Chia Hsin Cement o list on H.K. bourse

Taipei, Dec. 5, 2003 (CENS)—Chia Hsin Cement Corp., Taiwan's fourth largest cement manufacturer, recently announced it has obtained approval from Hong Kong Stock Exchange to trade shares of its mainland China-based subsidiary Jingyang Cement Co. on the H.K. stock market starting Dec. 12.

Chia Hsin sid Jingyang will be listed on the H.K. bourse in the name of Chia Hsin (China) Holding, becoming the second domestic cement firm to do so, after Taiwan Cement Corp.

To facilitate its listing on the H.K. bourse, the Zhejiang Province-based Jingyang issued shares at the initial public offering price of HK$1.48, or NT$8 per share, winning total subscriptions of US$54 million. The company has obtained the right to issue new shares equivalent to 15% of its total capitalization. If the additional issuance is carried out, the company will score total fresh fund of US$63 million. The company boasted it received over-subscription from institutional investors on the stock-listing project.

The listing project is planned and executed by Polaris Securities Group. Polaris Group chief executive officer Huang Chi-yuan noted it would become a trend for Taiwanese enterprises to split mainland operations for listing on the H.K. bourse. He said his company would greatly extend financial services to the greater China and global capital markets, no longer just focusing operations on Taiwan.

Chia Hsin president Chang Yung-ping said his company has laid solid foundation in the mainland market because it entered the mainland's Yangtze River delta area as early as a decade ago and has successfully established a complete management system, including production, shipment and marketing, there.

Chang said the H.K. listing is just a beginning for his company to go international. The company won't rule out launching strategic alliances with firms from various industries.

At present, Chia Hsin is able to produce 6,800 metric tons of cement clinkers in the mainland per day and its ‘Chia Hsin' brand cement products have earned a good reputation in central and southern China.

Jingyang earned RMB94 million in the first nine months of this year, which will contribute NT$0.48 in earnings per share to its parent company.

Chia Hsin now operates eight subsidiaries in the mainland, spreading over various industries. In 2004, the firm plans to increase the number of its mainland offices to nine from six. With an attempt to further expand mainland operations, the company will increase eight more offices in the mainland in 2005.