Longxing Chemical raises 750 million yuan for Shanxi Carbon Black Phase I Project

Hebei Longxing Chemical Co., Ltd. recently issued an announcement stating that its application to issue convertible corporate bonds to unspecified objects has been approved by the China Securities Regulatory Commission. The company plans to list on the main board of the Shenzhen Stock Exchange and plans to raise no more than RMB 755 million through this offering.

It is reported that after deducting issuance expenses, all the funds raised will be invested in the first phase of Shanxi Longxing Carbon-based New Materials Circular Economy Industry Project located in Lucheng Economic and Technological Development Zone, Changzhi City, Shanxi Province.

Longxing Chemical is one of the major producers in the global carbon black industry. With its nearly 20 years of experience in carbon black research and development, production and sales, it enjoys a high reputation in Chinese and foreign markets. The company is not only a high-tech enterprise, but also a demonstration enterprise for foreign trade transformation and upgrading in Hebei Province. It has been firmly ranked among China's top ten carbon black enterprises for many years. It focuses on the innovation of carbon black products, processes and manufacturing systems. It owns the Enterprise Technology Center of Hebei Province and has passed the CNAS National Laboratory certification, demonstrating its technological leadership in the industry.

据了解，龙星化工在2022年度炭黑总产量达到了46.59万吨，根据中国橡胶工业协会炭黑分会的统计数据，该公司在全国重点企业炭黑产量排名中位列第三。其主要产品被广泛应用于橡胶领域，包括各类轮胎的生产以及工业胶管、桥梁用胶垫、输送带等橡胶制品的制造。值得一提的是，公司的主要客户均为中国外知名大型轮胎企业，如风神轮胎、中策集团、玲珑轮胎、赛轮轮胎、米其林、普利司通、大陆马牌、韩泰轮胎等，彰显了其在行业中的影响力和市场地位。

Regarding the issuance of convertible bonds, Longxing Chemical said that this will help increase the company's monetary funds, total assets and total liabilities. Before convertible bond holders convert shares, the company can obtain debt financing at lower financial costs while avoiding rapid dilution of earnings per share. With the gradual implementation of fundraising projects and the gradual conversion of convertible bond holders, the company's capital strength will be further strengthened and the asset-liability ratio will gradually decrease, thereby improving its solvency and risk resistance, providing a solid guarantee for the company's future sustainable development.