Jingwei Textile Machinery expects a planned asset swap with its parent will double its annual sales and boost its export market share.
The company proposed two weeks ago to sell four ailing operations to parent China Textile Machinery in return for the injection of a 98 per cent stake in each of the four profit-making cotton-yarn textile-machinery production plants.
Chairman Yin Shouen said the company had already started trial operations at the four plants, although the asset swap was subject to independent shareholders' approval.
'The company's overall bottom lines have greatly improved in the second half compared with the first,' Mr Yin said.
Vice-chairman Liu Shitong said orders had risen substantially in the second half of the year and orders for the first quarter of next year were full. No figures were given.
Mr Liu said the H-share company appointed China Securities, also known as China Huaxia Securities in the mainland, to underwrite its planned A-share issue next month.