Rainbow plans to raise more than ¥2.547 billion for the project Clethodim and Flumioxazin.

Rainbow announced on November 16, the company recently received the China Securities Regulatory Commission issued by the Shandong Weifang Rainbow Chemical Co., Ltd. to issue shares to a specific object of the approval of the approval of the company to issue shares to a specific object of the registration application. The approval is valid for 12 months from the date of consent for registration.

The company previously announced that the proposed additional capital does not exceed 2.547 billion yuan, after deducting the issuance cost, the raised funds are intended to be invested in the following projects: An annual output of 8,000 tons of Clethodim project, an annual output of 60,000 tons of new green continuous process 2,4-D and its ester project, an annual output of 1,000 tons of 3,6-Dichloropicolinic acid project, an annual output of 1,000 tons of Flumioxazin project, global operations digital management improvement project, supplementary working capital.

The investment project of the raised funds includes 4 technical production projects, involving product expansion and new construction 

After the implementation of the company's fundraising project, the company's production capacity of Clethodim, 2,4-D, 2,4-D isooctyl ester will be significantly increased, while the new production capacity of Flumioxazin and 3,6-Dichloropicolinic acid will be added. In terms of existing product expansion projects, based on relatively cautious assumptions, the company calculated the proportion of production capacity in the global demand before and after the expansion of the Clethodim technical (2022-2028), 2,4-D and 2,4-D isooctyl ester(2022-2027). In 2022, the production capacity of the Company's Clethodim technical(including the purchased technical) is 18.17%, and the subsequent maximum value is 21.19%; in 2022, the production capacity of the Company's 2,4-D and 2,4-D isooctyl ester technical(including the purchased technical) is 9.87%, and the subsequent maximum value is 16.25%. In terms of new product construction projects, the annual sales volume of Flumioxazin and 3,6-Dichloropicolinic series products was about 200 tons during the reporting period, which was lower than the capacity scale of this new technical

Rainbow said that after the completion of this investment project, if the market demand of the above products is less than expected due to adverse changes in domestic and foreign macroeconomic environment, industrial policies, market demand, technical routes and other aspects, or the production plant cannot operate normally due to the company's poor management, technology, accidents and other factors, May lead to the risk that the new capacity of this investment project can not be digested.