Mei Ri Jing Ji Xin Wen·2025-10-30 14:37Core Viewpoint - Datang Power's acquisition of a 50% stake in Anhui Electric Power Co. for a symbolic price of 1 yuan reflects the company's commitment to social responsibility despite the financial burden of taking over a heavily indebted entity [2][3][5]. Group 1: Acquisition Details - Datang Power's wholly-owned subsidiary, Datang Anhui Power Co., signed a contract to acquire 50% of Anhui Electric Power Co. for 1 yuan, resulting in full ownership [2]. - Anhui Electric Power Co. has total assets of approximately 787 million yuan and total liabilities of about 2.473 billion yuan, leading to negative equity of 1.686 billion yuan and a debt-to-asset ratio of approximately 314% [2][5][6]. Group 2: Financial Impact - The acquisition is expected to reduce Datang Power's consolidated net profit by approximately 589 million yuan due to the negative equity and ongoing losses of Anhui Electric Power [3][8]. - Anhui Electric Power reported a net loss of 270 million yuan in 2023, which further increased to 353 million yuan in 2024 [5][6]. Group 3: Strategic Rationale - Datang Power emphasized that the acquisition aims to fulfill social responsibilities and ensure energy supply, particularly as Anhui Electric Power is the only municipal heating and industrial heating provider in Huainan [7][8]. - The company plans to leverage its expertise in technology and management to improve Anhui Electric Power's operational efficiency and sustainability [8][9]. Group 4: Financial Performance Context - Datang Power reported a robust performance with a revenue of 89.345 billion yuan and a net profit of 6.712 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 51.48% [4][9].