On the evening of June 2, 2023, China Power Construction Co., Ltd. issued the "Advisory Announcement on Planning the spin-off and listing of its holding subsidiary", which planned to split its subsidiary China Power Construction New Energy Group Co., Ltd. into a domestic listing. The strategic transformation and upgrading process with new energy as the core of Power China has taken the most critical step.

According to the announcement, the proposed split, China Power Construction New Energy Group Co., LTD., has a registered capital of 6 billion yuan, and its business scope includes hydropower, wind power, solar power, bio-power and renewable energy development.

At present, power Construction new energy is promoting the introduction of strategic investors related work. As of the disclosure date of this announcement, Powerconstruction New Energy has completed the process of public listing in Beijing Equity Exchange to solicit investors and the decision-making process of the board of directors and the general meeting of shareholders, and confirmed the introduction of 10 strategic investors. After the completion of the capital increase, the registered capital of Powerconstruction New Energy increased from 6 billion yuan to 7.5 billion yuan.

China Power Construction for the spin-off listing said, is conducive to the company to seize the double carbon opportunities, service national strategy. 3060 carbon target calls for accelerating the transformation of China's energy structure to clean and low carbon, and accelerating the construction of new power system with new energy as the main body. The listing of Power Construction new Energy will further supplement equity funds, optimize capital structure, and achieve high-quality development, which will help the company seize the historic opportunities of new energy, better serve the national strategy, and significantly enhance the influence of the company in the new energy industry.

The spin-off listing is conducive to improving the quality and efficiency of market value management and promoting the value preservation and appreciation of the company's assets. After Powerconstruction New Energy is listed, it will exist in the consolidated statements and overall valuation of the company in the form of a listed company. Especially in the current market background, the high valuation and scarcity of the new energy sector will contribute to the growth of the total market value of the company, which is of great significance for realizing the preservation and appreciation of the company's assets. The spin-off listing will not cause the Company to lose control of Power Construction New Energy, will not have a material impact on the continued operation of other business segments of the company, and will not harm the Company's independent listing status and sustainable profitability.

The official of Power China said that the development of new energy of power China is in urgent need of capital support, and only relying on the single platform financing of Power China cannot support the huge capital expenditure.

Power China plans to increase the installed capacity of wind power and photovoltaic new energy by about 50 million kW during the 14th Five-Year Plan period by relying on new energy of Power China. If Power China carries out large-scale equity financing only by itself, on the one hand, limited by the low valuation center of its power engineering construction sector, it is difficult to leverage such large-scale funds by issuing shares, and the financing efficiency is low. On the other hand, the dilution ratio of existing shareholders is high. After the independent listing of power Construction New Energy, benefited from the capital market's continued attention to the new energy operation sector, the sector valuation level is much higher than the power construction sector, and the financing efficiency is higher. In fact, since entering the 14th Five-Year Plan, China Power Construction has begun to accelerate the layout of new energy.

By the end of 2021, Power China, with its holding subsidiary New Energy Development Co., Ltd. as the integration platform, deeply integrated China Hydropower Engineering Consulting Group Co., Ltd. and new energy project companies from the member units of Power China, formally built the only brand of intensive development new energy business of Power China.

In 2021, Power China issued the new energy development targets assigned by internal documents to its 28 subsidiaries, with a total of 48.5GW of new scale during the 14th Five-Year Plan period. At the end of 2022, with the approval of the board of directors of Power China, Power New Energy held a founding meeting, converted its audited net assets into shares, and changed into a joint-stock company.

By the end of 2022, the grid-connected installed capacity of Powerconstruction New Energy Holding Fengsheng New Energy is about 10 million kw, ranking among the top enterprises in the domestic new energy investment and operation industry, with assets spread across 27 provinces. At the 2023 work conference, Power China said it will adhere to large-scale and intensive development, advance the preliminary planning, survey design and engineering construction of major hydropower bases and projects in a scientific and orderly way, and improve the capacity of hydropower regulation.

Based on the safety and stability requirements of the new power system and the large-scale development of new energy, it is necessary to do a good job in the detailed examination and optimization of pumped storage energy station resources to ensure the quality and safety of survey, design and construction.

It is committed to promoting the multi-energy complementariness of hydropower, pumped storage and new energy, exploring new models of water-scenery complementariness based on the planning and design of hydropower bases in various river basins, actively leading and participating in the construction and operation of water-scenery integrated bases in major river basins and large-scale wind power photovoltaic base projects focusing on deserts, Gobi and desert areas, and actively participating in the construction of offshore wind power bases with a capacity of 10 million kW. We will promote the construction of distributed energy sources such as rooftop photovoltaic activities in cities and towns. Editor/Xu Shengpeng