Breaking News

EDF Names Jean-Bernard Levy Interim Chairman, CEO

Hidili Set to Gain Most in 6 Weeks on Sale Plan: Hong Kong Mover

Hidili Industry International Development Ltd. (1393), a Chinese coking coal producer, is poised for its biggest gain in six weeks after announcing it plans to sell assets to help repay short-term debt.

Shares rose 4.1 percent, the most since April 10, to HK$1.78 as of 12:23 p.m. in Hong Kong trading after climbing as much as 7.6 percent. Hidili agreed to sell a 50 percent stake in its coal mines, washing plants and other facilities in Yunnan and Guizhou provinces for 2.4 billion yuan ($392 million) to a unit of state-owned Yunnan Coal Chemical Industry Group Co., the company said in an exchange filing today.

The shares had been suspended since May 20 pending an announcement. The proceeds will be used to help repay short-term borrowings, according to the statement.

“This move helps mitigate short-term liquidity issues,” Helen Lau, a Hong Kong-based analyst with UOB Kay Hian Ltd., said today in an e-mailed note. “But revenue and earnings will also be reduced by approximately 15 percent accordingly on an annual basis.”

Hidili swung to a 147 million yuan net loss in 2012 from a profit a year ago because of lower coal prices and production volume.

To contact Bloomberg News staff for this story: Helen Yuan in Shanghai at

To contact the editor responsible for this story: Jason Rogers at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.