Separation of power main and auxiliary progress, two major industry giants or this month listed

Electric Power Construction Group and Energy Construction Group will accelerate the promotion of their listed assets. The two major power auxiliary companies created by the listed central enterprises will delay the listing due to funding problems. People familiar with the matter disclosed to the relevant media on the 1st that the two companies are expected to formally be listed in the second half of this month.

Industry insiders also pointed out that in view of the funding gap between the two groups and their low profitability, the two companies may be accelerated to promote the listing of their companies in the future.

The integration of central enterprises gave birth to giants of electric assistance. In April 2011, the State-owned Assets Supervision and Administration Commission of the State Council issued the "Separation of Main and Auxiliary Reform of Power Grid Enterprises and the Integration and Restructuring of Electric Power Design and Construction Enterprises" (hereinafter referred to as "restructuring plan"). In the “Restructuring Plan”, the State Council has agreed to restructure the State Grid and China Southern Power Grid’s subsidiary companies in 14 (district, city) companies, such as Hebei, Jilin, and Shanghai, as well as the China Hydropower Group and China Water Consulting Group, to form a China Power Construction Group. Co., Ltd. (hereinafter referred to as “Power Construction Group”). China Hydropower Group, China Water Consulting Group, and various auxiliary units temporarily retain their status as independent legal entities.

At the same time, the above-mentioned two power grid companies were reorganized in the subsidiaries of 15 provinces (autonomous regions and municipalities) including Beijing, Tianjin and Shanxi, Gezhouba Group and China Electric Power Consulting Group to form China Energy Construction Group Co., Ltd. (hereinafter referred to as “Energy Construction”. group"). Gezhouba Group, China Electric Power Consulting Group and Other companies also retain their independent legal status.

As a result, the two giants of the new generation of auxiliary power companies entered the integration and reorganization phase. However, the time originally set for the August 26 listing was delayed for some reason.

Delayed listing or due to insufficient funds A person from the China Electric Power Engineering Consulting Group disclosed to reporters that due to delays in some of the specific issues of the Power Construction Group and the Energy Construction Group, it was allegedly to be officially listed in the middle or late September.

According to the above sources, since the entire power auxiliary industry is a game, there is no possibility that two newly formed groups will be listed. "Each new group must integrate about 15 provinces of power auxiliary business assets. If one is listed first, assets in the remaining 10 or more provinces will certainly be chaotic," said the middle level.

As for the reason for the extension of the listing, the middle level stated that the lack of reorganization funds was the main reason. He said that because there are many serious losses in the electric power auxiliary industry, even companies on the verge of bankruptcy, carrying heavy debts, all integration into the new group will generate high reform costs, and involve the stability of the grassroots enterprises.

According to relevant regulations, the costs incurred by the reform of the electric power auxiliary industry will be covered by the sale of power generation assets owned by the former State Power Corporation. However, it is understood that this part of the fund is still far from enough to bear the cost of reform.

According to the 2002 “Electric Power System Reform Program”, after dividing the 1374.1737 million kilowatts of power generation assets controlled by the former State Power Corporation into the five major power generation groups, there are still 9.2 million kilowatts of power generation assets that are retained by the State Grid Corporation of China. This part of the assets was required to be sold as soon as possible to cover the cost of the next “main and auxiliary separation” reform.

Therefore, the “restructuring plan” stipulates that in order to support the separation and reorganization of the main and auxiliary, and improve the economic conditions of the auxiliary units such as difficult construction, repairs, surveys, and design, the above-mentioned 9.2 million kilowatts of power generation assets will be transferred to newly established auxiliary businesses in the reorganization. Group company.

The relevant person of the State Grid Corporation of China told this newspaper that the realization of the above-mentioned 9.2 million kilowatts of power generation assets was led by the State Electricity Regulatory Commission and was completed in 2007. The liquidated funds are now supervised by a special account set up by the Ministry of Finance.

According to relevant media reports, the above-mentioned 9.2 million kilowatts of power generation assets consisted of 38 assets in total. The total sale price was approximately 18.7 billion yuan, a premium of approximately 56% over the net assets of 11.97 billion yuan. However, according to the above mid-level estimates, the actual restructuring costs will be several times more than the above-mentioned total sales price.

Or accelerate the promotion of the company's listed companies. The above-mentioned sources told this newspaper that in the two newly formed groups, the total assets of the power construction group will reach about 160 billion yuan, and the annual net profit will be about 5 billion yuan; and the total assets of the energy construction group will reach 100 billion yuan. Around RMB, the annual net profit is more than RMB 3 billion; on this basis, the profitability of the two major groups is slightly higher than 3%, which is not high.

Therefore, the above-mentioned sources believe that before the listing in the second half of this month, the two major groups will vigorously strive for funds to “find the house”; after listing, they will push their assets to market and carry out large-scale financing.

At the same time, the power construction group holds China's hydropower, which is known as the "A share's largest IPO in the year," as a future financing platform, and the energy construction group also owns listed assets such as China Gezhouba Group Co., Ltd.

The above sources stated that in addition to the newly formed two groups, the power auxiliary market has a considerable share of private enterprises; therefore, the two groups will have to face full market competition in the future and it will be necessary to speed up the promotion of the listing and financing of Chinese hydropower assets. One step chess.

Another media quoted a person close to China’s hydropower sources as saying that the company’s communication with the regulators is still ongoing.

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