3 6 Ke·2025-05-20 02:48Core Viewpoint - Huadian International plans to acquire 80% equity of Jiangsu Company from China Huadian Group and various stakes in other companies through cash payments, aiming to enhance its asset scale and profitability [1][5]. Group 1: Acquisition Details - Huadian International will acquire 80% of Jiangsu Company for a total consideration of 34.28 billion yuan [2]. - The acquisition includes stakes in Shanghai Fuxin (51%), Shanghai Minhang (100%), Guangzhou University Town (55%), Fuxin Guangzhou (55%), Fuxin Jiangmen (70%), Fuxin Qingyuan (100%), and Guigang Company (100%) [1][2]. - The total cash consideration for the acquisitions amounts to 71.66 billion yuan, with 34.28 billion yuan specifically for Jiangsu Company [2]. Group 2: Financial Performance - As of 2024, Huadian International reported a revenue of 113 billion yuan, a decrease of 3.57% year-on-year, while net profit increased by 26.11% to 5.703 billion yuan [3]. - The latest quarterly revenue was 26.58 billion yuan, down 14.14% year-on-year, with a net profit of 1.93 billion yuan, up 3.66% [3]. - The company’s main business revenue is primarily from electricity and heat sales, accounting for approximately 92.97% of total revenue, with electricity sales being the largest segment at 83.84% [3]. Group 3: Industry Context - Despite the rapid development of renewable energy, coal-fired power remains a critical component of the energy mix, accounting for 43.14% of installed capacity and 67.36% of total generation in 2024 [6]. - The acquisition focuses on traditional coal-fired assets, injecting approximately 16.06 million kilowatts of coal power assets, which will increase Huadian International's total installed capacity to about 75.88 million kilowatts [5]. - The acquisition fills gaps in Huadian International's presence in key economic regions of East and South China [7]. Group 4: Regulatory Environment - The China Securities Regulatory Commission (CSRC) has recently revised the regulations on major asset restructuring for listed companies, facilitating mergers and acquisitions [7]. - Key changes include a phased payment mechanism for share consideration, increased tolerance for financial condition changes, and simplified review procedures for certain transactions [7].