December 28 -- Huadian Energy (600726,900937) plans to use 160 million yuan of its own capital to fully acquire a power equipment company, Heilongjiang Longdian Power Equipment, owned by Longdian Group, reports Shanghai Securities News, citing a company filing.

The target company, which was founded in 1997 with a registered capital of 10 million yuan, mainly produces and sells insulation tubes and power equipment. It recently diversified into the environmental protection field.

For the first nine months, the target company earned net profit of 18.99 million yuan on revenue of 98.79 million yuan.

According to Huadian Energy, the proposed acquisition will generate a new source of earnings for the company.