Amoi Electronics<600057>, a Xiamen-based handset maker in China, announced last Friday that it has agreed to pledge the stock rights of 117.21 million shares to China Enterprise Communications (CEC) to secure financial support from the latter.

According to the Shanghai-listed company's announcement, relevant registration of the stock rights pledge has been processed, which suggests the capital injection of CEC to Amoi Electronics has finally completed.

Amoi Electronics announced in July that it has secured financial assistance worth RMB1.27 billion in total from its parent and CEC, including RMB 725 million of secured loan and RMB 45 million of entrustment loan.

In addition, Amoi Electronics was granted RMB 400 million and RMB 100 million one-year credit loan from CEC and its parent respectively.

The proceeds of the stock rights pledge will be used to fund Amoi Electronics' investment in cell phone businesses. The company has recently won the bid of producing 19,000 TD handsets for China Mobile<941><CHL>, and 20,000 CDMA handsets for China Telecom<728><CHA>.

Shares of the company edged down 4.88% to settle at RMB1.95 on Friday.

Source:China Knowledge