Acquisition landing! CFHI indirectly owns 23% of Delong Nickel in Indonesia.

Today, CFHI opened trading by the daily limit, and its share price jumped to its highest level since mid-January this year. According to reports, CFHI announced yesterday night that the company plans to buy the 38.74% stake in Zhongpin Shengde International Development Co., Ltd., held by CFHI Group Co., Ltd., the controlling shareholder, for 2.392 billion yuan in cash. Upon completion of the transaction, CFHI will hold a 38.74% stake in Zhongpin Shengde and indirectly enjoy a 23.00% interest in Indonesia Delong Nickel Co., Ltd.

It is reported that CFHI is mainly engaged in the design, manufacture, installation and repair of heavy machinery and complete sets of equipment and metal products; metal smelting and processing; metal material sales; mineral product sales; industrial gas manufacturing and sales; metallurgical engineering design; technical consulting services; contracting overseas complete sets of projects and domestic international bidding projects; import and export business. In the first quarter of this year, revenue was about 3.651 billion yuan, up 14.71 percent over the same period last year; net profit was about 37.45 million yuan, up 10.65 percent over the same period last year; and basic earnings per share was 0.0055 yuan, up 12.24 percent over the same period last year.

This time, China Shengde International Development Co., Ltd., which CFHI acquired, is a limited liability company jointly funded by CFHI Group Co., Ltd. and Jiangsu Delong Nickel Industry Co., Ltd. on July 12, 2018. the main asset is the 59.37% equity of Indonesia Delong Nickel Co., Ltd. (PTVIRTUEDRAGONNICKELINDUSTRY). Yizhong Group increased its capital to Indonesia Delong Nickel Co., Ltd. through Zhongpian Shengde and finally enjoyed a 51% stake in Indonesia Delong Nickel Co., Ltd.

According to the announcement, Indonesia Delong Nickel Co., Ltd. (PTVIRTUEDRAGONNICKELINDUSTRY, referred to as VDNI) was incorporated on September 8, 2014, with Jiangsu Delong Nickel Co., Ltd. holding 99% and Xiangshui Kangyang Trading Co., Ltd. holding 1%. VDNI's business activities are the processing and refining of mining products, and the main products are ferronickel. The business model is to adopt the mature and advanced rotary kiln-electric furnace (RKEF) production process to smelt laterite into ferronickel. The raw material is laterite and the final product is crude nickel iron ingot.

Among them, the design scale of the project is 600000 tons of ferronickel per year, with an actual production capacity exceeding 800000 tons of ferronickel per year and about 100000 tons of pure nickel. The project adopts 15 production lines of 27MVA electric furnaces, including 15 Φ 4.5 × 45m rotary drying kilns, 12 Φ 4.4x100m pre-reduced rotary kilns and 15 27000kVA mine thermal furnaces (3 spare). Annual treatment of 1.9% nickel laterite (dry base) 4.56 million tons. The smelter is supporting the construction of a coal-fired power plant, the power plant is a coal-fired power plant, with a total of eight units, of which units 1 and 2 have installed capacity of each 30MW, units 3, 4, 5 and 6 have the installed capacity of each 60MW, and units 7 and 8 have the installed capacity of each 125MW.