China's GD Power to buy stake in insurer

SHANGHAI, May 23 (Reuters) - GD Power Development Co (600795.SS), a major electricity and heat supplier, said on Friday it plans to pay 105 million yuan ($15 million) for a stake in a new life insurer to expand into the financial sector.

GD Power will take an 8.3 percent stake in Century Life Insurance Co and become one of its biggest shareholders, along with six other investors in the new company, GD Power said in a statement to the Shanghai Stock Exchange.

"We will build a financial platform to facilitate the company's development and cultivate new engines for growth," the company said.

Century Life, based in the northern Chinese city of Dalian, aims eventually to attract overseas strategic investors and sell shares publicly, the statement said.

GD Power's net profit surged 68 percent to 1.68 billion yuan ($232 million) last year, while revenue climbed 32 percent to 17.53 billion yuan, as it cut costs, increased generating capacity and purchased assets from its state parent. (US$1=6.94 Yuan) (Reporting by Samuel Shen; Editing by Edmund Klamann)