Baota Industrial Co., Ltd. successfully completed an asset restructuring, acquiring a renewable energy company and positioning itself as Ningxia's sole publicly traded platform in the sector.

Target Company Overview

宝塔实业股份有限公司 (Baota Industrial Co., Ltd., stock code: 000595.SZ) has successfully completed a significant asset restructuring project in July, leading to a total transaction value of 8.09 billion RMB. Established as the first listed company in China's bearing industry under its previous name, 西北轴承有限公司 (Northwest Bearings Co., Ltd.), 宝塔实业 underwent judicial reorganization in 2020. This restructuring marks the company's first capital operation project post-reorganization and positions it as the only publicly listed platform for the renewable energy industry in Ningxia.

In the restructuring process, Baota Industrial acquired 100% of 宁夏电投新能源有限公司 (Ningxia Electric Power Investment New Energy Co., Ltd.), valued at 8.09 billion RMB, from 宁夏电力投资集团有限公司 (Ningxia Electric Power Investment Group). Concurrently, the company divested its historically loss-making bearing assets, valued at 4.68 billion RMB, and made a cash payment for the difference to Ningxia Electric Power Investment. This strategic shift aims at transitioning 宝塔实业 into the renewable energy sector, enhancing its profitability while aligning with the regional government's plan to consolidate renewable energy assets.

Industry Overview in Ningxia

The renewable energy sector in Ningxia has witnessed substantial growth in recent years, fueled by increased government support and the drive for cleaner energy solutions. The region is known for its rich resources, particularly solar and wind energy, making