Xinxing Pipes announced in a statement that its issuance of additional 300 million A stocks plan has been passed the approval by China Securities Regulatory Commission on August 5th with the collecting funds of CNY 3.51 billion. The price of each stock was set at CNY 11.7.

After collecting funds for the additional issuance, Xinxing Pipes plans to acquire 40% stocks of Wuhu Xinxing Ductile Pipes Co Ltd by CNY 1.2 billion. At present, the former has held 60% stocks. Once the acquisition finished, Wuhu Xinxing Ductile would become the sole subsidiary of the company.

The data shows, the operating incomes of Wuhu Xinxing Ductile Steel Pipe posted at CNY 8.122 billion in2008 with the net profits hitting at CNY 0.514 billion. By the end of last year, the total assets of the company went at CNY 4.968 billion with CNY 2.561 billion of net profits. Besides, Xinxing Pipes plans to spend CNY 0.894 billion in fixed assets investment and CNY 0.942 billion in Wuhu Xinxing Ductile Pipe fixed assets investment including 36,000 tonnes of forgoing products, automobile and engineering projects with the investment of CNY 0.5 billion and CNY 0.442 billion respectively.

The released 2009 half year’s earnings report showed that the company has realized CNY 12.411 billion of operating incomes up by 17.01%YoY, net profits of CNY 0.472 billion up by 21.19%YoY. ESP was posted at CNY 0.402 with the net cash flow of CNY 0.44 per share.

The insiders noted, along with the raising steel mills’ ex-works prices in Aug, the whole steel industry is on the way of recovering. The bullish construction steel market will push up the relevant steel enterprises.

According to the data from Wind, the stock price was coming at CNY 13.8 per share on August hitting a record high in one year with the annual growth rate of 145.99%.