Dongfang issue for wind power

Dongfang issue for wind power

DONGFANG Electric Corp says it proposes to sell up to 65 million new shares in China to raise funds to invest in energy-related infrastructure projects.

China’s third-biggest maker of power-generation equipment said it intends to use the funds make total investments of up to 3.96 billion yuan (US$565 million) on wind power projects in Hangzhou, eastern China, and Tianjin in northern China, and a nuclear power renovation project in Sichuan Province.

Dongfang said it proposed to sell not more than 65 million new A shares, representing 7.96 percent of the total shares of the company currently in issue.

The sale will be subject to approval by shareholders and relevant Chinese authorities, Dongfang said in a statement to the Hong Kong Stock Exchange.

The company also said profit for 2007 fell 1.9 percent to 2.41 billion yuan, from 2.46 billion yuan in 2006. Earnings per share dropped to 2.723 yuan from 2.777 yuan the previous year, the Deyang, Sichuan-based company said.

The directors proposed a final cash dividend of 0.24 yuan per share for 2007, compared with 0.20 yuan a year earlier.