has about the same questions that I would like to have answered
New stock newsChina Securities Regulatory Commission issued feedback on overseas listing of Jihai Resources and required clarification on whether there are business operation risks, etc.
2023-07-03 08:56 Official account of Beijing Fuhua Innovation Technology Development Co., Ltd., a high-quality creator in the financial field
Zhitong Finance APP was informed that according to news from the official website of the China Securities Regulatory Commission on June 30, the China Securities Regulatory Commission announced the supplementary material requirements for overseas issuance and listing filings (June 16, 2023 - June 29, 2023). The International Department of the China Securities Regulatory Commission issued a total of 9 Companies issue supplementary material requirements. It requires Jihai Resources to provide additional explanations on the following matters:
1. Regarding the equity structure: (1) Explain the specific transaction arrangements between relevant entities under the equity structure, including but not limited to the time, amount, channels and methods of financial support for domestic entities, relevant capital transactions, profit transfer arrangements, etc. ; (2) When Jihai Resources was established, it acquired all the equity of MYG through share exchange, and indirectly held the shares of Yantai Zhongjia through MYG. Please explain the basis and fairness of the share exchange consideration.
2. In 2010, Dahedong Company used the Songjiagou exploration rights to invest in Yantai Zhongjia Mining Co., Ltd. (hereinafter referred to as "Yantai Zhongjia"). It was not included in Yantai Zhongjia Mining Co., Ltd. until the value evaluation of the Songjiagou exploration rights in 2021. The registered capital of Mining Co., Ltd., please explain the reason why the Songjiagou exploration rights have not been valued for a long time and included in the registered capital of Yantai Zhongjia, as well as the method and compliance of Yantai Zhongjia’s calculation of the proportion of shareholders’ equity from 2010 to 2021, and Explain whether there are any flaws in the shareholder's capital contribution.
3. Regarding business operations: (1) The main business of Majestic Gold, the controlling shareholder of Jihai Resources, is related to the company. Please explain whether it will have an adverse impact on the independence of the company based on the business transactions; (2) Shandong Guoda Gold Co., Ltd. has been the only customer of Jihai Resources since 2021, and it is a subcontractor of Jihai Resources. Please explain the fairness of transaction pricing, and explain whether Jihai Resources has operating risks based on the above situation.
4. Please ask Jihai Resources to provide a supplementary explanation on whether the projects that have been built, under construction, and the projects raised this time are "high energy consumption" and "high emission" projects, and provide relevant evidence.
It is reported that on May 22, according to the Hong Kong Stock Exchange, Jihai Resources submitted a listing application to the Hong Kong Stock Exchange, with Chuangsheng Capital as the exclusive sponsor. The company submitted a listing application to the main board of the Hong Kong Stock Exchange in October 2022.
The prospectus shows that Jihai Resources is a gold exploration, mining and processing company established in 2005 and is headquartered in Yantai City, Shandong Province, China. The company primarily sells gold ingots made from the gold concentrate it processes. According to a Frost & Sullivan report, in 2022, the company was the third largest gold mining company in Shandong Province with a market share of 2.6% (by mine production), but in terms of gold mine production, the top two players The market share is approximately 78.3%. In addition, Shandong Province is China's largest gold-producing province, with a gold mine output of approximately 41.4 tons in 2022, accounting for approximately 14.0% of China's total gold mine output, while Yantai City accounts for more than 90% of Shandong Province's gold mine output.
According to SRK's report, as of December 31, 2022, the company's total probable ore reserves, indicated ore resources and inferred ore resources were approximately 23.275 million tons, 35.95 million tons and 39.72 million tons respectively. It currently operates two gold mines, namely the Songjiagou open-pit mine and the Songjiagou underground mine. Both mines are located in the Mouping-Rushan gold mineralization belt, one of the three major gold mineralization belts in Yantai City, and are relatively close to each other. (about 400 meters).
The company also operates a concentrator with an annual ore processing capacity of approximately 2 million tonnes, located 4 kilometers from its mines. The company's mining assets and mineral processing plant are strongly supported by the upstream and downstream gold supply chain industries in Yantai City. The mine and mineral processing plant are close to highways and have convenient transportation.
As at the Latest Practicable Date (May 14, 2023), the company's headcount reached approximately 440 people. In the past recording period (the three years ending on December 31, 2022), its revenue was approximately RMB 361 million (the same below), 248 million yuan, and 418 million yuan respectively, and its net profits were approximately RMB 114 million, 58.7 million yuan and 121 million yuan.
This article comes from: Zhitong Finance Network