Additional investment 1.4 billion put into production still in the business of zinc germanium lead zinc project profit bearing pressure

Yesterday (September 11), the domestic color giant Chi macro Zinc Germanium (market, interrogation) (600497,SH) issued a notice that the wholly-owned subsidiary Hulunbeier Chi Hong Mining Co., Ltd. (hereinafter referred to Hulunbeier Chi macro) proposed to the additional investment of 1.423 billion yuan, adjusted total investment increased to 4.822 billion yuan. It is noteworthy that the project's 2008-year record of investment is only 2.412 billion yuan, after several delays, the total investment has increased by one times. The announcement also said that with the extension of the duration and investment growth, the project will reduce the profitability of the postpartum lower than planned. Chi Hong Zinc Germanium Dong office staff of the "Daily economic news" Reporter said that smelting projects under the influence of uncertainty factors, the above project production time has not been able to estimate. Analysts pointed out that the longer the duration of such projects, the greater the investment, the later project income will bear greater pressure. CHI macro Zinc Germanium bulletin shows that Hulunbeier Chi macro's 140,000 tons of zinc/year, 60,000 tons of lead/year smelting project (hereinafter referred to as lead and zinc smelting project) actual investment beyond the investment plan 1.423 billion yuan. Hulunbeier Chi macro to be added to this amount of investment, the source of funds by the bank loans and self-financing solution, the bill still need to relax the macro zinc germanium provisional shareholder meeting for consideration. For the reasons for the additional investment, Chi Hong Zinc germanium bulletin shows that "The local special climate lead to the duration of extension, project design adjustment," resulting in an increase in the cost of 816.6 million yuan; "Rising prices, environmental emission standards and design changes" led to an increase of 488.5 million yuan investment; "The improvement of production process and the need of environmental protection emission , supporting additional auxiliary facilities, increasing infrastructure construction and so on "increased by 117.9 million yuan." Chi Hong Zinc Germanium Dong office staff also told reporters that Hulunbeier region's unique climate, the winter minimum temperature reached dozens of degrees below zero, and every year October to the next May basic can not carry out normal construction. There is also a lot of uncertainty about the procedures involved in such projects. Chi Hong Zinc germanium in the announcement of additional investment frankly, after the additional investment, lead and zinc smelting project to the postpartum profitability will be less than the original plan, according to the current market price forecasts, the project after the completion of the full investment in the internal rate of return from the original 11.43% down to 7%, the annual average investment profit after the fall from 10.81% to 6.67 %。 Reporter noted that although the first half of the 2013 to achieve net profit of zinc germanium 335 million yuan, an increase of 84%, but do not consider the operating income, the first half of the company's operating profit fell 20.5% Year-on-year, mainly because the price of lead and zinc fell. Zhuo Chong Information industry analyst Li Hongjie told the Daily Economic news reporter, Hulunbeier chi macro because of the associated enterprise with the lead and zinc material protection, put into production or have a certain profit space, but the lead and zinc smelting project construction cycle longer, built up to the yield of postpartum is lower.