Jiangsu Chunlan to resume trading after asset swap

Nov. 10, 2009 (China Knowledge) - Jiangsu Chunlan Refrigerating Equipment Stock Co Ltd<600854>, which has been suspended from trading for about one and a half years, today announced that it has received approval from the Shanghai Stock Exchange to resume trading on Nov. 13, sources reported.

The enterprise will have no price increase limit on the first day of resume trading but will have a limit of 5% afterwards. Most of mainland-listed firms have a limit of 10%.

The company, which is principally engaged in the production and distribution of air conditioners, washing machines and compressors, is ready to enter the real estate and power markets after the asset swap.

On Sep. 6, the firm exchanged its stakes in three subsidiaries and creditor's rights worth RMB 656 million for a 10% stake in a power plant, a 60% stake in a real estate developer and a piece of property with a land area of 156,000 square meters from parent Chunlan Group Corp.

In the third quarter of this year, Jiangsu Chunlan Refrigerating Equipment reaped RMB 159 million in net profit, almost three times the amount it reaped in the same quarter of last year, and its operating revenue reached RMB 300 million.

In the first three quarters, the company's net profit was RMB 54.73 million, dragged down by losses it suffered in the first two quarters. The firm had realized RMB 0.1 in earnings per share and had 519.46 million shares in total as of Sep. 30, sources reported.