China Runji Cement, Inc.(CRJI.OB)
Presently, the Company is one of the largest cement producers and distributors in the north Changjiang region of Anhui, with a 12% market share within a 100 mile radius of its facility. The Company is the only producer of PII52.5 cement (the highest quality cement) in the north Changjiang region of Anhui and Jiangsu Provinces, with 70% market share within a 100 miles radius of its facility. The Company’s main market is in Hefei and Pukou (Nanjing), with total sales of 600,000 tons in the area, representing 60% of our total annual production of one million tons. An additional 30% of total annual production is sold in the cities surrounding Hefei and Pukou, with another 10% being sold in Liu’an and Dingyuan in Anhui and Jiangsu.
Company owns a limestone mine located .5 kilometers from the its production facilities, holding approximately 87 million tons of limestone to be extracted. Runji’s total current limestone reserves could supply two dry process production lines of cement with a daily output of 2,500 tons for 40 years.
The Company produces cement through the advanced dry production process, an energy efficient and environmentally friendly cement production technique, as only 60% of the total output in the region is produced by dry process. The Company has a rigorous quality control system and received ISO9001 quality system certification and international accreditation in March 2006. In addition, our Company passed the national GB/T 19001-2000 standard authentication. The Company’s pollution control exceeds the national standard and received “green building material” certification in 2007.
PII52.5 have specialty in high strength and good adaptability. Mainly used in super high intensive concrete on huge project.
PO42.5 have specialty in high strength and fast harden. Mainly used in normal concrete project, such as high building, motorway etc.
PO32.5 have low heat of hydration and good durability. Mainly used in low intensive concrete project.
PC32.5 have low heat of hydration and high mineral content. Mainly used in low intensive concrete project.
Message from CEO
"Our current cement output is 2,500 tons per day in full capacity currently, and our newly constructed second cement clinker production line with 2,500 tons per day output had been put into production in October 2008," said Mr. Zhao. "We will build up a new waste heat power generator in 2009, which will generate electricity of around 63 million KW annually and further reduce our production costs and increasing margins. We will maintain our best status to fulfill the strong cement market demand in coming years."
Mr. Shouren Zhao, Director & Chief Executive Officer – Mr. Zhao began his career at Zhejiang Zhuji Architecture and Construction Co., Ltd. in 1980, and was appointed as the vice general manager of the company and the chief officer in the Shanghai representative office in 1987. From 1992 to 1996, Mr. Zhao established Dajiangnan Cement Plant in Hainan province where he was the general manager. From 1997 to 2002, Mr. Zhao founded Jiangxi Hengtong Real Estate Development Co., Ltd. and Nanjing Jinbo Real Estate Development Co., Ltd., where he was general manager. Since 2003, Mr. Zhao has also established Nanjing Hongren Real Estate Development Co., Ltd. and Anhui Runji Cement Co., Ltd. Mr. Zhao holds a BA from Zhejiang Architecture Material College.
Ms. Xiangfei Zeng, Chief Financial Officer –Ms. Zeng has over 15 years of financial and accounting experience. Before joining Runji, Ms. Zeng had been the financial controller for China World Trade Corporation since November 2004. From 2002 to 2004, Ms. Zeng was the CFO of Fenet Software Co., Ltd. and from 1999 to 2002, Ms. Zeng worked as a financial analysis manager at Zhuhai Oplink Communication Inc. From 1993 to 1999, Mr. Zeng worked as an accountant and financial manager in a China listed company. Ms. Zeng holds a bachelor's degree in Economics from Sun Yat-Sen University and is a China Certified Accountant.
Mr. Qiuchang Wu, General Manager - Up until 2005, Mr. Wu held senior positions in top Chinese financial institutions such as The Industrial and Commercial Bank and China Huarong Asset Management Corporation, giving him an extensive financial management background. In March 2005, he joined Runji as General Manager.
Mr. Xuanjun Yang, Director - Mr. Yang is a Senior Engineer with over 30 years of experience in construction, engineering and real estate development. From 1973 to 1980, Mr. Yang performed engineering work for Zhejiang Zhuji Wuxie Handicraft Community. From 1980 to 1993, he was the team leader of Construction Brigade in Zhuji Third Building Engineering Co., Ltd. From 1993 to 1997, Mr. Yang was the manager of Zhuji City Caota Supply and Marketing Cooperative Building Engineering Company. From 1997 to 2003, Mr. Yang was an investor in Jiangxi Hengtong Real Estate Development Co., Ltd. and Nanjing Jinbo Real Estate Development Co., Ltd. Since 2003, Mr. Zhao has been a founding investor Nanjing Hongren Real Estate Development Co., Ltd. and Anhui Province Runji Cement Co., Ltd.
Mr. Liming Bi, Director - From 1989 to 1992, Mr. Bi worked at Zhejiang Zhuji Cement Plant where he was the laboratory director and raw materials workshop director. In 1993, he joined Zhuji Bafang Cement Plant where he was in charge of cement craftwork design. In 1993 Mr. Bi joined Hainan Tongshen Dajiangnan Cement Plant where he was responsible for the laboratory and production. From 2002 to 2003, Mr. Bi held the position of technology manager in Zhejiang Zhaoshan Cement Plant and since 2003 has been the vice general manager in charge of production at Anhui Province Runji Cement Co., Ltd. Mr. Bi holds a BS from Shanghai University of Science & Technology.
Authorized Shares : 200,000,000
Outstanding Shares : 78,832,064 (as of January 14, 2009)
Public Float : uncertain (About 10,260,064)
As a result of the two transactions, Shouren Zhao acquired 73,500,000 of the 78,832,064 issued and outstanding shares of common stock of the Company, representing 93.2% of the issued and outstanding shares.
No other directors or officers of the Company acquired any shares of common stock in these transactions. Shouren Zhao was also appointed the Chairman, Chief Executive Officer and President of the Company.
On January 23, 2008, Shouren Zhao transferred 55,000,000 shares of common stock to twenty-one investors in a Regulation S distribution at a purchase price of $.50 per share, including a director, his wife and their two children. Shares were also transferred to members of Zhao’s family at no consideration. The beneficial ownership table set forth in Item 12 of this Annual Report, provides information on the individuals who became beneficial owners as a result of these transfers. Their Schedule 13D’s are a matter of record.
Chairman and CEO of China Runji, Mr. Shouren Zhao owns 18,500,000 shares of common stock.
His wife Wei Chu Meng owns 7,500,000 shares of common stock,
his daughter Min Yan Zhao owns 7,000,000 shares
and his son Ting Zhao owns 7,700,000 shares.
Director of China Runji, Mr. Xuanjun Yang owns 9,000,000 shares of common stock.
His wife Cai Ying Jiang owns 6,800,000 share of common stock,
his daughter Jing Yang owns 6,072,000 shares
and his daughter Qiong Yang owns 6,000,000 shares.
Total insider holdings = 68,572,000 shares of common stock.