(Yicai) Jan. 21 -- KTK Group climbed as much as 2.5 percent today after the Chinese train interiors maker said it will sell its loss-making computer, communication and consumer electronics business assets in India for a base price of INR1.3 billion (USD15 million) to electronics and mobile phone manufacturer Ismartu India.

KTK’s share price [SHA:603680] closed up 1.6 percent at CNY8.70 (USD1.20). Earlier in the day it hit CNY8.78.

KTK will sell its factory in Gautam Buddha Nagar, Noida which includes the land, buildings, equipment within the structures and other tangible assets, KTK said yesterday, citing the memorandum of understanding penned between KTK’s local subsidiary KHY Electronic India and Noida-based Ismartu.

The factory, which makes electronic communication equipment, mobile phones and parts as well as wireless network terminals and components, racked up an unaudited net loss of CNY22.2 million (USD3 million) in the first nine months last year, Changzhou-based KTK said. And in 2023 it haemorraged CNY45.5 million (USD6.2 million).

As of Sept. 30, the plant had assets of CNY409 million (USD56.1 million) and shareholders' equity was negative at minus CNY135.7 million (USD1.8 million).

The sale aims to divest non-core underperforming assets to allow the company to focus on its core business and improve its financial health, including bolstering cash reserves, KTK said.

KTK set up the joint venture KHY Electronic India in March 2019 with a total investment of USD98.8 million to produce 3C products in India and leverage the opportunities brought by the rapid development of the country’s communications and consumer electronics markets.

KTK is mainly engaged in the development, production, sales and servicing of train carriages’ interior furnishings, such as seats and cabinets. It entered the Indian market in 2016 to produce train-related products then branched into consumer electronics in 2019.

Editor: Kim Taylor