Kangda New Materials Expects Turn to H1 Profit

Changshu Fengfan Power Equipment , through unit Shanghai Fengfan Jingying Industrial Materials Supply, will acquire 30% of Kangda Jinrui Technology after injecting 50 million yuan into the latter's capital, according to a Shanghai bourse disclosure on Thursday.

Jinrui Tech, a unit of structural adhesives manufacturer Kangda New Materials Group , owns five exploration licenses for lead-zinc ore in Guizhou Province, China.

The proceeds from the capital increase will be used to cover the costs for the lead-zinc exploration, which is capped at 120 million yuan, the Chinese material insulation tower manufacturer said.

Moreover, Tianjin Tangkong Kechuang Group will also own 40% of Jinrui Tech by investing 66.7 million yuan into its capital. Tangkong Kechuang is a subsidiary of Kangda New Material's controlling shareholder, Tangshan Industrial Holding Group.

After the transaction, Jinrui Tech's capital will increase to 166.7 million yuan from 50 million yuan. It will also no longer be included in Kangda New Materials' consolidated financial statements, Kangda said in a same-dated filing on the Shenzhen bourse.

Kangda New Materials' shares dropped 2% during afternoon 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.

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

Final agreement is subject to due diligence, approvals, and pricing consensus, according to a Friday filing with the Shenzhen bourse.

Shares of the structural adhesives manufacturer were down 4% in recent trade.

Kangda New Materials named Wang Jianxiang chairman at the structural adhesives company, according to a Wednesday filing with the Shenzhen Stock Exchange.

Lu Qiting was also named honorary chairman and Yao Qisheng was appointed vice chairman, according to separate filings.

Kangda New Materials Group subsidiary Bicon Technology will jointly invest with related parties and third-party investors to acquire and increase capital in software and artificial intelligence developer Zhonghua Intelligent.

The equity will be acquired for nil consideration, according to a filing with the Shanghai bourse.

The investment will raise Zhonghua Intelligent's registered capital to 80 million yuan from 10 million yuan, according to a filing with the Shenzhen bourse.

Kangda New Materials Group's controlling shareholder, Tangshan Industrial Holdings Group, completed raising its holdings in the company, according to a Shenzhen Stock Exchange disclosure on Thursday.

Tangshan Industrial bought around 3.3 million shares in the company, accounting for 1.08%, for a total of 30.1 million yuan. The shares were bought through centralized bidding from July 9, 2024 until Jan. 8 this year.

After the transaction, Tangshan Industrial's stake in the Chinese structural adhesive manufacturer was raised to 28.35% from 27.28%.

The company's shares rose more than 1% in recent trade.