November 8 -- Shenzhen Zhengtong Electronics (002197.SZ), a company providing integrated application services for secure payments, plans to issue no more than 50 million shares in a private placement at a floor price of 11.95 yuan per share, raising a maximum of 555 million yuan, reports yicai.com, citing a company filing.

Part of proceeds raised from the private placement, totaling 150 million yuan, will be used to repay bank loans and to replenish working capital.

Of the remaining proceeds, 95.89 million yuan will be used for the production of POS terminals using IC cards which adopt the PBOC 2.0 standard, 71.19 million yuan will be used to expand production capacity of self-service terminals, 76.56 million yuan will be used for the construction of rural e-commerce terminals, 75.16 million yuan will be used to expand a research and development center, and 55.1 million yuan will be used to produce payment card chips.

With annual capacity of 500,000 units, the POS terminal project will bring in annual sales turnover of 225 million yuan and net profit of 26.33 million yuan upon completion, with internal rate of return projected to hit 28 percent.

The self-service terminal project, with annual capacity of 30,000 units, is forecast to generate annual sales turnover of 200 million yuan and net profit of 19.73 million yuan upon completion, with internal rate of return of 29 percent.

The e-commerce terminal construction project, with annual capacity of 60,000 units, is expected to bring in annual sales turnover of 216 million yuan and net profit of 20.5 million yuan, with internal rate of return of 28 percent.