Shanghai Electric Group Company Limited is a prominent Chinese multinational corporation based in Shanghai, specialising in power generation and electrical equipment manufacturing.
What happened
Shanghai Electric Group plans to acquire a 50 percent stake in Shanghai Fanuc International Trading, an industrial robot manufacturer and joint venture with Japanese robot company Fanuc, for 3.08 billion yuan, as stated in a Hong Kong Stock Exchange.
The Chinese power generation and electrical equipment company will purchase the stake through its subsidiary, Shanghai Electric Automation Group, following its acquisition of Shanghai Ningsheng Industrial, which is owned by its controlling shareholder, Shanghai Electric Holding Group.
Currently, both Fanuc and Ningsheng Industrial hold a 25 percent stake in Shanghai Fanuc, while the remaining 50 percent is owned by Fanuc’s subsidiary, Shanghai Fanuc Robots.
The acquisition will enhance Shanghai Electric Group’s business portfolio by adding key industries such as lithium battery production, photovoltaic technology, aviation, and automobile manufacturing, according to the filing.
This strategic move not only diversifies the company’s offerings but also positions it to capitalise on the growing demand for clean energy solutions and advanced manufacturing capabilities.
Recent Developments in Robotics
On November 8, 2023, Shanghai Electric inaugurated the third phase of its smart factory in Baoshan, Shanghai, in collaboration with Fanuc. This facility, which began construction in 2020, covers 431 mu (approximately 28.7 hectares) and has an investment of around RMB 1.58 billion. It is projected to generate an annual output value exceeding RMB 10 billion, focusing on advanced robotics and intelligent manufacturing technologies.
Future Prospects
Shanghai Electric’s efforts in robot manufacturing align with China’s ambitious goals for the robotics industry. By 2025, the Chinese government plans to mass-produce humanoid robots and create specialised industrial hubs to support this growth.
Shanghai Electric is poised to play a crucial role in this landscape, leveraging its technological capabilities to contribute to the development of high-end equipment manufacturing in China.
Share Price Movement
The share price of Shanghai Electric Group Company Limited, listed in HKEX Stock Exchange of Hong Kong Limited, surged 10 percent during Tuesday’s trading session, rising to 5.47 Chinese yuan from its previous close of 4.97 Chinese yuan. Over the past quarter, the stock has delivered an impressive return of more than 50 percent.
Financial Performance
In its latest financial update, the company reported remarkable net sales of 114,797.07 Million Chinese Yuan in the year ended December 2023, reflecting a 44 percent increase from 117,623.11 Million Chinese Yuan in the year ended December 2022. Moreover, EPS (Earning Per Share) surged to 0.02, compared to -0.23 in the same period.
Written by – Siddesh S Raskar
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