China Yangtze Power Co., Ltd. (Yangtze Power, 600900), the largest listed power company in China, is planning a major asset restructuring. Trading will be suspended since the opening of the market on November 29. It is expected that the suspension will not exceed 10 trading days. Yangtze Power announced that the controlling shareholder China Three Gorges Group is planning to inject the assets (equity) of Wudongde and Baihetan power stations into the company. To optimize and strengthen the main business needs of hydropower.
According to the company’s official website, Yangtze Power is mainly engaged in hydroelectric power generation, power distribution, smart integrated energy, and investment and financing businesses. Related businesses in five countries. Prior to the official injection of the above assets, Yangtze Power had all the power generation assets of the Three Gorges, Gezhouba, Xiluodu and Xiangjiaba power stations on the mainstream of the Yangtze River. It has 82 hydropower installations with a total installed capacity of 45.595 million kilowatts. Its domestic hydropower installed capacity is 45.495 million kilowatts, accounting for 45.495 million kilowatts. 12.32% of the country’s total hydropower installed capacity, with equity installed capacity of 10 million kilowatts, it is the world’s largest listed hydropower company.
The two giant power stations in Uzbekistan and Baili have been injected into the Yangtze River for power generation. A similar operation is that in November 2015, Yangtze Power issued a reorganization plan to inject assets into the two hydropower stations of Jaba and Xiluodu.
In May 2020, when an investor asked about the injection plan of the above power station on the interactive platform, Yangtze Power said that the Wudongde and Baihetan power stations are still under construction. In the middle of this year, “The time and method for the two power stations to inject Yangtze River power are still under study. Once determined, the company will promptly release relevant announcements to the market.” In mid-June this year, Wudongde Hydropower Station achieved all 12 units of 850,000. Thousand-watt units are put into production and power generation goals. Baihetan Hydropower Station is the world’s second largest hydropower station with the world’s largest single unit capacity and the second largest installed capacity after the Three Gorges Project. The first two units were officially put into operation on June 28 this year, and all units will be put into operation in July 2022.
As of November 8, nearly one third of the Baihetan Hydropower Station units have been put into operation and power generation. Wudongde, Baihetan and Xiluodu on the mainstream of the Yangtze River of the Three Gorges Group , Xiangjiaba, Three Gorges, Gezhouba six cascade power stations with a total installed capacity of more than 60 million kilowatts, with an average daily power generation of 1 billion kilowatt-hours.
According to the analysis of the CITIC Securities Research Report, the Urumqi and Baili Power Stations are expected to increase their installed hydropower capacity by 26.2 million kilowatts after the injection of Yangtze River Power, which will increase the company’s performance and cash flow. In addition, Yangtze Power will develop a water and wind integrated base based on its existing hydropower assets in the future.The swimming water and wind-solar complementary project has been included in the national “14th Five-Year Plan”, and the installed capacity is expected to reach 15 million kilowatts.
On November 16, Yangtze Power announced that its wholly-owned subsidiary, Changdian New Energy Co., Ltd., and its controlling shareholder, Yunnan Energy Investment Co., Ltd., a wholly-owned subsidiary of the Three Gorges Group With a joint investment of 51% and 49%, a total of 3 billion yuan was invested to establish Changdian Yunnan Energy Investment Co., Ltd. After the establishment of Changdian Cloud Energy, it will be mainly engaged in the clean energy business of the Yunnan side of the renewable energy base of the integration of water and wind in the lower reaches of the Jinsha River. Including the development, investment and operation management of new energy projects such as wind energy, solar energy, pumped storage, and energy storage (subject to the approval of the industrial and commercial department). To