What is the purpose of Xingfa Group's non-public offering of new shares?

Summary of Xingfa Group's non-public offering of shares

I. Basic information of the company

1, Chinese name: Hubei xingfa chemical group co., ltd.

2. English name: Hubei Xingfa Chemical Group Co., Ltd..

3. Registered address: No.58, Levin Avenue, Gufu Town, Xingshan County

4. Stock abbreviation: Xingfa Group

5. Stock code: 600 14 1.

6. Listed Exchange: Shanghai Stock Exchange

7. Legal Representative: Li.

8. Business scope: production, sales, import and export of phosphorus chemical products, chemical raw materials and chemical products; Mining and sales of phosphate rock; Mining, processing and sales of silica ore; Production and sales of chemical fertilizers (including compound fertilizers); To undertake Sino-foreign joint ventures, cooperative production and "three supplies and one supplement" business; Hydroelectric power generation and power supply; Automobile freight, auto parts sales; Mechanical and electrical equipment installation; Housing lease; Property management services; Technical advisory services; Food additives (valid until May 5, 20 16) and feed additives (valid until February 25, 20 18+65438) (business scope involves special provisions of the state, and it is not allowed to operate without permission).

Two. Background and purpose of this issue

(1) Background of this issue

At present, the company is mainly engaged in the mining and sales of phosphate rock, the production and sales of phosphate, phosphate fertilizer, glyphosate and other phosphorus chemical products and other chemical products. The company has the advantages of resources and energy such as phosphate rock and hydropower, and its existing products are 12 series and 184 varieties. The industrial chain extends from the upstream ore and energy supply to the downstream fine product development, and it is one of the few leading fine phosphorus chemical enterprises integrating mine, electricity and phosphorus in China.

1, the trend of internationalization provides opportunities and challenges.

Due to the acceleration of industrialization, the consumption of resources and energy, and the increasing pressure of environmental protection, the development trend of phosphorus chemical industry in the world is undergoing profound changes. Internationalization and large-scale are the new trends of phosphorus chemical industry development, while refinement and specialization are the new characteristics of phosphorus chemical industry development. After years of development, China's phosphorus chemical industry has developed from primary processing of yellow phosphorus to deep processing of fine phosphate, and basically formed a complete supporting industrial system of scientific research, design, equipment manufacturing, production, trade and technical services. The adjustment of industrial layout and product structure tends to be reasonable, and the market competitiveness is constantly enhanced. By mastering the high-tech and high-value-added high-end industrial chain and adhering to the development direction of "refinement, specialization, high-end and greening", the leading enterprises in the industry will have the opportunity to grow into the leading enterprises in the global phosphorus chemical industry.

2. The national macro-control policies put forward new requirements for development and injected new impetus.

With the increasing demand for comprehensive utilization of phosphate rock resources in China, it is forbidden to abandon poverty and explore wealth in resource utilization. At the same time, the state has issued a number of policies and measures to support and encourage enterprises to increase the comprehensive utilization of low-grade phosphate rock resources and associated minerals. On the one hand, phosphorus resources can be classified and utilized through mineral processing and refining, on the other hand, fluorine, silicon, magnesium, calcium, iodine and other resources in phosphate rock resources can be recycled. The development trend and supervision form of the industry put forward higher requirements for the phosphorus chemical industry, which will form a higher and stricter entry threshold in the future, creating favorable conditions for the new round of industrial restructuring and integration of the phosphorus chemical industry.

Since 20 15, the National Development and Reform Commission has provided low-cost medium and long-term financial support for key industrial projects by approving funds for key construction projects such as China Agricultural Development Fund, among which comprehensive utilization of resources is the key support content. At present, IFAD has invested 9.5 million yuan and1670,000 yuan to increase the capital of Yidu Xingfa. The capital increase is used for the comprehensive utilization project of phosphogypsum in Yidu Park and the deep processing project of 3 million tons/year low-grade collophane ore dressing. In addition, it invested 35.2 million yuan to support the company to build a "smart chemical industry", focusing on improving the manufacturing level of phosphorus chemical industry and promoting industrial transformation and upgrading.

3, relying on the industrial development foundation and advantages, accelerate the construction of leading enterprises in fine chemical industry.

After years of development, the company has further improved the self-sufficiency rate of resources and energy through acquisition and reorganization, and realized the upgrading and efficiency improvement of traditional phosphate. Phosphorus chemical products have the most complete categories and varieties in China, and continue to maintain the leading position in the industry. Accelerate the construction of Yichang and Yidu parks, and quickly form a glyphosate production capacity of10.3 million tons through mergers and acquisitions and expansion. , the production level is the first in the country and the industry is the first; March into the phosphate fertilizer industry and build a national demonstration base for comprehensive utilization of low-grade phosphate rock. Yichang and Yidu Park have obvious advantages in the circular economy industrial chain, and their development potential is significantly enhanced, which has accumulated energy for the company's future development and laid a good foundation.

During the "Thirteenth Five-Year Plan" period, the company will closely rely on the existing industrial development foundation and advantages, focus on improving the development quality and operating efficiency, take green fine chemicals as the basic development direction, focus on the construction of Yichang and Yidu parks, promote the construction of strategic production bases in an orderly manner, highlight the drive of innovation, accelerate industrial transformation and upgrading, and accelerate the pace of international development. Efforts will be made to build domestic leading enterprises in fine phosphorus chemical industry, eco-environmental benchmark enterprises, demonstration enterprises in efficient utilization of resources, enterprises with advantages in industrial technology innovation and enterprises with social responsibility.

(II) Purpose of this offering

Relying on the existing phosphate rock and phosphoric acid production capacity, on the basis of regional planning adjustment, the company continues to promote product upgrading and upgrading, promote the comprehensive utilization of upstream phosphate rock resources, deeply develop downstream high value-added phosphate chemical products, steadily improve sustainable profitability and build the core competitiveness of enterprises. This non-public offering is an important measure for the company to strengthen and expand the industrial chain of "mine, electricity and phosphorus integration". Specific performance in:

1. The company plans to increase capital in Yidu Xingfa and build a new 3 million tons/year low-grade collophane mineral processing and deep processing project. After the project is completed and put into production, it will effectively digest the company's low-grade phosphate rock, improve the comprehensive utilization level of the company's resources, and increase the total potential available phosphate rock resources of the company;

2. The above-mentioned fundraising projects of the company include the new 35,000-ton/year potassium dihydrogen phosphate plant. After the plant is completed and put into operation, it will supplement the company's existing leading product sodium phosphate, further improve the company's product structure, enhance its industrial position in the potassium phosphate market, increase the added value of products, and meet the various needs of customers at different levels at home and abroad;

3. The company has a large demand for production and operation funds. The high asset-liability ratio restricts the company's debt financing ability such as bank credit, and also increases the debt financing cost. Using part of the funds raised by this non-public offering of shares to repay bank loans will help improve the ability of sustainable financing, reduce financial expenses and risks, and enhance the company's comprehensive competitiveness.

If the above projects are successfully completed, the utilization level of phosphate rock resources, technical content and added value of products will be significantly improved; At the same time, this non-public offering will increase the company's capital scale, optimize the asset structure, reduce financial risks, enhance profitability, bring sustained and good return on investment to shareholders and enhance the market image.