(Yicai Global) Dec. 8 -- China National Gold Group Gold Jewellery Co. (CNGGGJ), whose initial public offering preparation has entered a substantive phase, is moving ahead with its mixed-ownership reform program.
The subsidiary of China National Gold Group Corp. (CNGGC), a state-owned metal firm, received approval from the National Development and Reform Commission for its plan.
Seven strategic investors including CITIC Securities Co. [SHA:600030], JD.com Inc. [NASDAQ:JD] and Industrial Bank Co. [SHA:601166] took 24.52 percent of the Shanghai-based group. The company brought on industrial investors holding a 9.81-percent share and the company’s core staff has a 6-percent stake.
These three types of backers contributed CNY2.25billion (USD340 million). After they got their stakes, CNGGC’s shareholding dropped to 43 percent. CNGGGJ is working towards listing and has raised capital according to its schedule. It has established a mechanism for handling securities affairs.
Through its mixed-ownership reform, CNGGGJ expects to develop its financing channels, reduce its high debt ratio and raise the efficiency of its organizational structure. The enterprise said it will be able to expand its market share and presence through the capital market to create a leading gold jewelry firm with international influence.
Established in 2010, CNGGGJ completed its integration with CNGGC’s retail subsidiaries in January 2015. It has 30 branches. Its total historical sales revenue was CNY286.63 billion with a cumulative profit of CNY1.48 billion as of the end of last year.