In China“s Shenzen province, China Southern Glass Holdings Co. Ltd. said last week that it plans to make a three for ten rights offer by August this year.
The offer, which has been tentatively price…
In China“s Shenzen province, China Southern Glass Holdings Co. Ltd. said last week that it plans to make a three for ten rights offer by August this year. The offer, which has been tentatively priced at between Rmb 4 and Rmb 5 per rights share, needs approval of shareholders who will meet on 30 March, said company spokesman Mr. Yao. Southern Glass aims to raise Rmb 200 million from the rights offer. Funds raised will be used for the ongoing construction of a Rmb 200 million glass plant in Shenzhen and general working capital, Yao said. Construction on the plant began in the second half of 1996 and Southern Glass expects it to be completed by the end of this month. The plant is not expected to generate profit this year but China Southern hopes it will become one of the firm“s main profit sources in 1998, contributing Rmb 400-500 million in sales. According to Yao, Southern Glass expected a year-on-year rise of up to 10% in net profit in 1996, having succeeded in restraining production costs and expanding sales. Detailed results are to be made public after the completion of an audit. Southern Glass said 1995 net profit declined by 16.4% to Rmb 134.67 million from the previous year“s level of Rmb 161.14 million.