Guangxi Guiguan Electric Power Co. Ltd. Advances Its Hydropower Portfolio with a Major Acquisition

Guangxi Guiguan Electric Power Co., Ltd. (Guiguan Power) announced on 29 December 2025 that it has completed a strategic acquisition of two hydropower assets located in Tibet. The transaction, valued at 1.354 billion CNY, was completed at a price that aligns with the benchmark equity valuation, yielding an 9.78 % premium over the assessed value. The deal is part of Guiguan Power’s broader plan to accelerate the development and operation of large‑scale hydropower projects, thereby strengthening its position in the independent power producer sector.

Deal Highlights

  • Transaction value: 13.54 billion CNY (≈ US 2.0 billion).
  • Premium: 9.78 % over the assessed valuation.
  • Assets: Two hydropower projects in Tibet, previously under the umbrella of the China Three Gorges Corporation.
  • Strategic intent: Fast‑track construction and commissioning of the assets to increase generation capacity and enhance profitability.

The acquisition is expected to boost Guiguan Power’s renewable electricity output significantly, as the company already operates a diversified portfolio that includes hydroelectric, thermal, and wind power plants. The added capacity aligns with national policies encouraging the expansion of clean energy sources.

Market Reaction

Following the announcement, Guiguan Power’s shares experienced positive momentum. The company was listed among 27 firms that received brokerage recommendations on 29 December 2025, according to data from South Finance Research. While the brokerage rating for Guiguan Power was not disclosed in the brief, the inclusion among recommended stocks suggests a favorable market outlook.

Additionally, the company’s share price remained resilient in the face of broader market volatility. As of 25 December 2025, the stock closed at 7.30 CNY, comfortably above its 52‑week low of 5.90 CNY and approaching its 52‑week high of 7.68 CNY. The price‑earnings ratio, standing at 23.54, indicates that investors are willing to pay a premium for future earnings growth.

Corporate Governance and Future Plans

Guiguan Power will convene its first extraordinary shareholders’ meeting on 14 January 2026 to discuss the implications of the new assets and outline future investment strategies. The company has emphasized its commitment to transparency and stakeholder value creation, as evidenced by its recent disclosure of the acquisition details on its official website (www.ggep.com.cn ) and through the Shanghai Stock Exchange.

Context within the Energy Sector

China’s energy policy is increasingly focused on expanding renewable generation, particularly hydropower, to reduce carbon emissions and enhance energy security. Guiguan Power’s acquisition of Tibetan hydropower assets places it at the forefront of this transition, leveraging the region’s abundant water resources. By adding these projects to its portfolio, the company not only diversifies its revenue streams but also positions itself to benefit from government incentives aimed at promoting clean energy infrastructure.

Conclusion

The successful acquisition of two hydropower assets in Tibet marks a significant milestone for Guangxi Guiguan Electric Power Co., Ltd. It underscores the company’s strategy to expand its renewable energy footprint, enhance operational efficiency, and deliver sustainable long‑term value to its shareholders. As the global energy landscape continues to evolve, Guiguan Power’s proactive investment in clean technology is likely to strengthen its competitive edge and support China’s broader transition to a low‑carbon economy.