China State Shipbuilding Corporation (CSSC) has announced that subsidiary yard Waigaoqiao Shipbuilding plans to sell its 43.4% equity share in CSSC Cruise Technology to its controlling shareholder CSSC Group for RMB400m ($60.3m).
Following the sale, Waigaoqiao Shipbuiding will no longer include the loss making CSSC Cruise Technology in its financial results.
CSSC Cruise Technology suffered a net loss of RMB36.87m in the year of 2017, and a loss of RMB11.39m in the first five months of this year.
CSSC has been making efforts to dispose of its loss-making assets in an attempt to get back to profit by the end of this year and avoid delisting, following Shanghai Stock Exchange implemented a delisting risk on the company’s shares in April this year due to it suffering losses for two consecutive years.
In June, CSSC also sold its entire 26% stake in CSSC Shenghui Equipment, a marine equipment manufacturer to Zhejiang Rongsheng Holding Group for RMB51.11m.