Following the pre-disclosure of the transfer of 51% equity of China Power (Shangqiu) Thermal Power Co., Ltd. on the Beijing Equity Exchange in September this year, SPIC recently listed and transferred its subsidiaries CLP Shentou Power Co., Ltd., Liaoning Dongfang Power Generation Co., Ltd., and Chifengping Equity of 6 coal-fired power companies including Zhuang Thermal Power Co., Ltd. and China Power Investment Shijiazhuang High-tech Thermal Power Co., Ltd. In addition, Huaneng Group, Datang Group, and National Energy Group have recently listed individual thermal power assets to be disposed of as "lists" for listing and transfer. Industry insiders believe that under the background of accelerating transformation and optimizing power supply structure, power generation central enterprises will accelerate the disposal of inefficient and indebted thermal power assets.

Disposal of debt thermal power assets one after another

The recent list of property rights transfers published by the Beijing Equity Exchange shows that thermal power companies that have recently listed and transferred equity in power generation central enterprises are all in a state of debt and loss.

Information shows that as of September 30 this year, China Power Shentou Power Co., Ltd. under the State Power Investment Corporation has achieved revenue of 1,203,325,600 yuan, an operating profit loss of 126,634,700 yuan, a net profit loss of 125,552 million yuan, and a total debt of 4411.1178 million yuan. Transfer of 51% equity. As of December 31, 2019, Chongqing Hengtai Power Generation Co., Ltd. under the National Energy Group has total assets of 1,628,147,300 yuan, total liabilities of 1,867,491,900 yuan, owner's equity of -23,934,600 yuan, asset-liability ratio of 114.7, and total profit of -116.52 million in 2019 Yuan, 10.0008% of the shares will be listed for transfer. As of August 31 this year, Huaneng Hegang Power Generation Co., Ltd. achieved revenue of 1032.5663 million yuan, operating profit of -173.5492 million yuan, net profit of -167.8407 million yuan, total liabilities of 2772.1627 million yuan, and 18% equity transfer.

In fact, it is not uncommon for power generation central enterprises to dispose of thermal power assets in the past two years.

In May 2020, Datang Power listed for the transfer of 70% equity of Yunnan Datang International Red River Power Generation Co., Ltd., and said that considering the current and future operating conditions of Yunnan Datang International Red River Power Generation Co., Ltd., it is expected that it will not be able to make up for it in the short term. Accumulated losses over the years, and the continued profitability of thermal power projects is difficult to guarantee. Therefore, the company used the power generation in the past two years and the electricity price to reach a high point in the equity transfer, which is conducive to recovering investment and speeding up the disposal of inefficient assets.

In addition, SDIC Power also issued an announcement in 2019 that it intends to transfer the equity of 6 thermal power companies with poor profitability. The brokerage report pointed out that SDIC Power’s pre-listing transfer is the loss-making, poor profitability of the shares of the holding thermal electronics company. Most of the remaining holding thermal power projects are large-capacity, high-parameter and high-quality units, which have strong profitability and are expected to continue to benefit the power market. Advancement.

More coal companies take over

So, who is the ultimate purchaser of the transferred shares of thermal power companies? An enterprise person who is listing and transferring thermal power projects told reporters: "The property rights transactions are all public, and the intended transferee has no specific business scope restrictions. It is not convenient to disclose the specific acquisition situation at this time."

Electric power industry expert Chen Zongfa told reporters that although the specific purchaser of some projects is not clear, based on past experience, coal companies have taken over more deals.

In December 2019, SDIC Power issued an announcement stating that SDIC’s 51% stake in Xuancheng, SDIC Yili 60%, Jingyuan Second Power’s 51.22% stake, Huaibei Guoan’s 35% stake, and Zhangye Power’s 45% stake will be sold to 18.09 RMB 100 million was transferred to China Coal Group.

Industry insiders believe that coal enterprises' takeover will help them accelerate coal-electricity joint ventures. "There are both coal and power plants. Many problems can be digested internally."

"First of all, coal prices have risen sharply recently, coal-fired power has suffered a full loss, and asset prices are relatively low. It is a good time for coal companies to purchase coal-fired power; secondly, as the market changes, once coal prices drop sharply in the future, profits will pass through the price. Leverage is transferred to downstream coal power companies; thirdly, coal companies can build a coal power industry chain after acquiring coal power assets, realizing income and risk hedging, and ensuring that their coal supply and income are relatively stable.” Chen Zongfa said.

Thermal power optimization and transformation are accelerating

"In the context of carbon peaks, carbon neutrality goals, as well as the construction of a new power system and strict control of the development of coal power, green and low-carbon is the main direction of the current power generation industry's transformation, and it is also a key reason for power generation groups to sell thermal power assets." Chen The patriarchal clan pointed out that “For example, the proportion of clean energy installed capacity of SPIC is the highest among the five major power generation groups. Therefore, in accordance with the requirements of the 14th Five-Year Plan and the company’s own strategic positioning, it will make every effort to develop new energy and consolidate its leading position.” .

"Enterprises adjust their energy structure by adopting two measures: on the one hand, vigorously develop new energy in incremental projects; on the other hand, through capital operations such as upgrading, restructuring, transfer, and shutdown, to reduce coal power inventory assets as much as possible. , Improve the operating efficiency of stock assets." Chen Zongfa said, "From the perspective of power generation groups, reducing the proportion of coal power assets and increasing the proportion of new energy will help enhance the overall competitiveness."

In December 2020, Qian Zhimin, chairman of SPIC, announced that by 2023, SPIC's domestic carbon peak will be achieved. Data show that as of the end of 2020, the company's total installed power capacity is 176 million kilowatts, of which 56.09% is clean energy.

Shu Yinbiao, chairman of Huaneng Group, also publicly stated before that, in terms of coal power, Huaneng will insist on improving the growth of coal and making fine stocks, and increase the flexibility and transformation of coal machine projects at the support point of the power grid, and promote coal with technological innovation and technological progress. The clean, low-carbon and efficient use of electricity will accelerate the green transformation and upgrading of traditional coal-fired electricity.