China Automobile Parts Holdings Ltd has put its plans for a dual listing on the Hong Kong Stock Exchange on hold due to the slowdown in China’s economy.
Despite the slowdown, it is working on ways to diversify its income base by venturing into rubber products.
The company insisted plans to list in Hong Kong were still ongoing, and had engaged an investment advisor to help.
“The exercise is still on but due to the slowdown in the China economy and the market, the company is cautiously waiting for the opportune time to embark on this.
“It’s at the preliminary stage,” managing director Li Guo Qing said referring to the proposed dual-listing in Hong Kong.
The chassis component manufacturer expected market conditions in Hong Kong and China to pick up in the “near term”, and hence had not set a timeline for the proposed dual listing.
“Overall the company will do its best to protect the interest of shareholders,” Li said.
He said this after the company’s AGM yesterday.
China Automobile would take any opportunity to expand further in the China market, he added.
On the rubber products segment, China Automobile has placed orders with its joint venture partner SRI Elastomers Sdn Bhd to bring automobile industry rubber products to China.
Li said the company would then test the market in China first.
“It will depend on the market condition and acceptability of the products in the China market,” he said referring to the estimated earnings contribution.
The rubber products it will bring into China has different specifications for different industries. At the moment, the company will continue to focus on servicing the automobile industry.
