Economy & Market
Jiangxi Wannianqing Cement to issue shares
Jiangxi Wannianqing Cement intends to raise CNY 692 million by issuing 65 million shares at CNY 10.64 per share. Of the total money raised, CNY 500 million will be used to supplement its working capital and acquire a 50 per cent stake in Jinxi Cement. The remaining funds will go to a thermal power project and the construction of two cement mixers. Since Nanfang Wannianqing Cement, Jiangxi Wannianqing Cement subsidiary also holds a 50 per cent stake in Jinxi Cement, Jiangxi Wannianqing will be entitled to 75 per cent of Jinxi Cement's net profit after the acquisition. Jinxi Cement posted a net profit of CNY 29.97 million in 2009 and CNY 25.81 million for the first nine months of 2010.