise Smic (00981.HK), has become a capital darling.　　After China Investment Limited ("CIC") injected 250 million U.S. dollars, SMIC will receive Datang holding 450 million yuan of support. May 6, SMIC issued a notice on HKEx that the company signed an additional subscription agreement with Datang this month, placing 84.97 million shares of convertible shares for the latter, with a subscription price of HK $5.39 per share.　　At the same time, SMIC will issue 16.99 million shares of warrants preferred stock at the price of HK $5.39. "All converted, about 70 million dollars, about 450 million yuan."　　SMIC insiders yesterday said to the first financial daily. Large shareholder capital injection of 450 million yuan announced that if the above convertible preferred shares all converted, Datang is expected to obtain a core of about 2.7% equity. Datang's current shareholding ratio is about 19.07%.　　However, shortly before the CIC announced that it would inject 250 million U.S. dollars to obtain the core 11.6% equity, if implemented, Datang's rights and interests will be diluted to about 17%, although still a major shareholder, but the influence of the core is weakened.　　Wenjun, a senior Chinese analyst at the Semiconductor Industry Research Institute, said that this should be the bottom of the Datang operation, because SMIC has benefited all year, the fundamentals have improved, the fund after the injection of capital, SMIC may also have financing operations, then if Datang wants to overweight, the cost may increase. This reporter check found that Datang's subscription price and the previous investment in the same subscription price.　　In the past one months, SMIC's share price has risen from around 0.6 to HK $0.74 in the last trading day last week, to 25%.　　In the one-month change of the standard press conference, SMIC chairman Jiang has publicly stated that the company can guarantee the investors to bring 15% revenue. SMIC also disclosed that a consortium of 6 banks was working on a 5-year 600 million dollar loan for the company. The loan will be led by the National Bank, CCB, China Import and Export Bank, Cathay Shihua, BOC, DBS Bank and Pu-FA, including 300 million U.S. dollars outside the territory.　　SMIC will use the loan to purchase production equipment and increase capital expenditure. SMIC's 5-year expansion prepares the core of the financing channel and is showing a strong expansion trend.　　Not long ago, the National Ministry of Environmental Protection official website Bulletin shows, SMIC Beijing two phase project plan total investment of 46.06 billion yuan. In the middle of this month, the company announced a major investment case against Wuhan's new core 12-inch plant, the source said last week. The person even said it could be as high as $2 billion trillion.　　Last year, Smic pledged to inject a new core. However, the high-profile financing of the core, in the end how much money to come?　　Even if CIC and Datang do subscribe to preferred shares, exercise warrants and cash in their hands, they are less than $1 billion trillion. Before the river on the boat announced the core 5 years after the expansion of the target of 2 million pieces of 12-inch semiconductor, largeAbout 12 billion dollars worth of investment, equivalent to more than 2 billion dollars a year, a huge gap in funding.　　In 2010, SMIC's revenue was only 1.55 billion dollars. The size of SMIC is still less than 1/6 of rival TSMC.　　SMIC's annual output of 5 years, if converted into 8-inch semiconductor computing, about 6.5 million, and TSMC 2010 years of capacity has reached 10 million. TSMC last week stressed that 2015 is expected to reach 20 million, equal to the core of more than 3 times times. "A new round of expansion has begun again. Wenjun said that if the local foundry companies such as SMIC and Shanghai were unable to sustain their capital support, 5 years later, the overall foundry size of the mainland would probably still be defeated by the TSMC.