St Datang developed to add additional advantages

St Datang this directional additional increase can not only improve the financing cost structure, but also the development of TD industry need to raise funds. Therefore, the regulation of industrial layout and research and development investment risk control, is undoubtedly St Datang most concerned about the two areas of this reporter Gao far directional additional information let has been suspended for a week of St Datang in May 18 opening both closed trading.　　According to the Oriental Morning Post, St. Tang recently announced that the company plans to 10 institutional investors and natural persons to issue 140 million shares, priced about 8.70 yuan per share, the total raise capital of about 1.2 billion yuan, of which the holding shareholder of the Institute of Telecommunications Science and technology subscription shares not less than the total number of shares issued 10%. From the financial aspect, the St Datang is undoubtedly to change the financing cost structure, reduce the interest expense and improve the overall profit level; As the main driving person of TD industry, St Datang also faces the breakthrough research and development of technology improvement and related technical project problems. The issuance of shares will also be necessary for the development of TD industry to support the funds needed.　　Therefore, the regulation of industrial distribution and the risk control of research and development investment are undoubtedly the two areas that St Datang focuses on.　　Improve financing cost structure according to the Guangzhou Daily report, St Datang said that since the implementation of the rights issue in 2000, the fund has never been funded through equity financing, long-term reliance on bank loans to raise funds, resulting in the company up to the end of last year's asset-liability ratio of up to 84.7%. Data show that 2008, although St Datang 2007, 2008 for two consecutive years of profit, but the annual financial burden is too heavy, 2008 net profit of 45.6464 million yuan, but the financial cost reached 137 million yuan, so the St Datang need to broaden the financing channels, through diversified financing methods to reduce financial costs, improve capital structure.　　It is reported that the most of the money raised is used to repay the loans of 4 banks, a total of 797 million yuan. According to the Oriental Morning Post, in the specific fund-raising investment, St Datang intends to invest 172 million yuan in TD-SCDMA data Fusion product development and industrialization project; another 96.01 million yuan will be invested in the new 3G Smart card research and development and industrialization projects, in addition, will cost 192 million yuan to build the bank EMV card research and development and industrialization project, it also plans to use the above 797 million yuan to repay bank loans,　　To get rid of the unreasonable capital structure, high debt ratio situation. St Datang is in urgent need of funds to strengthen support for Datang microelectronics in new products and fields--3g Telecom smart card and bank EMV card research and development and industrialization, in order to upgrade in the field of smart card independent innovation capabilities, to consolidate in the field of telecommunications smart card technology leader and market leadership position,　　and to achieve in the non-telecommunications industry applications in the field of extension. Strengthen their own advantages learned that the fund-raising is to be put into the 3G Telecom smart card and bank EMV card research and development and industrialization projects, and TD-SCDMA data Fusion products research and development and industrialization projects, thereby enhancing the company in the field of smart card technology collarFirst with the market leadership position, to achieve the company 3G industrial layout, while improving the company's capital structure, enhance the overall strength of the company. Data show that the St Datang business covering microelectronics, software, access and communication applications and services, and other fields, is currently the TD industry chain of important production and supply enterprises, TD is one of the main promotional party. The company suffered huge losses in 2005-2006, with a loss of 696 million yuan and 719 million yuan respectively.　　2007 companies rely on the disposal of non-current assets income, subsidies, debt restructuring, such as profits to achieve net profit loss to win. 2008, the company to achieve business income of 2.706 billion yuan, an increase of 9.62%, operating profit of 126 million yuan, a large loss, net profit 4564.64 million, an increase of 43.62%.　　Companies in the fourth quarter of a single quarter to achieve a revenue of nearly 1 billion yuan, reversing the first three quarters of the decline in revenue, largely dependent on China Mobile's investment in TD equipment.　　Therefore, St Datang this additional intention is very obvious, that is, through independent research and development and industrial upgrading to strengthen their own advantages, improve their operating capacity, in order to from the future 3G market huge development opportunities in the "one Cup of soup."　　How to balance finance with research and development? The regulation of industrial layout and the risk control of research and development investment are undoubtedly the two areas that St Datang focuses on. According to the Shanghai Securities Daily, St Datang said that the company's implementation of industrial adjustment has begun to bear fruit, but the leading industries such as microelectronics are affected by external competition and changes in market demand patterns, the industrial scale can not achieve breakthroughs, profit space is compressed. To this end, the company urgently needed funds to strengthen the support of Datang microelectronics in new products and fields--3g Telecom smart card and bank EMV card research and development and industrialization, in order to upgrade the smart card field of independent innovation, to consolidate in the field of telecommunications smart card technology leader and market leadership position,　　and to achieve in the non-telecommunications industry applications in the field of extension.　　At the same time, with the full start of the domestic 3G network construction, 3G the overall market demand expands rapidly, St Datang also urgently needs to raise more independent research and development efforts, through the provision of differentiated TD-SCDMA data fusion products to seize the market opportunities. According to the Shanghai Securities News, the use of this non-public offering to raise funds to repay the bank loans, will effectively reduce the company's assets and liabilities ratio, improve the company's ability to resist risk, reduce corporate financial expenditure, improve corporate profitability, and conducive to the realization of corporate development strategy, it is necessary and feasible.