Tianshan aluminum industry performance commitment doubt new territories pump industry receives reorganization inquiry letter-Shanghai Metals Market

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Tianshan aluminum industry performance commitment doubt new territories pump industry receives reorganization inquiry letter

Translation 08:01:56AM May 17, 2019 Source:China Securities Network

SMM News: on the afternoon of May 16, the New Territories pump Industry (002532) announced that it had received a letter of inquiry about the reorganization of small and medium-sized boards, requesting the company to disclose and submit the relevant explanatory materials to the Department of Management of small and medium-sized Board companies before May 23. It is worth noting that the inquiry letter focused on the company's description of Tianshan Aluminum's operating income, the realizability of operating cost forecasts, and the impact of related projects on performance commitments if they are not completed on schedule.

According to the announcement, on May 10, the company disclosed a draft of major asset restructuring. Through a major asset replacement, Issue shares and other means to buy Shihezi Jinlong Energy Industry chain Co., Ltd. and other trading parties hold a total of 100% stake in Tianshan Aluminum Co., Ltd. (referred to as "Tianshan Aluminum Industry") of the eighth Division of Xinjiang production and Construction Corps. The value of the proposed assets in this transaction is 1.489 billion yuan, and the value of the assets to be put into the transaction is 17.028 billion yuan. Upon completion of the transaction, the controlling shareholder of the New Territories pump industry was changed to Kam Lung Energy.

According to the inquiry letter, in the process of using the income method to evaluate, the realization of Tianshan Aluminum's forecast net profit depends to a large extent on the growth of its operating income and the decline in the operating cost of some products. Among them, the growth of operating income largely depends on high-purity aluminum and other three products, and the decline in operating costs is due to Tianshan Aluminum's own anode carbon block and alumina. Judging from the projects under construction and under construction in Tianshan Aluminum Industry, the production capacity of 60 000 tons / year high purity aluminum project has been put into production, and the pre-baked anode project of 500000 tons / year and the alumina project of 2.5 million tons / year are still under construction and under construction.

Accordingly, the inquiry letter requests the company to explain the rationality and realizability of the forecast of operating income and operating cost in the light of the construction progress, expected completion time and expected capacity release of the above-mentioned project. At the same time, assess and disclose whether there is a possibility that the above projects will not be completed on schedule, indicating the impact of the failure of the relevant projects to be completed on time on the performance commitments and the evaluation of Tianshan Aluminum.

In addition, the inquiry letter is also concerned about whether the construction progress of the 300000 tons / year prebaked anode project in Tianshan Aluminum Industry is not in line with the record situation, and whether the research and development expenses of Tianshan Aluminum Industry are declining year by year and the rationality of the low proportion of business income. And Tianshan Aluminum and some of its subsidiaries will expire within the performance commitment period, whether it will affect the completion of Tianshan Aluminum performance commitments and other issues.

Tianshan aluminum industry performance commitment doubt new territories pump industry receives reorganization inquiry letter

Translation 08:01:56AM May 17, 2019 Source:China Securities Network

SMM News: on the afternoon of May 16, the New Territories pump Industry (002532) announced that it had received a letter of inquiry about the reorganization of small and medium-sized boards, requesting the company to disclose and submit the relevant explanatory materials to the Department of Management of small and medium-sized Board companies before May 23. It is worth noting that the inquiry letter focused on the company's description of Tianshan Aluminum's operating income, the realizability of operating cost forecasts, and the impact of related projects on performance commitments if they are not completed on schedule.

According to the announcement, on May 10, the company disclosed a draft of major asset restructuring. Through a major asset replacement, Issue shares and other means to buy Shihezi Jinlong Energy Industry chain Co., Ltd. and other trading parties hold a total of 100% stake in Tianshan Aluminum Co., Ltd. (referred to as "Tianshan Aluminum Industry") of the eighth Division of Xinjiang production and Construction Corps. The value of the proposed assets in this transaction is 1.489 billion yuan, and the value of the assets to be put into the transaction is 17.028 billion yuan. Upon completion of the transaction, the controlling shareholder of the New Territories pump industry was changed to Kam Lung Energy.

According to the inquiry letter, in the process of using the income method to evaluate, the realization of Tianshan Aluminum's forecast net profit depends to a large extent on the growth of its operating income and the decline in the operating cost of some products. Among them, the growth of operating income largely depends on high-purity aluminum and other three products, and the decline in operating costs is due to Tianshan Aluminum's own anode carbon block and alumina. Judging from the projects under construction and under construction in Tianshan Aluminum Industry, the production capacity of 60 000 tons / year high purity aluminum project has been put into production, and the pre-baked anode project of 500000 tons / year and the alumina project of 2.5 million tons / year are still under construction and under construction.

Accordingly, the inquiry letter requests the company to explain the rationality and realizability of the forecast of operating income and operating cost in the light of the construction progress, expected completion time and expected capacity release of the above-mentioned project. At the same time, assess and disclose whether there is a possibility that the above projects will not be completed on schedule, indicating the impact of the failure of the relevant projects to be completed on time on the performance commitments and the evaluation of Tianshan Aluminum.

In addition, the inquiry letter is also concerned about whether the construction progress of the 300000 tons / year prebaked anode project in Tianshan Aluminum Industry is not in line with the record situation, and whether the research and development expenses of Tianshan Aluminum Industry are declining year by year and the rationality of the low proportion of business income. And Tianshan Aluminum and some of its subsidiaries will expire within the performance commitment period, whether it will affect the completion of Tianshan Aluminum performance commitments and other issues.