(Yicai Global) May 31 -- Midea Group, a Chinese home appliance giant, will become the controlling shareholder of Clou Electronics, a smart meter and energy storage developer, to control the second listed company in the field.

Clou Electronics [SHE:002121] closed 1.23% higher today at CNY7.43 per share.

The maker of equipment to store renewable energy and charge new energy vehicles issued 252 million shares to Midea for CNY3.28 (US 50 cents) per share to raise CNY828 million (USD116.5 million) to repay its debts and the shares will be listed on the main board of the Shenzhen Stock Exchange on June 2, the Shenzhen-based issuer said in a statement yesterday. After that Midea will have around 22.8 percent of Clou's equity, more than anyone else.

Clou said a year ago that Capital Holdings, the actual controller of Clou, intends to transfer 126 million shares in it to Foshan-based Midea for CNY6.64 (US 90 cents) per share.

Clou, whose business covers the three segments of smart grid, new energy, and integrated energy services, has been unprofitable since 2018. It lost over CNY100 million last year, narrowing from CNY665 million in 2021.

This is not the first time the white goods manufacturer has ventured into the field of power supply management. Before this, Midea purchased shares of Hiconics Eco-Energy Technology, another listed energy storage firm.

The energy storage industry is in line with the national strategy, Midea said on an investor platform recently, adding that Clou is one of the earliest enterprises in China to enter the field of integrated energy storage services and consequently, the firm poses innovation capabilities and a comprehensive competitive advantage.

Editor: Emmi Laine, Xiao Yi