Sino Color Shares Signed Major Contracts With Iran Company.

On the evening of December 21st, China's nonferrous metals construction Limited by Share Ltd (000758.SZ, hereinafter referred to as the Sino color share) issued a major contract announcement. The company signed the "EPC general contract" with Iran ALPHACO company in December 20, 2010, with a contract value exceeding RMB 4 billion 800 million yuan.

According to the announcement, the contract is mainly to provide EPC engineering general contracting for ALPHACO company of Iran, including design, equipment supply, civil engineering, equipment installation, commissioning and training, and build an electrolytic aluminum plant with an annual capacity of 310 thousand tons. The contract is currently only one phase, or 155 thousand tons, and the total contract price of the first phase is 4883951828 yuan.

The duration of the contract shall be completed within 36 months from the date of entry into force of the contract.

Medium - color shares show that the implementation of the contract does not affect the company's operating performance in 2010, and will have a certain impact on the performance of the next three years.

According to the financial report of the first half of 2010, the gross profit margin of the company's engineering contract is 8.21%.

Bank of China International Securities believes that the progress of the company's assets injection is relatively limited in the short term, but the contracting business or the Iran market has hit the bottom.

China color share is one of the world's major engineering contractors. Its main business is contracting foreign projects in the industry, domestic foreign investment projects, export of equipment and materials required for contracting projects, developing non-ferrous metal resources such as aluminum and zinc at home and abroad, consulting, surveying and designing foreign non-ferrous metal projects.

It is a listed company that started implementing the "going out" strategy of the colored resources earlier. The advantage of China's color share in utilizing overseas non-ferrous metal contract project successfully controlled the Mongolia OBO zinc mine, intervened in the Laos bauxite project and the development of Tara hamzai large lead-zinc mine project, and established a resource base in many parts of the world.

On Tuesday, China shares closed 32.40 yuan / share, up 0.31%.