South building materials to raise capital use "face" cut the original project investment 30%

South Building materials announced today, the fund-raising investment project staged "face".　　According to the announcement, about 50% per cent of the 532 million yuan previously raised was intended to be used to build the Midwest Steel product distribution network, which has now been slashed by 76 million yuan, accounting for 29.2% of the planned investment. Specifically, Sichuan in the extension of Steel Co., Ltd. (hereinafter referred to as "Sichuan Billiton") by a wholly-owned subsidiary to the joint venture, Shanxi Jincheng Steel Holding Group Co., Ltd. (hereinafter referred to as "Jin Steel Group") the proportion of 40%; the plan to build Fangchenggang Steel Sales Service Co., Ltd. was canceled.　　The two project balances raise a total of 76 million yuan, will be used to supplement the company's liquidity. Fangchenggang Project was canceled the South building materials June 29 non-public issue A shares 93,105,802 shares, the IPO price is 5.86 yuan/shares, the net amount of fund-raising is 532 million yuan.　　In the exposition of the use of fund-raising, the South building materials to invest 260 million yuan to set up the Midwest Steel Products distribution network, located in Chengdu, Chongqing, Guiyang, Fangchenggang 4 cities in the extension of Steel Sales Service Co., Ltd. 80 million, 80 million yuan, 50 million yuan and 50 million yuan, as registered capital. According to the announcement of the South Building materials today, the Fangchenggang project in the plan was canceled.　　Guangxi Provincial government website shows that Fangchenggang is located in the south of Guangxi province, and Fangchenggang as the country's 12 strategic main hub port, is the main gateway to the Southwest Sea. So why do the South building materials cancel the Fangchenggang project?　　The company gives the explanation is, 2010, the company has registered in Guangxi province Nanning to set up a Steel Co., Ltd. (hereinafter referred to as "Guangxi Billiton"), registered capital of 40 million yuan, the company shares 100%. South building materials said that the establishment of Guangxi Billiton opened up the Nanning and surrounding markets, and in the course of operation covered the provincial sales market in Guangxi province.　　Considering that Guangxi Billiton has preliminarily reached the goal of building a sales network in the South, in order to avoid duplication of construction in the same area and to improve the efficiency of capital use, the South Building materials decided to cancel the "set up Fangchenggang Steel Sales Service Co., Ltd." project.　　Sichuan extension is a joint venture in Sichuan Billiton is the southern building materials originally intended wholly-owned subsidiary, Industrial and commercial registered name for Sichuan Billiton Steel Co., Ltd., officially began operation in March 2010, is still the beginning of the business stage.　　According to the certificate issued by Tian Jian Certified Public Accountants Co., Ltd., before the raising of funds in place, the southern building materials in advance to the self-financing investment in some of the investment projects, of which the extension of Sichuan to invest 80 million yuan, has actually invested 50 million yuan. After the fund was completed, the southern building materials changed the idea of investment in Sichuan Billiton, and then introduced Jin Steel Group as a joint venture. Chengdu in the extension from a wholly-owned company to the joint venture, and the increase in the registered capital after the increase to 90 million yuan. The investment of building materials in the South is to be adjusted from 80 million yuan to 54 million yuan, accounting for 60%. The capital increase and expansion of the shares completed, Sichuan extension of the name to become more Sichuan Tuo Fu Sheng Steel Co., Ltd., registered address unchanged.　　According to the Bulletin, Jin Steel Group is a steel production, sales, logistics, operating raw materials products as one of Jincheng's largest private steel group, fixed assets total investment of 3.68 billion yuan. Sichuan Billiton as an agent of Jin Steel Group, the exclusive agent of Sichuan, Chongqing, the two provinces (city) Jin Steel Group "Hing Jin Steel" brand building steel products sales.　　As a joint-venture party, Jin Steel group (including the Shanxi Steel Group under the holding company) to ensure that the expansion of Sichuan Billiton not less than 40000 tons of construction steel per month. Chengdu Project Savings of 26 million yuan and the cancellation of the savings of the Fangchenggang project to raise funds of 50 million yuan, a total of 76 million yuan. South Building Materials said the 76 million yuan will permanently replenish the company's liquidity.　　Mainly for the payment of suppliers, increase the inventory, in the low price of raw materials by abundant capital advantage to carry out a large number of reserves. South Building materials This fund-raising use of changes is intriguing, the proportion of supplementary liquidity has been greatly improved. Although the board has approved the plan, it still needs to be submitted for consideration and approval by the provisional General Meeting July 23.