Rising Nonferrous alters the fund use of RMB150 million to repay bank loans
2017-09-27 17:49:24 [Print]
Rising Nonferrous Metals Share Co., Ltd. has recently announced that they intend to terminate the construction of the R&D base and uses the collected about RMB150 million to repay bank loans.
The company said that although prices for some rare earth oxide products stabilized and rebounded in H1 2017 benefited from the illegal rare earth mining combat, environmental inspection and national reserves, prices for the company’s major rare earth products saw no significant increases; meanwhile, the higher mining cost of their tungsten mines also resulted in losses for their operation in H1 2017.
As of June 30, 2017, the company's asset liability ratio was as high as 58.51%, higher than the average level of the industry. In the first half of 2017, the company's financial costs reached RMB40.3947 million with high interest payments, largely dragging down the overall performance of the company. They will use the raised funds to repay the company's bank loans, which will help to reduce the company's asset liability ratio, relieve financial burden and improve operating performance.
The company said that although prices for some rare earth oxide products stabilized and rebounded in H1 2017 benefited from the illegal rare earth mining combat, environmental inspection and national reserves, prices for the company’s major rare earth products saw no significant increases; meanwhile, the higher mining cost of their tungsten mines also resulted in losses for their operation in H1 2017.
As of June 30, 2017, the company's asset liability ratio was as high as 58.51%, higher than the average level of the industry. In the first half of 2017, the company's financial costs reached RMB40.3947 million with high interest payments, largely dragging down the overall performance of the company. They will use the raised funds to repay the company's bank loans, which will help to reduce the company's asset liability ratio, relieve financial burden and improve operating performance.
