On November 25, Zhiguang Electric issued an announcement stating that its holding subsidiary, Zhiguang Energy Storage, has recently signed a Procurement Contract for High-voltage Cascaded Grid-forming Energy Storage Systems with Energy Storage Technology Co., Ltd. of China Electric Equipment Group, with a total contract value of RMB 148 million.
The business covered by this contract falls under Zhiguang Electric’s core operations. Should the contract be duly fulfilled, it is expected to exert a positive impact on the company’s financial condition and operating performance for the current year and the subsequent fiscal years.
Earlier, in response to questions raised by research institutions, Zhiguang Electric indicated that its goal for the year is to strive for a turnaround from losses. To this end, the company has adopted a two-pronged strategy, namely "driving the overall business growth through the large-scale development of energy storage business" and "prudently and efficiently disposing of problematic business segments".
At present, based on the disclosed operating data for the first three quarters, the strategy has yielded sound results: the company’s overall business has been on a positive trajectory, and substantial progress has been made in the disposal of problematic business segments.
Zhiguang Electric further noted that its energy storage business has achieved rapid growth in the current year. The company has a total of 2.7 GWh of energy storage production capacity at its existing bases in Punan Road and Nansha of Guangzhou respectively, and a newly commissioned base in Yonghe of Guangzhou with 10 GWh of energy storage production capacity, where additional space has been reserved for future capacity expansion. Overall, Zhiguang Electric’s existing and planned production capacity is sufficient to meet the business development needs for a period of time ahead.
Source：EnergyTrend
