ZhiGuang Electric announced on October 16 that it intends to purchase all or part of the minority shareholders’ equity in its subsidiary, Guangzhou ZhiGuang Energy Storage Technology Co., Ltd. (referred to as ZhiGuang Energy Storage), through the issuance of shares and cash payments. The company plans to issue shares to raise supporting funds as well. Trading of ZhiGuang Electric shares will resume on October 17 (Friday).
ZhiGuang Energy Storage focuses on the research, development, production, and sales of electrochemical energy storage systems. Its product lineup includes large-capacity energy storage systems for power stations (cascade-type high-voltage storage), demand-side storage systems (low-voltage string storage), as well as household and mobile energy storage products. These offerings provide customers with high efficiency, reliability, and safety for various application scenarios.
The customer base of ZhiGuang Energy Storage includes prestigious clients such as State Grid, China Southern Power Grid, Huaneng Group, Three Gorges Group, and China Energy Group. The company has successfully delivered and operated over 20 megawatt-level grid-connected cascade high-voltage large-capacity energy storage power stations. Additionally, ZhiGuang Energy Storage actively participates in more than ten national-level exemplary demonstration projects and the construction of first-of-a-kind projects, covering generation, grid, and user sides, thereby accumulating extensive experience in project construction and operation management.
With its competitive advantages in technology and rich project experience, ZhiGuang Energy Storage currently holds a leading position in the cascade-type high-voltage large-capacity energy storage market, achieving a significant market share and establishing a strong brand effect. Over the past two years, ZhiGuang Energy Storage has demonstrated robust growth and profitability. In the years 2023, 2024, and from January to August 2025, the company’s revenue reached 925 million yuan, 1.063 billion yuan, and 1.06 billion yuan respectively, with net profits of 40.76 million yuan, 42.18 million yuan, and 65.81 million yuan.
Before the transaction, ZhiGuang Electric held a 66.82% stake in ZhiGuang Energy Storage, which is a subsidiary included in the consolidated financial statements of the listed company and is a core entity in its strategic plan for large-scale energy storage development.
The main business of ZhiGuang Electric includes the research, development, production, and sales of digital energy technologies and products, as well as comprehensive energy technology research and services. Digital energy technologies and products encompass energy storage power station systems, motor control and energy saving, grid safety and control, shore power, and smart cables. Comprehensive energy technology research and services include microgrid and distributed energy solutions, comprehensive energy conservation and environmental protection, and renewable energy power station investment.
ZhiGuang Electric stated that by acquiring minority shares in ZhiGuang Energy Storage through this transaction, it will enhance its control over the subsidiary, improve its operational management efficiency, and facilitate the allocation of advantageous resources towards the energy storage business. This move is expected to benefit the overall strategic layout and implementation of the listed company, further increasing ZhiGuang Energy Storage’s market competitiveness and enhancing the core competitiveness of the listed company in the energy storage sector.
As a result of this transaction, the company’s equity stake in ZhiGuang Energy Storage may increase, thereby boosting the net profits attributable to the parent company and enhancing the company’s ongoing operational capabilities and overall value. Additionally, according to the relevant capital increase agreement signed between the listed company, ZhiGuang Energy Storage, and certain proposed transaction counterparties, there are agreed exit options such as buybacks, equity purchases, and negotiated transfers in place for the counterparties when increasing their stakes in ZhiGuang Energy Storage. This transaction aims to reduce cash expenditures for the listed company due to these agreements and to lower the debt ratio through the raised funds, optimizing the overall financial structure and enhancing resilience against risks and ongoing operational capability.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/zhi-guang-electric-plans-to-acquire-minority-shares-in-zhi-guang-energy-storage-to-strengthen-control/
