Big Mergers and Acquisitions
Lead the New Trends of Capital Market
Taking Value as the Guidance to Lead the Market
As China's largest listed clean energy company, CYPC insists on advocating a value-based investment concept to be the benchmark. 2015 is the year when the "12th Five-Year Plan" ended and the "13th Five-Year Plan" started. The country put great efforts in promoting reforms in state-owned enterprises, electricity market and the capital market. Meanwhile, the A-share stock market was recovering after two rounds of in-depth adjustment. CYPC conducted the fourth major capital operation to implement major asset restructuring of hydropower stations along Jinsha River by taking "lower risk, higher revenue, stable growth and sustainable cash flow" as the policy, thus further improving the strength and core competitiveness of CYPC. It is the role of a state-owned enterprise to assume the responsibility of guiding value investment idea in the capital market and to maintain the stability of the market.
Asset reorganization of hydropower stations along Jinsha River was fully recognized by the capital market and CYPC was rated "A+" (consistent with China's sovereign rating) by Fitch
"As a minority shareholder of CYPC, I have obtained a profitable return by holding the shares for 10 years and even held shares in 2007 when the price reached its peak. I have no technique other than holding the shares and purchasing shares with a cash bonus every year. In the future, I will continue to hold more shares. CYPC is responsible for its shareholders and the country! "
——By Xuesong, a shareholder
Expansion of State-owned Capital
Stable Return on Investment
Maintenance of Market Stability
For China Three Gorges Corporation and state-owned shareholders in Sichuan Province and Yunnan Province：
Substantial increase of securitization ratio of assets had further expanded the function of state-owned capitals, as well as improved allocation and operating efficiency, raised funds for two huge hydropower stations i.e. Wudongde and Baihetan stations
Blue chips with long-term stable return on investment has been provided, dividends and investment value were further improved
For the capital market：
CYPC reshaped value investment philosophy with high-proportion dividends, changed investors' way of obtaining profit through gambling of share price in the secondary market and fulfilled social responsibilities of the company with blue chips, thus making contributions to market stability.
Scientific Formulation to Complete Operation Scheme
Distributed mainly in economically developed regions such as Eastern China, Central China and Guangdong Province, the sales markets of CYPC owned stable, reliable and continuous abundant of cash flow as well as high credit rating, with smooth financing channels and low financing cost. To this end, the company conducted asset acquisition with higher liabilities, resulting in the financing plan of "fewer shares, more debts and higher dividend". In this asset transaction with over RMB 200 billion, stock payment only takes one quarter and the rest are debts. Meanwhile, a decade-long dividend arrangement with a high amount was made, which is rare in the national capital market.
It issued 3.5 billion shares to China Three Gorges Corporation, Sichuan Energy Industry Investment Group Company Ltd. and Yunnan Provincial Energy Investment Group Company Ltd.
It paid RMB 37.4 billion in cash and purchased 100% stock rights (with estimated value of about 79.7 billion) of the Chuanyun Company.
It issued less than 2 billion stocks with RMB 12.08 per share by private placement to 7 agencies including the insurance company, industry investors and overseas qualified investors, and the matching funds raised were used to pay some cash consideration in the transaction.
From 2016 to 2020, the annual dividend shall not be lower than RMB 0.65 per share i.e. RMB 14.3 billion in total; from 2021 to 2025, cash dividends shall be conducted according to at least 70% of the net profits of current year.
CTG will increase CYPC shares according to conditions of the secondary market after CYPC's resumption of trading within 6 months, with the increased amount not exceeding RMB 5 billion in total.
Substantial Increase in Strength
After the reorganization, CTG significantly reduced it's shareholding ratio, while investment groups in Sichuan and Yunnan Provinces and seven strategic investors were introduced to serve as shareholders of CYPC. In this way, the governance structure of CYPC will be further improved, which will have a positive impact on company management and the scientific application of hydropower station reservoirs.
After the asset restructuring, CYPC will have four large-scale hydropower stations including the Three Gorges Station at the stem stream of Yangtze River, Gezhouba Hydropower Station, Xiluodu Hydropower Station and Xiangjiaba Hydropower Station, with significant increase in the scale of installation capacity and generating amount. This results in CYPC having three stations of the world's top twelve hydropower stations. By the unified dispatching of the four reservoirs (Three Gorges, Gezhouba, Xiluodu and Xiangjiaba), the combined benefits of cascade hydropower stations can be fully realized, which will contribute to improvement in water energy utilization and produce efficiency leading to reduction of operation cost, thus further increasing CYPC's profitability. This results in consolidating the leading position of CYPC in the global hydropower industry and laying a solid foundation for efficient implementation of future development strategies.
CYPC's e-commerce network (ECN) is a unified and centralized platform that we have developed to meet the company's demands for cross-regional procurement of supplies for production at various power stations. ECN's functions include product catalog management, electronic transaction management, analytics and statistics, business interfaces, supplier management, online evaluation of bids, and security authentication...
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We welcome all kinds of talents. Based on the company's overall strategy, we have worked out a human resources plan that ensures a reasonable structure for a staff with the right number of people. Plus, we have put in place a comprehensive recruitment procedure that adopts stringent criteria for screening candidates and picks the best of the best for the company...