Incidents:
Yian Technology announced that the “Report on the Issuance of Non-public Stock Issuance by Dongguan Yian Technology Co., Ltd.” has been approved. A total of 50,000,000 RMB common shares (A shares) were issued this time, all of which were fully allocated by Zhuzhou State-owned Assets Investment Holding Group Co., Ltd. The issue price of this non-public stock offering was 8.60 yuan/share, and the total capital raised was 430,000,000.00 yuan. After deducting various issuance expenses of 10,115,602.58 yuan, the net amount of capital raised was 419,884,397.42 yuan.
Commentary:
Win-win cooperation, Yian Technology opens up space for enterprise cooperation with Zhuzhou City. Zhuzhou is one of the first eight industrial cities to be built after the founding of New China. It is an old industrial base in China. The intersection of the Beijing-Guangzhou Railway and the Shanghai-Kunming Railway in Zhuzhou became an important “cross” in China
The railway hub is geographically similar to that of Zhengzhou. According to the Zhuzhou National Investment Group Network (www.zzsah.com), the company has total assets of 38.7 billion yuan and has invested 77 enterprises, including 10 wholly-owned subsidiaries and 8 listed companies (manufacturing related companies include Zhuzhou Smelting Group Co., Ltd., Weichai Power Co., Ltd., Zhuzhou Tianqiao Crane Co., Ltd.). Investments cover industry, agriculture, finance, real estate, tourism, parks and other fields. Zhuzhou SDIC Investment participated in the establishment of eight aviation industry companies, including the new Lusong Group, Zhuzhou General Aviation, and China Aviation Tongfa, to accelerate the construction of the Zhuzhou Aviation City. The investment participated in the establishment of a number of equipment manufacturing enterprises such as Gear Co., Ltd., Ogre Transmission, Xiangmei Lida, and cutting tools. Due to US restrictions on the export of high-tech products, it is difficult for state-owned enterprises to directly acquire high-tech companies related to the US, and cooperation with private enterprises links high technology to the huge domestic application market, greatly speeding up the promotion of high-tech such as liquid metals. Liquid metals and lightweighting have many applications in aviation, high-speed rail, and equipment manufacturing. The full subscription of Zhuzhou SDIC shows that industrial capital is optimistic about liquid metal and lightweighting, and recognizes the company's position in the liquid metal and other materials industries.
Using the Zhuzhou SDIC platform and using capital as a strong link, development space has been greatly increased. Many companies of Zhuzhou SDIC are distributed in high-precision fields such as aerospace, metal smelting, automobiles, engines, etc., and are in excellent agreement with Yian Technology's ongoing automotive lightweight projects and liquid metal projects.
Liquid metal-related products are: high-performance gears, high-end fasteners, precision structural parts, aviation shielding parts, and low-temperature metal structural parts, etc., which reflect liquid metal forming properties and mechanical properties; light metal-related ones are: large die castings for high-speed rail, large aluminum or magnesium alloy die castings for light rail, aluminum alloy or magnesium alloy die castings for automobiles, aluminum/magnesium alloy die castings for shared bicycles, aluminum alloy die castings for transmission devices, etc. There is strong industrial synergy. According to our last in-depth report, liquid metal is mainly used in consumer electronics, and its application value is higher in automobiles, high-speed rail, and aviation. The company uses capital as a strong link to speed up product promotion, and the development space has greatly increased.
Net assets have been greatly increased, governance institutions have been optimized, and industry advantages have been consolidated. The long-term and short-term loans disclosed by the company in the first half of '17 were $05.8 million and $119 million respectively, for a total of 125 million. The fixed increase has been used to speed up the construction of fund-raising projects and greatly reduce interest expenses. After this issuance, the company's net assets will increase dramatically, the balance ratio will drop accordingly, the quality of the company's assets will be improved, its solvency will be significantly improved, its financing capacity will be improved, and the asset structure will become more reasonable. The capital raised investment project this time is invested in the company's main business. The implementation of the project will help the company consolidate its existing competitive advantage, further enhance its position in the industry, and ensure the company's sustainable development. After this issuance, the company's equity structure has become more reasonable, and the corporate governance structure has been optimized, which is conducive to the healthy and stable development of the company's business.
Risk warning: The efficiency of state-owned enterprises is slow, and the project progress falls short of expectations; the risk that the application of aluminum-magnesium alloys falls short of expectations; the risk that the penetration rate of liquid metal materials does not meet expectations.