Dec 28 - Jiaozuo Wanfang Will Issue 280 Million Shares via Private Placement

Source: Securities Times , ChinaScope Financial (Data)

+   Jiaozuo Wanfang Aluminum Manufacturing (SZSE: 000612) announced on December 27 that the company will issue up to 281 million shares via private placement at the price of CNY 10.64 per share, with the aim of raising up to CNY 3 billion.

+   The funds raised will be used for a 2×300MW thermal power project and to supplement liquidity.

+   Related Data: Capacity Utilization and Output Sales Ratio, Capacity, Production and Sales, Cost Structure of Aluminum, Total Revenue and Margin, Electricity Supplier after the Completion of Project, Electricity Supplier (2010)

+   Related Company: Jiaozuo Wanfang Aluminum Manufacturing (SZSE: 000612)

Jiaozuo Wanfang Power Co., Ltd. has a capacity of 0.42 million tons. So far, the capacity utilization has been saturated.

The company has been developing smoothly, with its annual sales remaining stable. The fluctuation was mainly caused by electrolytic aluminum prices.

The cost of electrolytic aluminum is largely composed of costs of electric power and alumina, among which power cost exerts greater impacts on the gross profit.

 

The net proceeds of this additional right issue will be invested in construction of the 2*300MW thermal power unit. After the project is completed, the electricity cost will be saved by around CNY462 million annually.

The company’s integration structure of aluminum, electricity and coal will be formed preliminarily after the project is done.

Price trend of aluminum and alumina

For more data on aluminum and companies, please visit www.chinascopefinancial.com

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• Jiaozuo Wanfang Will Issue 280 Million Shares via Private Placement

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