Fuyao Glass, owner of “American Factory”, to raise $ 550 million, Eyes Solar Market
The Chinese group Fuyao Glass Industry, whose plant in the United States was the subject of the Oscar-winning documentary “American Factory” in 2020, plans to raise to HK $ 4.3 billion, or $ 550 million, in the sale of shares in a context of improvement in its activity this year, according to a Sunday filing on the Hong Kong Stock Exchange.
The glass supplier, whose auto industry customers include Toyota, Volkswagen, General Motors, Ford and Hyundai, plans to sell 101.1 million shares at HK $ 42.64, a diluted 3.9 stake. %. Fuyao’s shares trade in Hong Kong and Shanghai.
Fuyao expects China’s auto industry to “recover and rebound in 2021” from pandemic-stricken 2020, the company said in a statement. “By using the funds raised through the investment in its working capital, debt repayment, research and development projects, the expansion of the photovoltaic glass market and the general uses of the business, the company can further develop its activities and optimize its capital structure, ”said the press release. Fuyao, which achieves almost half of its sales outside of China, also aims to “attract more reputable international investors with strategic value and improve (the) capital structure of the company.”
Revenue last year fell 5.7% to 19.9 billion yuan, or $ 3 billion; net profit fell 10.3% to 2.6 billion yuan. However, operations resumed in the first quarter: operating income rose 37% to 5.7 billion yuan, and net profit rose 86% to 855 million yuan.
China is the world’s largest automobile market; Auto sales in the country increased 75% in the first quarter of 2021 to reach 6.5 million units. China also manufactures around 80% of the world’s solar panels; Xinyi Glass and the country’s First Glass Group are two of the world’s largest suppliers of photovoltaic glass. Fuyao, founded in 1987, said about 10% of the funds raised through its new share sale would be used “to develop the photovoltaic glass market and general business uses.”
The US Fuyao plant is located in Moraine, Ohio. Besides China and the United States, Fuyao has manufacturing sites in 10 other countries, including Russia, Germany, Japan and South Korea; it employs more than 27,000 people worldwide, according to the company’s website.
Fuyao chairman Cho Tak Wong today has a fortune of $ 4.3 billion on Forbes’ real-time billionaire list. His son Tso Fai is vice-president. Xinyi Solar’s largest shareholder Lee Yin Yee has a fortune of $ 4.9 billion and that of Flat Glass chairman Ruan Lianghong $ 4.9 billion.
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