Jun. 30, 2011 (China Knowledge) - Tangshan Jidong Cement Co Ltd<000401
>, a construction materials manufacturer and distributor based in Tangshan
Province, announced yesterday that it has secured approval from the China Securities Regulatory Commission
to raise up to RMB 1.91 billion through a private placement.
The cement maker said earlier that it plans to issue 134 million shares at RMB 14.21 apiece to Diamondrock Investment Ltd, a wholly-owned subsidiary of Direct Manage Investments Ltd.
After the completion of the deal, Diamondrock Investment will hold a 10% stake in the Shenzhen-listed
Analysts said that the company's sales of cement and clinker, excluding sales of its joint ventures, will reach 66 million metric tons this year, 39.8% more than that in 2010, with average sales price rising 8%. Gross profit margin will be 34% this year.
The company's net profit attributable to shareholders reached around RMB 1.4 billion in 2010, up 40.88% year on year, and its operating revenue surged 58.29% year on year to RMB 11.06 billion last year, China Knowledge reported earlier.
The cement maker sold a total of 56.81 million metric tons of cement and clinker in 2010, reflecting a year-on-year increase of 49%.