Shenzhen Zowee Tech plans to issue a maximum of 50 million shares in a private placement at not less than 17.27 yuan per share in order to raise up to 1.08 billion yuan to boost production capacity, reports Shanghai Securities Journal, citing a company filing.
Proceeds will be invested in the second phase of a network communications production base in Tianjin, the second phase in the expansion of a network communications production base in Shenzhen, a mould production center in Songgang, Shenzhen, a research and development center, and to replenish working capital.
The Tianjin project is scheduled to start construction in April 2012. Construction is scheduled to last 21 months. This project is forecast to generate annual after-tax profit of 142 million yuan on revenue of 1.65 billion yuan.
The expansion project in Shenzhen will add SMT production lines to its existing factory. Work is expected to start in March 2012, and is scheduled for completion in 12 months. It is estimated to generate annual after-tax profit of 78.86 million yuan on revenue of 1.1 billion.
The other project will start in March 2012, and is forecast to contribute annual after-tax profit of 10.07 million yuan on revenue of 60 million yuan.
The three projects are expected to generate annual revenues of 2.8 billion yuan and after-tax profits of 23 million yuan, equivalent to the company's performance in 2010.
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