Haima Investment Group (000572) received approval from the China Securities Regulatory Commission to issue new shares in a private placement in order to raise three billion yuan, reports Securities Daily, citing a company filing.
Of the total funds raised, 2.5 billion yuan will be used for a technical upgrading project for its commercial vehicles and the remaining 0.5 billion yuan will be invested in an auto project in Zhengzhou, Henan province.
The company recorded a net loss after the deduction of nonrecurring gains and losses of 193 million yuan and 305 million yuan in 2008 and 2009, respectively.
According to industry insiders, the company is currently focusing on the promotion of the Fushida-branded minivan. This minivan faces problems such as fierce competition in the market, a reduction in government subsidies and problems with quality.
Shares of Haima Investment Group rose 1.68 percent to trade at 7.28 yuan at 13:35 pm today.
