The 17 billion backdoor transaction was completed, and New Territories Pumps intends to change its name to Tianshan Aluminum

On the evening of July 10, New Territories Pumps (002532. SZ) issued an announcement that the company intends to change its name to “Tianshan Aluminum Group Co., Ltd.”, the abbreviation of the securities to “Tianshan Aluminum”, and the stock code is still “002532”.

In March 2019, New Territories Pumps announced a major asset restructuring with Xinjiang Tianshan Aluminum.

On June 12, 2020, it was approved by the China Securities Regulatory Commission. New Territories Pumps issued a total of 3.38 billion new shares to the actual controller and other shareholders of Tianshan Aluminum, and the actual controller of Tianshan Aluminium became the major shareholder of New Territories Pumping. The original pump business of New Territories Pumps was spun off from the listed company and undertook by Xu Mintian, the actual controller of the original listed company. The assets of Tianshan Aluminium were placed in New Territories Pumps, and Tianshan Aluminium became a wholly-owned subsidiary of New Territories Pumps.

On 7 July 2020, the new shares issued by New Territories Pumps were officially listed on the Shenzhen Stock Exchange. As of the close of trading on July 10, the share price of New Territories Pumps was $9.03 per share, with a market value of $35.1 billion. The business of listed companies has been transformed into the whole aluminum industry chain, forming an aluminum company integrating from upstream bauxite, alumina, power generation, anodic carbon to primary aluminum and aluminum deep processing.

It is reported that Tianshan Aluminum is worth 17 billion yuan this time. The performance compensation obligor of Tianshan Aluminum promises that the non-net profit generated by the target company in 2020, 2021 and 2022 shall not be less than 1.460 billion yuan, 2.000 billion yuan and 2.410 billion yuan respectively, with a total of not less than 5.87 billion yuan in 3 years.

Located in Shihezi area, the Eighth Division of the Xinjiang Production and Construction Corps, Tianshan Aluminum Base Camp has a production capacity of 1.2 million tons of electrolytic aluminum, six sets of 350,000 kilowatt generator sets, and 600,000 tons of carbon. Xinjiang has abundant and low-cost coal resources, Shihezi has a regional power grid of the XPCC, relying on local resource advantages, Tianshan Aluminum’s core cost of producing electrolytic aluminum – electricity cost is the lowest in the industry.

In addition to its power cost advantage, Tianshan Aluminum is building a new alumina production line with an annual output of 2.5 million tons in Jingxi, Guangxi, and the first phase of 800,000 tons has reached the standard and put into operation in March this year. Relying on Guangxi’s abundant and low-cost bauxite resources, all 2.5 million tons can be self-sufficient in raw alumina after completion.

Since the beginning of this year, although the macroeconomy has been greatly affected by the new crown epidemic, the overall performance of the aluminum industry has been very bright. After the resumption of work and production of downstream enterprises in March, domestic primary aluminum consumption showed rapid growth, inventory continued to decline, aluminum prices also rose steadily, the current market aluminum price is about 14500 yuan / ton, the overall economic benefits of the aluminum industry are significant.

It is reported that the name change of Tianshan Aluminum is expected to be completed in early August.

Responsible Editor: Li Jianhua Intern Li Geli

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