China Southern Power Grid Energy Efficiency & Clean Energy (SHE:003035) will apply for bankruptcy of two of its subsidiaries, Guangxi Nanneng Changling Clean Energy and Yangshan Nandian Biomass Power Generation, at the Chinese People's Court, according to a Shenzhen Stock Exchange filing on Saturday.
The Chinese energy and environmental protecting services provider attributed this decision to the declining profitability of both subsidiaries, which have been struggling amid the challenges faced by the agricultural and forestry biomass industry.
China Southern Power Grid will assume the role of a creditor for these subsidiaries.
The company's shares slipped more than 1% in recent trade.
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