Fengfan Power Equipment to Acquire Stake in Kangda New Materials Unit for 50 Million Yuan

Changshu Fengfan Power Equipment won China Southern Power Grid's procurement bid for power equipment for 337 million yuan, according to a Shanghai bourse filing on Thursday.

The winning equipment are 500-kilovolt substation steel structures, steel poles and AC angle settle towers, as well as AC angle settle towers with a capacity of between 35kV and 220kV, the Chinese material insulation tower manufacturer said.

The company's shares rose 1% during morning trade.

Chinese shares finished Friday's session flat in negative territory despite the central bank keeping interest rates steady as concerns over geopolitical tensions still remain.

The Shanghai Composite Index marginally slipped to cap the trading week at 3,359.90. The Shenzhen Component Index fell 0.5%, or 46.93 points, to 10,005.03.

The People's Bank of China kept the one-year loan prime rates or LPR at 3%, while the five-year LPR was also left unchanged at 3.5%.

The rates were kept unchanged after the central bank announced a series of measures, including plans to set up a global center for the digital renminbi and establish a multi-polar global currency system.

Despite tensions around the US tariffs being at bay for now, investors are concerned over ongoing strikes between Iran and Israel and the possibility of the US joining the conflict by destroying Tehran's nuclear facilities.

In corporate news, Henghui Technology 3soared 229% at the closing of its trading debut on the Shenzhen bourse. Its shares closed 42.12 yuan, over three times higher than the initial public offering of 12.80 yuan apiece.

Meanwhile, Jiangsu Huachen Transformer slumped 8.9% following the announcing of plans to issue convertible bonds worth 460 million yuan.

Kangda New Materials dropped 5.2% as it signed a letter of intent to acquire at least a 51% stake of Chengdu-based Zhongke Huami, a specialist in high-reliability integrated circuits for defense and aerospace.

Changshu Fengfan Power Equipment won China Southern Power Grid's procurement bids for a total of 269 million yuan, according to a Shanghai Stock Exchange disclosure on Saturday.

The materials, which were procured in the Chinese provinces of Yunnan and Guangdong, were a 500-kilovolt substation steel structure, 500kV AC-angle steel tower, 35kV-220kV AC-angle steel towers, and 500kV AC steel tube tower, the Chinese material insulation tower manufacturer said.

Changshu Fengfan Power Equipment won the bid for the State Grid Corp. of China's ultra high-voltage project, according to a Wednesday filing with the Shanghai Stock Exchange.

State Grid bid out the line equipment materials for transmission and transformation as well as towers, the filing said.

The bid amount for the project is 251 million yuan, equivalent to 7.3% of the company's operating income in 2023, the filing said.

Shares closed 1% higher during Wednesday's trading.

Changshu Fengfan Power Equipment said its Cambodian client, Solar Long, proposed to restructure its $42.4 million debt owed to the electric tower manufacturer.

Solar Long will transfer industrial real estate in Cambodia valued at $24 million and inventory valued at $5.7 million to offset $29.7 million of the debt, according to a Jan. 4 filing with the Shanghai bourse.

The restructuring will reduce Changshu Fengfan Power Equipment's accounts receivable by $29.7 million and reverse $1.5 million in bad debt provisions.

The company said it will actively recover the remaining debt of $12.8 million.

Changshu Fengfan Power Equipment said its Cambodian client, Solar Long, proposed to restructure its $42.4 million debt owed to the electric tower manufacturer.

Solar Long will transfer industrial real estate in Cambodia valued at $24 million and inventory valued at $5.7 million to offset $29.7 million of the debt, according to a Jan. 4 filing with the Shanghai bourse.

The restructuring will reduce Changshu Fengfan Power Equipment's accounts receivable by $29.7 million and reverse $1.5 million in bad debt provisions.

The company said it will actively recover the remaining debt of $12.8 million.