jade Tech, Reported 4Q results, with a Rmb8.1m gain in net profit, vs net loss of Rmb61.6mYoY, attributed to a one-off gain and grp’s new titanium dioxide business. Result brings FY10 Net profit to $12.4m, its first full-yr profit in 10 years….
Turnaround was result of group's change of business to titanium dioxide, after divesting all its loss-making businesses, including its investment in coal mining at Mount Galugua & Indonesia last yr….
Rev for yr came solely from ‘XinDe’ which trades, markets and distributes titanium dioxide related products. Jade Tech acquired a 20% interest in Daqing XinLong Chemical in Sept09, and set up a 51% subsidiary XinDe Chemical to be sole distributor for XinLong's titanium dioxide output.…
Quiet corporate restructuring at Jade, has seen it sign a letter of intent with XinLong to raise its stake to 100%. No specific timeframe was given, but Jade CEO mentioned that its only a matter of time. Note that if deal passes, Jade will transform itself from a shell Co. to a provider of titanium dioxide….
There are plans to boost its production capacity and invest in securing raw materials supply but these will have to wait until the acquisition of XinLong is finalized. We note that titanium dioxide is used in many 'quality-of- life' applications such as paints and plastics, and such industries will grow in line with China's GDP.'
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