Sunpower Group to buy stakes in two China thermal energy projects
It will take 15% equity interest in Xinneng Thermal Power, and the remaining interest in Changshu Thermal Power that it does not own
[SINGAPORE] Sunpower Group on Thursday (Dec 4) announced that it is acquiring stakes in two Chinese power projects.
Its wholly owned subsidiary Sunpower International Holding (Singapore), will acquire a 15 per cent interest in Jining Xinneng Thermal Power for about 30.2 million yuan (S$5.5 million).
Meanwhile, another subsidiary, Jiangsu Sunpower Clean Energy, owns a 90 per cent stake in Changshu Suyuan Thermal Power and has agreed to acquire the remaining 10 per cent from Jiangsu Geqiu Environmental Technology for 16.8 million yuan.
Xinneng Thermal Power, established in September 2024, is majority-owned by Jining Energy Development Group, one of the largest state-owned enterprises in Shandong Province, Sunpower Group said in a bourse filing.
It is the exclusive steam supplier to Jining New Material Industrial Park, one of China’s top 20 national key chemical industrial parks. Upon completion of construction and commissioning, Xinneng Thermal Power will also provide residential heating across the Jinxiang County in Jining City and supply electricity to the state grid.
“Its diversified customer base, spanning both industrial and residential users, enhances the revenue stability of Xinneng Thermal Power,” said Sunpower Group.
The investment deepens ties with Jining Group and paves the way for future collaborations in areas such as steam pipeline construction, geothermal heating and artificial intelligence (AI)-empowered energy efficiency projects, said Sunpower Group.
As at Jul 31, 2025, the book value of Xinneng Thermal Power was about 200.5 million yuan, and its net tangible asset value stood at 182.2 million yuan.
As for the Suyuan Project, it was established in 2003 in Changshu, Suzhou, Jiangsu Province and is the exclusive steam supplier in the regional industrial park with a government permit, and sells electricity to the state grid.
Sunpower Group acquired a 90 per cent stake in the Suyuan Project in 2019 and has since completed several facility upgrades.
Acquiring the last 10 per cent stake it does not own will allow the group to implement initiatives such as using AI to improve efficiency, Sunpower Group said.
As at Jun 30, 2025, the unaudited book value of the Suyuan Project was about 270.5 million yuan. Its net tangible asset value stood at 120.3 million yuan.
Both investments are expected to be funded through internal resources.
Shares of Sunpower Group closed at S$0.525 on Thursday, down S$0.005 or 0.9 per cent.
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