Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
SINO PROSPER SG
HKEx Stock Code : 00766 
 
Corporate Profile
The Group is mainly engaged in investment in energy and natural resources (including precious metals) related projects in the PRC.

Business Review - For the year ended March 31, 2013

Current Operations

Aohan Qi Mine, Inner Mongolia

In order to ramp up production capacity, Aohanqi Xinrui En Industry Co., Ltd. (“Aohanqi”), an indirect non-wholly-owned subsidiary of the Company, completed its construction on the main shafts for the four vertical access shafts in August 2012. Since September 2012, exploration work and related construction have commenced across and parallel to the ore body. As at March 2013, the accumulated prospect tunnels under construction reached 1,911 .3 metres. It is expected that the progress of the exploration work will provide the basis for mining high-grade ore body at depth.

The main objective under this project in 2013 is to carry out the construction of the tunnels for four vertical access shafts and its related exploration and mining work. To materialise the above work targets and conduct in-depth exploration and extraction activities, Aohanqi needs sufficient liquidity support. Aohanqi plans to apply for an increase in the aggregate investment amount with relevant government authorities.

Zhongyi Weiye Heilongjiang Mines, Heilongjiang Province, PRC (“Zhongyi-Weiye Project”)

In the year of 2012, the Zhongyi-Weiye Project mainly focused on document compilation and conducting related research. In the year of 2013, based on the achievement of previous work, drilling verification and geophysical and geochemical explorations will be conducted, so as to locate target area for mining as soon as possible. Currently, the Company has entered into work contracts with competent geological survey teams and drilling company in the PRC. It is expected that related work will commence by the end of May of 2013.

Proposed Acquisitions and Connected Transactions

Proposed Acquisition of Qing Jiao Gold Mine (箐腳金礦) & Other Opportunities

The original agreement for the acquisition of Qing Jiao Gold Mine was entered into in December 2011 . Under the original schedule, the circular to the Company's shareholders (“Shareholders”) in connection with such acquisition was planned to be despatched by September 2012. Additional time is required for the Company to prepare the information to be presented in the circular to be despatched to the Company's shareholders, especially the technical report on the Qing Jiao Gold Mine. The Directors currently expect that the despatch date of the said circular will be further postponed to a date on or before 30 August 2013. Please refer to the Company's announcements dated 28 December 2012 and 19 April 2013 for details. It was estimated that the potential quantity of metal content within the area of 0.6033 km2 permitted by the mining right amounted to approximately 13.6 tonnes and the aggregate potential quantity of metal content of the remaining mining rights to be consolidated amounted to approximately 52 tonnes, as set out in an exploration and development report on the gold mine located in Xiongwu region, Xingyi City, Guizhou Province (貴州省興義市雄武地區), prepared by a domestic geological exploration institute at the request of the Target Company (as defined in the Company's announcement dated 30 December 2011 ). If consolidation and acquisition are completed, the potential economic value of the above metal and gold resources will increase significantly.

Proposed Acquisition of Treasure Join Limited

As disclosed in the Company's announcement dated 21 December 2012 in relation to the acquisition of the entire issued capital of Treasure Join Limited, the principal business of the target group is to provide micro-financing and investment and management consultation services in the PRC. Please refer to the said announcement for details of the acquisition. The auditing fieldwork and assessment work for valuation report on the Target PRC (as defined in the Company's announcement dated 21 December 2012) have been substantially completed, and the related circular to Shareholders on the acquisition is expected to be finalised by the end of June 2013.

Money Lending Business

The Group has been focusing on various businesses of exploration, development, mining and production of precious metals in the PRC. As set out in its 2011 and 2012 annual report, the Group then planned to operate finance business in addition to its existing exploration and production projects. In September 2012, the Group was granted a Hong Kong money lenders license and started the relevant operation in Hong Kong. This new segment recorded satisfactory results, and thereby brought profit to the Group.

Business Outlook - For the year ended March 31, 2013

In the view of significant price fluctuations in commodity markets during the first quarter of 2013 and uncertain prospects going forward, the Company is proactively identifying related projects or opportunities in relation to finance, natural gas and precious metals with investment potential in the PRC while consolidating its existing businesses. Meanwhile, the finance business in Hong Kong commenced in the second half of 2012 maintained good momentum, bringing impressive income to the Group. As a result, the Group will allocate more resources to these businesses with greater prospects.


Source: Sino Prosper State (00766) Annual Results Announcement
Chairman LEUNG Ngai Man Issued Capital (shares) 776M
Par Value HKD 0.1 Market Capitalisation (HKD) 151M
 
Login
Password
Register  Forget Password
Advanced Search
© 2024 The Standard, The Standard Newspapers Publishing Ltd.
Home | Business | Metro | Focus | Opinion | Markets | World | Sports | Entertainment | Monday Money | Property | Macau | Weekend