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It plans to raise 1.59 billion yuan, and Highly will increase its new energy auto parts!

    In order to accelerate the growth of the new energy auto parts industry into the company’s “second main business”, Highly (600619.SH) continued to invest in the new energy auto business segment.
    On the evening of October 20th, Highly issued a fixed capital increase announcement, intending to issue shares to no more than 35 investors. The number of shares issued shall not exceed 30% of the company’s total share capital before the non-public offering, that is, no more than 265 million shares. (Including the number), the accumulated funds raised do not exceed 1.594 billion yuan (including the number). The company’s controlling shareholder, Electric Corporation, will subscribe no less than 27.07% of the actual issuance (including this number).
    Among them, Highly intends to invest 500 million yuan in the expansion project of new energy vehicle air-conditioning compressors. After the project is completed, the annual output of Highly’s new energy vehicle air-conditioning compressors will reach 650,000 units.
    According to Tianyancha APP, Highly Co., Ltd. was formerly known as Shanghai Refrigerator Compressor Co., Ltd., and was renamed as a joint-stock company in 1992. The company’s A and B shares were listed on the Shanghai Stock Exchange in 1922 and 1993, respectively. In the past 30 years, Highly has been mainly engaged in the production and sales of household air-conditioning compressors, and is the third largest supplier of air-conditioning compressors in the industry.
    However, with the rapid growth in sales of new energy vehicles, the market demand for air-conditioning compressors for new energy vehicles continues to expand. In 2015, Highly introduced private capital for the mixed reform and entered the field of new energy vehicles from a single air-conditioning compressor production business. At present, the new energy vehicle air-conditioning compressor produced by Highly has been widely used in the automobile production of famous domestic automobile companies such as Yutong, King Long, Zhongtong, BAIC, Geely and so on.
    Data show that from 2017 to 2019, Highly’s new energy vehicle air-conditioning compressors sold 83,300 units, 100.6 units and 188,100 units respectively. In the same period, its air-conditioning compressors for new energy vehicles accounted for 10.49%, 7.92% and 15.14% of the national new energy vehicle market, respectively.
    In addition to the expansion of production capacity, the largest project in this fundraising is the construction of the Highly Technology Innovation Center (HTIC) project by Highly Group. Highly plans to invest 616 million yuan in raised funds to improve R&D capabilities.
    In September of this year, Highly announced that it plans to acquire Magneti Marelli and its assets and business reorganization related to automotive air-conditioning compressors and automotive air-conditioning systems. With this transaction, Highly’s new energy vehicle air-conditioning compressor products are moving from the domestic market. In the international market, it has become a global supplier of automotive compressors and air conditioning systems.
    But at present, Highly’s R&D team is mainly concentrated in the air-conditioning compressor segment, and the R&D level of the new energy vehicle parts business segment is not enough to support global business. Therefore, Highly plans to purchase advanced R&D equipment at home and abroad through fundraising to attract core scientific and technological talents, complement the original R&D, and ultimately enhance the overall innovative R&D capabilities. After the completion of the project, the center will have a professional R&D team of about 300 people, focusing on the technical research and development of a number of key components including air-conditioning compressors for new energy vehicles, automotive thermal management systems, automotive motors and drive controls.
    In addition, the company plans to use the remaining 478 million yuan to repay interest-bearing liabilities. As of the first half of this year, Highly’s asset-liability ratio was 63.62%, and total liabilities amounted to 9.281 billion yuan. This fundraising will effectively adjust the company’s debt structure and enhance financial stability.