Feb. 8, 2010 (China Knowledge) - Ningxia Dayuan Chemical Co Ltd<600146>, a biochemical product manufacturer, recently announced that the board of directors has approved the purchase of a gold firm through private placement.

According to the statement, the Shanghai-listed firm, which has been suspended from trading for about a month, will issue up to 110 million shares for RMB 19.49 apiece or RMB 2.1 billion in total to ten selected investors to buy the gold firm from Guo Wenjun.

The gold firm reaped RMB 158 million in operating revenue and RMB 52.25 million in net profit last year. Its gross profit margin was 66.21% and its debt/asset ratio was 73.51%.

The gold company, which has gold mines covering 125 hectares in Alashan Left Banner, Inner Mongolia Autonomous Region, had ore reserves totaling 3.81 million tons at the end of last year and is capable of producing 1.26 tons of gold per year.

Ningxia Dayuan Chemical said that it continues to sell PVC and carbon fiber products.