By correspondent Li Zhi
As all expected, the Rainbow Shares (600707) is trying to regain its former glory. However, it did not escape the fate of a loss. In some institutional funds getting out of it, even the authoritative shareholder does not participate in the Rainbow Electronics issuance which was announced by the company. Fortunately, in this harsh situation, the absolute ambassador of the Rainbow Group has finally come forward with more than 8 billion yuan of real money to support their position.
Loss Increased, Body Shaken
Although continuing to promote through the issuance of new projects, the glory of the Rainbow Shares still endured a loss. Compared to the 24.4567 million yuan loss in the first quarter, the loss throughout the first half for the Rainbow Shares is still expanding.
The mid-year report disclosed today shows that the Rainbow Shares' first half operating assets are 181 million yuan, compared to last year's 703 million yuan, which has seen a significant decline. Meanwhile, the losses in the first half reached 72.0605 million yuan, compared with the profit of 10.9887 million yuan from the previous year; earnings per share were -0.098 million.
Rainbow Shares stated that in the first half, due to the automated structure adjustment and the rapid development of flat panel displays, LCD console prices fell sharply impacting the CPT (CRT) industry. The speed and consequence of the market downturn were faster than the industry expectations, leading to CRT's living space being severely squeezed. As the industry continues to rapidly decline CRT, CPT in 2011, the group produced the first half, sales have declined substantially over the same period as last year. Although new industrial investment projects are progressing steadily according to plan and production operations have been partially achieved, the accidents in traditional industries have caused new industries to not yet form a scale effect, resulting in operating losses during the reporting period.
It is worth noting that from the shareholder information, as of June 30, among the top ten shareholders of circulation funds in Rainbow Shares, institutional trust products have decreased from 9 seats in the previous quarter to 7, showing a certain reduction in the confidence of funds for investment in shares.
Actual Control of 800 Million Yuan Table Confidence
Although the acknowledgment advance apprehension of achievement the company expected first half losses {among|a allotment of} the parties, but is in transition shares the Rainbow , the just released this report agenda is indeed some apropos. The surprise to many investors is the controlling shareholder of Rainbow Electronics announced at this point in time no best sensitive to subscribe for a non-public offering.
In April this year, the issuance of shares of the rainbow is not more than 430 million shares, raising the total is expected to not more than 6.08 billion yuan for the construction of 8.5-generation LCD glass substrate production line and construction of 4.5-generation AMOLED production line project of the additional program. At that time, Rainbow Electronics said to be 1 to 6 billion in cash to be subscribed.
Although Rainbow Electronics for various reasons choose a sudden retreat, it is fortunate that the actual control of the Rainbow Group made the opposite choice. Disclosed in the announcement today, the Rainbow Group decided to increase the subscription amount of non-public alms.
It should be noted that, after falling stock prices, the Rainbow Shares as of this Friday 10.94 yuan / share price has been significantly lower than the original set of not beneath than 14.30 yuan / share arising price. In other words, if the arising price is not adjusted, the additional funds face the fate of a loss. Therefore, the Rainbow's sudden volte-face is absolutely reasonable electronics, and the Rainbow Group, a high-profile act to access the amount of subscription, is even more surprising.
Rainbow Rainbow Shares OLED to be overweight and fund-raising 6 billion of shares to build a new production line.