CSEC,China Shenhua(601088) 证券时报网·2025-02-12 11:25Core Viewpoint - China Shenhua has completed the acquisition of 100% equity of Hangjin Energy from China Energy Group for a consideration of 853 million yuan, aiming to reduce industry competition and enhance resource reserves [1][2]. Group 1: Transaction Details - The acquisition price for Hangjin Energy is based on the assessed value of the company's total equity as of August 31, 2024, amounting to 853 million yuan, which will be paid using the company's own funds [1]. - Following the payment, China Shenhua will own all shareholder rights and obligations related to Hangjin Energy, while China Energy Group will no longer hold any rights to the equity [1]. Group 2: Strategic Rationale - A significant reason for this transaction is to reduce competition within the same industry, as Hangjin Energy is included in the competitive assets outlined in the agreement between China Shenhua and China Energy Group [2]. - The acquisition is expected to enhance the company's resource reserves, consolidating its competitive advantage in the market [2]. Group 3: Resource and Capacity Enhancement - Hangjin Energy and its subsidiaries include one under-construction coal mine (Taran Gaole Mine) and three operational coal mines (Yannan Mine, Zhanir River Open-pit Mine, and Mindong No. 1 Mine), along with a coal-fired power plant with two 600MW units [2][3]. - The Taran Gaole Mine has a total area of 227.25 square kilometers, with an assessed recoverable resource of 2.054 billion tons and a recoverable reserve of 1.050 billion tons, with a certified capacity of 10 million tons per year [3]. - Following the acquisition, China Shenhua anticipates an increase of 3.841 billion tons in coal resources and 2.087 billion tons in recoverable reserves, representing 11.40% and 13.59% of the company's total resources and reserves as of June 2024, respectively [4]. Group 4: Future Outlook - The Taran Gaole Mine is expected to be completed by 2028 and reach full production by 2029, while the coal-fired power plant has a power generation license valid until December 25, 2033 [4]. - The transaction is projected to enhance China Shenhua's supply capabilities in the Inner Mongolia region, reinforcing its competitive position and supporting its role as a coal business integration platform for China Energy Group [5].