Jingwei International Limited today announced that its previously disclosed "going private" transaction designed to eliminate Jingwei's status as a public company in the U.S. has been consummated. Following suspension of trading in Jingwei's common stock on the NASDAQ, the Company effected a 1 for 20,000 reverse stock split, with the result that all shareholders owning less than 20,000 shares as of 7:00am (EDT) on March 30, 2012 will receive a cash payment of $2.20 per share from a fund established by Jingwei with the exchange agent for the transaction.
Actual sales of EVs during the year of 2011 trended up to 1,076 vehicles. To ensure the Company will be able to meet what it anticipates to be growing demand for its EVs in China in 2012 and beyond, the Company spent close to $10 million on new equipment in 2011, which, with additional future expenditures being planned, should permit expansion over time to a targeted production capacity of 20,000 to 100,000 vehicles annually.
"We remain very optimistic about the EV market in China and the leading role we believe we can play in it. We have been setting the stage for success for some time now and believe that 2012 will be a breakout year for Kandi and for what we see as a transformative industry worldwide. Most recently, in mid-March, we had very encouraging conversations with a key official who is responsible for the 20,000 EV project in Hangzhou in connection with a group led by him to inspect our facilities and test drive Kandi's electric vehicles. As a consequence, we are encouraged to be informed that 20,000 EVs will be able to launch in Hangzhou soon. Our discussion in regards to becoming the EV provider also is coming to a conclusion. Kandi's anticipated role in this launch would have an enormous positive impact on our Company and open many new opportunities if we are successful."
Based on the current business outlook, the Company estimates that bromine prices, a factor with a large impact on the Company's operating performance, will fluctuate between a range of RMB23,150 per tonne and RMB30,000 per tonne in fiscal year 2012. Given anticipated bromine price levels, the Company forecasts total revenue to range between $114.7 million and $147.3 million, and net income to range between $16.8 million and $30.5 million in fiscal year 2012. The above forecast does not take into account the potential effect on net income resulting from expenses that may arise from potential drilling expenditures in 2012 for further testing and exploration of underground bromine water resources in Daying County, Sichuan Province.
"Although we expect bromine prices to stay relatively constant and stable in fiscal year 2012 due to the continued slowdown of the economy in China, we believe the strategy of exploring more brine water resources and obtaining bromine assets through acquisitions will enable us to achieve long term growth in the future. We have sufficient cash flow for our operating activities and will continue to look for attractive acquisition targets."
The continuing influence of macroeconomic tightening policies in China resulted in weakened market demand for a number of our products in the fourth quarter of the year. The quarter's operating environment was especially difficult compared to the same period in 2010 as the average selling prices of both bromine and crude salt decreased. Despite slowing economic growth in the domestic market, we now expect the prices for bromine and crude salt to stay relatively stable with only minor volatility throughout the year in 2012.
With the completion of equipment upgrades and improvements carried out in 2011, we expect that the problem of aging equipment will be solved and that this will facilitate enhanced bromine extraction from brine water with lowered concentrations in the Shandong area. Factory No. 4 completed its relocation by the end of 2011 and began production in late November. We anticipate our bromine production capacity to gradually recover to the same levels of a year ago. We will also focus on exploring quality underground brine resources and to form cooperation opportunities in Daying County in Sichuan Province.
We successfully ramped production at our Laiyegou mine, as well as capitalized on our expanded quota from the railway bureau to accelerate our coal trading volumes. Continued strong demand for energy and electricity provide both diversification and another conduit for incremental growth in 2012. As consolidation across our industry accelerates we continue to evaluate opportunities to expand our mining assets.
Strategically, we sold all remaining inventory of apartment units available for sale in the fourth quarter of fiscal 2011 and have no apartment units available for sale now. Consequently, we minimize the effects of the slower real estate markets on Gold Horse. Moreover, we will keep going forward on track to become one of the most prominent construction and real estate development companies in Inner Mongolia, China and we are confident that the construction and the real estate development in Hohhot, Inner Mongolia and its surrounding areas, a third-tier city, will remain strong in the future.
Certification and Notice of Termination of Registration under Section 12(g) of the Securities Exchange Act of 1934 or Suspension of Duty to File Reports Under Sections 13 and 15(d) of the Securities Exchange Act of 1934.
Gulf Resources today announced that its wholly-owned subsidiary Shouguang City Haoyuan Chemical Company Limited (SCHC) has signed an agreement to acquire manufacturing assets involved in bromine production from Liangcai Zhang, an individual resident of the People's Republic of China.
"The acquisition will result in additional annual production capacity of approximately 3,000 tons of bromine based on the company's own assessment and expand the consolidated annual production capacity of SCHC to 44,547 tons of bromine, based on the annual production of 41,547 tons of bromine evaluated by a third-party independent international appraisal firm, Grant Sherman Appraisal Limited, in November 2011 before the acquisition. We expect the additional production of bromine from these new assets to add approximately $2.2 to 2.3 million in incremental gross profit before tax annually. The company will continue with its acquisition strategy and look for appropriate targets."
Consideration for the asset purchase is approximately $10 million in cash and upon the closing of the transaction, no later than 10 days after receiving the satisfactory assessment report, SCHC will acquire the buildings, wells, machinery, equipment, pipelines, and power circuits owned by the sellers, and any warranties associated therewith, located at 3 kilometers west of the Yangkou Village, south of Youyi road in Shouguang City Yangkou Township. The Company expects to resume production with the newly acquired assets by the end of first quarter 2012 after repair and adjustment.
Based on sales through December 15, 2011, management expects full year results as follows: Revenue of $28.5 - $29.5 million, Net Income of $8.2 - $8.8 million, and EPS of $0.81 - $0.87.
In late November, the Company and a number of other farms in greater Wuhan received a shipment of tainted corn feed containing a mycotoxin mold. A number of hogs that consumed this feed were infected with the mold, which caused porcine diarrhea. Approximately 10,000 of Tianli's hogs, consisting of a mix of sows, feeder pigs, and piglets, with the majority being piglets, exhibited signs of the infection.
"We have taken all the steps necessary to eliminate the threat posed by this shipment of tainted corn. ... Because we constantly monitor the health of our animals we were able to quickly contain the effects of this incident. The additional costs and lost revenues from the infected hogs will have a short-term impact on our operations and our financials. However, we will quickly replace the lost hogs and return to full production levels."
China Infrastructure Construction Corporation announces that it has completed relocation of its facility to Daxing County, Beijing from the Yizhuang Economic Development Zone, Beijing. The Company has purchased land in Daxing County, whereas previously the Company was leasing the land on which its facility was located. The Company is in the process of building a new office building at this new location, which will house its headquarters when completed in April of 2012.
"The significance of this relocation for the Company is that at this location, we are within 10 kilometers of the new Beijing Airport, which will reportedly commence construction in mid 2012. This new airport will have capacity of 40 million people per year during the first phase of construction, to be completed by 2015. The total construction project will last for 8 years. With the development of this new airport, the development of the surrounding areas is also well underway. We have invested significant time and capital into this move and are convinced that this relocation will bring the Company increased potential business in the near future."