St Datang proposed to raise funds to the 3G smart card and other three projects

In view of the great historical opportunity of 3G industry development, the urgent need for capital support for the core industry upgrading, and the high asset-liability ratio, the urgent need to improve capital structure to reduce financial risk and other factors, St Datang (600198) decided to raise some 1.2 billion funds through directional additional investment to invest new 3G smart card research　　Bank EMV card research and development and industrialization projects, TD-SCDMA Data Fusion product development and industrialization project, and other three major projects, and plans to repay the remaining 797 million yuan bank loans. The number of targeted issuance of shares does not exceed 140 million shares, the issue price is not less than 8.70 yuan/share, investors are all subscribed in cash; facing St Datang holding shareholder Telecommunication Science and Technology Research Institute and the Securities Investment fund Management company, securities company and natural person, etc. not exceeding 10 persons　　, of which the Institute of Telecommunications Science and technology subscription shares not less than 10% of the total issued shares. In the three major projects, the new 3G Smart card research and development and industrialization project total investment amount of 96.01 million yuan, mainly for the new 3G smart card product development and related qualification certification, as well as to meet the industrialization of new products, the original production equipment transformation and capacity expansion. Investment mainly includes research and development equipment acquisition, research and development of Intangible asset acquisition, technology development costs, production line transformation and other costs (qualification certification) and industrial production of start-up liquidity. Project investment period from 2009 to 2011, the product began in 2010 sales, 2012 project into the formal birth and achieve mass sales.　　The project in the next 8 years (including the investment period) can achieve an average annual sales income of 232 million yuan, inclusive return rate of 24%, the project static investment recovery period of 3.95 years. Bank EMV card research and development and industrialization project total investment amount of 192 million yuan, mainly used in line with EMV Standard Bank IC card chip and solution development and related qualification certification, as well as the Bank IC card production environment and production line construction, investment mainly includes basic environment construction, outsourcing software, fixed assets investment, Technical development costs and other costs (certification, consultancy fees) and start-up liquidity for industrial production.　　Project investment period from 2009 to 2011, the input period from 2010 to achieve sales, 2012 project into the formal birth and achieve bulk shipments. TD-SCDMA Data Fusion product development and industrialization Project investment total 172 million yuan, mainly used in TD Data fusion product development, marketing, after-sales service system construction and operating liquidity. The project input period is 2009 to 2011, the input period 2009 starts the sale, the 2012 project enters the official birth, the project next 8 years (including the investment period) may realize the average annual sales income 1.45 billion yuan.