September 6 -- Hunan Genuine New Material Group (000156) won shareholder approval to carry out its asset restructuring plan, reports Shanghai Securities Journal, citing a company filing.

According to the plan, the company will sell all its assets, excluding cash and cash equivalent, to Qianxilong Limited for 160 million yuan.

The company will then issue 978 million shares at two yuan per share to Qianxilong Limited, Huashu Group, Zhejiang Erqing Group, Oriental Xinkong Venture Investment Limited, and Zhejiang Development Asset Management Limited in order to fully acquire Huashu Media.

According to a company insider, the results of the vote indicated that shareholders were confident about the future prospects of the company.

After the completion of the restructuring, the company will provide technical services for new media content and also operate a cable TV network business in Hangzhou, Zhejiang province.

According to an analyst, the company posted a loss of 685 million yuan as of end June 2011, with overdue bank loans of 233 million yuan. The company has sold its major assets in order to generate funds to repay bank loans.

Huashong Media, a new media services company involved in the 3G mobile TV and Internet TV sectors, has strategic relationships with many content developers. It currently has 2.3 million cable TV customers in Hangzhou, and provides interactive TV services in 20 provinces and 100 cities.

An analyst said the cable TV network business is able to generate stable cash flow, while the new media industry has high growth prospects. The company has no direct competitors in the Hangzhou cable TV market.