Core Viewpoint - Huaihe Energy's significant asset restructuring, involving the acquisition of 89.3% of Huaihe Energy Power Group, has been approved, which is expected to enhance its operational scale and profitability while reducing competition with its parent company [2][4][10]. Group 1: Restructuring Details - The restructuring plan involves a total transaction value of 11.694 billion yuan, with cash payment of 1.754 billion yuan and share issuance valued at 9.94 billion yuan [4][5]. - After the transaction, Huaihe Energy's total assets are projected to increase from 23.514 billion yuan to 47.724 billion yuan, representing a growth of 102.96% [3][9]. - The acquisition will allow Huaihe Energy to consolidate its fire power generation business, thereby improving asset quality and reducing competition with its parent company [5][10]. Group 2: Financial Projections - Post-restructuring, Huaihe Energy's operating revenue is expected to rise by 19.4% to 8.591 billion yuan, while net profit attributable to shareholders is projected to increase by 75.06% to 4.66 billion yuan [3][9]. - The financial performance of Huaihe Energy Power Group shows revenues of 10 billion yuan in 2023 and a net profit of 1.108 billion yuan, indicating strong operational capabilities [8][10]. Group 3: Shareholding Structure - Following the restructuring, Huainan Mining's shareholding in Huaihe Energy will increase to 80.08%, reinforcing its control over the company [5][10]. - The share issuance will result in Huaihe Energy having a total of 7.167 billion shares, with Huainan Mining holding 5.74 billion shares post-transaction [5][10]. Group 4: Market Position and Strategy - The restructuring is a strategic move to address the issue of same-line competition, as both Huaihe Energy and Huaihe Energy Power Group operate in the thermal power sector [5][10]. - The integration of Huaihe Energy Power Group's assets is expected to create synergies and enhance Huaihe Energy's market position in the thermal power industry [10].