The Transferring Price of Yue Meiya State-owned Stock Was High

    According to the report, the shareholder of Yue Meiya stock---Heshan Management Office of State Assets transferred its 18,620,000 shares to Guangdong Textile Import & Export Group Corporation (GTIE) at RMB 5.5, which was permitted by National Ministry of Finance on January 22, 2002. However, the closing price of the secondary stock market was RMB 5.26 on that day, why did Yue Meiya transfer its shares at so higher price?
    The main reason was that Yue Meiya and GTIE had signed an agreement of transfer in January last year (Yue Meiya had been announced on January 5). Eventually the two parties made a decision to transfer at RMB 5.5 because the price of the secondary stock market was between RMB 7 & 8 and net assets of Yue Meiya reached RMB 4.14. Simultaneously, due to waiting for a reply by National Ministry of Finance, the price of Yue Meiya stock was different from that of last year, explained by our director, Mr. Feng Wei. Secondly, GTIE was looking for a powerful and integrated company to cooperate, and Meiya was the right one he considered. Thirdly, we did business with United States of America and Japan. Because of September 11 terrorist attack and devalues of Yen in Japan, our export and price had been dropped dramatically in the second half of last year.
    Therefore, now we are seeking some direct distributors for higher export price in Japan, and we are putting great efforts to negotiate. While in USA, with the affect of September 11 terrorist attack was weakening, we had solved tariffs problems of export commodities, we promise Meiya will have a bright future.