Increase of issuing price and promise of new performance Hengyi Petrochemical

In the evening of April 2, Hengyi Petrochemical Co., Ltd. issued the plan for issuing shares to purchase assets and raise supporting funds and related party transactions (Revised Version), raising the issue price from the original 16.7 yuan / share to 19.81 yuan / share, reducing the number of shares issued by 23962100 shares. In addition, the counterparties, Fulida group and Xinghui chemical fiber, have made a commitment to the performance of the target shuangtu new material in the next three years, so far, all the targets of the three acquisitions have made performance commitments.

Zheng Xingang, Secretary of Hengyi petrochemical, said in an interview that the acquisition is the first time that Hengyi Petrochemical has broken the traditional expansion mode of chemical fiber industry by building new factories to expand production capacity, and absorbed and integrated industry capacity through acquisition. "Non performing assets can be invigorated, high-quality assets can be acquired, and asset integration in the stock market can reduce the disordered competition in the industry." Issue price increased to 19.81 yuan / share According to the previous plan, Hengyi Petrochemical Co., Ltd. plans to purchase 100% equity of Jiaxing Yipeng and Taicang Yifeng held by Hengyi group, 100% equity of shuangtu new material held by Fulida group and Xinghui chemical fiber by issuing shares, and at the same time, it plans to raise supporting funds of no more than 3 billion from no more than 10 qualified specific investors through non-public issuance of shares by inquiry Yuan.

Previously, the issuance price of Hengyi Petrochemical Co., Ltd. was no less than 90% of the average trading price of the company's shares in the 60 trading days before the pricing benchmark date, i.e. 16.71 yuan / share. In the evening of April 2, Hengyi Petrochemical released the revised plan for purchasing assets, changing the issuing price to not lower than the trading average price of shares in the 20 trading days before the pricing benchmark date, i.e. 19.81 yuan / share. Before the suspension of trading, Hengyi Petrochemical Company's share price soared because of its outstanding performance in the third quarter, and its issuance price was set as the trading average price of the first 20 trading days of the benchmark date, which will undoubtedly increase the fixed price by a lot. According to the revised version, the fixed increase price was also raised to 19.81 yuan / share, an increase of 18.55% before and after.

After the adjustment, the number of shares issued by the company in this fixed increase decreased by 23.9621 million shares. In order to further protect the rights and interests of listed companies and small and medium-sized investors, Hengyi Petrochemical requires the counterparties, Fulida group and Xinghui chemical fiber, to increase their performance commitment to the acquisition of the target shuangtu new materials. In the revised draft, Fulida group and Xinghui chemical fiber promise that shuangtu new materials will achieve net profits (excluding non recurring losses) in the three accounting years of 2018, 2019 and 2020 No less than 215 million yuan, 225 million yuan and 240 million yuan respectively. "Making the counterparty make a performance commitment will further ensure the profitability of the underlying assets after the acquisition, which is actually a way for Hengyi Petrochemical to protect the rights and interests of small and medium shareholders."