中能电气 plans to acquire controlling stakes in three companies to enhance its position in the high-voltage equipment market, amid significant financial and operational risks.

Target Company Information

中能电气 (Zhongneng Electric), with the stock code 300062, has recently announced a major asset restructuring plan following a surge of over 12% in its stock price. The company intends to acquire a controlling stake of 65% along with significant debt interests in three companies: 山东达驰电气有限公司 (Shandong Dach Electric Co., Ltd.), 山东达驰高压开关有限公司 (Shandong Dach High Voltage Switch Co., Ltd.), and 水发驰翔电气（山东）有限公司 (Shui Fa Chi Xiang Electric (Shandong) Co., Ltd.). This strategic move will see 中能电气 paying in cash for these acquisitions, which are projected to constitute a major asset restructuring.

The three target companies are involved in the manufacturing and sales of high-voltage transformers and switches, key areas in 中能电气’s growth strategy. Given the increasing need for advanced electrical infrastructure in China, these acquisitions align with industry trends and 中能电气’s goal to enhance its product offerings in the high-voltage domain.

Industry Overview in China

China’s electrical equipment manufacturing industry has undergone significant transformation, becoming a vital sector within the global market. The government has emphasized the importance of modernizing and innovating energy infrastructure, leading to heightened c