Boshen tool denied involvement in shale gas development

On January 8th, a number of media recently listed Boshen Tools as a shale gas concept stock, and the market is also rumored that the company will be involved in shale gas development. In this regard, Boshen tools insiders told reporters that the company has not been involved in shale gas development, the company's product diamond drill bit is not a professional tool for shale gas development, the company will not deviate from the main business.

The person said that the company and its subsidiaries did not involve shale gas related business, nor did it engage with any relevant parties in this related business. The company is specialized in manufacturing diamond tools, power tools and alloy tool products, and the company will continue to strengthen its leading position in diamond tools.

It is observed that in November 2013, a number of media reported that the proposed shale gas exploration and mining rules will be introduced from June, and the company will be listed as a shale gas concept stock. Coupled with the impact of the revision of the performance forecast, the company's share price rose nearly 30% in the month, followed by a nearly 20% drop in December.

From the perspective of product structure, the company's traditional products have declined. In recent years, new investment in power tools and tile tools has increased.

In the first half of 2013, among the four major products of the company, diamond tools realized operating income of 205 million yuan, down 2.9% year-on-year; ceramic tile tools realized revenue of 23.4 million yuan, up 22% year-on-year; power tools realized revenue of 44.753 million yuan, The growth rate was 28.82%; the alloy tool realized revenue of 20,238,800 yuan, a year-on-year decrease of 38.33%.

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