Tianshan Textile: Resolution Of The Board Of Directors And Appointment Of Company Securities Affairs Representative

　　 Tianshan textile The eighth ad interim meeting of the Fifth Board of directors in 2010 was held in November 15, 2010. It passed the motion on the appointment of representatives of the company's securities affairs.

Mr. Li Yuan, former representative of Tianshan textile company, applied for resignation for personal reasons. Representative of affairs He will not hold any post in the company after his resignation. By the chairman of the company Wang Yan Hong Ms. Zhao Weiguo nominated Mr. Zhao Weiguo as the securities affairs representative of the board of directors of the company until the current session of the board.

Review:

Just as the country vigorously promotes the development of the western region, and supports and encourages the merger and reorganization of the Xinjiang region, Xinjiang's old listed company Tianshan textile September 7th night announcement, Xinjiang commerce department approved that the acquiring company's largest shareholder Xinjiang Katie mining investment Limited by Share Ltd held the 50% stake in Xinjiang Xi Tuo Mining Co., Ltd., the acquisition of Qinghai snow Technology Co., Ltd. held 25% stake in the west mining industry. After the spanfer of the shares, the company will hold a 75% stake in Xi Tuo mining.

The company announced that the company issued 81 million 977 thousand and 500 shares to Katie mining through issuing shares as a consideration, and issued 40 million 988 thousand and 700 shares to Qinghai's snow market, issuing price of 5.66 yuan per share.

At this point, the industry is expected to take a substantial step in the injection of mineral assets. After the reorganization is successfully completed, the company will switch to the non-ferrous metal industry, and the operation of mineral products will become the main business of the company.

It is worth noting that since the resumption of trading in June 18, 2010, the stock price has started with five consecutive trading boards. According to WIND financial data terminal, as of September 9th, in the 120 day trading day rose list, Tianshan textile ranked fifth, or 137.75%, 60, or third, or 137.75%, far outperforming the market, becoming the first Xinjiang monster.

Resume three months, four risk prompts

Reporters noted that Tianshan textile suspension in July 23, 2009, June 18, 2010 resumption, resumption time less than 3 months, the company's board of directors issued 4 abnormal stock price volatility announcement, the 1 suspension notice, suggesting investors risk.

According to WIND capital flow statistics, with the release of the letter of intent, asset assessment report and related audit report of the Xinjiang West Mining Co., Ltd., in from June 18th to 24th, the company's share price continued to rush to five trading boards, with a net inflow of 20 million 247 thousand and 900 yuan. Then, from July 20th to August 26th, the stock price was arranged in a neat shape, and the capital outflow was 214 million 481 thousand and 700 yuan. And from August 27th to September 1st, the stock price went up again and hit a new high of 17.68 yuan, then it fell back to high and outflows 120 million 239 thousand and 300 yuan. Since the announcement of the restructuring, it has been considered "well done" and its share price has dropped by 13.3% in from September 8th to 10th.

Although Tianshan textile price performance is perfect, only five spanactions day after the resumption of trading shows net inflow, and other signs of outflow are evident. There are obvious signs of hot money and big risks.

Shanxi securities industry researcher pointed out that the Tianshan textile boom is on the one hand affected by Katie's investment restructuring, on the other hand, the stock began to stop in July 22, 2009 to June 18, 2010, missed the big bull market in 2009, and most of the substantial growth now is a compensatory rise.

He also pointed out that if Katie investment can successfully reorganize Tianshan textile and rely on its geographical advantages to get manpower and raw materials, it will be likely to continue to rise in the second half of the year. However, after the release of the second half of the reorganization, the share price is bound to suffer a certain degree of pressure from the pressure of appreciation.

Change the main business and bring it back to life

In the interview, the China Times reporter found that most of the researchers in the institutional industry were "not looking at it". In their view, many of the concepts are gambling restructuring expectations, uncertainty is great, even if the forecast is clear, so much, can not easily recommend buying, rather than watch.

Dongxing securities industry analyst Cheng Yuan in an interview with the reporter, in the textile industry, only the brand clothing of the listed companies can be developed, while the textile manufacturing companies, the profitability of the deteriorating, nearly 2/3 of the enterprises are loss. In the context of the scarcity of shell resources, in order to seek further development in the future, most of these enterprises will choose to change their main businesses, such as [22.35 4.00%] of Shanshan and Tianshan textile. The general form is to restructure or the injection of large shareholders' assets.

It can be seen that the main business of Tianshan textile is mainly the production and sales of wool textile products. Because the enterprises are located in Urumqi, Xinjiang, the labor cost is relatively low, and the raw materials have great advantages. After improving the sales situation through developing independent brands, the company's 2010 report reversed the first quarter loss situation and realized the profit.

"Through this reorganization, the main business of Tianshan textile will increase the development, production and sales of non-ferrous metal mineral resources, and spanform the listed companies from a single wool textile industry to a diversified one. Future Ltd's ability to resist cyclical fluctuations in the economy and market will be greatly improved, and the profitability of listed companies will be greatly improved. " The restructuring of the financial adviser Hongyuan securities [17.19 -1.04%] stakeholders said optimistically.

While the China Times reporter called the Tianshan textile secretaries office, the relevant personages said that the company was in a quiet period. It is only approved by the business department. Now it still needs to wait for the approval of the SFC. It is not convenient to explain any future development of the company.

Shareholders promise to boost confidence

Unlike other restructured stocks, the news of Tianshan textile has been restructured in less than three months. However, reporters found that the Tianshan textile Xinjiang Xinjiang west mining industry, the main assets of the current mining area in Xinjiang, Hami, the first mining section of the Loess Slope in 2010 and 2011 for the mine construction period, and can not achieve profits, only in 2012 will produce economic benefits.

At the same time, Tianshan textile is also faced with risks such as large initial investment in engineering construction funds, unable to achieve the expected mining scale technology, natural conditions constraints, unable to obtain the necessary administrative license for production and operation, and safety production and operation.

In response, when the company resumed its trading license in June, Katie, the controlling shareholder of the company, made a performance promise to ensure that Tianshan textile did not lose money in 2010, realized net profit of not less than 10 million yuan in 2011, and realized net profit of not less than 20 million yuan in 2012. If the above profit targets were not achieved, part of it would be replenished in cash so as to fully protect the interests of listed companies and minority shareholders.

"There will be very few major shareholders who will make performance commitments. This commitment will prompt the company to take measures to improve its operation. The future performance is worth looking forward to, and it can also make investors feel at ease," said Ms. Li, a long-term research fellow in the textile industry.