Fuchun Environmental Protection plans to raise no more than 880 million yuan Chang'an cogeneration phase II project is expected to be put into operation next year

Financial Associated Press (Hangzhou, reporter Wang Bin) news, in order to expand the company's business scale and repay bank loans, Fuchun Environmental Protection (002479. SZ) intends to implement a private placement. On the evening of September 14, Fuchun Environmental Protection disclosed a non-public stock offering plan, and the company plans to raise no more than 880 million yuan, which will be used for the second phase expansion project of cogeneration in Chang'an Textile Science and Technology Park and the repayment of bank loans.

In the evening, the Financial Associated Press reporter learned from Fuchun Environmental Protection that the thermal composite demand in Jiangsu Hai'an Chang'an Textile Industrial Park and its surrounding areas grew rapidly, and the second phase of the cogeneration expansion project of the company's Chang'an Textile Science and Technology Park is expected to be put into operation next year; at the same time, the company has increased mergers and acquisitions since 2019, and the project merger and acquisition funds, construction funds and later operating funds have led to the company's greater demand for funds.

"This private placement is mainly based on two considerations: first, the company is firmly optimistic about the future development of the environmental protection industry, and the next step is to build a whole industry chain platform for hazardous waste treatment; second, the controlling shareholders have confidence in the company's future development prospects and intend to further increase the shareholding ratio." The relevant person in charge of Fuchun Environmental Protection told the Financial Associated Press reporter.

According to the plan, the additional capital will be fully subscribed by Nanchang Shuitian Investment Group Co., Ltd. (hereinafter referred to as "Shuitian Group"), the controlling shareholder of Fuchun Environmental Protection. At present, Shuitian Group holds 20.49% of the company's equity, and after the completion of this offering, its shareholding ratio will not be less than 34.00%. Shuitian Group promised that the restriction period for the shares in this non-public offering would be 3 years.

The announcement shows that the funds raised will be fully invested in the second phase of the cogeneration project of the An Textile Science and Technology Park and the repayment of bank loans after deducting the issuance costs, of which the second phase of the cogeneration project of the An Textile Science and Technology Park intends to invest 200 million yuan in the raised funds, and 680 million yuan will be used to repay the bank loan.

It is understood that the total investment of the second phase of the cogeneration project of Chang'an Textile Science and Technology Park is about 510 million yuan, and the project plans to build a 2×180 tons / hour high temperature ultra-high pressure circulating fluidized bed boiler + 2×25 MW pumped back steam turbine generator set to achieve cogeneration and central heating, improve the thermal infrastructure of Hai'an City, and meet the growing heat load demand in the eastern heating area of Hai'an City.

The Financial Associated Press reporter learned that the company's Chang'an Energy Cogeneration Phase II expansion project 2 furnaces and 2 machines, the completion progress of the project in the first half of the year was 25%, and the installed capacity of 25 MW will be added after the first phase of operation, the new boiler evaporation capacity is 180 tons / hour, and the sludge drying project has begun to start, and it is expected to be put into operation at the end of this year.

"After the completion and operation of the second phase of the expansion project, it will greatly improve the heating capacity and heating quality of Chang'an Energy, which is conducive to seizing the opportunity of the rapid growth of heat load demand in the park, expanding the scale of business and improving business performance." The relevant person in charge of the above-mentioned company said.

According to the financial report, as of the end of June 2021, the asset-liability ratio of Fuchun Environmental Protection was 60.47%, and the total liabilities were 6.952 billion yuan, of which the balance of short-term borrowings was 419 million yuan, and the debt for sale was 3.349 billion yuan, and the company's debt repayment pressure in the short term was relatively large. The company said that the funds raised from this offering are used to repay bank loans, which is conducive to alleviating the company's borrowing pressure and improving the company's financial situation.

Fuchun Environmental Protection is mainly engaged in solid waste collaborative disposal and energy conservation and environmental protection business, the company and its subsidiaries cogeneration plant is mainly located in papermaking, chemical, pharmaceutical and other industrial parks, for the industrial park enterprises heating, power supply. According to the 2021 interim report, the company achieved revenue of 1.917 billion yuan in the first half of the year, a year-on-year decrease of 1.96%; achieved a net profit of 233 million yuan, an increase of 96.59% year-on-year.