Shanghai Mechanical & Electrical to repurchase shares, relists subsidiary at discount

Shanghai Mechanical & Electrical Industry announced plans to repurchase its B-shares, aiming to reduce registered capital, enhance per-share earnings, and boost shareholder returns. Following a resolution at an extraordinary shareholders' meeting, the company will initiate the repurchase of its B-shares through centralized bidding, followed by their cancellation. Creditors have 45 days from the November 22, 2025, announcement to file claims.

Concurrently, the company provided an update on its attempt to divest a 67% stake in Shanghai Smic Welding Material Co., Ltd. The initial public listing period concluded without any interested buyers.

Consequently, Shanghai Mechanical & Electrical will relist the 67% equity in Smic Welding Material at a 10% discount to the assessed value from June 30, 2025. The new listing price will be RMB 26,208.189 million, reduced from the initial RMB 29,120.17 million.