Xinyi Energy to spin off new energy fund for separate listing

3868.HK

Solar and wind farm operator Xinyi Energy Holdings Ltd.(3868.HK) said on Sunday that it will spin off its XYE New Energy Fund for a separate listing on the Shenzhen Stock Exchange. The company submitted its application to the China Securities Regulatory Commission and the Shenzhen Stock Exchange last Monday, and the latter formally accepted the application.

The fund includes two utility-scale ground-mounted solar farms, one in the city of Wuhu and the other in the city of Lu’an, both in East China’s Anhui province. The pair of projects generated combined revenue of 40.42 million yuan ($6.02 million) and a net profit of 8.44 million yuan in the first quarter of this year.

The company noted that selling the projects will allow it to quickly monetize their economic value. Moving forward, Xinyi Energy can also generate recurring income by providing operation and management services.

The anticipated spinoff is expected to yield 1.62 billion yuan. Xinyi will use funds from the spinoff for new investment opportunities and general working capital, and also for construction of real estate projects

Shares of Xinyi Energy opened up 0.6% at HK$0.79 on Monday. The stock is down over 40% from its 52-week high.

By Lau Chi Hang

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