China Metallurgical (01618) announced that the company is reserving RMB 42 million to ensure the future of the ENAC project...
According to the Zhitong Finance App, China Metallurgical (01618) announced that after reserving RMB 42 million to secure the capital required for the Einac project's plans for the next year, the company will continue to use RMB 2.1 billion of idle funds originally intended for the Einac project to supplement the working capital of the Group's overseas engineering projects for a period of one year.
The net capital raised from the initial public offering of H shares was approximately HK$15.585 billion. Up to now, the Group has used a total of approximately HK$13.310 billion in capital raised, with a balance of approximately HK$2,275 million, all of which are special funds for the Einac project. Of these, the balance of funds raised in the special account was HK$47 million (including transposition proceeds and deposit interest, equivalent to RMB 42 million).
The progress of the Einak project was affected by security issues, cultural relics excavation and land handover delays that the Afghan side is responsible for. Currently, negotiations are being carried out to improve the project's investment results to promote substantial progress. It is expected that large-scale capital investment will not be required in the short term, and the portion of the capital raised for the H share initial public sale for the project will be largely idle. In order to improve the efficiency of the use of capital, after review and approval at the 57th meeting of the 3rd board of directors of the company, after reserving HK$47 million to ensure the funds required for the next year's plan for the Einac project, the company will continue to use the idle capital of RMB 1,986 billion originally intended for the Einac project to supplement the working capital of the Group's overseas engineering projects for a period of one year. If within the one-year period approved by the temporary supplementary working capital, the relevant project company that has been allocated to temporarily use the idle funds raised above will withdraw the project funds in batches and make up the special fund account for the Ainac project.
The board of directors believes that continuing to use the idle funds raised from the Einac project to supplement the working capital of the Group's overseas engineering projects will improve the efficiency of the use of the Group's capital, reduce financial expenses, and conform to the overall interests of the company and its shareholders.