Sino-color shares in the rare Earth Empire emerged to invest heavily in the construction of rare earth projects

Days of suspension of the Chinese-color shares (000758.SZ) last night issued a private shares of a stock plan, no more than 10 persons, including the controlling shareholder, China Nonferrous Mining Group Co., Ltd. (hereinafter referred to as "nonferrous Group"), will be issued no more than 145 million shares in the price of not less than 12.31 yuan/share. The total amount of funds to be raised is not more than 1.785 billion yuan, the collection of funds is intended to be used in the new plant construction project of China Nonferrous Metals (Shenyang) Metallurgical Machinery Co., Ltd. 7000 tons/year rare earth Separation project and supplementary liquidity in the south-color Rare earth (Xinfeng) Co., Ltd. The group undertakes to subscribe at a rate of 33.75% of the actual number of shares issued under the same subscription price as other issuers. Medium-color South China Rare Earth (Xinfeng) Co., Ltd. Rare earth separation project in May has been approved by the NDRC, 7000 tons/year of rare earth separation capacity construction progress. GF Securities Analysts expect the project will be completed after the completion of 3600 tons of smelting quotas, including 2736 tons of corporate equity quotas, more than the existing equity quotas doubled, the company's rare Earth Empire looming. 1.785 billion of the funds raised, of which 800 million will be to China Nonferrous (Shenyang) Metallurgical Machinery Co., Ltd. new plant construction projects to increase capital for the implementation of the relocation of technical upgrading projects. Project for the formation of annual production of aluminum equipment, metallurgy equipment, general equipment, such as 287 sets of construction projects, construction period of 2 years, the total investment of 1.537 billion yuan, the annual sales income of 1.867 billion yuan (including tax), the average annual profit of 240.65 million yuan, the average annual net profit of 180.488 million yuan. In addition, the 450 million yuan collected in the fund will be used to increase the capital to the middle-color South rare earth (Xinfeng) Co., Ltd. for the implementation of 7000 tons/year rare earth Separation project. Project total investment of 612 million yuan, average annual sales income of 1.815 billion yuan (including tax), the average annual profit of 164.6861 million yuan, the average annual net profit of 123.5146 million yuan. The remaining 535 million is used to replenish liquidity. Medium-color shares said that the investment will help Shen Metallurgical machinery successfully completed relocation upgrades, enhance its competitiveness in the metallurgical machinery industry, and actively respond to the national integration policy of Rare-earth industry, accelerate the development of the south-color Rare earth project. Medium-color Shares semi-annual report showed that the first half of the operating income of 8.796 billion yuan, an increase of 65.96%, but attributable to the listed company shareholders net profit reduction of 67.25%, only 22.7837 million yuan. The company said that the performance of the major decline in the company's product prices dragged down the performance of non-ferrous metals, price decline and the cost of rigid increase makes the profit space is significantly squeezed, resulting in non-ferrous metal business gross profit rate decreased 9.6% to 13.27% year-on-year, the gross margin of 23.16%. On the other hand, the scale of trade business has risen sharply and not increased. During the reporting period, the company's trading business income of 5.045 billion yuan, up 94.34% from a year earlier, is the main reason for the substantial increase in business receipts. But by the price of non-ferrous metalsContinued decline in the impact of trade business gross profit margins significantly reduced by 2.92% to 2.51%. However, the price of rare earths has rebounded since June, and the market is widely expected to maintain a rising pattern before the end of the November industry-specific governance action, helping to rebound the company's Rare-earth performance. At the end of the quarter, the company successfully implemented a rights issue, the financial situation was improved, the cost of finance has been significantly reduced from the two quarter, the second half or will continue to benefit from this. Analysts expect the company to outperform the first half of the year.