Triangle Group Raises Capital for Two Programs

Triangle Group Co., Ltd. has lately held an online A-share investors exchange for IPO.

The company plans to issue no more than 200 million common stocks at 22.07 yuan/share and to raise 4.41 billion yuan.

The fund will be used for two programs in general.

About 2,507 million yuan will be used for the move, upgrade and reform program for high-performance smart all-steel heavy duty radial tires with annual capacity of 2 million;

About 2,785.82 million yuan will be used for the transformation and upgrade program for high-performance passenger car tires with annual capacity of 8 million in Nanhai New Area.

When the fund is raised, Triangle Group’s net assets are expected to grow significantly. However, as it takes time for the programs to be constructed and to meet designed capacity, the company’s earnings per share and return on equity may decline in the short term.

In addition, after the IPO, investment bodies of Triangle Group will be diverse and the equity structure will be improved.

It will take two and three years for the two programs to complete construction and their economic cycles will be 18 and 15 years, respectively.

When the two programs meet designed capacity, their annual sales revenue will be 6,842.18 million yuan in average per year, and the net profit will increase 685.73 million yuan annually.