China Singyes to spin off materials unit

If everything proceeds as planned, Singyes New Materials — a producer of indium tin oxide film, polymer dispersed liquid crystal film electronically switchable glass (Smart Light-adjusting Glass), and smart light-adjusting projection systems — will remain a group subsidiary.

The group currently owns 90.1% of Singyes New Materials, according to a statement on the Hong Kong stock exchange.

The subsidiary will seek a listing on on Hong Kong’s Growth Enterprise Market (GEM) through an initial placement of shares to institutional investors, in addition to a preferential offering to qualifying shareholders, that will in aggregate amount to 25% of the enlarged issued share capital of the company.

Following the GEM listing, China Singyes Solar Technologies will retain its focus on China’s solar engineering, procurement & construction (EPC) market.

The proposed spin-off and listing — which is still subject to approval by the group’s board of directors — will improve the ability of Singyes New Materials to raise capital.

Earlier this month, another unit of China Singyes Solar Technologies agreed to sell off two 81% stakes in two companies that operate 100MW of solar capacity in northwestern China’s Gansu province and Xinjiang region for HKD861,000,000 (USD111 million).