Longji shares transfer quartz business

Leading Longji Group (601012, stock) in the domestic monocrystalline silicon industry will transfer 40% of the shares held by Ningxia Jinglong Quartz Co., Ltd. The company said that this move is expected to bring a profit of 36.3 million yuan to the company, which will help ease the pressure on the funds and concentrate on the development of the main business. The company's profit in the first three quarters was 14.34 million yuan.

Longji shares landed in the capital market in April this year. Compared with 2010, which was nearly 440 million yuan, and the 2011 full-year profit of 280 million yuan, this year suffered tremendous changes in the photovoltaic industry. The company’s net profit in the first three quarters was only 14.34 million yuan. . At the same time, the company expects its annual performance to decline by more than 50%. Due to the continuing downturn in the PV market in the fourth quarter, the company had to sell its quartz business for revenue.

The company announced today that it has transferred 40% of the shares held by Ningxia Jinglong Quartz Co., Ltd. to Ningxia Xuanjing Trading Co., Ltd. The transfer amount is 49.6 million yuan. After the transfer is completed, the company no longer holds the equity of Ningxia Jinglong. Longji shares explained that due to the downturn in the photovoltaic market and the company’s financial pressure, it decided to transfer the equity to focus on the development of its main business and reduce related party transactions.