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| Chinese gold mining company issues A shares |
| CCTV.COM 2003-07-31 09:07:25 |
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Tianjin－based Zhongjin Gold, one of China's largest gold mining companies and gold suppliers, has issued 100 million A shares. The listing allows the Chinese public to invest in a gold firm for the first time.
The IPO for the 100－million－yuan－dominated A shares was set at 4.05 yuan, or 49 US cents a share on the Shanghai Stock Exchange. This represents a price－to－earnings ratio of 20 times.
The IPO prospectus said the capital raised by the listing would be invested in gold exploring, mining and refining. Market analysts were optimistic about the stock.
Dong Chen, senior analyst of China Securities Co., Ltd., said, “The Gold industry is special, because demand always exceeds supply in the market. As the first gold stock listed in China, if its share price is reasonable when it starts trading, the stock will definitely bring a return for investors.”
Zhongjin Gold is 88 percent owned by China National Gold Corp. It has total assets of 742 million yuan, or 89.4 US dollars. In the first quarter of this year, the company posted a net profit of 9.88 million yuan, or 1.2 million US dollars. This was against 36.4 million yuan, or around 4.44 million US dollars in 2002, and 34.9 million yuan, or about 4.26 US dollars in 2001.
Currently, Zhongjin Gold produces 10 tons of gold a year. While China's total gold annual output is about 180 tons. The company is also one of the 108 trading members limited to spot transactions on the Shanghai Gold Exchange.
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Editor: Yang Feiyang CCTV.com
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