Zhongjin Gold (600489.SH) makes progress in asset injection
BEIJING, Feb. 24 (Xinhua) -- Zhongjin Gold Co. Ltd (600489.SH), China's second-largest gold producer by market value, said on Monday that it received a notification from controlling shareholder China National Gold Group that the group will initially inject six target enterprises into the listed company.
The six enterprises include Inner Mongolia Jin Tao Corp., Lingyuan City Rixing Mining Corp, Jilin Province Jinshun Mineral Investment Corp, Hezhou City JinQi Mining Corp., Chengxian Erlang Gold Development Corp. and China National Gold Group Xihe Mining Corp., according to a filing to the stock exchange.
The six enterprises presently own about 70 metric tons (tonnes) of gold reserves, while the Shanghai-listed gold producer had 590 tonnes of gold reserves by the end of 2013.
The group will also inject other qualified assets to the listed company in the future and fulfill its promise made in 2011 to erase horizontal competition in five years, said the filing.
Meanwhile, Song Xin, general manager of the group, will become the new boss of the listed company as chairman, according to the filing.
Earlier, Zhongjin Gold expected net profits for 2013 to fall about 60 percent year-on-year.
Although Zhongjin Gold predicted a fall in net profit for 2013, its fundamentals remained good. It is worth noting that the move of asset injection by China National Gold Group will lay a solid foundation for the listed company's sustainable growth in 2014, said analysts. (Edited by Hu Pingchao, email@example.com)