GS Magicstor received 800 million yuan investment temporary solution money hungry

Timely assistance: GS Magicstor received 800 million yuan of funds

Funds subject to the yen rather than the renminbi worth pondering

Has been the bottleneck of funds plagued Magicstor (000920.SZ) executives can finally relieved. Its micro hard disk project received 800 million yuan of government funds to inject, but also for the company's shares in 2007 landed on the Nasdaq market opened the imagination of space.

In July 30th, Magicstor said, as the Guizhou provincial government designated investment subject for its shares of the company Guizhou Shihua Magicstor Co. Ltd. (hereinafter referred to as "micro hard disk Shihua micro hard disk") invested 11 billion yen in July 25, 2005, according to the exchange rate for RMB 798 million 182 thousand yuan to commercial bank accounts in Guiyang micro hard disk.

For the injection of capital investment, Magicstor not specified, said only the Guizhou province state-owned enterprises, we have not yet completed the registration."

"The Magicstor receive financial support for the company is" timely assistance. "." Has been studied for a long time the financial GS Magicstor Project Institute senior researcher Wu Qingyun told the "first financial daily". "Micro disk Magicstor project has always been focused on supporting the government of Guizhou Province, but the deficiency of funds but seriously affected the company's normal production, resulting in the second half of last year, a sharp decline in performance in the first quarter of this year is a loss situation. This is the capital, has a substantial role for the company to complete the $356 million contract, signed in October last year, the fair and the future long-term development."

Data show that the presences of micro hard disk was founded in August 2004, registered capital of 103 million 400 thousand U.S. dollars, China is only one independent intellectual property rights of the enterprise micro hard disk. Among them, Magicstor with its own funds invested 81 million 340 thousand yuan in cash, accounting for 50% of the shares of Riospring Inc. in micro hard disk production development technology shares, accounting for 25% of the shares, Guizhou infrastructure investment company has another 25% shares.

For the specific use of funds, Magicstor executives to the "First Financial Daily" said, "half of which will be used to supplement the company's liquidity, the rest is to be used in R & D and production to maintain sustained investment." The senior told reporters, micro hard disk and semiconductor manufacturing, LCD panels, etc., are a high input, high-yield projects, the need for considerable funds.

It is worth noting that, since the injection of funds advertised as government funds, but the subject is not the yuan is the yen, which does not allow the market to understand.

This Magicstor commitment can also find some answers. Magicstor board of directors agreed that in the capital before the completion of the formalities, the date of arrival of funds, the Guizhou provincial government designated investors shall enjoy rights and obligations corresponding to the investment, including the election of the board, chaired the micro disk company management. Can give investors so much power, has exceeded the general sense of government support, so this is a very large injection of strategic investors." Wu Qingyun said.