Dongsheng Technology announced today that the company plans to purchase fixed assets related to aluminum smelting and aluminum processing from Qinghai Tongren Aluminum Co., Ltd., a subsidiary of the shareholder of Shaanxi Dongsheng Pharmaceutical Co., Ltd., and the net book value of the purchased assets is RMB 119.6004 million. . The company has thus entered the aluminum smelting and aluminum processing industry.
Announcement, Tongren Aluminum registered capital of 80 million yuan, the scope of business including aluminum smelting and aluminum processing and sales. It is worth noting that Tongren Aluminum was established on November 6, 2000, due to the lack of capital investment in the past three years has been shut down.
It is understood that this Dongsheng Technology acquisition is the core assets of Tongren Aluminum. Prior to the suspension of business, Tongren Aluminum suffered losses for the third consecutive year from 2002 to 2004.
As for the related acquisition of Tongren Aluminum's assets, the announcement stated that the company is looking at the market prospects of Chinalco's aluminum smelting and aluminum processing industries and can achieve a successful entry into the industry and cultivate new profit growth points.
The announcement also stated that after the completion of the transaction, the company had all the assets associated with Tongren Aluminum and aluminum smelting and aluminum processing. It is estimated that the company's efficiency will be basically the same in 2008. In 2009, it will achieve an annual output of 2.2 tons and a profit of 10 million yuan to 20 million yuan.
However, the company also stressed that due to the large fluctuations in the price of electrolytic aluminum affected by international and domestic futures prices, the above earnings forecast has uncertainties.