Pinggao Electric secures RMB 33.2m loan from parent for R&D

Henan Pinggao Electric Company Limited will receive a RMB 33.2 million entrusted loan from its controlling shareholder, China Electric Equipment Group Co., Ltd., for research and development. The loan, facilitated by China Electric Equipment Finance Co., Ltd., has a 2.3% interest rate and a three-year term, aligning with state-owned capital management policies. This transaction, approved by the company's board, supervisors, and independent directors, is deemed a related-party transaction.

The financial impact of this transaction is reflected in the company's 2025 Q3 report, which shows a net cash flow from operating activities of RMB 130.5 million, an 85.54% decrease year-over-year. This is attributed to increased procurement payments. The company's total assets reached RMB 22.7 billion, up 4.52% from the end of last year, with total liabilities at RMB 10.8 billion.

For the first nine months of 2025, Pinggao Electric reported a total operating revenue of RMB 8.4 billion and a net profit attributable to shareholders of RMB 982.3 million, increasing by 14.62% compared to the same period in the previous year. The loan is expected to bolster the company's overall business capabilities and competitiveness without affecting its independence.