(Yicai Global) Jan. 2 -- Harbin Jiuzhou Electric Technology Co. [SHE:300040] will raise CNY653 million (USD100.3 million) through private placement for the construction of two wind power build-transfer -- often referred to as BT, projects, in East China's Jiangsu province.

The two proposed wind power projects are located in Baoying and Jinhu counties in Jiangsu, with an installed capacity of 100 megawatts each, the firm said in a statement today, adding it signed contracts with the project owners. The listed company is shifting its focus to general contracting of new energy stations.

Harbin Jiuzhou will issue shares to no more than five investors through private placement within six months after receiving a go-ahead from the China Securities Regulatory Commission, it said.

For BT projects, general contractors need to finance project construction with their own funds first and should therefore have ample cash. The share placement can help Harbin Jiuzhou meet cash shortfalls, which constrain the development of its new energy business, the company said.

When completed, the proceeds from the project will generate CNY200 million in gross profits for the company, it said, citing a feasibility study.

New energy power projects using the BT model can prioritize the use of Harbin Jiuzhou-made products, which will help promote the sales of the company's traditional power transmission products and control equipment, the statement added.

Sales from power transmission products and control equipment jumped 71.84 percent in 2015 and 38.42 percent in 2016 year-on-year thanks to the development of BT projects, the company stated.

Since Harbin Jiuzhou signed its first general construction contract of a wind power farm in 2015, revenue from the construction of new energy plants has accounted for at least 60 percent of the company's total, it said, adding that the related BT projects it signed in 2015, 2016 and the first 11 months of last year have a combined installed capacity of 638MW.