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Photo/Shetuwang

Jan. 7 (NBD) – Stock of Shanghai Electric Group Company Limited ("Shanghai Electric", 601727.SH, 02727.HK) on Tuesday climbed by 1.78 percent on the Shanghai Stock Exchange and remained flat on the Hong Kong bourse.

Late on Monday, the electrical equipment manufacturing company announced the plan to spin off Shanghai Electric Wind Power Group Company Ltd (SEWP), a subsidiary engaging in the design, research and development, manufacturing and sale of wind power equipment, for a separate listing on China's Nasdaq-like Science and Technology Innovation Board.

The spin-off will not change the shareholding structure of Shanghai Electric, and it will remain as the controlling shareholder of SEWP.

According to Shanghai Electric's announcement, the spin-off is aimed to facilitate the business development of Shanghai Electric and increase the financing efficiency and profitability of SEWP. The percentage of shares to be issued by SEWP will not exceed 40 percent of the company's total share capital. 

National Business Daily noticed that SEWP reaped net profits of 21.19 million yuan (3.0 million U.S. dollars) in 2017 and incurred a net loss of 52.31 million yuan in 2018. For the first three quarters of 2019, the company turned around its profitability by gaining net profits of over 100 million yuan.

 

Email: lansuying@nbd.com.cn

Editor: Lan Suying