Evening of February 2nd，188bet online casino games issued the "Announcement on Related Transactions Involved in the Non-Public Issuance of A Shares"，188bet online casino games Co., Ltd. (referred to as "188bet online casino games") plans to non-publicly issue A shares to 188bet online casino games Group Co., Ltd. (referred to as "188bet online casino games Group")，Issue price is 4.34 yuan/share，Issuance quantity is 24.9.5 billion shares，And the total amount of funds raised does not exceed RMB 108.2.8 billion yuan。As of today’s close，188bet online casino games stock price fell 1.91%，Report 4.62 yuan/share。

Announcement display，188bet online casino games Group is the controlling shareholder of 188bet online casino games，As of the date of this announcement，188bet online casino games Group directly and indirectly holds 188bet online casino games 55.3 billion A shares and 26.2.6 billion H shares，Total account for 49 of the company’s total share capital.80%。

188bet online casino games said，This scheduled increase is to relieve cash flow pressure，Ensure the company’s continued and stable operations。The company’s main business is characterized by a large scale of capital investment。Since the beginning of 2020，The epidemic is spreading rapidly around the world，The epidemic has had a huge impact on the global aviation industry，Poses great challenges to the overall liquidity and risk resistance of the civil aviation industry。Financing through this non-public issuance of A shares，Using raised funds to supplement working capital and repay debt will help reduce the company’s liquidity risk，Provide strong guarantee for the company’s business development。

At the same time，Private placement will help the company optimize its capital structure，Reduce asset-liability ratio，Improve risk capabilities。188bet online casino games said，The air transportation industry is a capital-intensive industry，In addition to part of the funds for capital expenditures such as aircraft purchase coming from own funds，Mainly derived from bank loans and financial leases，As a result, the asset-liability ratio of aviation companies is generally high。As of the end of 2017、End of 2018、End of 2019，The company’s asset-liability ratio (consolidated basis) is 75.15%、74.93%、75.12%。As of September 30, 2020，The company’s asset-liability ratio rose to 78.90%。

Also，This fixed increase will also reduce the company’s borrowing amount，Reduce interest expenses，Improve profitability。188bet online casino games said，As the company’s business scale continues to grow，Liability scale，Especially the scale of interest-bearing liabilities，showing an upward trend，Increased the company’s financial expenses。2017、2018、The company’s interest expenses in 2019 and January-September 2020 were 31 respectively.8.4 billion yuan、37.2.7 billion yuan、51.6.9 billion yuan and 39.7.2 billion yuan，Higher capital costs and financial expenses will have a certain impact on the company’s operating performance。

*Source of this article: 188bet online casino games Securities Network, author: Jin Yidan, original title: "188bet online casino games: Plans to raise no more than RMB 108 in additional capital from 188bet online casino games Group.2.8 billion yuan to ease cash flow pressure》.