On May 15, the company signed a cooperation letter of intent with Hongji Group and planned to hold over 51 percent stakes of Hongji Group through acquisition or investment replenishment to become the controlling shareholder of Hongji Group. Comments: Hongji Group is one of the 60 large-scale cement enterprises with nation-supported restructuring. In 07, output of cement was 1.1 million yuan. According to current production capacity and market environment of Hongji, normal annual contribution to the group will be 17 million yuan in net profit which will increase earnings per share by 0.013 yuan. If the acquisition is completed, the company will control 29.22 percent of NSP clinker production capacity in Heilongjiang Province and the controlling power in Heilongjiang market will be further enhanced.