The Company made an announcement today that its Board of Directors had examined and adopted the Motion on adjustments to Program of Non-Public Offering in A-share Market and adjustments have been made to the previous version conditionally adopted by CSRC in terms of issuing volume, pricing standards and issuing price.
According to the adjustments, issuing price was changed from not less than Rmb12.91 to as low as Rmb7.58 and additional volume from not more than 30 million shares to as many as 48 million shares. Currently the valuation of A-share is substantially moving downwards and Lanzhou Great Wall Electrical was the first company that had voluntarily announced to give up the IEC– approved application for directional stock increase. The raised funds are planned to invest in four projects including wind power transmission control systems and motors, high-voltage switching equipments, vacuum circuit breakers and smart low--voltage control equipments, which are totaled Rmb354m. When these projects are completed, sales revenue will be enlarged by Rmb755m and profit by Rmb96m annually, while the completion can not be calculated due to the delayed new stock increase. 08-09 EPS is reiterated to be RMB0.43 and Rmb0.80; OVERWEIGHT rating is intact.