Jiangsu GPRO Group Co., Ltd. (GPRO Group) may inject the assets of its subsidiary Nanjing Titanium Dioxide Chemical Co., Ltd. (Nanjing Titanium) into Shanghai Lianhua Fibre Co., Ltd. (Lianhua Fibre).
Online PR News – 18-May-2012 – beijing – Jiangsu GPRO Group Co., Ltd. (GPRO Group) may inject the assets of its subsidiary Nanjing Titanium Dioxide Chemical Co., Ltd. (Nanjing Titanium) into Shanghai Lianhua Fibre Co., Ltd. (Lianhua Fibre), according to a statement released by Lianhua Fibre on April 18, 2012, according to CCM’s April issue of TiO2 China Monthly Report.
In the statement, Lianhua Fibre revealed a preliminary restructuring plan to sell 100% stake in its wholly owned subsidiary Jiangsu Lianhua Garden Technology Co., Ltd. (Lianhua Garden) to unrelated third parties and purchase 100% stake in Nanjing Titanium from issuing shares to all the shareholders of Nanjing Titanium. The two transactions are premises for each other and inseparable—one of the two transactions will terminate automatically if the other can't be implemented.
Lianhua Fibre got listed on Shanghai Stock Exchange (SSE) in 1992. Trading of Lianhua Fibre's stocks has been suspended since March 12, 2012. Verification of the assets and negotiation with several shareholders of Nanjing Titanium are under way.
Previously, GPRO Group attempted backdoor listing by restructuring CNNC Huayuan Titanium Dioxide Co., Ltd. (CNNC Huayuan). It planned to inject its 78.14% stake in Nanjing Titanium, 100% stake in Nanjing Petro-chemical Co., Ltd. (now called GPRO New Materials Co., Ltd.) and 100% stake in GPRO Property Co., Ltd. (GPRO Property) into CNNC Huayuan, but failed at last in 2010.
Founded in 1957, Nanjing Titanium is the earliest TiO2 producer that produces rutile TiO2 and fiber grade TiO2 with sulfate process in China. It was transformed into a private company from a state-owned company in 2003 and became one main enterprise of GPRO Group in 2005 through restructuring.
Lianhua Fibre had bad financial performance during 2009~2011, with assets liabilities ratio of 225%, 226% and 433% for the years of 2009, 2010 and 2011. With a registered capital of USD26.5 million, the company got revenue of USD4.1million and net profit of USD2.6 million in 2011. By Dec. 31, 2011, Lianhua Fibre's total assets valued USD2.8 million with negative net assets.
Source: TiO2 China Monthly Report 1204
Content of TiO2 China Monthly Report 1204:
China's TiO2 export and import situation in Feb. 2012
Leading TiO2 producers in China enjoy improved profitability
Pangang Group has strong titanium production in Q1 2012
Shandong Dongjia eagerly develops TiO2 production technology
Nanjing Titanium to be injected into Lianhua Fibre
Titanium feedstock import still strong in China in Feb. 2012
Kenmare turns losses into gains last year
SRL sees strong production of rutile and ilmenite in Q1 2012
Iluka sees output decline of all mineral sands except ilmenite in Q1 2012
Rio Tinto's titanium feedstock output grows in Q1 2012
PPG enters into technical collaboration with Argex
High cost pressurizes TiO2 downstream companies to raise product prices
Shandong Qifeng more than doubles net profit in Q1 2012
TiO2 prices continue to decrease in China in April 2012
TiO2 China Monthly Report, a monthly publication issued by CCM International on 25th of every month, will penetrate into Chinese TiO2 market from a global view, deeply analyse TiO2 industrial chain and manufacturers’ competitiveness and trace the latest industrial hotspots and dynamics, aiming to provide the most valuable information about China’s TiO2 industry.
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