Xingmin Intelligent Transportation Systems (SHE:002355) plans to acquire 30% of Zhejiang East Coast Shipbuilding for 360 million yuan, according to a Tuesday filing on the Shenzhen Stock Exchange.
The shipbuilding unit of Yangfan Group has been incurring losses for the past two years, with net losses of 93.7 million yuan and an operating income of 265.6 million yuan recorded between January and August.
The Chinese auto parts maker will buy the stake through subsidiary, Anhui Xingmin Haizhi Equity Investment.
Xingmin Intelligent Transportation partnered with Zhejiang East Coast Shipbuilding in a deal where the latter will accept shipbuilding orders from Xingmin for the next five years.
Xingmin's shares dropped less than 9% in recent trade.
Price (RMB): ¥6.64, Change: ¥-0.64, Percent Change: -8.79%
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.