SEP(SH:600021) Mei Ri Jing Ji Xin Wen·2025-09-16 13:44Core Viewpoint - Shanghai Electric has become a strong performer in the new energy sector since early August, but it faced a setback with the termination of a nearly decade-long overseas asset acquisition plan [2][4]. 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 [4][5]. - 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 [4]. - The decision to terminate the acquisition was made after careful analysis, as the seller failed to meet the closing conditions and the business environment in Pakistan changed [4][5]. 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 [5]. - The company remains committed to its strategy of strengthening its domestic operations while pursuing international growth [5]. Group 3: Corporate Structure and Management - The establishment of a wholly-owned subsidiary, "Electric Power International," with a registered capital of 1 billion yuan, was announced by the controlling shareholder, State Power Investment Corporation [2][8]. - The management of Shanghai Electric clarified that its senior executives do not hold any administrative positions in "Electric Power International" beyond being directors or supervisors [10].