CNNC to withdraw from Yongle Power

China National Nuclear Corporation has accelerated the process of clearing third-level and lower companies. Recently, Sichuan Honghua Industrial Co., Ltd., an extremely large affiliate of China National Nuclear Corporation, has listed and transferred 10% of Sichuan Yongle Electric Power Co., Ltd.'s holdings on the Shanghai Stock Exchange with a listing price of RMB 422.525 million. It is understood that last year China National Nuclear Corporation cleared a number of third-level and lower companies such as Shaanxi Hansen Pharmaceutical.

Yongle Power is co-owned by Sichuan Emeishan Electric Power Co., Ltd., Sichuan Qixing Power Generation Co., Ltd., Sichuan Hanneng Electric Power Engineering Co., Ltd., Sichuan Electric Power Construction Second Corporation, Sichuan Honghua Industrial Corporation, and China Water Resources and Hydropower 7th Engineering Bureau. Investment formation.

It is understood that Yongle Power is committed to hydropower development, production, sales and transmission and transformation equipment maintenance. The Yongle hydropower station with an installed capacity of 58 megawatts has been completed in Jinkouhe District, Leshan City, Dadu River, and the annual on-grid electricity has reached over 450 million kWh. The company operates in a good condition. In 2010, it achieved revenue of RMB 113,257,200 and net profit of RMB 41.297 million.

Similar hydropower resources are gradually scarce in Sichuan Province, and Yongle Power has performed well. The withdrawal of CNNC from Yongle Power was mainly due to the company’s intention to accelerate the withdrawal of non-primary businesses and inefficient assets. China National Nuclear Corporation’s “Circular on Enhancing Clean-up of Third- and Lower-level Companies” shows that CNNC requires subordinate companies to “accelerate the liquidation of third-tier companies and below, promote the withdrawal of non-primary businesses and inefficient assets, and promote capital, technology, and talent. Resources concentrated in the main business."

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