Shanghai Electric Group Co, China's leading power equipment maker, has sold a stake in Shanghai Topsolar Green Energy Co, as part of its plan to shed certain non-core businesses.
Shanghai Electric transferred a 36-percent stake in Topsolar to Yancheng Dongtou New Energy Equipment Co for 138.6 million yuan (US$20.2 million), it said in a stock exchange filing yesterday. Shanghai Electric will gain 3.38 million yuan from the sale, equivalent to 0.12 percent of its 2007 net income, it said.
The company also plans to sell the remaining 25.35-percent stake in Topsolar as it moves to leave the solar energy business, Shanghai Electric said. Topsolar makes products such as photovoltaic modules and photovoltaic power generation systems.
In a separate statement, Shanghai Electric said it has completed the disposal of its entire 50.32-percent stake in Shanghai Diesel Engine Co.
Shanghai Electric Chairman Xu Jianguo wants the company to have more exposure in wind power and nuclear in addition to traditional core businesses involving heavy machinery equipment and transportation equipment.
The company is confident that it will maintain 10-percent sales growth next year despite the global financial crisis. Its core products are among the government's key strategic industries and mainly target domestic markets.
Shanghai Electric shares rose 5.52 percent to HK$3.06 (39 US cents) in Hong Kong but fell 3.57 percent to 5.94 yuan in Shanghai yesterday.
(Shanghai Daily December 31, 2008)