From January to September 2009, the company achieved operating income of 162 million yuan, down 30.77% from the same period last year; operating profit was-139 million yuan, up 52.23% from the same period last year; and the net profit belonging to the owner of the parent company was-140 million yuan, up 51.39% from the same period last year.
Among them, in the third quarter, the company achieved operating income of 115 million yuan, an increase of 64.29% over the same period last year; operating profit of-47 million yuan, an increase of 67.92% over the same period last year; and net profit of owners belonging to the parent company-47 million yuan, an increase of 67.59% over the same period last year.
Asset exchange brings new vitality. On August 17, the company announced that it planned to carry out an asset exchange with Henan Investment Group Co., Ltd., the controlling shareholder. The company intends to replace units 5 and 6 of Jiaozuo Power Plant (2200MW) and other assets and related liabilities with 55% equity of Nanyang Yahekou Power Generation Co., Ltd. (230MW) owned by Henan Investment Group Co., Ltd. and 100% equity of Nanyang Tianyi Power Generation Co., Ltd. At the same time, the company issued 193.35 million shares to Henan Investment Group at a price of 4.40 yuan per share.
If the transaction is successful, Henan Investment Group will hold 78.14% of the shares in the company. After the replacement, the company will have four holding power enterprises, with an installed capacity of 3.025 million kilowatts, a controllable installed capacity of 2.9 million kilowatts, and a rights and interests installed capacity of 2.0925 million kilowatts, an increase of 93.29 percent, 101.39 percent and 120.84 percent, respectively. As the two units of Tianyi Company were put into production in January and May 2008 respectively, the equipment is new and the efficiency is high. After restructuring, the quality of power assets controlled by the company will be significantly improved, the level of coal consumption will be greatly reduced, and profitability will be significantly improved. The reorganization plan has been approved by the shareholders' meeting and approved by Henan State-owned assets Supervision and Administration Commission, and we believe that the possibility of successful reorganization is relatively high.
The subsequent asset injection also has a lot of room for imagination. The asset restructuring highlights the importance of the company as a platform for the integration of power assets in the group. The group promised that after the completion of this restructuring, it will gradually inject high-quality power generation assets into listed companies, and try its best to avoid inter-industry competition. By the end of 2008, the group company had participated in 16 power enterprises, with a total installed capacity of 13.22 million kilowatts, rights and interests capacity of 6.24 million kilowatts and controllable capacity of 6.15 million kilowatts, ranking second in Henan power market. If the company, Yahekou Power Generation Company and Tianyi Company are excluded, the rights and interests installed capacity and controllable installed capacity of the group are 370.75 kilowatts and 3.59 million kilowatts respectively. Therefore, there is still more room for imagination for the subsequent asset injection of the company.
Risk hint. 1, the uncertainty risk of asset reorganization; 2, the risk of rising coal prices.
