China Finance, Inc., Chinese financial services company providing financial support and services for growing class of China's small and medium enterprises, announced its intention to expand its business by including strategic direct investments and acquisitions of the equity of small and medium enterprises through its wholly-owned subsidiary, British Virgin Islands-registered Value Global International Limited.
CEO of China Finance, Inc., Ms. Ann Yu commented that the Chinese company anticipates the direct investments will allow it to continue to grow strategically, and will bring benefits to the company.
In consistence with this new strategy, the BVI-based subsidiary of China Finance has signed a non-binding letter of intent to acquire 80% of the current stock of the issued and outstanding shares of Wenxi Baiyu Magnesium Co., Ltd. The controlling interest will be purchased from Shanxi Baiyu Industrial Group for approximately US$11,420,000.
Wenxi Baiyu Magnesium is located in Yuncheng, Shanxi Province, which is the major magnesium production base in China; it was founded in April 2000 by Shanxi Baiyu Industrial Group. Currently WBM is the owner of one of the largest monomer magnesium spindle production lines in China. Wenxi currently anticipates annual sales in the amount of US$47,000,000 with US$7,500,000 in net profits for the fiscal year 2008.
