Mori Kirin raises 2.196 billion yuan for tire expansion project

SMM Network News: a few days ago, Mori Kirin issued an announcement to publicly issue convertible bonds. The total amount of funds raised by this public offering of convertible corporate bonds does not exceed 2.196 billion yuan. After deducting the issuance costs, it will be used for the annual production of 6 million high-performance semi-steel radial tires and 2 million high-performance all-steel radial tires expansion project of Mori Kirin Tire (Thailand) Co., Ltd. It is understood that the total investment of the project is 3.184 billion yuan, and the construction period is 1.5 years.

Mori Kirin said that after the completion of this convertible bond issue, the company's total assets and total liabilities have increased, and its capital strength has been further enhanced, providing a strong guarantee for the company's follow-up development. From a short-term point of view, the company's asset-liability ratio has increased, but the lower interest rate of convertible bonds will not affect the company's short-term debt paying ability. at the same time, with the conversion of convertible bondholders in the future, and the gradual embodiment of the economic benefits after the project is put into production, the company's net asset scale will gradually expand and the asset-liability ratio will gradually decrease. As it takes a certain process and time for new projects to produce benefits, financial indicators such as earnings per share and weighted average return on net assets may decline to a certain extent in the short term. However, with the completion of relevant fund-raising projects and the realization of benefits, the company's development strategy will be effectively implemented, and the company's profitability and business performance will be significantly improved in the future.

Data show that in the third quarter of this year, the operating income of Mori Kirin was 1.399 billion yuan, an increase of 22.33% over the same period last year. The net profit belonging to shareholders of listed companies was 331 million yuan, an increase of 73.47% over the same period last year. The net profit belonging to shareholders of listed companies after deducting abnormal profits and losses was 319 million yuan, an increase of 66.66% over the same period last year. In terms of debt, as of September 30 this year, Mori Kirin's debt ratio was 29.59%, compared with 43.65% in 2019.