West Water shares increase to $870 million

West Water shares (600291, closing price of 8.54 yuan) to the financial sector investment efforts to further increase.　　The company today (July 3) issued a notice, added to Tian an Insurance Co., Ltd. (hereinafter referred to as the days of insurance) increase in capital, from the former no more than 350 million yuan to 870 million yuan.　　An increase of 1.6 times times the amount of the purchase is not the first one, and the West Water stake was announced earlier in the month. June 1, the West Water shares announced that this May 21, received an invitation letter, invited the company to participate in its 2010 annual expansion plan, after the company's board of Trustees study decided that the company will subscribe to no more than 350 million shares, subscription price of not more than 350 million yuan. Tian An insurance plan the new issue of 2.172 billion shares, subscription price of 1 yuan/share, after the increase in shares, days of insurance total equity from the previous 2.172 billion shares to 4.344 billion shares.　　According to the plan at that time, after the completion of the increase, the West water shares will hold the number of days of insurance shares not more than 350 million shares, holding a proportion of not more than 8.06%. However, there were some variables in the subsequent implementation of the matter. The latest announcement of today's West Water shares shows that the company actually subscribed for 336 million shares in the implementation process, the total price was 336 million yuan, but then the company continued to increase the amount of shares from 336 million to 869 million shares, the total price also increased to 869 million yuan.　　At this point, the West Water shares in the increase in the capital after the completion of the day security insurance in the shareholding ratio, also from the previous 7.73% to 20%. Some shareholders gave up the subscription to continue to increase the security of the reason, the West Water shares in today's announcement, because in the increase in the stock process, there have been some shareholders gave up the subscription.　　After consulting with Tian an insurance and other shareholders, the company decided to make additional subscription. As for other shareholders do not participate in the increase in the reason, the West Water shares did not in the announcement to be explained. But from past public information, it does not seem to be worth the company's generous investment. Public information shows that the day security insurance was established in 1995, the registered capital of 2.172 billion yuan, for the Sino-Foreign joint venture stock limited company. The company underwriting RMB, various foreign currency property insurance, liability insurance, credit insurance, Marine, casualty insurance, health insurance and financial services insurance, handling various reinsurance business and statutory insurance business, establishing agency relations and business dealings with domestic and foreign insurance agencies, agency inspection, settlement, recovery and other related matters　　For the use of funds approved by the CIRC and other business approved by the Circ. The main shareholder of the security company is Jiangxi International Trust Co., Ltd., Jiangxi Jiang Xin International Mansion Co., China CITIC Group, China Technology Import and Export Corporation, of which the former two major shareholders respectively hold 20% shares of insurance for the day before yesterday; another Japanese company Tokyo Shanghai Daily Fire Insurance Co., Ltd., with a 7.65% shareholding　　It is the fifth largest shareholder of Cheonan insurance. Data show that the Cheonan insurance ChingWing Road after the audit of financial indicators, 2009 annual operating income of 6.69 billion yuan, operating profit-180 million yuan, net profit loss of nearly 400 million yuan; The first quarter of this year, operating income of 2.1 billion yuan, net profit of 170 million yuan. For this investment, the West Water shares also adhere to the previous view, that the company's future development to provide new sources of profits, improve the return to shareholders, will have a positive impact on the company.