Guangzhou Zhiguang Electric Co Ltd Secures a 148 Million CNY Energy‑Storage Order

On 25 December 2025, Guangzhou Zhiguang Electric Co Ltd (stock code 002169) announced that its wholly‑owned subsidiary, Guangzhou Zhiguang Energy Storage Technology Co Ltd, had signed a purchase contract with China Electric Equipment Group Energy Storage Technology Co Ltd. The deal, valued at 148 million CNY (≈ 14.81 million USD), will see the subsidiary supply a high‑voltage cascade network‑type energy‑storage system for the Anfu Mingfeng high‑voltage cascade network‑type energy‑storage project operated by the buyer.

Contract Highlights

  • Contract Value: 148 million CNY (14,813.20 million CNY as reported).
  • Buyer Profile: China Electric Equipment Group Energy Storage Technology Co Ltd, a subsidiary of China Electric Equipment Group Co Ltd. The buyer boasts a registered capital of 20 billion CNY and is controlled by the State-owned Assets Supervision and Administration Commission, ensuring strong backing and financial stability.
  • Delivery & Payment Terms: The buyer will make progress payments in accordance with the contract schedule. Zhiguang Energy Storage must deliver and install the system, perform commissioning, and issue a value‑added tax special invoice. Clear provisions on breach of contract are set, with disputes to be resolved amicably and, if necessary, through the local people’s court.
  • Strategic Fit: The energy‑storage system aligns with Zhiguang’s core competencies in power conservation equipment, electric automation, and electric information systems, reinforcing the company’s position in the rapidly expanding renewable‑energy infrastructure market.

Implications for Zhiguang Electric

  • Revenue Growth: The contract represents a significant revenue influx for the subsidiary, potentially boosting Guangzhou Zhiguang Electric’s overall earnings and improving its financial outlook, particularly important given the company’s negative price‑earnings ratio of –34.82.
  • Market Confidence: Securing a sizable order from a state‑owned buyer enhances investor confidence and signals that Zhiguang’s technology solutions are trusted by major national enterprises.
  • Operational Scale: The project will likely expand the subsidiary’s production capacity and supply chain, positioning it for future large‑scale energy‑storage contracts within China’s push toward grid modernization.

Contextual Background

Guangzhou Zhiguang Electric, listed on the Shenzhen Stock Exchange, specializes in the development, design, manufacturing, and distribution of a broad spectrum of electrical equipment. Its product portfolio includes:

  • Electric power grid control equipment
  • Electric control equipment
  • Power conservation equipment
  • Electric automation equipment
  • Electric information systems

With a market capitalization of 8.2 billion CNY and a 52‑week trading range from 4.58 CNY to 10.82 CNY, the company has demonstrated resilience in a highly competitive industrial sector. The latest order underscores its ability to secure high‑value contracts and reinforces its strategic focus on energy‑storage solutions, a sector poised for robust growth as China accelerates its green energy transition.

Market Reaction

Following the disclosure, the market reacted positively. The announcement was accompanied by a voluntary disclosure on xueqiu.com and a news release on bjx.com.cn, drawing attention from institutional investors who monitor energy‑storage and grid‑upgrade projects. While the share price remains volatile—closing at 10.65 CNY on 25 December—the company’s long‑term prospects appear strengthened by this new contract.

In summary, Guangzhou Zhiguang Electric Co Ltd’s subsidiary has secured a substantial energy‑storage order that not only promises immediate financial benefits but also consolidates the company’s role as a key player in China’s evolving electrical infrastructure landscape.