Hoshine Silicon(SH:603260) Zheng Quan Shi Bao Wang·2025-06-12 12:35Core Viewpoint - The company, Hesheng Silicon Industry Co., Ltd., has received approval from the Shanghai Stock Exchange to issue corporate bonds worth up to RMB 4 billion, aimed at optimizing its financing structure and supporting business growth [2][3][5]. Group 1: Bond Issuance Details - The company plans to issue corporate bonds with a maximum amount of RMB 40 billion, with a maturity of no more than 5 years [3]. - The bond issuance is part of a broader initiative to support the healthy development of private enterprises in China, with over RMB 220 billion raised by more than 100 private companies in 2024 [3]. - The bonds will be used to supplement working capital and support the development of various business segments [5][9]. Group 2: Financial Health and Projections - The company reported a net cash flow from operating activities of RMB 4.517 billion in 2024, the highest level in its history, with a net cash flow ratio of 2.60 [4]. - The company’s total bank credit amounted to RMB 35.931 billion, with RMB 3.497 billion remaining unused as of the end of 2024 [4]. - The company expects its revenue to continue growing over the next 3-5 years, necessitating increased working capital to maintain its market leadership [6]. Group 3: Credit Rating and Financial Strategy - The company has received an AA+ credit rating from China Chengxin International Credit Rating Co., indicating strong debt repayment capability and low default risk [7]. - The company’s debt-to-asset ratio was reported at 62.56% as of March 2025, showing a decrease of 1.27 percentage points from the end of 2024, indicating reduced financial risk [8]. - The company plans to optimize its funding structure through various financing channels, including leasing and short-term financing, to support stable operations [8].