SEP(SH:600021) Mei Ri Jing Ji Xin Wen·2025-09-16 13:41Core Viewpoint - Shanghai Electric has become a leading stock in the new energy sector since early August, but it faced a setback by terminating a nearly decade-long overseas asset acquisition plan [1][3]. Group 1: Termination of Acquisition - The termination of the acquisition is linked to changes in the local electricity pricing mechanism in Pakistan, which affected the profitability and valuation of K-Electric Limited [3][4]. - The acquisition plan dates back to October 2016, when Shanghai Electric announced a cash purchase of 66.40% of K-Electric for $1.77 billion, with potential additional payments of up to $27 million based on performance [3][4]. - The decision to terminate was made after careful analysis, as the seller failed to meet the conditions for closing and due to changes in the business environment in Pakistan [3][4]. Group 2: Impact on Company Strategy - Despite the termination, Shanghai Electric stated that it would not affect its overseas strategic layout, highlighting its significant investments in Japan, Hungary, and Turkey [4]. - The company remains committed to its strategy of strengthening its domestic operations while pursuing international growth [4]. - Following the announcement of the termination, Shanghai Electric's stock price initially dropped but then rebounded, indicating market resilience [4]. Group 3: Establishment of Electric International - The company established a wholly-owned subsidiary, Electric International, with a registered capital of 1 billion yuan, which shares some board members with Shanghai Electric [1][6]. - Electric International's business scope includes power generation technology services, and it is located in the same building as Shanghai Electric [6]. - The management of Shanghai Electric confirmed that its senior executives do not hold any administrative positions in Electric International beyond their roles as directors or supervisors [8].