Xiamen Prosolar Technology mulls acquiring mineral asset

Jul. 2, 2009 (China Knowledge) - Xiamen Prosolar Technology Co Ltd<600193>, a real estate developer headquartered in Xiamen City, Fujian Province, will hold a general meeting of shareholders tomorrow to vote whether to bid for a 48% stake worth about RMB 143.12 million in a mineral firm based in Qidong County, Hengyang City, Hunan Province, sources reported.

The property company currently holds a 52% stake in the mineral firm, while a Shanghai-based firm holds the remaining 48%.

Reportedly, the mineral firm's total debts were RMB 327 million as of Apr. 30, 2009. Total assets were RMB 368 million and net assets were RMB 41.1 million.

On Sep. 9, 2005, the mineral firm acquired an iron mine and 30-year mineral prospecting rights in Qidong County. The firm then spent RMB 105.5 mln to develop the iron mine, and on Apr. 15, 2009 obtained the mineral exploitation rights.

The mineral firm's net loss was RMB 1.66 million in 2008 and RMB 3.76 million in 2007. In the first four months of this year, the firm's net loss hit RMB 1.67 million, and operating losses were RMB 2.13 million.

As per the mineral firm's plan, if Xiamen Prosolar Technology obtains the remaining 48% stake, it will invest a total of RMB 1.2 billion to build a concentrating mill, which it will put into operation at the end of this year, sources reported.