New casting pipe accelerates the pace of increasing capital Xinjiang iron ore resources

The prospects of business development in Xinjiang are becoming more and more valued by the new cast pipe (000778, closing price 8.43 yuan), following the February this year, the Xinjiang Sargent Iron and Steel Co., Ltd. (hereinafter referred to as Sargent shares) has 38% shareholding, In March, the company funded 320 million yuan to obtain the newly emerging casting pipe (Xinjiang) Resource Development Co., Ltd. (hereinafter referred to as casting resources) 40% of the equity, the company will soon launch a new round of integration of resources in Xinjiang.　　The company announced yesterday (November 17) evening that the company intends to launch a series of equity acquisitions, capital increase and bond financing plan, Xinjiang region will be hit as a result of Hebei headquarters, Wuhu emerging after the third profit growth pole. A number of investment to speed up the layout of Xinjiang xinxing Casting announcement, the company November 17 and Fuzhou Zhuo Sheng Investment Trading Co., Ltd. signed the "Equity transfer Agreement", the latter held by the Sargent 10% stake. After the acquisition, the proportion of Sargent shares held by emerging casting pipes rose to 48%. Xinxing cast pipe will be combined with Sargent shares to increase the restructuring of emerging Casting Xinjiang Co., Ltd. (hereinafter referred to as cast pipe Xinjiang), of which the company in two period to increase the amount of capital of 285 million yuan, after the increase in the holding of the cast pipe in Xinjiang equity ratio of 67%. Sargent shares in the two period, the total capital contribution is 165 million yuan, after the capital invested in Xinjiang, the proportion of the stake is 33%. At the same time, emerging casting pipe to invest 70 million yuan acquisition of Beijing can Rui Billiton Investment Co., Ltd. held in Xinjiang Jintexian and Mining Development Co., Ltd. 30% Equity (hereinafter referred to as Sargent Peace). In addition, the company and the Chinese capital of Hong Kong, East China Investment Co., Ltd. agreed to the price of HK $29.7 million under the agreement of the new Pipe International Development Co., Ltd. (hereinafter referred to as international development) 25% equity. After the transfer of equity, the company holds 100% per cent of international development.　　The new cast pipe also publishes 4 investment plans, 3 of which are investments in the Xinjiang region, and the company's emphasis on business development in the region is evident. Expansion is too soon to be issued 4 billion if the new cast pipe to the casting pipe Xinjiang's capital increase is mainly to expand its steel production capacity, so the main purpose of increasing capital shares and Sargent Peace is to strengthen the company's ability to control the upstream mineral resources. It is reported that the main assets of Sargent, including 1 iron ore mining rights, 31 prospecting rights, prospecting rights covering an area of about 3000 square kilometers, mainly related to iron, copper, lead, zinc, coal and other mineral resources. Sargent shares in addition to the existing iron, steel, steel, about 1 million tons of annual production capacity, its 100% stake in the Motosala iron ore, iron ore resource reserves of 17.5165 million tons, manganese ore reserves of 3.4045 million tons.　　And Motosala Iron Ore holdings 4% of Xinjiang and the Mining limited liability company to invest in Zhagang iron ore reserves of nearly 500 million tons. The move is only part of a series of recent acquisitions of ore resources in the new tube, which announced the joint Huaxin International (Hong Kong) purchase of about 21 million shares of AEI Corporation (Canada), whichGet 65 million tons of iron ore reserves.　　Emerging casting Pipe also has a further increase in AEI equity to 40% rights, if the future continued to raise AEI equity to 40%, the company's interest in Canada iron ore is expected to reach 165 million tons. 2010, emerging casting pipe was the bitter price of iron ore, the first half of the domestic and foreign market iron ore prices rose sharply, but the company's iron ore inventory is generally maintained only 1 months or so, the rise in raw material costs to the company's three-quarter pipe business gross margin decline year-on-year. 2010 1 ~ June, the company cast pipe business gross profit margin of 12.33%, far lower than the same period of 25.83%.　　As a bitter experience, the company is trying to increase the capacity of upstream raw material self-sufficiency through a series of acquisitions. Rapid expansion has also put financial pressure on emerging pipes, which still plan to issue no more than 4 billion yuan of corporate bonds, despite a 3.68 billion yuan in the three quarterly quarterly display in 2010. The company said the move aims to "raise the need for the company to develop long-term funds to meet the company to expand the main business capital needs."