(Yicai Global) Sept. 7 -- The chairman of Midea Group has cashed out CNY1.3 billion (USD190.3 million) through the sale of 14.4 percent of his equity in the Chinese electrical appliance maker as part of a reorganization of his personal assets, the firm said today.

Paul Fang sold 20 million shares on Sept. 2, according to the Shenzhen Stock Exchange’s records. That day, Midea traded 20.4 million shares at an average price of CNY68.10 (USD10) apiece.

This is the first time that Fang has pared his stake, Midea said, adding that previously he had always added to his shareholding in the Foshan, Guangdong province-based firm.

As of the end of the first half, Fang had a 1.96 percent holding in Midea with 139 million shares, according to the company's semi-annual report.
Another 26.8 million shares were sold in 37 bulk deals on Sept. 3 at an average price of CNY67.50, however the names of the sellers have not yet been revealed.

Fang’s stakes were transferred mostly to overseas investment institutions which are bound by regulations to hold them for at least six months, Midea said.

Midea reported a better first half performance than many of its competitors, including Gree Electric Appliances and Haier Group, all of which were hard hit by the Covid-19 pandemic. However, the firm’s net profit still slumped 8.3 percent from the same period last year to CNY13.9 billion (USD2 billion) and revenue was down 9.6 percent to CNY39.1 billion (USD5.7 billion).

The white goods maker will work towards improving its business operations in the third quarter and expects to greatly increase its revenue that quarter.

Midea’s stock price [SHE:000333] was trading down 2.17 percent this afternoon at CNY67.30 (USD9.85) giving it a market capitalization of CNY472.5 billion (USD69 billion).

Editor: Kim Taylor