Prosperity Minerals Holdings Limited
www.pmhl.co.uk/Description
Prosperity Minerals Holdings Limited is a large cement operator in the People's Republic of China ("the PRC) and major iron ore trader serving the same market.The Group has equity interests in six existing cement and clinker manufacturing projects. The gross tonnage (including the equity interest of partners) under Prosperity’s control and influence as of March 2009 is over 23 million tonnes per annum. The Group also has three greenfield projects, one of which is pending governmental approval. These three projects together with expansion plans at two of its existing facilities will take the gross tonnage under Prosperity’s control and influence to above 33 million tonnes per annum by the end of 2011. Over the last 17 years Prosperity has gained extensive experience in the iron ore trading business that allowed the team to develop the contacts and good working relationships that enables it to excel in its field.
Share Price
In-depth Prosperity Minerals Holdings Limited Proactive Investors Articles
- 21/12/2009 Prosperity Minerals agrees to sell cement business for £300 million, retains iron ore business and equity stake in Anhui Chaodong Cement
- 30/11/2009 Prosperity Minerals enters MOU to sell subsidiary for £312 million
- 13/06/2009 Prosperity Minerals cement operations should benefit from China’s continued growth
- 03/06/2008 Prosperity Minerals is Cementing Profits in China
Recent Prosperity Minerals Holdings Limited news
- 24/02/2010 Daniel Stewart retains 'buy' on Prosperity Minerals as disposal remains on track
- 11/02/2010 Prosperity Minerals' £300m asset disposal ‘very likely’ to be completed - Daniel Stewart
- 04/02/2010 Daniel Stewart says Prosperity Minerals trades at substantial discount, maintains 'buy' with 250p target
- 01/02/2010 Prosperity Minerals values Chinese cement business property interests at US$155 mln following £300 mln sale
- 04/01/2010 Prosperity Minerals to retain US$15 million debt after £300 million disposal in China, releases financial results for Upper Value
Presentations & Company Media
No Documents available.
Related Research & Media
Company Statement:
Prosperity’s main objective is not only to expand capacity but also to maintain its status as one of the most profitable cement manufacturers in China. For this reason, Prosperity strategically positions its new projects near the capital cities of the respective provinces where the highest growth potential exists. All of the Company’s cement projects are carefully selected by management according to a substantial list of requirements and, due to management’s extensive experience and expertise, Prosperity has been able to complete these deals at a very attractive EV per tonne acquisition and investment cost.
Current Operations:
Cement Operations (read more about these projects)

Prosperity's footprint in China
A - Yingde Dragon Mountain Cement Company Limited
Yingde Dragon Mountain Cement Company Limited (“YDM”) was formed in 2003 to manufacture cement and clinker for sale in the PRC. Prosperity Materials (International) Limited (“Prosperity Materials”), a company owned and controlled by David Wong, acquired a 25 per cent interest in YDM in 2004.
The Company’s subsidiary, Prosperity Cement Investment Limited (“Prosperity Cement”), signed an agreement on 25 January 2006 to acquire a 25 per cent interest in YDM from Prosperity Materials. Prosperity Cement signed a further agreement on 25 February 2006 to acquire the outstanding 75 per cent interest in YDM. YDM was registered as an FIE on 20 March 2006. Having obtained the requisite PRC Government approvals, Prosperity Cement was registered as the sole owner of YDM on 13 April 2006.
YDM has an annual designed saleable capacity of 5.9 million tonnes of cement and clinker.
B - Prosperity Conch Cement Company Limited
In order to capitalise on the strong demand for cement in Guangdong Province, Prosperity Conch Cement Company Limited (“PCC”), decided to build a modern suspension pre-heater cement production plant adjacent to the YDM plant. PCC plant was to produce high quality clinker and cement for sale in Guangdong Province of the PRC. The Group was offered the opportunity to invest in PCC alongside Anhui Conch.
PCC has an annual designed saleable capacity of 7.9 million tonnes of cement and clinker.
C - Anhui Chaodong Cement Company Limited
In June 2006, Prosperity entered into an agreement to acquire a 40 per cent interest in Anhui Chaodong Cement Co. Limited (“ACC”). ACC is a public company listed and traded on the Shanghai Stock Exchange of the PRC under the listing code: 600318.

