Largest Shareholder Suffers RMB 600 Mln Loss

On 14 Oct 2008, the company released its 3Q 2008 Report, which indicated that its largest shareholder, the Social Security Fund Portfolio 112 (SSF 112), had sold no shares of the company during the last half year, while suffering a loss of RMB 600 mln in its books.

On 17 Jan 2008, a rights issue on the basis of 90% of SSF 112's subscription of the company's public issuance bumped up SSF 112's holding in the company from a low of 7.5 mln shares to 69.84 mln shares, equal to a 7.26% stake. By 31 Mar 2008, after selling 4 mln shares, SSF 112 held 64.64 mln of the company's shares.

At RMB 15.23 per share, SSF 112 paid RMB 920 mln for the subscription. With the closing price at RMB 3.26 per share on 13 Oct 2008, the issuance plummeted to RMB 295 mln, resulting in a RMB 600 mln loss.

Against the background of a sluggish real estate industry, the company's net profit in 3Q 2008 decreased 27% to RMB 58.91 mln. Along with the 3Q 2008 Report, the company has put forth a plan to issue up to RMB 1.8 bln worth of corporate bonds.


Source: Shanghai Securities News

Date: 14 Oct 2008

CN01/NW/DM/NK/KM