TBEA, Xinjiang Zhonghe join hands to increase capital Tianchi Energy

TBEA (600089, Shares) and Xinjiang Zhonghe (600888, Shares) today issued a joint announcement to build the Tianchi Energy South Open-pit Coal Mine Phase I project. The two companies plan to increase capital and expand shares of Tianchi Energy and complete the special changes after the capital increase. The electrician will hold 85.78% of Tianchi Energy. After the production of the South Open-pit Coal Mine, the annual sales revenue of Tianchi Energy will reach 1.02 billion yuan, and the average annual after-tax profit will reach 159.53 million yuan.

On August 3rd, TBEA and Xinjiang Zhonghe signed the Agreement on Capital Increase and Share Expansion of Xinjiang Tianchi Energy Co., Ltd. Tianchi Energy plans to increase its registered capital by RMB 280 million. The capital increase price refers to the net assets of Tianchi Energy on June 30, 2012. After consultation, it was determined to be 1.20 yuan per share. Among them, TBRC added 288,204,400 yuan and Xinjiang Zhonghe increased capital by 47,796,000 yuan. After the capital increase was completed, the registered capital of Tianchi Energy was changed from 160 million yuan to 440 million yuan, and TBEA held 85.78% of Tianchi Energy.

According to the announcement, Tianchi Energy's main business scope is sales of engineering coal; development of humic acid and fulvic acid products (excluding dangerous goods); coal consulting services, etc. The total investment of the first stage construction project of the South Open-pit Coal Mine is 2.482 billion yuan. The construction content of the project is 10 million tons per year of mining, transportation, and drainage engineering and supporting engineering. The construction period is 1 year, and the production is completed in the 3rd year after the production. After reaching production, Tianchi Energy's annual sales income can reach 1.02 billion yuan (including tax), and the average annual profit after tax is 159.53 million yuan.