Nanjing Putian Telecommunications Co., a state-owned manufacturer of computer wires and videoconferencing equipment, announced in a filing with the Shenzhen Stock Exchange last night that it is selling two apartments it owns in central Beijing. The company gave no reasons for the move, other than describing it as an “asset sale.”According to the Economic Observer, there are 617 listed companies in China who earned less than 22 million in the first half of the year.
To some analysts, however, the sale is likely an attempt by Nanjing Putian to hold on to its listing on the Shenzhen exchange.
Nanjing Putian has been bleeding, suffering two years of consecutive losses. A third year of red ink would be grounds for suspending its listing, under securities regulations. A fourth year would see it delisted.
Nanjing Putian acquired the two second-floor, 141-square-meter flats in 2004 for 2.15 million yuan ($322,634), as a dormitory for some of its marketing and sales staffers working in Beijing. Twelve years on, the apartments are now valued at 22.72 million yuan, according to the company. That amount, the company said, is more than 16 times higher than their current book value of 1.29 million yuan that factors in asset depreciation.
The company’s current estimated market price is larger than the net loss of 21.11 million that the telecom-equipment maker reported for the first half of the year. The company reported net losses of 16.59 million yuan for 2015 and 18.98 million yuan for 2014.
Location, Location: Two Apartments May Save a Chinese Firm’s Stock Listing