St Xiamen to raise capital not exceeding 1.1 billion yuan

Yesterday, St Xiamen announced that the proposed non-public offering of not more than 230 million shares, the price is not less than 4.88 yuan/share, raise funds not more than 1.1 billion yuan, to expand capacity technology, Technical center expansion and repayment of bank loans and supplementary liquidity. St Xiamen said it hopes to get rid of financial difficulties through the non-public offering and further develop its main business. The announcement said that the St Xiamen-China holding shareholder Chunghwa picture Tubes will invest 297 million yuan to subscribe, the second largest shareholder will invest 100 million yuan to subscribe.　　As of June 30 this year, the shares were held at 27% and 18.31% respectively. The company currently has a negative net asset and a 140% per cent balance sheet.　　St Xiamen, said that after the completion of directional additional, the company's asset-liability ratio will decline from June 30, 2010 141.14% to 95.38%. St Xiamen's shares fell 5% per cent yesterday to 5.70 yuan.