Furong Technology: it is proposed to raise no more than 640 million yuan for consumer electronics aluminum profiles and intensive processing and recycling of aluminum and round ingots.

Furong Science and Technology announced again on January 12 that it plans to invest 5 billion yuan in the construction of a high-end manufacturing base for high-precision electronic consumption and new materials, which will include the Renewable Resources Company's plan to invest in the construction of a "project with an annual output of 250000 tons of recycled aluminum and round ingots". High-end manufacturing companies plan to invest in the construction of "60, 000 tons of consumer electronic aluminum profiles and intensive processing project" and "annual output of 100000 tons of aluminum alloy new materials and intensive processing series projects". The project will be built by stages.

The announcement points out that the first phase of the project is the "annual output of 100000 tons of recycled aluminum and round ingots" (the project investment is expected to be 323 million yuan) and the "annual production of 60, 000 tons of consumer electronic aluminum profiles and intensive processing projects" (project investment is expected to be 896 million yuan). The investment of the first phase of the project is expected to be 1.218 billion yuan, which mainly comes from self-owned funds and company financing.

On the same day, Furong Science and Technology announced the establishment of wholly-owned subsidiaries Fujian Furongyuan Renewable Resources Development Co., Ltd. (provisional name) and Fujian Furongyuan New Materials High-end Manufacturing Co., Ltd. (provisional name). And issued a notice that the company intends to issue no more than 640 million yuan of convertible bonds to raise funds for "annual production of 60, 000 tons of consumer electronic aluminum profiles and intensive processing projects" and "annual production of 100000 tons of recycled aluminum and round ingots".

Through this investment project, Furong Technology will increase the production capacity of 60, 000 tons of consumer electronics aluminum profiles, which can be used in wearable devices such as high-end smartphones, laptops, tablets, AR/VR devices and smartwatches. At the same time, the project with an annual output of 100000 tons of recycled aluminum and round ingots can guarantee the demand for high-quality round ingots with an additional production capacity of 60, 000 tons of consumer electronic aluminum profiles.

Furong Technology said in the relevant announcement that with the recovery of the global mobile phone market, the rapid development of 5G smart phones and folding screen phones, and the substantial increase in demand for VR/AR equipment, the investment in consumer electronics aluminum profiles and deep processing projects will help the company to seize the opportunity of growth in the high-end consumer electronics market, expand market share and consolidate competitive advantage. At the same time, through the development of recycled aluminum industry, not only can meet the material needs of the project, but also in line with national policy requirements, actively seek low-carbon transformation, and enhance the company's comprehensive competitiveness in the recycled aluminum industry.