Qingdao Double Star Directional Expansion Capacity Expansion

Announces the announcement of the resolution of the board of directors that the company intends to issue 60 million shares of -7500 shares and raise the upper limit of the fund to 400 million yuan, and 296 million of the investment will be invested in 1 million 300 thousand sets of high performance all steel truck radial tire technical pformation projects. The balance fund will be used to repay the bank loans of the first 600 thousand sets of high performance all steel truck radial tire technical pformation projects.

Comments: along with the development of the highway and automobile industry, the demand for high-performance tire will continue to improve, and the proportion of radial tire to tire demand will gradually increase. It is estimated that in the next 15 years, the market of China's truck radial tire will still be in short supply.

As a technology and capital intensive industry, the tire industry must establish a huge scale advantage if it wants to be bigger and stronger.

In recent years, the company has inevitably encountered capital bottlenecks in the process of mergers and acquisitions and expansion. As of September 30, 2007, the company's assets and liabilities ratio has reached 67.98%. Continuing to raise funds for development by way of bank loans will not only increase the company's financial risks, but also increase the company's financial burden.

To this end, the company had to take out the new issuance plan.

It is understood that the 1 million 300 thousand set of high performance all steel radial truck tire upgrading project is mainly based on the scale of the original annual production of 2 million 600 thousand sets of all steel radial truck tires. After the completion of the expansion, the production capacity of 3 million 900 thousand sets of all steel radial radial tire will be formed.

At the same time, after the issuance, the company's asset liability ratio will be reduced from about 67.98% to about 60%.

In addition, it is worth mentioning that, according to media reports, in October 12th, according to the relevant requirements of the pfer of state-owned assets, the Qingdao double star (6.51,0.13,2.04%) footwear business asset pfer project was officially listed on the city property exchange. The Qingdao double star shoe-making business assets will be pferred to Qingdao star Limited by Share Ltd.

If the news is true, it means that Qingdao binaries will focus on the tire industry in the future.