CSSC-affiliate Waigaoqiao Shipbuilding has sold its entire 26% equity shares in CSSC Shenghui Equipmet, a marine equipment manufacturer to Zhejiang Rongsheng Holding Group in an auction sale on Shanghai United Assets and Equity Exchange. Total value of the deal is RMB51.11m ($7.98m).
According to CSSC, CSSC Shenghui Equipmet has been suffering consecutive losses in the recent years, which has brought negative impact on the parent company’s financial status, while it doesn’t believe the situation would improve for the subsidiary in the short term.
Waogaoqiao Shipbuilding is expected to gain a profit of RMB20.84m from the equity sale deal.
In April, Shanghai Stock Exchange implemented a delisting risk on CSSC’s shares due to it suffering losses for two consecutive years. CSSC has been making effort to get back to profit this year in order to avoid delisting.