SMM News: recently, Xinxing cast Pipe Co., Ltd. (hereinafter referred to as "the Company") announced that it will invest heavily in the construction of Indonesia's MSP Nickel-Iron Project Phase I stable operation, in order to further enhance production capacity and profitability, The company intends to increase the capital of Xinxing Pipe (Singapore) Limited Company (referred to as "emerging Singapore"), a wholly owned subsidiary, by US $13.47 million. Through its holding subsidiary Xinqiyun Investment Holdings Co., Ltd. (referred to as "Xinqiyun") to increase capital to Indonesia PT.MEGAH SURYA PERTIWI Company (referred to as "MSP Company") for investment in the construction of the second phase of the nickel-iron project, The second phase of the project is expected to yield good returns. Both Xinxing Qiyun and MSP's other shareholders have increased their capital at the same time in proportion to their shareholdings. The construction content of the second phase of the nickel-iron project is four 36MVA rotary kiln-mine furnace RKEF nickel-iron production lines, two 65MW high temperature and ultra-high pressure primary recycling generator sets, and supporting public auxiliary facilities. The matter was considered and adopted at the eighth meeting of the Board of Trustees, held on 26 June 2018. According to the relevant provisions, this transaction does not constitute a related transaction, nor does it constitute a major asset reorganization as stipulated in the measures for the Administration of Major Asset reorganization of listed companies. The transaction does not need to be submitted to the shareholders' meeting for consideration.
(I) basic situation in emerging Singapore
1. enterprise name: Xinxing Pipe (Singapore) Co., Ltd. 2. domicile: Singapore 3. establishment time: October 16, 2014 4. shareholders: the Company holds 100% of the company. 5. scope of business: domestic and foreign trade, warehousing services, logistics services, etc. 6. key financial data: as of December 31, 2017, emerging Singapore had total assets of $56.0817 million, total liabilities of $131200 and net assets of $55.9505 million. In 2017, emerging Singapore had revenues of $0 and net profit of $5.7569 million (unaudited). As of March 31, 2018, emerging Singapore had total assets of $56.8744 million, total liabilities of $128700 and net assets of $56.7457 million. Emerging Singapore posted revenue of $0 and net profit of $795200 (unaudited) in January and March 2018. 7. relationship with the Company: it is a wholly owned subsidiary of the Company. 8. amount of capital increase: $13.47 million in cash.
(2) the basic situation of Xinxing Qiyun
1. Company name: Xinxing Qiyun Investment Holdings Co., Ltd. 2, domicile: 20 MAXWELL ROAD # 11 ≤ 07 ≤ 08 MAXWELL HOUSE SINGAPORE (069113) 3. date of establishment: December 29, 2014. shareholders: cast Pipe Singapore holds 60 per cent of the shares. Qiyun Investment holds a 40% stake. The company is the actual controller of the company. 5. scope of business: domestic and foreign trade, warehousing services, logistics services, etc. 6. key financial data: as of December 31, 2017, Xinxing Qiyun had total assets of $56.248 million, total liabilities of $66700 and net assets of $56.1813 million. In 2017, Xinxing Qiyun achieved revenue of $0 and net profit of $5.4988 million (the above figures have not been audited). As of March 31, 2018, emerging Qiyun had total assets of $56.8723 million, total liabilities of $67200 and net assets of $56.8051 million. In January and March 2018, emerging Qiyun achieved revenue of $0 and net profit of $794900 (unaudited). 7. relationship with the Company: it is a holding subsidiary of Xinxing Singapore, a wholly owned subsidiary of the Company.
(III) basic information on MSP
Company name: PT. MEGAH SURYA PERTIWI 2, Company registered Capital: us $13125 3, date of Establishment: may 8, 2013 4, scope of Business: ferronickel production and sales 5, Business Registration place: Jakarta, Indonesia 6, The shareholders are as follows: Xinxing Qiyun owns a 40% stake in it. HARITA owns 20 per cent of it, TBP 30 per cent and GPS 10 per cent. 7. relationship with the Company: equity subsidiaries of holding subsidiaries of wholly owned subsidiaries 8. main financial data: as of December 31, 2017, MSP's total assets were US $430.7787 million and total liabilities were US $286.1716 million. Net assets were $144.6071 million. In 2017, MSP posted operating income of $156.119 million and net profit of $12.5592 million (the above figures have not been audited). As of March 31, 2018, MSP had total assets of $417.0748 million, total liabilities of $276.841 million and net assets of $140.2338 million. In January and March 2018, MSP posted operating income of $42.9211 million and net profit of $2.8659 million (unaudited). 3. the purpose of the transaction and the implementation of the project and its impact on the company; the construction content of the second phase of the nickel-iron project is initially defined as four 36MVA rotary kiln-mine furnace RKEF nickel-iron production lines and two 65MW high temperature and ultra-high pressure primary recycling generator sets, And supporting public facilities. The total investment in the second phase of the project is expected to be US $352 million. It is estimated that the payback period of the second phase of MSP project is 5.64 years. After the commissioning of the second phase of the MSP project, relying on the cost advantages brought about by the construction of the mine resources plant, the price advantages of thermal power generation, and the raw material agreement prices of the partners to ensure that the cost of the project is compared with that of similar domestic production enterprises. With lower full cost; After the second phase of the project is put into operation, the cost will be effectively diluted and the scale effect will gradually present. at the same time, the second phase of the project will be of great significance for MSP to expand production capacity, increase market share, quickly seize market opportunities and enhance product competitiveness. After feasibility study, the second phase of MSP nickel-iron project in Indonesia is expected to produce good returns, low risk and feasibility. In view of the fact that the project is implemented outside the country, there may be certain policy risks and market risks. The company will make a full investment analysis and measurement of all proposed investment projects, fully considering the relevant risks and the corresponding risk aversion measures.
