SEP(SH:600021) Chang Jiang Shang Bao·2025-09-11 00:08Core Viewpoint - Shanghai Electric is terminating its long-standing acquisition plan for KE Company in Pakistan, shifting focus towards significant investments in domestic renewable energy projects [1][2]. Group 1: Termination of Acquisition - The acquisition of a 66.40% stake in KE Company, which began in 2016, has been officially terminated due to unmet conditions and changes in the business environment in Pakistan [2]. - The total cash consideration for the acquisition was set at $1.77 billion, with potential additional rewards not exceeding $27 million [2]. - The decision to terminate the acquisition was made to protect the interests of the company and its shareholders, as the deal no longer aligns with the company's international development strategy [2]. Group 2: Investment in Renewable Energy Projects - Following the termination of the acquisition, Shanghai Electric is increasing its investment in domestic renewable energy projects, with a total investment of 6.041 billion yuan approved for two new projects [4][5]. - The two projects include the Fengxian No. 1 offshore photovoltaic project in Shanghai, with a capacity of 500,000 kW, and a 400,000 kW wind power project in Heilongjiang [5]. - As of June 30, 2025, the company has a total installed capacity of 25.8013 million kW, with clean energy accounting for 61.83% of this capacity [5]. Group 3: International Expansion and Performance - Shanghai Electric has been actively expanding its international presence, entering markets in Malta, Turkey, Japan, Bulgaria, Hungary, and Serbia, focusing on wind, solar, and natural gas power generation [3]. - As of June 30, 2025, the company's overseas assets amounted to 30.072 billion yuan, with operational capacity of 2.1337 million kW [3]. - In terms of revenue contribution from international operations, Turkey, Japan, and Malta accounted for 11.98%, 1.87%, and 1.34% respectively in the first half of 2025 [3]. Group 4: Financial Performance - In 2024, Shanghai Electric reported revenue of 42.734 billion yuan, a year-on-year increase of 0.78%, and a net profit of 2.046 billion yuan, up 28.46% [6]. - For the first half of 2025, the company achieved revenue of 20.475 billion yuan, reflecting a growth of 1.76%, and a net profit of 1.909 billion yuan, which is a 43.85% increase year-on-year [6].