Potassium Fertilizer Assets to be Placed in International Industries
On November 14, International Industries issued an announcement on the signing of the Letter of Intention for Cooperation on the restructuring of major assets. The announcement said that on November 13, He Maoxiong, the controlling shareholder of International Industry and Cold Lake Littoral Potassium Fertilizer Co., Ltd. (hereinafter referred to as "Cold Lake Littoral Potassium Fertilizer Company") and some other shareholders signed the "Letter of Intention for Cooperation" respectively.
This transaction is the replacement of part of the assets (including equity) legally held by the international industry with part of the controlling shares legally held by the five shareholders of the cold lakeside potash fertilizer company, so as to realize the relative control of the international industry over the littoral potash fertilizer.
The counterparty of this transaction is a part-owner of Lenghubin Potassium Fertilizer Company: He Maoxiong, a natural person, holds 43.0707% of the shares of Lenghubin Potassium Fertilizer Company; Shanghai Kailun Investment Center (Limited Partnership), holds 4.5% of the shares of Lenghubin Potassium Fertilizer Company; Shanghai Beichang Investment Center (Limited Partnership) holds 4% of the shares of Lenghubin Potassium Fertilizer Company. Shanghai Mayflower Investment Center (Limited Partnership) holds 1.7044% of Cold Lake Potash Fertilizer and Shanghai Levitan Investment Center (Limited Partnership) holds 1.0226% of Cold Lake Potash Fertilizer.
Cold Lake Potassium Fertilizer Company was established on May 19, 2004. Its registered capital is 250 million yuan. It is registered at No. 1 Dayan Tan, Lenghu Town, Qinghai Province. He Maoxiong is the legal representative.
Lenghu Bindi Potassium Fertilizer Company has the mining right of 832.09 square kilometers of Dayantan Potassium Deposit in Lenghu Town, Qinghai Province. The mining area is rich in potassium, sodium, magnesium, lithium, boron, rubidium, cesium and other resources. The mining warrant number of Dayantan Potassium and Magnesium Salt Mine of Lenghu Bindi Potassium Fertilizer Co., Ltd. is G6300002009026210005148, with production scale. 780,000 t/a, valid until May 25, 2028.
From January to October, 2015 to 2017, Lenghubin Potassium Fertilizer Company realized business income of 325 million yuan, 210 million yuan and 104 million yuan respectively, realized net profit of 27.4975 million yuan, -42.5206 million yuan and-35.7039 million yuan respectively, and asset-liability ratio of 50.37%, 53.34% and 54.73% respectively.