Jingcheng Copper Industry: Renewable Resources Accelerate the Construction of Raw Materials Industry

Jingcheng Copper (002171) disclosed today that on July 6, 2011, the company and Anhui Chujiang Investment Group Co., Ltd. signed an “Additional Capital Accord” to increase registered capital of Anhui Jingcheng Renewable Resources Co., Ltd., a subsidiary company, in Wuhu City. The two sides agreed to plan to refinance 45 million yuan of capital in accordance with the original shareholding ratio, of which Jingcheng Copper contributed 40.5 million yuan, accounting for 90% of the total share capital; Chujiang Group contributed 4.5 million yuan, accounting for 10% of the total share capital. After the completion of the capital increase, sincerely, the registered capital has increased to 50 million yuan.

Jingcheng Copper's move aims to expand and enrich raw material procurement channels, speed up the construction of the raw material industry, and improve the industrial chain. It is reported that Jingcheng Recycling mainly engages in the acquisition, processing, warehousing and sales of recycled metal and recycled plastics. As of March 31, 2011, Jingcheng's total assets were RMB 71,375,500, net assets were RMB -2,662,670, realized operating income of RMB 8,951,500 and net profit of RMB 13,714,100.

Jingcheng Copper said that the renewal of the capital increase will help the company further improve the industrial chain, enhance the company's market competitiveness, and play a economies of scale.