Xinxing Ductile Iron Pipes, today (22 May) announced, Xinxing Ductile Iron Pipes, a wholly owned subsidiary of the Company (Hong Kong) Ltd. recently with the H-share listed companies build signing "Memorandum of Intent", casting Hong Kong intends to spend HK $ 1.2 billion in cash to subscribe We intend to build to the casting of new shares issued in Hong Kong, after a deal to build Hong Kong into a casting controlling shareholder.

Event Reviews

Hong Kong stock market platform holding company intends to build a diversified investment and financing channels: casting a wholly owned subsidiary of the Company of HK $ 1.2 billion Hong Kong intends to subscribe to the shares in order to implement build holding. The build for investment holding company listed in Hong Kong, the main business includes telecommunications products, children's goods trade and the mainland real estate business three plates, including telecommunication products business in the first half 2015 revenue accounted for 68.6%, children's goods trade views The. Company products are mainly for overseas and European markets as the main sales markets, restricted European market downturn, the first half of 2015 the company's revenue fell 11.0%, a loss of -0.35 million.

Casting Hong Kong intends to spend HK $ 1.2 billion in cash to subscribe for shares in the build, and build to have the intention of casting in Hong Kong to issue new shares, if the proposed transaction could be reached, casting Hong Kong can build to become the controlling shareholder of the company will the following effects: 1) to build since 2007 and has continued loss of income is highly dependent on the European market structure, under the European economic downturn, entered in build or difficult for the company to enhance profitability substantial. Meanwhile, considering there is no consensus to build synergy in the business structure and the company's main business and current business direction of the transformation effect, simple holding company in build or not the main intent; 2) In contrast, holding the ground and build a build the company's overseas investment and financing platform for the company even more significant, on the one hand, the advantages of Hong Kong listed companies will be a strong platform to expand the company diversified financing channels, does not exclude the company to promote the domestic construction project financing through the platform may, on the other hand, holding the After the build, the company leveraging the advantages of Hong Kong's capital market diversified investment abroad is not impossible, but it all needs to be further tracking research.

Based on the main industry, and actively seek transformation: Language asset-heavy companies, although the steel industry, but the transition has been a strong willingness. As early as in the steel industry resources and terminal manufacturers relative boom period, the company actively carry out related diversification, into the upper reaches of ore, coal resources, and the layout of the downstream pipeline forging capacity. In the steel industry, the economy is no longer today, the company actively expand unrelated diversification, involved in the field of energy, environmental protection and water pipe network construction investment and financing. For now, the company is seeking to diversify the way through intense restructuring intentions, does not rule out future business is expected to form the pattern of a traditional business standpoint, energy, environmental protection, financial and other areas booming, while state-owned enterprises to optimize personnel and incentives will further accelerate this process.

So matters have not reached the final, they will not consider its impact on company performance, the company expects 2015, 2016 EPS were 0.11 yuan and 0.11 yuan, maintaining a "buy" rating.