Chinese sapphire maker Aurora announced last week, it would be investing RMB 40 million (US $6.32 million) in a new investment management arm to integrate investments in the sapphire supply chain, according to a report from China Securities Network.
Aurora’s new investment management subsidiary will be named “Zhengzhou Aurora Investment Management Company” and will have a registered capital of RMB 40 million, which will be 100% financed by the parent company. The investment management arm will mostly be responsible in stock market investments and managing company assets.
During first half of 2015, Aurora’s sapphire crystal and sapphire ingot growth equipment revenue skyrocketed 215.54% to reach RMB 565 million, net profits also grew exponentially by 408.99% to RMB 111 million.
The company has suspended trade on China’s bourse since Aug. 24, 2015 as it prepared a private placement. According to a company statement, it will be issuing a non-public offering to 10 chosen investors to finance acquisitions and replenish liquidity. Related operations are still being reviewed, and require further evaluations. Additionally, the company has not confirmed the final investors that are participating in this latest funding round. The company plans to resume trade on the China bourse by Nov. 26, 2015.
