Brief outlook: Activity of Almaty-Kus OJSC in July-September

/IRBIS, Sep.20, 00/ - Almaty Kus OJSC presented KASE brief outlook of company's economic activity for July-September, 2000. The company's securities were admitted into official list of KASE, category "A" on Apr 11, 2000. On July 24, Almaty region justice department registered Kombikormovii Zavod OJSC (Feed mill) (previously - Kapchigaiskii Kombikormovii Zavod). The plant was organised as independent legal company. It was designed to provide supplies to battery plants with high quality sterns. On August 01, According to the decision of General meeting of shareholders dated June 24, 2000, Almaty-Kus OJSC increased authorised capital to KZT1.1 bln. Company additionally issued ordinary registered shares for a total of KZT400 mln at KZT10 face value. National Securities Commission (NSC) awarded the issue with following National Identification Number - KZ1C316905X8. In total for two issues, announced authorised capital totalled KZT1.1 bln. The emission was closely distributed among shareholders of Almaty-Kus OJSC and Agroservice LLP. On September 05, new feed mill plant was put in force after reconstruction and modernisation. The plant's production effectively decreased price for mixed fodder and increased its quality. There was achieved a rise in productivity of farms and decrease in eggs' cost. On September 05, The company signed a contract over auditing service with Kazexpertaudit. This helped conduct stocktaking and independent assessments of company's value and its contribution to authorised capital. In September, company jointly with German "Buhler" started modernisation of egg powder plant. New projects on egg-powder market penetration were also implemented. Following events also took place for the reported period: - Kaskelen, Chapai and Abai battery farms undertook efforts to increase production of supper and extra grade eggs. The portion of mud eggs decreased considerably. - The development of new sales network was fully completed. This system is very flexible and self-developing. Commercial branch establishment Tamerlan Trading LLP is responsible for the risks, packaging and sales costs. It also buys all produced production from the farms. - The company concluded a deal on distributorship with Ust-Kamenogorsk battery farm. Financial activity The funds ($4.5 mln) from the first issue of Almaty-Kus bonds was distributed as follows: restructuring and expansion (Avatov farm construction) - $1.4 mln; creation of feed stock and reconstruction of mixed fodder plant $1.1 mln; acquisition of Food Brothers LPP equipment (vacuum packaging line, refrigerating facility, vacuum packing) - $0.7 mln.; another $1.3 mln are still being developed. Production activity The launching of Avat batter farm is planned on Oct 01, 2000. At present, following tasks were implemented: - all necessary communication was set up (electricity lines, water-supply, telecommunications, sewerage and heating systems); - two poultry-yards was completed, another 5 will be due on launching day; - repair, joiner and electro-shops fully reconstructed; - 3 years tax deferments was received; By Dec 31, 2000, the company will acquire 150,000 cubs of poultry from Alatau LLP. Following tasks are planned in the nearest future: - put in force new stern store by Oct 01; - reconstruct slaughter floor; - reconstruct eggs store; - modernise and transport facilities. The main activities of Almaty-Kus are production and trade of poultry farming, leasing. Following securities are admitted to official list of KASE securities, category "A": - On Apr 03, 2000 - ordinary (KZ1C31690513, trade code - ALKS) and preferred (KZ1P31690518, trade code ALKSp) shares; - On Apr 07, 2000 - coupon bonds (KZ2C3AF64A13, trade code - ALKSb, issue volume - $4.5 mln, face value - $100, coupon rate - 14% APR, coupon - semiannual, maturity - 1 year). The company has recently launched its first Internet web-site containing full description of company's activity. Address: www.almatykus.kz.