On March 7, Hoshine Silicon Industry Co., Ltd. disclosed its 2026 proposal for the issuance of A-shares to specific targets. The company plans to issue shares to no more than 35 (inclusive) specific investors, with the expected total raised funds not exceeding RMB 5.8 billion (inclusive).
According to the issuance proposal, the number of shares to be issued will be determined by dividing the total amount of funds raised by the issue price, and shall not exceed 354,662,082 shares. This represents no more than 30% of the company's total share capital prior to this issuance. The issue price is set at no less than 80% of the average trading price of the company's stock over the 20 trading days preceding the pricing benchmark date. All target subscribers will subscribe in cash, and the subscribed shares cannot be transferred within six months from the completion date of the issuance.
Regarding the planned use of the proceeds, the net funds—after deducting issuance expenses—will be directed toward two main areas.
Specifically, RMB 4.1 billion will be allocated to the construction of the "Shanshan Silicon-based New Materials Industrial Base 8×75MW Back-pressure Unit Project (Phase I)." This project has a total investment of approximately RMB 5.728 billion and is located in the Shanshan Industrial Park, Turpan City. Adopting clean and comprehensive utilization technology for the graded conversion of low-quality coal, the project will primarily provide stable, low-cost power and thermal support for the silicon-based new material projects within the industrial park, while also yielding by-products for silicone chemical production.
The remaining RMB 1.7 billion will be used to supplement working capital and repay bank loans. This aims to meet daily operational funding needs, reduce the asset-liability ratio, and enhance the company's risk-resistance capacity.
Hoshine Silicon stated that the cogeneration project funded by this capital raise aligns with the continuous and stable thermal load demands of the company's production park. By increasing the self-sufficiency rate of electricity and steam, the project aims to effectively hedge against the risk of price fluctuations in the external energy market, thereby building a cost advantage at the source and helping the company smoothly navigate through industry cycles.
Source：EnergyTrend