Dawn Holdings' 1.1 Billion Restructuring Plan Exposed, Stock Price May Be Impacted

On November 11, Dawn Co., Ltd. announced its plan to restructure the assets of Dawn Titanium Co., LTD. According to the plan, Dawn shares plans to issue shares and pay cash, wholly-owned acquisition of Dawn Titanium, and at the same time raise matching funds. The announcement pointed out that the share issue price of the transaction is set at 8.37 yuan per share, but the specific number of shares issued and the transaction consideration have not been finalized, and will be determined after consultation based on the audit and evaluation results.

Daan Shares intends to issue shares to no more than 35 qualified specific investors through inquiry in order to raise matching funds not exceeding 100% of the transaction price of the assets purchased by the shares issued in the transaction, and the number of shares issued does not exceed 30% of the total share capital of the listed company upon completion of the transaction. The funds raised will be mainly used for the construction of 100,000 tons/year titanium dioxide green production project, payment of transaction cash consideration, supplementary working capital or repayment of debt. Among them, the proportion used to supplement working capital or repay debt will not exceed 25% of the transaction price or 50% of the total amount of matching funds raised.

Regarding the shareholding structure of Dawn Titanium Industry, the controlling shareholders of Dawn Co., Ltd. and Dawn Titanium Industry Co., Ltd. are Dawn Group, and the actual control is Yu Xiaoning and Han Limei couple. Dawn Group due to Xiaoning, Han Limei husband and wife wholly-owned, and as a listed company Dawn shares, by Dawn Group and Han Limei together hold 60.72% of the shares. Dawn Titanium is owned more than 94.86% by Dawn Group. The transaction will not affect the status of Dawn Titanium's controlling shareholder and actual controller, nor will it lead to a change in the company's control. Dawn Group because Xiaoning, Han Limei husband and wife wholly-owned.

Dawn Titanium plans to invest 1.019 billion yuan for the construction of a new 100,000 tons/year co-production process titanium dioxide project. The project is located in the new materials and new energy industrial park in Longkou City, Dao 'en Titanium industry plant, including a new 100,000 tons/year rutile titanium dioxide crude production line, a 100,000 tons/year (titanium dioxide) titanium dioxide fine production line, a 135,000 tons/year waste acid filtration and concentration production line, and related auxiliary engineering, public works and environmental protection projects. After the completion of the project, Dawn titanium industry will increase the annual output of 100,000 tons/year rutile titanium dioxide crude (fine titanium dioxide is 115,000 tons/year), by-product 340,000 tons/year iron sulfate heptahydrate. According to the construction investment plan, the total investment of the project is 1.019 billion yuan; The after-tax financial internal rate of return on investment was 28.75%; The net present value after tax is 959.22 million yuan.