Anhui Tongfeng Electronic (600237), a producer of capacitors, polypropylene film, and crystal resonators, plans to issue between 75 million shares and 200 million shares to 10 designated investors at no more than 5.12 yuan per share, in order to raise a maximum of 756.1 million yuan, reports Oriental Morning Post, citing a company’s filing.
Effective controller, Ying Jianren, will still hold a 15.76 percent stake in Tongfeng Electronic after the completion of the issuance.
According to the filing, funds raised will be used to improve the technologies of thin-film materials used in the new energy and smart grid sectors.
The company will invest 427.54 million yuan in the first project, which will have annual capacity of 2,600 tons, and generate revenue of 348.38 million yuan, net profit of 119.17 million yuan after completion.
Tongfeng Electronic will spend 328.56 million yuan for the second project, which will have annual capacity of 7,600 tons after completion.
Tongfeng Electronic recorded a 9.73 percent year-on-year increase in 2011 revenue to 833 million yuan, while net profit rose 53.94 percent to 47.19 million yuan.
The company does not plan to convert shares and distribute cash dividends. The retained earnings will be used for business development.

Source:capitalvue.com