On November 21, the Western Construction (002302) issued a prospectus for issuing stocks to specific targets in 2021. The company plans to introduce Conch Cement as a strategic investor through this issue, and Conch Cement will subscribe for 183 million shares, accounting for 12.48% of the total equity after the issue, becoming the second largest shareholder. The purpose of this
issue is to optimize the capital structure, supplement liquidity and repay bank loans, which is expected to bring the company an annual increase of 8.85 billion yuan in operating income and a total profit of 708 million yuan, up 38.71% and 78.23% respectively from 2023. According to the
announcement, the company's net profit in 2022 was 551 million yuan, down 34.82% year-on-year; the net profit in 2023 was 645 million yuan, up 16.11% year-on-year; and the net profit in January-September 2024 dropped by 97.27%. The main risks faced by the company include the high proportion of related party transactions with China Construction Group, the risk of accounts receivable and the risk of macroeconomic fluctuations. The issuance was approved by the China Securities Regulatory Commission for registration, and the total amount of funds raised is 1.484 billion yuan, which is expected to enhance the company's ability to resist risks and market competitiveness. In the first three quarters of
2024, the western construction realized a revenue of 15.017 billion yuan and a net profit of 9.69 million yuan.
