COMPLANT(SZ:000151) Tai Mei Ti A P P·2025-05-28 08:46Core Viewpoint - Zhongcheng Co., Ltd. plans to acquire 100% equity of Zhongji Jiangsu Clean Energy Co., Ltd. to extend its business into the green development sector, aiming to create a second growth curve amid significant pressure on its main business [1][3]. Group 1: Acquisition Details - The acquisition involves issuing shares to purchase assets from a related party, specifically Zhongji Jiangsu, which is 100% controlled by China General Technology Group [2][3]. - Zhongji Jiangsu focuses on energy storage projects for commercial users, providing necessary services to help users save on energy costs [3]. - The transaction price is yet to be determined as auditing and evaluation are still ongoing, with preliminary figures showing projected revenues of 14.47 million yuan and 39.90 million yuan for 2023 and 2024, respectively [3]. Group 2: Industry Context - The energy storage industry is currently facing intense competition, leading to a significant drop in prices, with the average bid price for energy storage systems in 2024 down 43% year-on-year to 628.07 yuan per kilowatt-hour [3][4]. - Over 60% of 82 surveyed energy storage companies reported a decline in net profits due to ongoing price wars, indicating a challenging operating environment [4]. - Current profit models for energy storage companies are heavily influenced by policies and grid scheduling, resulting in unstable revenues [4]. Group 3: Company Performance - Zhongcheng Co., Ltd. has experienced severe setbacks in its main business, with a cumulative net loss exceeding 900 million yuan from 2022 to 2024, and a 60.02% year-on-year revenue decline projected for 2024 [6]. - The company has faced continuous losses in net profit since 2019, with no significant improvement in loss margins [6].