Xiangtan Electrochemical announced plans to transfer its 70% stake in the electromechanical company to New Development Group and the remaining 30% stake to Electrochemical Group for a transfer price of 32.54 million yuan. It will also transfer its entire 100% stake in the trading company to New Development Group for 50.12 million yuan, bringing the total transaction value to 82.66 million yuan. This deal constitutes a related-party transaction and aims to divest non-core assets while sharpening the focus on the core manganese-based new materials business. Upon completion, the company will no longer hold any equity in the electromechanical or trading companies, and both will be deconsolidated from its financial statements. The proceeds will primarily be used to replenish working capital. The electromechanical company posted a loss of 5.12 million yuan in 2025 and a loss of 1.38 million yuan in the first four months of 2026. The trading company recorded a profit of 437,100 yuan in 2025 and a profit of 754,300 yuan in the first four months of this year, though its operating cash flow remained persistently negative. The company expects net profit attributable to shareholders of 180 million to 261 million yuan for the first half of 2026, representing year-on-year growth of 42.99% to 107.33%.
Xiangtan Electrochemical Scientific Co LtdDivesting loss-making non-core assets and using proceeds to replenish working capital, sharpening focus on core business.
