After raising 2.2 billion yuan to invest in wind power, Shanghai Electric Power (600021.SH) buys photovoltaic projects in large quantities and continues to increase the size of clean energy. The company announced that Sun Yixing and Chuang plans to acquire 16 photovoltaic projects of Jiangsu Xiexin New Energy with a total installed capacity of 301000 kilowatts and an estimated value of 480 million. Company sources told reporters that the acquisition out of strategic transformation considerations, the company is still combing and evaluating the quality of other potential M & A targets.
The above company said that the company used to rely mainly on traditional energy coal power, but upstream coal price fluctuations have a greater impact on the company's profits, this transaction will help the company to further increase the scale of clean energy installation and promote the company's transformation to new energy; in addition, according to the requirements of the group, the company is still evaluating the rate of return of other potential mergers and acquisitions.
According to public data, Shanghai Electric Power is one of the most important comprehensive power enterprises in the Yangtze River Delta and East China, mainly engaged in power generation, heating, comprehensive intelligent energy and so on. In recent years, Shanghai Electric Power has continued to generate clean energy, and all the new power installations since 2020 are clean energy. At present, the proportion of clean energy in the company has exceeded that of traditional energy. After the completion of the deal, the proportion of clean energy installed in Shanghai Electric Power is expected to further increase to 51%.
By the end of June 2021, the installed capacity of the company was 17.0647 million kilowatts, with coal accounting for 49.98 percent, and clean energy accounting for 50.03 percent of the installed scale, of which gas power was 2.3982 million kilowatts, accounting for 14.05 percent, wind power 3.1389 million kilowatts, accounting for 18.39 percent, and photovoltaic power generation 2.9996 million kilowatts, accounting for 17.58 percent.
While acquiring a large number of photovoltaic project companies, the company also makes efforts in the field of wind power. On May 29th, Shanghai Electric Power issued a plan for a fixed increase of about 2.2 billion yuan, and introduced strategic investor Changjiang Electric Power (600900.SH) to raise more capital for wind power projects, while replenishing working capital to ease financial pressure. Shanghai Electric Power's asset-liability ratio reached 73.11% by the end of 2020, higher than the peer average of 57.96%.
It is reported that Shanghai Electric Power is also actively exploring overseas markets at the same time. At present, the company has clean energy projects under construction and operation in the Japanese and European markets, and there is no new progress in the acquisition of Pakistan Karachi Electric Power Company, which is likely to be terminated. Changjiang Power has clean energy projects in Germany, Pakistan, Peru and other places.