Muli Guzeng Hydropower Development Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 172,810,000 on October 14, 2016. The transaction will include participation from returning investors, Sichuan Xichang Electric Power Company Ltd. (SHSE:600505) for CNY 110,600,000 to acquire additional 49.638706% stake in the company to hold 64.000718% stake in the company, Muli State-owned Assets Management Co., Ltd. for CNY 36,290,000 to acquire additional 16.28742% stake in the company to hold 20.999955% stake in the company, and Liangshan State-owned Investment Development Co., Ltd. for CNY 25,920,000 to acquire additional 11.633230% stake in the company to hold 14.999327% stake in the company. Sichuan Xichang Electric Power Company Ltd. will invest CNY 12,843,600 using physical assets and CNY 97,756,400 using cash. The investors will acquire 77.559356% stake in the company. The registered capital of the company will increase from CNY 50,000,000 to CNY 222,810,000. The transaction has been approved by the board of directors of the Sichuan Xichang Electric Power Company Ltd. at its 5th session of its 8th directorate and is subject to its shareholders’ approval at its shareholders’ meeting. The company has reported total assets is CNY 181,018,600, net assets of CNY 41,652,200, revenue of CNY 0, and net loss of CNY 12,738,100 for the year ended December 31, 2015.