China's Jingwei Textile Machinery Co says it may issue new shares to finance its buying spree. Managing director Liu Shitong said the H-share company was discussing with Peregrine Capital takeover targets that were expected to be finalised by the end of the year. He said Jingwei was looking at three targets. Two were in Shanxi province, where Jingwei was based. Jingwei has said it planned to take over enterprises from its parent company, China National Textile Machinery Corp, which has 19 other subsidiaries. Mr Liu said its parent had told Jingwei to diversify its earnings source to include other types of textile machinery. He did not say how much the acquisitions would cost, but said the money would come from internal resources, bank borrowings and issue of new shares. The acquisitions would boost Jingwei's bottom line because they had a higher gross margin than its average 23 per cent. Mr Liu said Jingwei would record a turnover of 900 million yuan (about HK$839.61 million) this year, or one billion yuan at best, compared with last year's 654.44 million yuan, which was down 8.7 per cent from 1995. Its two major products, especially its natural fibre machinery, suffered sales drops. Last year, Jingwei posted a 12.8 per cent increase in net profit, shored up by an exceptional gain of 31.88 million yuan which was bank interest income from unused listing proceeds.