Jingwei Textile Machinery to buy into Zhongrong Int'l Trust

Write: Adir [2011-05-20]

Jingwei Textile Machinery Co Ltd<000666><0350> yesterday announced that it will purchase a 36% stake in Zhongrong International Trust from Zhongzhi Enterprise Group for RMB 1.2 billion.

The equity transfer agreement was signed on Jan. 8.

Zhongzhi Enterprise Group currently holds a 67.69% stake in the target firm, whose net profit for the first eight months of last year was RMB 220.08 million. As of Aug. 31, 2009, Zhongrong International Trust, located in Harbin, Heilongjiang Province, had a book value of RMB 566.29 million, but its assets have been valued at RMB 3.57 billion.

According to Zhongrong International Trust's financial report for 2009, the firm reaped RMB 501 million in core business revenue and nearly RMB 320 million in after-tax profit.

Established in April 1995, Zhongzhi Enterprise Group is principally engaged in three fields: finance, real estate and investment. At the end of 2008, the group's total assets exceeded RMB 1.9 billion.