Nanjing Panda announced this morning that it will liquidate its 51% holdings in Panda Mobile and 95% equity in Nanjing Panda Communications Development Company to pay back debts to Nanjing Weite Investment Management Company. The total value of those stakes are estimated at CNY120 million.
After its debts are paid, Nanjing Panda will be completely withdrawn from the mobile phone manufacturing sector, making it the first major Chinese enterprise to do so.
However, even after Panda Mobile is handed to Nanjing Weite, the latter still has no experience in operating a mobile phone service, and so it is likely that the original Panda Mobile management team will still have jobs.
Nanjing Panda will probably rely on other services and ventures for future profit. In particular, it still has joint ventures with Beijing Sony Ericsson Putian Mobile Communications Co., Ltd and Nanjing Sharp Corporation.