JuHua co previous investment projects to raise money hasn\'t all reaches producing and releasing efficiency, and proposed rights issue to raise input \"10 kt/a FEP expansion project\", \"50 kt/a new fluorine refrigerant project\" two big projects, these two projects need a total of 628 million yuan, raise the \"big head\" is actually a supplementary liquidity, as high as 1.142 billion yuan on May 29, JuHua shares (600160. SH) announced that plans for every 10 shares allotment 3 strands according to the proportion of to all the shareholders rights issue 425 million shares, expected to raise no more than 1.8 billion yuan, 1.142 billion yuan will be used to supplement the company liquidity. Company controlling shareholder JuHua group is committed to full in cash subscription shares can match. Account in cash 1.2 billion yuan raised \"not bad money\" for? , according to the announcement JuHua shares the proposed rights issue financing amount does not exceed 1.8 billion yuan, after deducting distribution costs, raising money 210 million yuan used to \"10 kt/a FEP expansion project\", 418 million yuan to 50 kt/a new fluorine refrigerants project \", the remaining $1.142 billion will be used to supplement working capital. It is worth noting that the quarterly results showed that JuHua share final monetary fund still has $118816 of 118816 yuan, short-term borrowings and non-current liabilities are due within one year is zero, the current ratio, quick ratio were 2.59 and 2.2; 1 - March 46111.92 operating cash flow of 46111 yuan, up 186.96% from a year earlier. After May 4, the company USES cash to 38308.99 $ten thousand acquisition of JuHua group holdings of quzhou JuHua polyamide 100% stake, at the end of march, the company has invested two hundred million yuan to set up JuHua financial company. Investors have questioned, therefore, companies are big money before, now account has money, is also a healthy financial indicators, it is not difficult to finish the fundraising project looks why rights issue? On May 31, JuHua co chairman secretary LiuYunHua told reporters: \"the company must be sent the money.\" LiuYunHua pointed out that at present the whole chemical industry are low, in order to layout the future, the company need money to do many things, the future does not rule out taking horizontal merger integration, etc. This is from the company as a whole to consider, not only to raise for project, and therefore need to supplement large amounts of liquidity. Gross margin and net interest rate \"down\" as early as September 2011, JuHua shares from group, etc. A total of eight JuHua object increased 1.6083 billion yuan raised, for the five projects, adding liquidity. But by the end of 2012, the five projects not all completed as scheduled, the company has invested 127473 yuan raised funds totaling 127473.96. According to promise, one of the five projects of 20 kt/aTFE and its downstream products project is planned to be completed in August 2012 to construction work, but at the end of last year the project schedule is only 70.86%. Company said that the progress is relatively lagging commitment is the main reason of the optimized technology of fluoropolymer products innovation, optimization of construction scheme design, the basic construction is expected in the first half of this year to complete the project. JuHua co previous investment projects to raise money hasn\'t all reaches producing and releasing efficiency, current and proposed rights issue to raise input \"10 kt/a FEP expansion project\", \"50 kt/a new fluorine refrigerant project\" two big projects. This the funds required for the two projects a total of 628 million yuan, raise the \"big head\" is actually a supplementary liquidity, as high as 1.142 billion yuan. JuHua shares, according to a tightening company operating funds to add liquidity, the future funding gap also exists. Due to factors such as economic and environmental factors at home and abroad and industry release capacity of the combined impact of the company is mainly product price decline is higher than the price of raw materials fell, product gross margin is reduced, at the same time the company to notes receivable amount increases and the annual operating cash flow than before more nervous. Results showed that in the first quarter this year, JuHua stake sales gross margin fell to 16.92% from 16.92% at the end of 2012, sales net interest rate from 7.61% to 3.21%, almost \"ks\". 1-3 months this year, the company achieve revenue 206637.62, ten thousand yuan, up 4.33%, net profit 6625.66 ten thousand yuan, down 71.44%. Four quarters in 2012, the company net profit growth rate is respectively 43.59%, 57.84%, 62.04%, 65.52%, repeatedly hit a low. Chairman secretary LiuYunHua explained to the reporter, at present the industry is in the depth adjustment, product price is better than before, the company also has the phenomenon of excess production capacity. \"The development of the company and the secondary market operation has certain differences, secondary market stock just can rise, but the development of the company should pay attention to a certain rhythm.\" LiuYunHua believes that it is difficult to assess the company\'s share price, objectively speaking, the bottom of the company performance and stock price in a relatively. \"In the future there may be bad, but not particularly bad, but not yet confirmed what picks up, whole feels good company at a small profit in the industry, companies are losing money, industry of inflection points worthy of attention and follow up.\" Means for the raise take a rights issue rather than a fixed way, LiuYunHua pointed out that this is for the benefit for the old shareholders. (article source: securities daily, author: Li Jin)