In the territory of Khoroo 20, Songinokhairkhan District
/behind the “Buyan” LLC’s cashmere industry/
Share Name:
Remicon
Share Type:
Common
Price per share:
MNT 100
Total share:
127,642,623.
The shares to be offered to the
public:
98,992,602.
Percentage of shares to be offered
to the public:
77.55%
Information of owner, who owns
more than five percent of bond issuer:
Gankhuyag Khassuuri is to own
22.44 percent from the company’s total 28,650,021 shares.
THE BASIS FOR PROJECT IMPLEMENTATION
The
building sector has been developing rapidly in Mongolia. In order to
provide Ulaanbaatar’s growing population with apartments and to furnish
greater safety and a more comfortable living environment for
Ulaanbaatar residents, the government of Mongolia has initiated the “40
000 Apartments” program. The initiative aims to build new apartment
districts, re-plan ger areas, and improve Ulaanbaatar’s population
density through the construction of new apartment districts. Due to the
large size of the project, demand has increased for construction
technology and building materials that meet modern requirements and
standards. According to the 2006 official statement of No.1 of the
Minister of Construction and Urban Development, a decision was passed
to prohibit the manual preparation and usage of concrete mixture.
This
decision was made in order to increase the strength and quality of
concrete mixtures that would be used for buildings with combined steel
and reinforced concrete carcass casting as part of the government
initiative, and for Mongolia’s development in general. This combined
casting also aims to minimize environmental damage. As a result of the
decision, demand for the development of concrete mixtures which meet
the new standards has arisen in the market.
The company drew
up plans to build a concrete mixer industry equipped with modern
technologies on the basis of calculation, research and monitoring done
last year. Then, the company established the “Remicon” Company which
was registered as a Joint Stock Company and its share is being offered
to the public for the purpose of financing the project.
COMPANY STRUCTURE AND ORGANIZATION
Shareholders’ Meeting
Governing Board - Control Council
Executive Director
Marketing Department
Industrial Department
Financial Management Department
Service of Technology
Laboratory
Service of Economy Raw Material and Supply Service
Mechanic Service
¹
INDICATIONS
YEAR
2008
2009
2010
2011
1
Income from main operation
13640 400 000
48 405 600 000
48 405 600 000
48 405 600 000
1.1
Income from selling
13 640 400 000
48 405 600 000
48 405 600 000
48 405 600 000
1.1.1
Ì 150
2 624 400 000
7 873 200 000
7 873 200 000
7 873 200 000
1.1.2
Ì 200
3 564 000 000
11 016 000 000
11 016 000 000
11 016 000 000
1.1.3
Ì 250
3 564 000 000
13 186 800 000
13 186 800 000
13 186 800 000
1.1.4
Ì 300
3 888 000 000
16 329 600 000
16 329 600 000
16 329 600 000
Sum of income from selling
13640 400 000
48 405 600 000
48 405 600 000
48 405 600 000
2
Expenses of sold product
8 921469 604
31253195 699
31253195 699
31253195 699
2.1
Expenses of production
8 890 410 252
31122 582 130
31122 582 130
31122 582 130
2.1.1
Fuel
451 907 100
1 581 674 850
1 581 674 850
1 581 674 850
2.1.2
Lubricant
14 438 880
50 536 080
50 536 080
50 536 080
2.1.3
Salary
92 564 286
323 975 000
323 975 000
323 975 000
2.1.4
Health, Social Insurance Premiums
9 831 800
40 557 550
40 557 550
40 557 550
2.1.5
Wheel erosion
39 024 000
136 584 000
136 584 000
136 584 000
2.1.6
Spare parts
571 428
2 000 000
2 000 000
2 000 000
2.1.7
Expenses for technical service and repair
2 148 572
7 520 000
7 520 000
7 520 000
2.1.8
Labor protection
1 916 572
6 708 000
6 708 000
6 708 000
2.1.9
Expenses for erosion of means of transportation
266 661 824
933 316 381
933 316 381
933 316 381
2.1.10
Tax on means of transportation
494 572
1 731 000
1 731 000
1 731 000
2.1.11
Expenses for food discount
14 040 000
49 140 000
49 140 000
49 140 000
2.1.12
Expenses for diagnosis
268 572
940 000
940 000
940 000
2.1.13
Insurances
22 796 304
79 787 066
79 787 066
79 787 066
2.1.14
Erosion of capital assets
19 503 494
68 262 226
68 262 226
68 262 226
2.1.15
Expenditure of factory electricity
66 355 200
232 243 200
232 243 200
232 243 200
2.1.16
Materials
7 799 846 400
27 299 462 400
27 299 462 400
27 299 462 400
2.1.17
Others
88 041 250
308 144 378
308 144 378
308 144 378
2.2
Expense for management
31059 352
130 613569
130 613569
130 613569
2.2.1
Salary
14 185 714
49 650 000
49 650 000
49 650 000
2.2.2
Health, Social Insurance Premiums
1 392
600
5 946
600
5 946
600
5 946
600
2.2.3
Expenses for food discount
1 260
000
4 410
000
4 410
000
4 410
000
2.2.4
Stationary
171
429
600
000
600
000
600
000
2.2.5
Appointment
1 714
286
6 000
000
6 000
000
6 000
000
2.2.6
Expenses for communications
1 097
143
3 840
000
3 840
000
3 840
000
2.2.7
Workshop
171
429
600
000
600
000
600
000
2.2.8
Electricity expense
105
570
369
495
369
495
369
495
2.2.9
Tax on real estate
385
057
1 347
700
1 347
700
1 347
700
2.2.10
Advertisement expenses
8 333
334
50
000 000
50 000
000
50
000 000
2.2.11
Heating expenses
122
880
430
080
430
080
430
080
2.2.12
Cleaning
342
857
1 200
000
1 200
000
1 200
000
2.2.13
Other
1 777
056
6 219
694
6 219
694
6 219
694
Operation expense
8 921469 604
31253195
699
31253195
699
31253195
699
3
Income before tax (loss)
4718
930 396
17 152
404301
17 152
404301
17 152
404301
3.1
Income tax expense
471
893 040
1 715
240 430
1 715
240 430
1 715
240 430
3.2
Non operation expense
4 500
000
18
000 000
18
000 000
18
000 000
4
Income after tax (loss)
4242
537 356
15 419
163871
15 419
163871
15 419
163871
5
Accumulation Fund or reinvestment of the company /30 %/
1 272
761 207
4 625
749 161
4 625
749 161
4 625
749 161
6
Net income of the certain time (loss)
2 969
776 149
10
793414710
10
793414710
10
793414710
RECOMMENDATION- SPECULATIVE BUY
In response to the Mongolian Government's new standards for the cement industry, Remicon will be involved in developing a new concrete mixer plant. The rapid growth of the Mongolian construction industry and the government's '40000 apartments' project mean Remicon's modern cement mixer will be in high demand. By providing quality materials to a growing industry, Remicon stock will be highly attractive in the short term.
