Zhongfu Industry Co., Ltd Plans to Invest an Additional 155 million yuan in Aluminum Processing

On December 8, Zhongfu Industry Co., Ltd announced that it planned to authorize its subsidiary Linzhou City Linfeng Aluminum Industry Co., Ltd to add 155 million yuan investment into Linzhou City Linfeng Aluminum Electric& Aluminum Product Co., Ltd.

By November 30, 2009, Linfeng Aluminum Product has a total asset amount of 717.34 million yuan, and a total liability of 702.45 million yuan, with a net asset of 14.89 million yuan; its total profit between January and November 2009 is 18.49 million yuan, the net profit is 13.86 million yuan. According to Zhongfu Industry Co., Ltd, this time’s increase in investment is mainly for improving the Company’s aluminum processing capacity, and integrating the aluminum processing business under Linfeng Aluminum Industry, it will produce positive impact on the Company’s future development.

Furthermore, the subsidiary company Linfeng Aluminum Product Company will also invest 16.04 million yuan to acquire 100% stock equity of Linzhou Zhenxin Machinery Casting Co., Ltd. By November 30, 2009, Zhenxin Machinery Casting has a total asset amount of 463.99 million yuan, total liability of 448.16 million yuan, its net asset is 15.83 million yuan; its total profit between January and November 2009 is 7.02 million yuan, with a net profit amount of 5.27 million yuan. According to Zhongfu Industry Co., Ltd, this time’s acquisition is mainly for improving the Company’s aluminum processing capacity, integrating industry chain, and improving the Company’s core competitiveness and the ability to resist market risks, in order to achieve sustained and rapid development of the enterprise.