(Yicai Global) July 15 -- Four investors handed Taihai Group, a leading Chinese maker of nuclear power plant components, a last minute reprieve in the form of a cash injection worth CNY5 billion (USD727.3 million) after authorities in China froze almost all its assets.
Shares of the private company's listed subsidiary, Taihai Manoir Nuclear Equipment [SHE:002366], closed higher today by almost 10 percent, the daily trading limit, at CNY8.71 (USD1.27) each.
Yantai, Shandong province-based Taihai Group is Taihai Manoir's largest shareholder with a 43.5 percent stake. Last week, almost 97 percent of that stake was frozen by courts due to disputes with financial institutions, the parent company said in a statement on July 12.
The four investors include an investment company under the Yantai Finance Bureau, the Shandong Provincial Government Guidance Fund, and the Sino-Russian Regional Cooperation Development Investment Fund backed by the State Power Investment Corporation and China National Nuclear Corporation, Taihai Manoir said yesterday.
To date, Taihai Group has pledged nearly 91 percent of its shares in Taihai Manoir for loans, and forfeited pledged stock over the past six months due to repeated defaults on repayments.
Taihai Manoir's first-half net profit is expected to come in between CNY120 million (USD17.5 million) and CNY150 million, the unit said in a separate statement. It attributed the 70 percent year-on-year fall to weaker demand for domestic nuclear power projects and the postponement of new project tenders.