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Oriental Yuhong to fund production expansion
Posted on Friday, 16 October 2020 07:23
Beijing Oriental Yuhong Waterproof Technology is raising as much as CNY 8.00 billion (USD 1.19 billion) to support sustainable business growth by expanding its existing production base layout.
The company intends to issue up to 470.94 million new shares, representing a 23.1 per cent stake, to no more than 35 specified undisclosed investors.
Oriental Yuhong has provided building materials system products for major infrastructure construction, and industrial, civil and commercial buildings for more than 20 years.
The company makes waterproofing, coatings, powder, non-woven fabrics, thermal insulation and energy saving, special mortars and offers repairs and other services.
Its products are exported to over 100 countries and regions, such as Germany, Brazil, Russia, Japan and Singapore, and can be found in large-scale subway, airport and light rail projects, among other things.
Oriental Yuhong has more than 50 subsidiaries, including Shanghai Oriental Yuhong, Hong Kong Oriental Yuhong, and Oriental Yuhong North America, and has 28 production research and development logistics bases in China.
The group booked operating income of USD 1.25 billion in the first six months of 2020 and posted net profit attributable to shareholders of USD 148.00 million.
Its asset-liability ratios reached 48.2 per cent in the 12 months ended 31st December 2017, 58.8 per cent in FY 2018 and 55.6 per cent in FY 2019.
Proceeds raised from the cash call will go towards building a production line for HDPE coils with an annual output of 40.00 million square metres.
Other projects on the cards include a new energy saving insulation material facility and another for water-based paint, mortar, synthetic resin emulsion, and textured wall coatings.
Zephyr, the M&A database published by Bureau van Dijk, shows 12,682 capital increases have been announced globally so far this calendar year.
A total of 132 of these cash calls are valued at USD 1.00 billion or more, and Oriental Yuhong’s is placed 196th.
© Zephus Ltd