Zhongfu Industry announced on the 8th that it plans to increase the capital of Linzhou Linfeng Aluminium and Aluminum Co., Ltd. by a subsidiary Linzhou Linfeng Aluminum Power Co., Ltd. to 155 million yuan.
As of November 30, 2009, Linfeng Aluminum had total assets of RMB 717.34 million, total liabilities of RMB 704.45 million, and net assets of RMB 14.89 million. Total profit for the period from January to November 2009 was 1. 8.49 million yuan, net profit was 13.86 million yuan. Zhongfu Industry Co., Ltd. said that the capital increase was mainly to improve the company's aluminum processing capacity, and the integration of aluminum processing business of Linfeng Aluminum Power will have a positive impact on the company's future development.
In addition, as the company's Linfeng aluminum will also invest 16.04 million yuan to acquire Linzhou Zhenxin Machinery Casting Co., Ltd. 100% stake. As of November 30, 2009, Zhenxin's total investment assets were RMB 469.99 million, its total liabilities were RMB 446.16 million, and its net assets were RMB 15.83 million. Total profit from January to November 2009 was RMB 7.02 million. The net profit was 5.27 million yuan. Zhongfu Industry Co., Ltd. said that the acquisition is mainly to improve the company's aluminum processing capacity, integrate the industry chain, enhance the company's core competitiveness and ability to withstand market risks, and achieve sustained and rapid development of the company.