ChangYuan Group purchases remaining shares of Shenzhen Nanrui
Shanghai. September 13. INTERFAX-CHINA - ChangYuan Group Ltd. (CYG), a circuit protection component manufacturer, has purchased the remaining 15 percent stake in Shenzhen Nanrui Technology Co. Ltd. (Shenzhen Nanrui) for RMB 90 million ($14.07 million), CYG announced Sept. 13.
Upon completion of the purchase, Shenzhen Nanrui will become a wholly-owned subsidiary of CYG.
Founded in 1994, Shenzhen Nanrui mainly produces relay protection systems. The company is expected to record a net profit of RMB 75 million ($11.72 million) this year, up from RMB 57.6 million ($9 million) in 2010.
This is the second acquisition of Shenzhen Nanrui by CYG in three months. In June, CYG purchased a 25 percent stake in Shenzhen Nanrui for RMB 130 million ($20.32 million).
Originally founded by the Chinese Academy of Sciences, CYG became a subsidiary of Hong Kong conglomerate Cheung Kong Group in 1995. In June, CYG increased its stake in circuit protection equipment manufacturer Shanghai Changyuan Wayon Circuit Protection Co. Ltd. to 88.97 percent, Interfax previously reported.
CYG recorded RMB 147.24 million ($23.01 million) in net profits over the first six months of the year, with total revenue reaching RMB 783.04 million ($122.4 million). The company's shares on the Shanghai Stock Exchange closed at RMB 7.92 ($1.23) on Sept. 13, up 2.32 percent from the previous trading day.
-CC