CGN Power, the listed unit of China’s largest nuclear power projects developer, plans to buy its parent’s stake in a project in Guangxi after completing another asset purchase in Guangdong later this month.
The planned purchase is part of a plan by CGN, 66.4-owned by Shenzhen-based, state-owned China General Nuclear Power Group, to more than double its generating capacity to 21,470 megawatts (MW) by building and acquiring new plants, revealed to the market when it went public in Hong Kong in December.
“We will buy the first and second unit of the Fangchenggang plant in Guangxi from our parent when the timing is mature,” chairman Zhang Shanming said on Thursday, without giving any time frame but adding it would be subject to an asset valuation.
The main competition is on securing sites for plants
The company posted a net profit of 5.71 billion yuan (HK$7 billion) for last year, up 36.2 per cent from 2013, and 4.4 per cent above the firm’s own forecast late last year.
Revenue rose 19.7 per cent to 20.79 billion yuan on the back of the commissioning of the Yangjiang plant in Guangdong province in March last year.
Chief executive Gao Ligang said CGN was expected to complete the HK$9.7 billion acquisition from its parent of a 41 per cent stake in the Taishan plant, which has two generating units with total capacity of 3,500 MW, late this month. They are scheduled to start producing power next year.
The Fangchenggang plant involves a total of 2,160 MW. The first unit is expected to enter commercial operation this year and the second unit next year, according to China General Nuclear which own 61 per cent of the project. The rest is owned by a Guangxi government firm.