CSG Holding Plans 4B Yuan Private Placement

CSG Holding intends to raise up to four billion yuan by issuing no more than 250 million shares to 10 designated investors in a private placement at a minimum issue price of 17.88 yuan per share.

The funds raised will be invested to expand production capacities for its TCO membrane glass, silicon chips, solar cells and energy saving glass businesses. Total investment amount required is 6.065 billion yuan.

CSG Holding said the investment will enhance its market share in the glass industry and improve its operational capabilities.

The company forecasts that 2010 net profit will rise 75 percent year-on-year to 1.46 billion yuan, with earnings per share (EPS) of 0.7 yuan. CSG Holding attributes the growth in net profit to the increase in revenues from sales of flat glass and fine glass as well as the improved profitability of its solar energy business.