Hainan Authority Replies and Approves Fundraising Plan of Hainan Rubber Group

Hainan Rubber Group announced that it planned to issue no more than 756.71 million shares through private placement at no less than 5.16 yuan/share and raise no more than 3.90 billion yuan (issue expenses included). The capital will be used for non-rubber agriculture and special-purpose rubber park programs.

The company said the private placement plan has been replied and approved by the State-owned Assets Supervision and Administration Commission of Hainan Province and needs to be passed by the general meeting of shareholders with approval by China Securities Regulatory Commission.

According to the plan, Hainan Rubber Group is to raise one billion yuan for a tropical high-efficient non-rubber agricultural program.

The program’s total investment will be about 1.35 billion yuan for planting mango, honey pomelo, pineapple, banana and other tropical fruits, covering an area of 190,000 mu.

The annual profit is expected to reach 193 million yuan or 1,018.01 yuan/mu.

The investment in the special-purpose rubber park will be 2.02 billion yuan, including 1.5 billion yuan to be raised this time. Hainan Rubber Group plans to earmark an area of 300,000 for the special-purpose rubber park within its 2-million-mu core rubber park and make it a natural rubber base with the best comprehensive production conditions.