On 30 Sept 2008 according to the 3Q Report released by Western Mining Co., Ltd. (601168), at least 300 mln restricted shares of the company were sold by a number of shareholders. Tradable shares in total amounted to 1.71 bln.

Beijing Anruisheng Technology Co., Ltd., formerly the second largest company shareholder holding 269 mln shares, sold over 200 mln shares by the end of Sept 2008 since 15 Jul 2008, when its restricted shares of the company became tradable. By 14 Oct 2008, 87.8 mln shares of the company had been sold via the bulk Shanghai Stock Exchange trading system.

Immediately after this fire sale, the company’s stock price plummeted. On 14 Jul, it closed at RMB 15.24 per share, and shortly after, reached its historic low of RMB 6.15 per share. The once highly priced shares were still being sold unabatedly.

According to its 3Q report, the company’s net profit and EPS for the first three quarters were RMB 1.003 bln and RMB 0.42, down 32.35% and 36.84% compared to the same period in 2007. The company explains this sharp drop with the continuous falling prices of zinc and lead, main products of its mining and ore refining businesses.


Source: Shanghai Securities News

Date: 22 Oct 2008

CN01/BJ/JL/NK/JW