(Yicai Global) Aug. 7 -- Hangzhou Gaoxin Rubber & Plastic Materials Co. [SHE:300478] is planning a major asset restructuring.

The Zhejiang-based chemical engineering enterprise, will purchase 100 percent equity of a charging equipment manufacturer, Zhejiang Only Power Supply Equipment Co. (Only Power Supply) at a price of USD83 million (CNY560 million) to consummate its positioning in the new energy field.

Hangzhou Gaoxin will acquire Only Power Supply via cash investment, and respectively pay CNY196 million, CNY196 million and CNY168 million in three stages, with the full amount paid in by 2019's end. The acquisition price constitutes 90 percent of Hangzhou Gaoxin's total assets as of last year's end, and is thus a major asset restructuring.

Only Power Supply is one of the famous mainstream suppliers to electric operating power supply systems in China, the announcement said. Only Power Supply has expanded its business to the new energy field and striven for research and development of charging pile products since 2010. It has developed dozens of charging products, and qualifies to supply the largest power grid enterprise in China, State Grid Corporation of China (SGCC), winning the bid for its purchase projects for four consecutive years.

Hangzhou Gaoxin's main business is producing cable insulation materials, it said. It is expanding its business into emerging industries to lift profitability. As the technical level of new energy vehicles (NEVs) improves and battery costs keep falling, the construction of NEV charging facilities will gradually take off. Centralized charging stations will reach 12,000 in China, while dispersed charging posts will reach 4.8 million by 2020, the announcement said.

After acquiring Only Power Supply, Hangzhou Gaoxin will form a main two-pronged operating mode that includes cable materials and NEV charging facilities, the firm said.