Another subsidiary of guodian power filed for bankruptcy liquidation


The reorganization of China group and guodian group into China energy group has been known as a classic case of "coal-electricity integration" and "coal-electricity joint venture". But the national energy group has not been immune from the wave of bankruptcies among thermal power companies.

Guodian electric power co., ltd. will apply to the court for bankruptcy liquidation as a creditor, the company said in a statement on Nov. 13.

This is the second company to file for bankruptcy liquidation.

On September 23 this year, guodian ningxia solar (3.380, 0.05, 1.50%) co., LTD. (hereinafter referred to as ningxia solar), a wholly-owned subsidiary of guodian power, applied to the people's court for bankruptcy liquidation as a debtor.

Ningxia solar main polysilicon production and sales. As the price of domestic polysilicon market keeps falling, in order to avoid market risks, it has been in production suspension since 2012, and also faces serious losses for many years.

By the end of June this year, the company had total assets of 722 million yuan, total liabilities of 2.626 billion yuan, owners' equity of 1.904 billion yuan, asset-liability ratio of 363.69%, and only 16 employees.

According to the announcement, ningxia solar's bankruptcy liquidation is expected to reduce guodian's 2019 profit by about 705 million yuan.

According to the announcement, xuanwei company is mainly engaged in power production and sales, with six coal-fired generating units of 300,000 kw. Its predecessor was yunnan xuanwei power plant, which was restructured into xuanwei company in 2000 and implemented the expansion project. Guodian bought 41% of its shares in 2001 and 25% in 2010.

As of September 30, this year, xuanwei company has 2.388 billion yuan of assets, 5.373 billion yuan of liabilities, 2.985 billion yuan of owners' equity, and 225.02% of asset-liability ratio, which is seriously insolvent, unable to pay off the matured debts and obviously lack of solvency.

According to the announcement, the main reason for the continuous deterioration of the production and operation environment of xuanwei is that, influenced by the excess capacity of yunnan electricity and the reduction of capacity in the coal industry, the power load of the company has been decreasing in recent years, the unit price of standard coal for entering the furnace has been increasing year by year, and the on-grid electricity price for coal-fired power generation has been lowered in yunnan province in 2016.

If the bankruptcy liquidation of xuanwei company is transferred to the manager by the end of 2019, it will no longer be included in the consolidated statements of guodian power. It is estimated that the profit and loss of the consolidated statements of guodian power in 2019 will be affected by about RMB 2.687 billion.

Guodian electric power development co., LTD. (hereinafter referred to as guodian power, stock code 600795) is a national energy group, holding national public power generation companies, industries involving thermal power, hydropower, wind power, photovoltaic, coal, chemical industry, polysilicon, finance and other fields, distribution throughout the country 24 provinces, municipalities and autonomous regions, and for the second largest power listed company.

By the end of 2018, the total assets of the company were 272.511 billion yuan, with a controlling installed capacity of 55.3059 million kw and a thermal power installed capacity of 34.912 million kw, accounting for 63.13% of the total installed capacity. Hydropower installations totaled 14.338 million kw, accounting for 25.88% of the total. Wind power installed 5,868,100 kw, accounting for 10.61% of the total installed capacity. Photovoltaic installed capacity was 21,200 kw, accounting for 0.38% of the total installed capacity. Control the total coal reserves of 2.972 billion tons, the coal production capacity of 10 million tons/year. It has 22 subsidiaries and core enterprises, 69 wholly-owned and holding enterprises and 24 joint-stock enterprises. (From CNNPN)