Securities code: Inner Mongolia Dazhong Mining Co.Ltd(001203) securities abbreviation: Inner Mongolia Dazhong Mining Co.Ltd(001203) Announcement No.: 2022036 Inner Mongolia Dazhong Mining Co.Ltd(001203)
Announcement on capital increase of wholly-owned subsidiaries by means of debt to equity swap
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Overview of foreign investment
In order to optimize the asset liability structure of the wholly-owned subsidiary Anhui jinrisheng Mining Co., Ltd. (hereinafter referred to as “jinrisheng mining”), enhance the financial strength of jinrisheng mining and enhance its market competitiveness, Inner Mongolia Dazhong Mining Co.Ltd(001203) (hereinafter referred to as “the company”) convened the 12th meeting of the Fifth Board of directors on March 14, 2022, The proposal on capital increase of wholly-owned subsidiaries by means of debt to equity swap was deliberated and adopted. The company plans to increase the capital of jinrisheng mining by 110 million yuan in the form of debt to equity swap. After the capital increase, the registered capital of jinrisheng mining increased from 1 billion yuan to 210 million yuan.
According to the Listing Rules of Shenzhen Stock Exchange and other relevant laws and regulations and the articles of association, this capital increase is within the approval authority of the board of directors of the company and does not need to be submitted to the general meeting of shareholders for deliberation and approval. If the reorganization does not constitute a major asset reorganization of the listed company, it does not constitute a major asset reorganization.
2、 Basic information of the subject matter of capital increase
Company name: Anhui jinrisheng Mining Co., Ltd
Registered address: zhouyoufang village, Fengjing town, Huoqiu County, Lu’an City, Anhui Province
Date of establishment: June 9, 2008
Legal representative: Zhang Jie
Unified social credit Code: 91341522675877011d
Enterprise type: limited liability company (sole proprietorship of legal person invested or controlled by natural person)
Registered capital: 1 billion yuan
Main business: iron ore mining
Equity structure: before the capital increase, the company held 100% of its equity, which is a wholly-owned subsidiary of the company. After the capital increase, the registered capital of jinrisheng mining is 210 million yuan. The company still holds 100% of its equity and is still a wholly-owned subsidiary of the company.
Dishonest executee: no
Main financial data of jinrisheng mining in the last year
Unit: RMB 10000
Project year 2021
Operating income 18490706
Operating profit 7947843
Total profit 7917311
Net profit 6790209
December 31, 2021
Total assets 59477566
Total liabilities 44140443
Net assets 15337124
Note: the financial data have been audited by Zhonghui Certified Public Accountants (special general partnership).
3、 Capital increase method, capital source and accounting treatment
As of December 31, 2021, the company’s creditor’s right to jinrisheng mining is Eastone Century Technology Co.Ltd(300310) 33 million yuan. After the capital increase, the company’s creditor’s right to jinrisheng mining is changed to 19031033 million yuan. The capital increase is funded by the company’s 110 million yuan debt to jinrisheng mining. The capital increase will increase the registered capital of jinrisheng mining by 110 million yuan, and the equity structure will remain unchanged. The company still holds 100% equity of jinrisheng mining, and jinrisheng mining is still a wholly-owned subsidiary of the company.
4、 Purpose of capital increase and its impact on the company
This capital increase is conducive to improving the independent financing capacity of jinrisheng mining, reducing the asset liability ratio, optimizing the asset structure and the smooth development of various businesses of jinrisheng mining. After the debt to equity swap, the company still holds 100% equity of jinrisheng mining. This debt to equity swap will not have a significant impact on the company’s financial situation and operating results, will not lead to changes in the scope of the company’s consolidated statements, and will not damage the interests of the company and shareholders.
5、 Documents for future reference
Resolution of the 12th meeting of Inner Mongolia Dazhong Mining Co.Ltd(001203) the 5th board of directors
It is hereby announced.
Inner Mongolia Dazhong Mining Co.Ltd(001203) board of directors March 14, 2022
