Hualing Steel Integrated Hengyang subsidiary business

Hualing Steel (000932) announced that Hengyang hualing continuous Rolling Pipe Co., Ltd. is a company holding subsidiary Hengyang Hualing Steel Pipe Co., Ltd. holding 100% of the wholly owned subsidiary.　　The company is to be absorbed by the hualing steel pipe, and by Hua Ling Pipe, the successor of Hualing Steel pipe all the assets and debt, and the Hua Ling continuous rolling tube cancellation. The announcement shows that at present in the company Hengyang production area, the Tube billet system belongs to hualing continuous rolling pipe, the pipe-making system is divided into two parts, which belong to hualing steel pipe and valin continuous rolling pipe, this kind of asset layout and company organization structure can not achieve the optimal allocation of resources and increase the difficulty of investment Project Declaration, fund Management and accounting work, The pipeline between hualing steel pipe and Valin has also resulted in unnecessary tax expenditures. After integration, will simplify the accounting, reduce the tax burden.