POWERCHINA Ltd(SH:601669) Mei Ri Jing Ji Xin Wen·2025-11-28 15:35Core Viewpoint - The construction of the lower reservoir of the Yong'an pumped storage power station in Sanming City, Fujian Province, is facing serious allegations of quality issues and cost-cutting practices during dam construction, involving China Power Construction Corporation and its subsidiaries [1][2]. Group 1: Construction Quality Issues - There are significant quality defects in the hundreds of anchor piles used to reinforce the dam shoulder, with actual construction lengths drastically reduced, with some piles measuring less than one-third of the design standard [1][2]. - Most anchor piles were not filled with cement mortar as required by regulations, with the construction team only performing simple sealing at the pile openings to pass inspections [2]. - According to on-site workers, only about 30% of the installed anchor piles meet design specifications, with the majority being substandard [2]. Group 2: Monitoring and Oversight Concerns - The supervising unit, Zhejiang East Engineering Consulting Co., Ltd., is a wholly-owned subsidiary of the design unit, raising concerns about the ability of these parties to fulfill their responsibilities effectively [4]. - Reports indicate that monitoring personnel have engaged in inappropriate behavior, such as accepting invitations from the construction team for entertainment, which raises ethical concerns regarding oversight [6]. Group 3: Project Significance and Financials - The Yong'an pumped storage power station project has a total investment of 7.5 billion yuan and is a key project in Fujian Province's 14th Five-Year Plan, expected to generate an average annual power output of 12.6 billion kilowatt-hours [7]. - In the first three quarters of the year, China Power Construction Corporation reported a total revenue of 439.55 billion yuan, a year-on-year increase of 3.05%, while net profit attributable to shareholders decreased by 14.86% to 7.47 billion yuan [7].