Company
NorthGlass Introduces Funds into Eco-friendly Industry
When the central government is planning to tackle industrial overcapacity, while getting down to vigorously promoting “green economy” on the other hand, more and more traditional enterprises started to seek new economic growth opportunities, and NorthGlass (Stock code: 002613) also decided to join in the trend and find its own new development opportunity.
On 4th, July, NorthGlass announced that it will cooperate with Lianxun Capital Investment Co., Ltd.(hereinafter called as Lianxun Capital)—one of directly-invested subsidiaries of Lianxun Securities (Stock code: 830899), and plan to invest no more than RMB 1billion to set up Lianxun NorthGlass Investment Funds Partnership (limited partnership) (Tentatively named, hereinafter called as NorthGlass Funds).
The aim of NorthGlass setting up industry funds together with Lianxun Capital is to adjust the company’s industrial distribution.
For NorthGlass funds this time, the total capital contribution of all company shareholders is no more than RMB 1 billion. Among which, NorthGlass Corporation will contribute RMB 150 million, Lianxun Capital will contribute RMB 50 million, and Mr. Gao Xueming, who is the dominant shareholder of NorthGlass Corporation, will contribute RMB 300 million. Tibet Lianxun NorthGlass Investment Management Co., Ltd (Tentatively named, hereinafter called as Tibet NorthGlass) will further contribute RMB 10 million, and RMB 490 million remained will be contributed by other investors as follow-up partners.
Tibet NorthGlass is another new company invested and established together by NorthGlass and Lianxun Capital, totally funding RMB 10 million.
Through setting up this industrial fund, NorthGlass can bring the flexibility advantage of fund investment into full play to hunt for superior resources upon acquisition and investment activities.
The setting-up of this industrial fund is only one part of NorthGlass’s whole new industry development plan. NorthGlass also planned to inject capital to Beijing Huierjiu Material Technology Co., Ltd., to be involved in eco-friendly industry for the first time.
The capital introduction from NorthGlass Funds into Huierjiu will make NorthGlass become the dominant shareholder of Huierjiu, holding 52% of shares of Huierjiu’s stock. And Huierjiu will be renamed as “Beijing NorthGlass SiNest Technology Co., Ltd.”.
The SiNest material is a new eco-material, a micro-crystalline material foamed from tailings, which owns the characteristics of fire-proofing, thermal insulation, anti-corrosion as well as damp-proofing. The industrialization of its manufacturing and processing lines makes it become a competitive company along the industry. More importantly, the SiNest technology can make waste valuable by recycling, which has been listed among 11 key new technology models significantly encouraged and supported nationally by Chinese Ministry of Treasury, Chinese Ministry of Propaganda and Chinese Ministry of Education.
Early in 2015, NorthGlass has started to expand its business scope outwardly by the way of acquisition and investment. In January of 2015, NorthGlass invested RMB 33 million to establish Automation subsidiary to start developing glass processing automation system; Then in July of 2015, NorthGlass purchased 10% shares of Shanghai Taiwei Technology Development Co., Ltd. and planned to further purchased 41% of its totals shares in the coming two years. In addition, in December of 2015, NorthGlass invested RMB 112 million to merge 51% shares of Shenzhen Juisun Screen Printing Machinery Co., Ltd. and further took over all business of Dongguan Byronic Machinery Equipment Co., Ltd. to establish Guangdong NorthGlass Juisun Glass Technology Industrial Co., Ltd., setting foot in glass screen printing business as well as glass pre-processing industry for automotive and furniture/appliance use. And on 31st, March 2016, Tianjin North Glass Industrial Technical Co., Ltd., the subsidiary of NorthGlass Group, set up its wholly-owned subsidiary in USA New York to further expand its overseas market, the new company is called “NORTHGLASS AMERICAS LLC”. With all these 4 new companies setting up, what NorthGlass is doing is sparing no efforts to prepare for new challenges in the new economy. NorthGlass’ fund introduction into eco-friendly industry this time is undoubtedly a new breakthrough for itself, which will help it to achieve industry transformation and innovation even greatly.
