Huaxi aims to replace securities industry assets with East China Sea stock equity

Today, Huaxi announced that the company intends to be the company's wool, thermoelectric and other assets and textile companies 75% stake in the East China Sea Securities holdings of 100 million equity shares.　　Huaxi Group is a controlling shareholder of Huaxi Village, Huaxi has a turnover of 320 million yuan, the turnover of assets is 398 million yuan, the difference is made up by the company cash.　　Yesterday, Huaxi's shares rose 8.96% per cent to 9.49 yuan/share. To trade assets for the East China Sea Stock equity shares Huaxi Group, owned by the company 41.01% of the equity, May 12, 2010, Huaxi and Huaxi Group signed the "asset replacement agreement", the company intends to subordinate Jing Mills, thermal power plant assets, liabilities and Jiangyin Huaxi Special Textile Co., Ltd. 75% The shares of Huaxi group owned by the East China Sea Securities Co., Ltd. (hereinafter referred to as "Donghai Securities") 100 million shares for replacement.　　Determined by the two sides, the company placed the assets of the price of 32,011.840,000 yuan, the cost of placing assets of 398 million yuan, the difference between the assets and the assets placed in the asset is 7,788 160,000 yuan, by the company to the Huaxi group to pay a matching cash. Huaxi said that the associated transaction stripped of assets accounted for the company's 2009 main business income of 13.11%, Huaxi believes that the transaction will not have a substantial impact on the company's main business, and the quality of the assets placed into the market, the development potential of high value-added returns to the company, can improve the overall profitability of listed companies　　, sustainable development capacity. It is understood that the asset, refined mills net assets of the evaluation value of 17,835, 870,000 yuan, the transaction price of 17,835 870,000 yuan, the value of the account is 11.16%, the evaluation of the thermal power plant net assets of 11,534 250,000 yuan, the transaction price of 11,534 yuan,　　A premium of 5.27% for the account value. The proposed East China Sea securities are innovative pilot-type brokerages, the company registered capital of 1.67 billion yuan, into Huaxi's 100 million shares accounted for the East China Sea Securities 6% of total equity. Donghai Securities 2009 net assets of 3.997 billion yuan, to achieve a net profit of 798 million yuan.　　In addition, the company also holds 45.34 million shares of Huatai Securities (accounting for 0.81% of the total share capital), holding 248.81 million shares of Jiangsu Bank (2.96% of the total share capital). The investment income of Huaxi village is quite abundant according to the published 2009 annual report, although the company's net profit increased last year, but it is not driven by the main business, but is some objective reasons, it is worth mentioning that the company last year in the A-share market fight small taste, the company holds trading financial assets, The investment income such as the fair value change profit and loss of the transaction financial liabilities amounted to 24.5744 million yuan.　　And the company this year more proposed to use 100 million yuan to fry the plan. As early as the annual report was released, Huaxi announced that it intended to use its own capital of not more than 100 million yuanConduct short-term portfolio investment. The report shows that the company's monetary balance at the end of 2009 is 583 million yuan, after deducting the deposit balance of the bill, the actual use of funds of about 357 million yuan. In other words, the company will spend nearly 30% of its liquidity on stocks.　　On the other hand, the company expects that this year the operating expenditure funds demand will reach 3.2 billion yuan, the company said that some of the funds mainly through the sale of products, the provision of labor and other operating capital inflow and indirect financing to meet the bank. In fact, the company in 2009 has been in the A-share market. According to the report, the company last year has traded nearly 30 listed companies, from the Yangtze River Power and other large stocks, and then to Guilin three gold and other small plate stocks, the company has involved.　　As a result, the company's investment is also a loss and profit, overall, a slightly profitable. Huaxi's desire to replace the capital with major shareholders has again been a lucrative return on equity investments.