Singapore-listed Chinese shipbuilder Yangzijiang Shipbuilding continues to dispose of holdings in its non-core businesses, and invest in companies that have better synergies.
Yangzijiang has disposed of its entire 40% stake in Jiangsu Zhuoran Yangzijiang Energy Equipment, which is a steel fabrication business, for CNY12 million (USD2 million).
Yangzijiang said, “It’s in the best interest and commercial benefit to the group to dispose of the entire 40% equity interest as it would help to streamline the group’s structure to control overall administrative expenses.”
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Yangzijiang has also bought an additional 24% stake in Jiangsu New Yangzi Gas, for CNY12.6 million, believing this investment would boost its profit as the latter is a major gas supplier to Chinese shipyards. Prior to this, Yangzijiang had already taken a 51% stake in the company.
Yangzijiang’s 60%-owned subsidiary Barber-CS Marine Technology (Shanghai) has also acquired all of JJBC, a company that provides production design for merchant ships. JJBC has a paid-up capital of CNY300,000. Yangzijiang believes this investment will supplement its core business.
Finally, Yangzijiang has bought 20% of Nanjing Saining Equity Investment Enterprise, paying CNY20 million. The latter’s core business is tied to investments in big data to support the development of emerging industries.