Mei Ri Jing Ji Xin Wen·2025-12-20 09:00Core Viewpoint - The article discusses the significant acquisition plan of Zhongneng Electric, which aims to acquire controlling stakes in three high-voltage electrical companies for approximately 857 million yuan, despite its limited cash reserves and the financial struggles of the target companies [2][5][16]. Financial Overview - Zhongneng Electric reported a cash balance of 661.14 million yuan as of Q3 2025, indicating a potential liquidity issue given the acquisition's cost [3][7]. - The three target companies have collectively incurred losses exceeding 44 million yuan in the first ten months of 2025, raising concerns about their financial health [4][17]. Acquisition Details - The acquisition involves purchasing 65% stakes in Shandong Dacheng Electric Co., Shandong Dacheng High Voltage Switch Co., and Shandong Shuifa Chixiang Electric Co. for a total of 857 million yuan [5][16]. - Zhongneng Electric plans to pay a 100 million yuan deposit before shareholder approval, which could become a sunk cost if the acquisition is not finalized [3][9]. Strategic Rationale - The acquisition aligns with the national strategy for new power system construction, aiming to enhance Zhongneng Electric's capabilities in the high-voltage sector [3][16]. - If successful, the acquisition could potentially double Zhongneng Electric's revenue, as the target companies are projected to generate approximately 1.154 billion yuan in revenue for 2024 [16][17]. Risks and Concerns - The management's request for unlimited bidding authority raises governance concerns, as it may expose shareholders to significant risks without clear price limits [10][12][15]. - The complexity of the acquisition process, including the requirement to acquire all three companies simultaneously, adds to the uncertainty surrounding the deal [14][18].