National Grid 66 billion stripped of State Grid Energy

State Grid's spin-off of the auxiliary industry and the transfer of its state-owned China National Energy Development Co., Ltd. to the Shenhua Group, which is also a state-owned enterprise, were announced yesterday after the signing of the agreement in August this year.

Shenhua Energy issued an announcement announcing that the State Grid Corporation of China had transferred 100% of its state-owned equity held by State Grid Energy Development Co., Ltd. to Shenhua Group Corporation.

It is worth noting that, in April this year, Luneng Group has transferred 78.97% of the shares held by it to the State Grid Energy. With the transfer of energy from the State Grid to Shenhua Group, Shenhua Group will also become a shareholder of the Golden Horse Group.

Yesterday’s announcement did not reveal more details, but the total assets involved in the transaction, including the assets of the Kinmen Group, had reached approximately RMB 66 billion.

According to the data from the State Grid, State Grid Energy, a wholly-owned subsidiary of the State Grid Corporation of China, was incorporated on April 29, 2008 in the State Administration for Industry and Commerce. It now operates and manages 8 peak-increasing frequency-modulated thermal power plants, which require nearly 20 million tons of coal per year. Ton. The company also owns the main business of coal resource development, production, warehousing and distribution.

As of the end of last year, State Grid’s total energy assets were 55 billion yuan, accounting for 2.5% of the total assets of the State Grid. In 2011, it achieved an operating income of 18.9 billion yuan and a net profit of more than 78 million yuan.

Shenhua Group is the world's largest coal company.

The market had previously considered that the transfer of State Grid's energy shares by the State Grid is in line with the country's policy of "separation of plant and network" and "separation of auxiliary businesses." After Shenhua Group obtained the resources of State Grid Energy, it will be able to give full play to its coal power advantages.

With the National Grid’s equity stake, it will also harvest tens of billions of cash, which may help the implementation of the national grid’s internationalization strategy. Prior to this, the State Grid repeatedly stated that it will accelerate its internationalization strategy. Liu Zhenya, general manager of the State Grid Corporation of China and party secretary at the 18th National Press Center, said in a collective interview that as of now, the State Grid’s investment in foreign countries has exceeded US$5 billion and its total assets have reached more than US$8 billion. The investment is mainly concentrated in the power grid, electrical and electrical fields, etc. Currently, nine offices have been set up in the Americas, Europe, Africa and other continents and countries, and several companies have been established. The overseas assets are mainly supervised assets, and the benefits and benefits are good. The return rate of net assets is more than double digits, which is three to five times that of domestic investment.

Liu Zhenya said that by 2020, the State Grid will strive to obtain assets in foreign countries can account for about 10% of the existing total assets. Now the company's assets are about 2300 billion, according to this planning goal, the company will invest 30 billion -50 billion US dollars in foreign countries by 2020.