Plans to Raise 620 Million Yuan, Hunan Sokan New Materials Invests in Automotive Coatings Project

On January 9, Hunan Sokan New Materials' application to issue 620 million yuan of convertible bonds to unspecified objects for automotive coatings projects has been accepted by the Shanghai Stock Exchange.

This time Hunan Sokan New Materials plans to issue convertible corporate bonds to raise a total of no more than 620 million yuan. After deducting the issuance expenses, the raised funds will be used for the automotive coatings and special resin project (Phase I) of 441.5 million yuan and to supplement working capital of 178.5 million yuan.

This fundraising will effectively expand Hunan Sokan New Materials' automotive coatings production capacity, meet the growing needs of downstream customers, and achieve leapfrog growth in the automotive coatings business. In addition to automotive coatings, this fundraising project also includes special resins, key raw materials for automotive coatings. This will provide Hunan Sokan New Materials with independent control over key raw materials and lay a solid foundation for future entry into the original paint and refinish paint markets.

At the end of last year, in view of the vast growth space of automobile parts paint, Hunan Sokan New Materials increased its investment in advanced production equipment and inspection and testing equipment, and adjusted the total investment in the construction project of new functional coatings for automobile parts from 23.7867 million yuan to 41.8242 million yuan.

At present, Hunan Sokan New Materials' exterior paints have technically converged with the automotive original paint standard requirements, laying a good foundation for subsequent entry into the passenger car original paint and refinish paint markets.