Fushun Special Steel termination of two billion yuan set by Bao Wu was unable to resume trading on schedule

Fushun Special Steel stock price lower than issuance price, investors higher than the issuance price of the subscription price of the shares will is not strong.
August 25, Fushun Special Steel announced the termination of two billion yuan of non-public offering plan, in fact, this program has been planned for nearly two years, during the several drafts, but ultimately failed to fall.
Fushun Special Steel explained that: "due to changes in the external and internal environment has not been a non-public offering of shares of the relevant documents submitted to China Securities Regulatory Commission approval, the board decided to terminate the non-public offering of stock to work."
Last August 31, Fushun Special Steel 2015 Third Extraordinary General Assembly adopted the above-mentioned set by the program, the proposed price of 10.1 yuan / share non-public offering of not more than 198 million shares, the total funds raised not more than 2 billion yuan .
Fushun Special Steel was originally planning to non-public development line, the secondary market is in a rising stage, Fushun Special Steel shares also at a high level. However, when the program was adopted by shareholders, the secondary market by the "bull" turn "Bear", the stock has come down. As of August 26 closing, Fushun Special Steel to close at 6.97 yuan / share.
"Termination set by external capital due to bad market conditions led to the current stock price is too low, companies and investors are affected," Fushun Special Steel who said to reporters.
An agency analyst told reporters that due to the current stock price lower than issuance price Fushun Special Steel, investors higher than the issuance price is not worth the price subscription of shares significantly, resulting in the increase given to investors not appealing.
In 2004, Fushun Special Steel, Iron and Steel Group and Dalian Special Steel North over the three companies Dongbei Special Steel Group. The main products include special steel automotive steel, die steel and bearing steel and other high value-added in the automotive, construction machinery and military fields have a wide application.
According to the original plan, Fushun Special Steel intends to raise funds to invest in a given increase military production capacity and nickel-base superalloy materials industry special smelting technology two renovation projects (especially the rule of two), the key raw material independent of the capacity-building projects and supporting the project while including additional liquidity.
Fushun Special Steel said in the announcement, to terminate the non-public offering of shares in addition to the impact of external funds for construction-related projects, the company's operations and development will not have a significant impact. Currently, the company will own funds and bank borrowings continue to promote the construction related projects.
"After this time set by the termination, the company will re-planning of new technology projects, including the rule of special projects, including the two will advance, but it is to re-plan." Turning to the company's future will be whether to restart when set by He said Fushun Special steel insiders said the company will continue to promote the new set by the scheme and in the future will be set by considering a number of new construction projects, but now the program is still in the discussion stage, not fully take place.
The possibility, however, in the above analysis it seems, continue to promote original Fushun Special Steel set by the project through its own funds and loans is not significant.
Fushun Special Steel first half operating income of 2.393 billion yuan, down 7.26%; net profit of 103 million yuan, down 20.51 percent.
The analysts told reporters, Fushun Special Steel first half results in line with expectations in the second half will also expected to maintain the current state, but it thinks Fushun Special Steel speed in promoting new projects might be reduced.
Analysts told reporters that, for the purposes of Fushun Special Steel, high temperature alloy steel production aspects of the original capacity utilization is not particularly high, and technology projects by the previous production capacity has been significantly improved, so the back of the second phase project can actually wait. "Put the existing capacity utilization trying to be difficult, there is less need for more investment spending."
Bao Wu can not resume trading on schedule
By Baoshan Iron & Steel Co., Ltd. (hereinafter referred to as the "Company") is the controlling shareholder of Baosteel Group Co., Ltd. (hereinafter referred to as "Baosteel Group") and Wuhan Iron and Steel (Group) Company is planning a strategic restructuring, the company applies the company's stock has been from June 27, 2016 suspension. After the demonstration and consultation with relevant parties, major issues in this plan constitute the company's major asset restructuring. In order to ensure fair information disclosure, to maintain the interests of investors, to avoid abnormal stock price volatility, the company applies the company's stock suspension not exceeding 30 days from June 27, 2016, and on July 11, 2016 issued a " Baoshan Iron & steel Co., Ltd. a major asset restructuring suspension notice. " July 27, 2016, the Company issued the "Baoshan Iron & Steel Co., Ltd. a major asset restructuring continued suspension notice," the company stock since July 27, 2016 to continue the suspension is not expected to more than one month. During major asset restructuring suspension, the company released a major asset restructuring progress every five days.
August 26, 2016, the Board of Directors of the sixth tenth meeting adopted the "major asset restructuring postponed resumption of the motion," the company agreed to Shanghai Stock Exchange, the company's stock continues to apply with effect from August 27, 2016 suspended, the suspension period not expected to exceed one month.
For reasons unable to resume trading on schedule, Baosteel Group, said that as of this significant asset restructuring matters involving quite complicated, time-consuming, the parties still need for further planning, reasoning and communication on this significant asset restructuring-related matters, and the present the major asset restructuring must obtain state-owned assets supervision and administration departments for approval before disposal advice of relevant departments.
To ensure that this major asset restructuring declaration, disclosed information is true, accurate and complete to ensure the smooth progress of this major asset restructuring, to prevent abnormal stock price volatility, protect the legitimate rights and interests of investors, and therefore apply for an extension to resume trading. The parties will continue to promote the work of this major reorganization of assets involved, and timely implementation of information disclosure obligations under progress.



Contact: Baosen Steel

Phone: +86-532-88890950

Tel: +86-532-88890950


Add: No. 61 Haier Road Qingdao China1

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