PowerChina
The main business of Power Construction Co., Ltd. covers engineering contracting, survey and design, power investment and operation, real estate development, and equipment manufacturing and leasing.
Company Highlights:A global leader in hydropower and wind power construction.
Theme Points:
Bullet point:one: The proposed additional funds shall not exceed 1496.3 billion yuanInvest in the project
In August 2022, the company's revised private placement plan intends to issue no more than 2,329,192,546 shares (including 2,329,192,546 shares), and the total amount of funds raised (including issuance costs) is expected to not exceed 1496.3 billion yuan (including 14.9 billion.)6.3 billion yuanAfter deducting the issuance expenses, the net proceeds will be earmarked for high-quality engineering contracting projects, investment and operation projects in strategic development fields, offshore wind power survey and construction business equipment procurement projects, as well as replenishment of working capital and repayment of bank loans. The total investment of the project is expected to be 3081.5 billion yuan.
Point 2: The Belt and Road Initiative
The company firmly promotes the "three-step" strategy of overseas business, and goes all out to ensure the safety of epidemic prevention, the stability of orders and the growth of benefits. Under the Belt and Road Initiative, a number of major projects are progressing smoothly. The construction bid section of the China-Laos Railway has been completed ahead of schedule and with high quality, the continuous beams of the longest bridge of the Jakarta-Bandung high-speed railway have been closed, the paving of the third runway of the international airport has been completed, and the Belgrade Ring Road in Serbia has been opened to traffic. In addition, the largest Zanatas wind power project in Central Asia has achieved full capacity grid-connected power generation ahead of schedule, and the first unit of the Lower Kaifu Gorge Hydropower Station in Zambia has also been connected to the grid for power generation. The company has also made an important breakthrough in the field of offshore wind power, and the Tra Vinh project in Vietnam has been successfully connected to the grid for power generation, becoming the company's first offshore wind power project to achieve commercial operation.
In terms of third-party market cooperation, the company has continuously strengthened cooperation with enterprises in developed countries and actively built a community with a shared future. At present, it has established third-party market cooperation with about 41 world-renowned enterprises in 16 developed countries. In terms of innovative project financing models, the company has successfully signed three cash exchange projects in Angola with European funds, with a contract value of about US$400 million. At the same time, it has signed strategic cooperation agreements with international companies such as Hitachi ABB Power Grid, Vestas, and Voith of Germany.
As of the end of December 2021, the Company had executed 2,086 project contracts in 111 countries and regions overseas, with a contract value of 6,1183.9 billion yuan.
Point 3: Signed the world's largest energy storage project with Huawei
On October 26, 2021, the company confirmed on the interactive platform that Shandong Power Construction Co., Ltd., a subsidiary of Power Construction Group, and Huawei have indeed jointly signed the world's largest energy storage project, with an energy storage capacity of 1,300MW.
Point 4: Winning the bid of 7.5 billion YaRubJiangkara Hydropower Station Project
In September 2021, the Seventh Engineering Bureau of China Water Resources and Hydropower Co., Ltd., the Fifth Engineering Bureau of China Water Resources and Hydropower, and the East China Survey, Design and Research Institute of PowerChina successfully won the bid for the design and construction general contracting project of the Kala Hydropower Station on the Yalong River in the form of a consortium, with a bid amount of up to RMB 757.1 billion yuan. Located in Muli Tibetan Autonomous County, Liangshan Yi Autonomous Prefecture, Sichuan Province, Kala Hydropower Station is a second-class large (2) type project with an installed capacity of between 300,000 kW and 1.2 million kW. The plant plans to install four 255MW vertical shaft francis turbine generator sets with a capacity of 1,020MW. The main hub buildings of the project include water retaining buildings, flood discharge and energy dissipation buildings, and water diversion power generation systems, etc., and the overall construction period is expected to be 120 months.
Point 5: Power investment and operation business
The power investment and operation business is a core component of the company's strategic layout. The company adheres to the principle of "controlling scale, optimizing structure, and highlighting benefits", and is committed to strengthening the fine management of the whole life cycle of power investment projects. To this end, the company has formulated management measures and incentive policies for new energy and pumped storage investment business to accelerate the investment and operation of clean energy fields such as wind power, solar photovoltaic power generation, and hydropower, and promote the transformation of business structure to green and low-carbon.
In 2021, the company has made remarkable achievements in the field of clean energy. During the year, the company added 100 new installed wind power capacity110,000 kilowatts, 160,000 kilowatts of solar photovoltaic power generation capacity, and 7 hydropower installed capacity880,000 kilowatts. By the end of 2021, the total grid-connected installed capacity of the company's holdings reached 1,737850,000 kilowatts. Among them, 648 hydropower installations240,000 kilowatts, a year-on-year increase of 12%；The installed capacity of wind power is 628450,000 kilowatts, a year-on-year increase of 189%；The installed capacity of solar photovoltaic power generation is 145160,000 kilowatts, a year-on-year increase of 124%。The installed capacity of thermal power was 3.16 million kilowatts, maintaining zero growth year-on-year. It is worth mentioning that the company's clean energy proportion has reached 8182%。
Point 6: The company will become the controlling shareholder of Nanguo Real Estate
In June 2020, the Company and its subsidiaries PowerChina Construction and Nanguo Real Estate jointly signed the "Absorption Merger Agreement". At the same time, the company also signed a "performance compensation agreement" with China Power Construction Construction. According to the agreement, the company's indirect wholly-owned subsidiary, Power Construction Real Estate, plans to merge with its holding subsidiary, Nanguo Real Estate.
In this transaction, the company will use its holdings of 9125% of the equity, and PowerChina Construction with its 8th stake in PowerChina Real Estate75% of the equity subscribed for the non-public issuance of A shares of Nanguo Real Estate. The consideration for the transaction is estimated to be 1,098,234980,000 yuan.
After the completion of the transaction, the Company and PowerChina Construction will directly hold the shares of Nanguo Real Estate, and the Company will become the controlling shareholder of Nanguo Real Estate.