Red chip aims for higher contributions from its drug and infrastructure arms
Shanghai Industrial Holdings has reshuffled its health-care assets in a move to boost recurring contributions from its core pharmaceutical drug and infrastructure units.
The window company of Shanghai municipal government divested its entire 48 per cent stake in Sunve Pharmaceutical for 155.58 million yuan, while its A-share subsidiary, Shanghai Industrial United Holdings, increased its interest in medical equipment maker Shanghai Medical Instruments to 99 per cent after buying an additional 40 per cent stake in the company for 75.8 million yuan.
Shanghai Industrial Holdings chairman Cai Laixing said the asset reshuffle was part of the group's efforts to achieve a stable profit stream, with the aim of increasing combined contributions of the pharmaceutical and infrastructure units to 50 per cent from 35 per cent of the group's net profit last year.
The red-chip conglomerate posted record net profit last year of $1.38 billion, up an annual 9.8 per cent.
'We want to consolidate internally our existing projects while expanding our portfolio through mergers and acquisitions,' Mr Cai said yesterday. 'We are in discussions about acquiring large-scale health-care projects and two toll roads.'