Shanghai Electric reports Q3 impairment, sets new related party transaction frameworks

Shanghai Electric Group Company announced RMB1,500.52 million in pre-tax profit reduction due to impairment provisions for the first three quarters of 2025. This was primarily driven by RMB1,220.37 million in credit impairment losses and RMB280.15 million in asset impairment losses. The disclosure coincides with the release of the company’s Q3 2025 report and an upcoming investor briefing on November 11.

The company also outlined new three-year frameworks for related party transactions for 2026-2028. This includes Shanghai Mitsubishi Elevator Company’s procurement of elevator products, capped at RMB20 billion annually from Mitsubishi Shanghai Electric Elevator Company. Additionally, Shanghai Electric and its controlling shareholder established a comprehensive related party transaction framework covering sales, procurement, and financial services, with various annual limits.

Furthermore, Shanghai Electric's subsidiary, Shanghai Mechatronics Technology Co., Ltd., will renew its guarantee for Nedfast Holding B.V.'s bank loan of €135 million, maintaining 30.4% of the listed company's net assets as of 2024. The board also approved the departure of independent director Mr. Xu Jianxin and the nomination of Mr. Chen Xinyuan as a new independent director.