Xiehe New Energy announced that on November 27, 2019, Yongzhou Jiepai, a wholly-owned subsidiary of the company, entered into an equity transfer agreement with CNNC Shandong and channel Xiehe. Yongzhou Jiepai will sell all the equity of channel Xiehe to CNNC Shandong at a price of about 244 million yuan. It is expected that the company will recognize an unaudited accounting income of about 101 million yuan.
It is reported that channel cooperation is mainly engaged in the development and operation of such projects. As of the date of this announcement, channel synergy is 100% owned by Yongzhou Jiepai and is an indirect wholly-owned subsidiary of the company. The project was approved by the development and Reform Bureau of Tongdao Dong Autonomous County on June 5, 2014. The approved installed capacity of Chuansu wind farm is 48MW. The project was approved by Hunan development and Reform Commission on October 21, 2013. The approved installed capacity of Linkou wind farm is 48MW.
CNNC Shandong is mainly engaged in the early development of nuclear power projects, research on nuclear power operation safety technology, relevant technical services and consulting services, investment and operation management of supporting facilities of nuclear power projects, investment and management of power sales and transmission and distribution projects, investment and development and operation management of wind power, photovoltaic power generation and pumped storage clean energy power generation projects. CNNC Shandong and its ultimate beneficial owner are China Nuclear Power Co., Ltd., which is a state-owned enterprise under the central management of China, with the approval of the State Council of China.
According to the announcement, the group has adopted the "build sell" strategy, according to which, the group will build wind farms and sell its rights and interests in power plants after the completion or operation of power plants. The directors believe that the "build sell" strategy will help the group make full use of its advantages in wind power development and power plant construction to achieve a more reasonable return on investment, realize the group's return on cash flow, and reduce the debt ratio to support the company's stable and rapid development.
