Xinjiang Xinxin Mining Industry Co,.Ltd Provides Group Earnings Guidance for the Year Ended December 31, 2011
February 03, 2012 at 10:16 am
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The board of directors of the Xinjiang Xinxin Mining Industry Co,.Ltd announced that the financial results of the Group for the year ended December 31, 2011 are expected to decrease significantly as compared to those for the year ended December 31, 2010. The company considers that the significant decrease in the financial results of the Group for the year ended December 31, 2011 was mainly attributable to the following reasons: Although the production output of nickel cathode and copper cathode of the Group during January to December 2011 has significantly increased to 8,128 tonnes and 5,339 tonnes, respectively, representing an increase of 36% and 30% respectively as compared to the corresponding period of the previous year, the average selling price of nickel cathode of the Group has decreased during January to December 2011, especially during second half of 2011, as compared to the corresponding period of the previous year owing to the European debt crisis and the slow recovery of global economy; due to inflation in general in the PRC and that Kalatongke Copper-nickel Mine underwent technological renovation and capacity expansion for its smelting operation including the trial production and commissioning of its production flow, the average production cost of the Group has increased during January to December 2011 as compared to the corresponding period of the previous year; and the year 2010 was the last year which the Group could enjoy the old preferential tax policies under the Western Development Programme as granted by the Xinjiang government, and up to the date of this announcement, the Group has not yet obtained the approval from the Xinjiang government entitling the Group to enjoy the new preferential tax policies under the Western Development Programme. The Group calculated income tax temporarily at a rate of 25% in 2011, leading to a sharp increase in corporate income tax of the Group during January to December 2011 as compared to the corresponding period of the previous year.
Xinjiang Xinxin Mining Industry Co., Ltd. is principally engaged in the mining, ore processing, smelting, refining and sales of nickel, copper and other non-ferrous metal products. The major product of the Company is nickel cathode. The other major product includes copper cathode. The Companyâs subsidiaries include Mengxi Mining, Wuxin Copper and Kalatongke Mining. Through its subsidiaries, the Company is also engaged in the investment in phosphate fertilizer, compound fertilizer and other chemical products.