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[SMM brief comment] the 6.5 billion yuan major reorganization of the three Gorges Water Conservancy Project has been approved to increase manganese mining business.
May 14,2020 16:31CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM5 14: recently, the three Gorges Water Conservancy in the release of "issuing shares and paying cash to buy assets and raise supporting funds and related party transactions report" said that it will increase manganese mining business.

It is reported that before this transaction, the main business of listed companies is power production, supply, power engineering survey and installation, among which power production and supply is the core business of listed companies. The joint energy main business of the target company is power production, supply and service, manganese mining and electrolytic manganese production, processing and sales, among which power production, supply and service is the core business. Changxing Electric Power's main business is power engineering construction and installation, intelligent power operation and maintenance, market-oriented electricity sales brokerage business and so on.

After the completion of this transaction, the main business of listed companies are power production, supply, power engineering survey, design and installation, manganese mining and electrolytic manganese production, processing and sales, among which power production and supply are still the core business of listed companies. Therefore, after the completion of this transaction, the main business of listed companies has not changed significantly.

The person in charge of the three Gorges Water Conservancy said that the reorganization is a major measure for the three Gorges Group and the controlling shareholder Yangtze River Electric Power to actively respond to the reform of the state power system, and is also a key step in promoting the implementation of the pilot plan for the reform of mixed ownership.

Through this reorganization, we will integrate the four regional power grids in Wanzhou District, Liangjiang New District, Fuling District and Qianjiang District in Chongqing, and strengthen the strategic development focus of optimal distribution and distribution business, which will form a reform demonstration on a larger scale, further promote electricity reform, and accelerate the economic development of the three Gorges Reservoir area. At the same time, it breaks through the bottleneck of the company's electric power business development, greatly expands the installed scale of its own power stations, greatly increases the number of power grid sales and users, optimizes the structure, and improves the bargaining power of foreign procurement, laying the foundation for further getting out of Chongqing and becoming bigger and stronger in the future.

SMM believes that the increase in the mining of metal manganese in the later stage of the three Gorges water conservancy business may increase the supply of electrolytic manganese in China. At the same time, in the production cost of comprehensive power supply, the application of "three Gorges electricity" will save a lot on the cost of electricity capital in the later stage, so as to enhance the core competence of its own production.

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