Hongtu High Tech to raise up to RMB 1.42 bln

Sep. 28, 2009 (China Knowledge) - Jiangsu Hongtu High Technology Co Ltd<600122> today announced that it plans to issue up to 125 million shares to fewer than ten investors for RMB 11.56 per share or RMB 1.42 billion at most to fund various projects, sources reported.

The Shanghai-listed company intends to open 150 IT chain stores in 12 cities and municipalities and to open two flagship stores, one in Nanjing, Jiangsu Province and one in Shenzhen, Guangdong Province. The 150 chain stores will cost a total of RMB 560.17 million and the two flagship shops will cost RMB 403.45 million.

In addition, the enterprise will inject RMB 70.02 million into logistics centers in eight provinces for expansion and will spend RMB 11.11 million to build a new logistics center in Guangdong Province.

The firm will invest RMB 39.96 million to build an integrated e-commerce platform. The company also intends to spend RMB 30 million to upgrade its IT offerings by the end of next year.

Reportedly, Jiangsu Hongtu High Technology has provided a guarantee to a subsidiary for a half-year RMB 40-million loan from Shanghai Pudong Development Bank<600000>.