Jihua Group To Invest In Coal Trade, New Energy, Medical Industries - ResearchInChina

Date:2011-08-04     Source:liaoyanliuhongli  Text Size:

July 19 – Jihua Group Corporation (601718) will invest in coal trading, new energy and pharmaceutical industries, reports nbd.com.cn, citing a company filing.

Specifically, the Beijing-based firm will spend 25.5 million yuan to form a resource firm, and will hold a 51-percent stake in it. The unnamed resource firm will form a coal logistics channel to connect Jincheng city, Shanxi province and central southern Hebei province by integrating retail coal outlets.

Jihua Group will also form a company called Jihua Ruituo for 20 million yuan to research and produce photovoltaic power generation integration systems. The firm’s wholly controlled subsidiary will in turn set up a pharmaceutical company for 12.75 million and will hold a 51-percent stake in it. The new entity will invest 90.38 million yuan into a raw material drug project that is expected to generate total profits of 64.65 million yuan on revenues of 309 million yuan once operational.

Since December 2010, Jihua Group had made a total of five investments. Board secretary Wang Xingzhi says Jihua Group had planned to move into the photovoltaic power market two years ago to serve military and civilian clients.

Jihua Group was founded in 2006 and produces uniforms and shoes for China's military, with a share of 75% of the domestic market for army clothing. The company also exports to some 30 countries, including South Korea and Japan.



2005-2011 www.researchinchina.com All Rights Reserved 京ICP备05069564号-1