The first new clinker production line that was constructed as part of ACC's expansion plans, were completed within budget and on schedule. The clinker production line of 2 million tonnes / year designed saleable capacity was commissioned on 28 December 2008.
ACC has a current designed saleable capacity of 3.4 million tonnes / year with expansion plans to increase that to 6.9 million tonnes pa by the end of fiscal 2012.
D - Guangzhou K. Wah Nanfang Cement Company Limited (“Guangzhou Nanfang”)
In April 2008, Prosperity acquired a 40 per cent interest in Guangzhou Nanfang which owns a cement grinding facility with an annual designed saleable capacity of 0.84 million tonnes of cement in Guangzhou City.
Prosperity was brought in to improve Guangzhou Nanfang’s performance and has appointed a new management team to run it.
E - Yunnan Kungang & K. Wah Cement Construction Materials Co. Limited (“Anning”)
In May 2008, Prosperity acquired and invested in a 30 per cent interest in Anning, a cement and clinker production facility in Anning City, Yunnan Province.
Anning has an annual designed saleable capacity of 2.7 million tonnes of cement and clinker.
F - Baoshan Kungang & K. Wah Cement Construction Materials Co. Limited (“Baoshan”)
In June 2008, Prosperity acquired and invested in a 30 per cent interest in Baoshan, a cement and clinker production facility in Baoshan City, Yunnan Province.
Baoshan has an annual designed saleable capacity of 1.8 million tonnes of cement and clinker.
G – Project under development in Chongqing Municipal City
Prosperity is investing in a wholly-owned greenfield cement and cliker production facility in Chongqing Municipal City. Construction of a 2 million tonnes / year clinker production line commenced in May 2009 and is expected to be completed by the end of fiscal 2011.
Chongqing is located adjacent to Sichuan Province, where the devastating earthquake struck in May 2008. Approval of this greenfield project is part of the local government's efforts to reconstruct and redevelop the province.
H – Project under development in Denta City, Liaoning Province
Prosperity is investing in a 75 per cent interest in a greenfield cement and clinker project near Shenyang, the capital city of Liaoning Province in northern China. Construction of a 2 million tonnes / year clinker production line commenced in August 2008 and is expected to be commissioned by the end of fiscal 2010.
I – Project under development in Guiyang City, Guizhou Province
Prosperity is investing in a wholly-owned greenfield cement and clinker project in Guiyang City, the capital city of Guizhou Province. All the necessary governmental approvals have been obtained and the initial investment was made in April 2009. The first clinker production line of 2 million tonnes / year is expected to be completed by the end of fiscal 2011.
The Cement Manufacturing Process

The Residual Heat Electricity Generation System (RHE)

Iron Ore Business
The Group’s iron ore trading business has sourced, marketed and delivered iron ore to customers in the PRC since 1992. Management has developed strong relationships with the steel manufacturers that purchase most of its products.
In the financial year ended 31 March 2009 the Group’s iron ore trading business supplied 4.4 million tonnes of iron ore to customers in the PRC and generated segment results of $15.5 million.
Prosperity sources its iron ore supply from the traditional long distance suppliers in Brazil, Australia and South Africa as well as shorter distance suppliers in Thailand, Malaysia and Indonesia. (Read More)
Management
The Board
David Wong - Chairman and Chief Executive Officer
Patrick Siu Ming Li - Executive Director and the Chief Financial Officer
Johannes Petrus Mulder - Executive Director
Jian Ping Wu - Executive Director and the President of the cement plant owned and operated by the Group’s subsidiary, Yingde Dragon Mountain
For more information click here
Non-Executive Directors
John Robertson
Anthony Williams
Sandy Chun-Kwan Chim
Michael Kim Hung Yuen
Yu Lin Zhao
For more information click here
Major Shareholders
Major Shareholders
Prosperity Minerals Holdings Limited is currently only trading on AIM although other exchanges and platforms remain subject to review.
Number of shares in issue
| Number of shares in issue |
134,485,165 |
|
Number of shares not in public hands |
81,658,964 |
Major shareholders
| Prosperity International Holdings (H.K.) Limited |
73,000,000 |
54.28% |
David Wong, co-founder of the Group and Chairman and Chief Executive Officer of the Company, holds a 74.60 per cent interest in Prosperity International Holdings (H.K.) Limited and a 65 per cent interest in Prosperity Minerals Group Limited, Max Start Holdings Limited and Max Will Profits Limited, giving him an indirect interest in 74,166,168 ordinary shares of the Company. He also directly holds 6,875,495 ordinary shares of the Company. In total he holds a combined direct and indirect interest in 81,041,663 ordinary shares of the Company, representing a 60.26 per cent of the issued share capital.
Disclaimer
Prosperity Minerals Holdings Limited is not incorporated in the UK and, as such, the rights of the shareholders may be different from the rights of shareholders in a UK incorporated company.
Contact Information
Prosperity Minerals Holdings Limited
Tel: +852 31872618
Fax: +852 27564884
neelke@materialsgroup.com.hk
Corporate Information
Nominated Adviser and Broker
Daniel Stewart & Company Plc
Becket House, 36 Old Jewry
London EC2R 8DD
United Kingdom
Public Relations
Citigate Dewe Rogerson
3 London Wall Buildings
London Wall
London EC2M 5SY
Tel: +44 (0)20 76389571






