Hunan Development plans to purchase hydropower assets for 1.512 billion yuan and raise supporting funds

Leida Finance | Feng Xiuyu Text | Li Yihui Editing

On March 9th, Hunan Development (Stock Code: 000722) announced that the company plans to acquire 90% of the Tongwan Hydropower, 90% of the Qingshuitang Hydropower, 88% of the Xiaoxi Hydropower, and 85% of the Gaotan Hydropower held by Hunan Energy Group Electric Power Investment Co., Ltd., through issuing shares and paying cash, with a transaction amount of 1,512.4452 million yuan.

At the same time, the listed company intends to issue shares to no more than 35 qualified specific investors to raise supporting funds. This transaction constitutes a major asset restructuring and related-party transaction but does not constitute a reorganization and listing.

After the transaction is completed, the company’s hydropower installed capacity and power generation will be significantly increased, which will help further focus on its core business. The transaction has received preliminary review opinions from the Hunan Provincial State-owned Assets Supervision and Administration Commission and has been approved by the company’s board of directors and shareholders’ meeting, but still requires registration approval from the China Securities Regulatory Commission.

According to Tianyancha data, Hunan Development was established on August 12, 1993, with a registered capital of 464.158282 million yuan. The legal representative is Liu Zhigang. The registered address is Room 2708, Guangfa Development Building, No. 142, Section 3, Furong Middle Road, Tianxin District, Changsha City. Its main business includes investment, construction, and operation of clean energy projects such as hydropower and photovoltaic power, as well as wholesale and distribution of sand and gravel.

Currently, the company’s chairman is Liu Zhigang, the secretary of the board is Chen Kai, with 198 employees. The actual controller is the State-owned Assets Supervision and Administration Commission of Hunan Provincial People’s Government.

The company has stakes in 10 affiliated companies, including Hunan Development Kongzhou Island Power Generation Co., Ltd., Hunan Development Yiyuan Natural Resources Development Co., Ltd., Hunan Development New Energy Development Co., Ltd., Hunan Development Xiaochu New Energy Co., Ltd., and Hunan Zhijiang Mangtang Creek Hydropower Development Co., Ltd.

In terms of performance, the company’s operating income for 2022, 2023, and 2024 was 421 million yuan, 292 million yuan, and 337 million yuan, respectively, with year-on-year changes of -12.05%, -30.48%, and 15.15%. The net profit attributable to the parent was 69.14 million yuan, 49.47 million yuan, and 67.80 million yuan, with year-on-year growth rates of -42.25%, -28.46%, and 37.07%. During the same period, the company’s asset-liability ratio was 4.97%, 4.19%, and 7.83%.

Regarding risks, Tianyancha information shows that the company has 3 internal Tianyan risks, 74 surrounding Tianyan risks, 6 historical Tianyan risks, and 218 early warning Tianyan risks.