With the growth of Shaanxi Nonferrous Metal Holding Group Ltd. (hereinafter briefly called SNMHG), SNMHG gradually tries to use various means of capital operation to expand the size and strength of the enterprises. In 2002, the Baoji Titanium Industry Co., Ltd. established by the Baoji Titanium Industry Group under SNMHG went public successfully at the first go-off. This success speeded up SNMHG¡¯s pace in capital operation, and laid a solid foundation for achieving two-wheel drive, i.e. both capital and product operations. After that, SNMHG merged Zhongcun Vanadium Deposit in 2004, and established the Wuzhou Mining Co., Ltd. The Baoji Titanium Industry Co., Ltd increased issues in stocks twice respectively in 2006 and 2007.

In 2007, SNMHG focuses on promoting its largest enterprise, Jinduicheng Molybdenum Co., Ltd., to go public. It is expected to get listed in 2008. In addition to effective use of financing and M & A means to achieve capital operation, SNMHG also succeeded in issuing short-term financing bonds, and was awarded an authority to issue 4 billion-worth of short-term financing bonds.

By the end of 2007, the credit line offered to SNMHG by various kinds of financial institutions reached 5.1 billion RMB yuan, providing a reliable credit support for its future development. SNMHG also provides a lot of credit guarantees to the enterprises under its management, fundamentally easing their difficulty in financing.

In the future, SNMHG will carry out investment and financing activities in a rhythmic, rational and powerful way to maximize the value of capital, and optimize capital structure, and will gradually expedite the pace of capital operation to build SNMHG into an internationally competitive large enterprise group.