On November 26, 2021, CGN Wind Power Corporation completed the signing of increasing capital and shares and introducing strategic investment in China Beijing Equity Exchange (CBEX), introduced 14 strategic investors such as the National Social Security Fund (NSSF) , and raised up to RMB 30.53 billion yuan, setting a number of records in the capital market such as the largest equity financing project in the field of new energy power in China.
Mr. Weng Jieming, member of the Party Committee and Deputy Director of the State-owned Assets Supervision and Administration Commission of the State Council, delivered a speech at the ceremony. Mr. Yang Changli, Secretary of the Party Committee and Chairman of CGN, and Mr. Wu Ruchuan, President of the Chinese State-owned Property Exchanges Association (CSPEA) and Secretary of the Party Committee and Chairman of Beijing Equity Exchange Co., Ltd., delivered speeches at the signing ceremony. Mr. Chen Wenhui, Member of the Party Group and Vice Chairman of the National Council for Social Security Fund,PRC, Mr. Zhou Yubo, Secretary of the Party Committee and Chairman of China Guoxin Holding Co., Ltd., and Mr. Xu Zequn, Member of the Party Committee and Deputy General Manager of Guangdong HENGJIAN Investment Holding Co., Ltd., made a speech on behalf of the strategic investors of the capital increase project. Mr. Yao Liang, Executive Member of the Investment Banking Division of Guotai Junan Securities Co., Ltd., delivered a speech as a representative of the intermediary party. Mr. Li Yilun, Member of the Standing Committee of the Party Committee and Deputy General Manager of CGN, presided over the signing ceremony.
In his speech, Mr. Weng Jieming said that CGN Wind Power Corporation has increased capital and shares and introduced strategic investment and signed contracts to build a strategic emerging enterprise with diversified equity, which is not only an active exploration of CGN as a central enterprise of clean energy to actively serve the national “Carbon Neutrality and Emission Peak” strategy, but also an important measure to expand the capital function and optimize the layout structure of the state-owned economy as a State-owned Capital Investment Corporation, which is worthy of full recognition. Mr. Weng Jieming pointed out that the national 14th Five-year Plan clearly proposes to develop strategic emerging industries. China will increase the R&D and application of new energy technologies such as nuclear energy, solar energy and wind energy, and increase the proportion of new energy production in the energy industry. Standing at a new historical starting point, central enterprises, especially state-owned capital investment companies, should enlarge the function of state-owned capital, promote equity diversification, accelerate the construction of modern enterprise system, better adapt to the requirements of promoting high-quality development and building a new development pattern, and shoulder the historical mission of leading and driving industrial development.
Mr. Yang Changli pointed out that the capital increase of the Wind Power Corporation is an important strategic deployment of CGN to actively respond to the national goal of “Carbon Neutrality and Emission Peak”, deal with the energy revolution and promote the sustainable, high-quality and self rolling development of the Group's new energy business. It is also the Group's three-year action deployment to implement the reform of state-owned enterprises and “Manage Capital”, mainly deepen the pilot of state-owned capital investment companies and actively and steadily promote the reform of mixed ownership. Mr. Yang Changli said that taking advantage of the “Carbon Neutrality and Emission Peak” goal and the reform of state-owned enterprises, CGN will continue to maintain its strategic determination for development in the field of new energy business, adhere to the market orientation, actively explore innovative business, continuously optimize resource allocation, promote higher quality development of new energy business, and boost the Corporation's transformation from a single power generator to an energy comprehensive service provider, become the main force in the construction of national ecological civilization, the leader of new energy industry and the vanguard of the reform and development of state-owned enterprises.
The capital increase project of CGN Wind Power Corporation released a total equity ratio of 33%, and introduced a total equity fund of RMB 30.53 billion yuan, which is mainly used for the development and construction of wind power and photovoltaic reserve projects, and the development of new businesses such as energy storage, comprehensive smart energy, power sales and power value-added services. The project has set a number of records in the capital market, such as “the largest equity financing project in the field of domestic new energy power”, “the largest equity financing project of domestic non-listed companies in the year” and “the highest fund-raising amount of capital increase projects in the property market”.
The capital increase project of CGN Wind Power Corporation has been favored by the capital market. Since the project was launched, more than 100 investors of various types have been contacted. After public listing and strict competitive negotiation procedures, the final selection includes the national social security fund, State Grid, China Southern Power Grid, China Guoxin, China Chengtong, Guangdong Hengjian and Sichuan Investment Energy Investment Platform, as well as 14 strategic investors such as the four major banks, insurance companies and industrial funds, they are industrial investors and strong financial investors with significant business synergy with wind power companies and CGN, and can continuously empower the development of new energy business in terms of power consumption, power market development, investment and financing support and financial services.
CGN is the largest nuclear power enterprise in China and the third largest nuclear power enterprise in the world and a clean energy group with international influence. Up to now, the total assets of the Group have exceeded RMB 840 billion yuan, holding nearly 65 million kilowatts of clean energy installed in operation. While developing nuclear power business, since 2007, CGN has identified new energy as one of the Group's key development industries. At present, it has become the second pillar industry of the Group. It has a holding of 25 million kw of installed capacity in operation in 29 provinces and regions in China. It has a strong first mover advantage in offshore wind power, photovoltaic generation and other fields, and has created a “driving the wind and controlling the light” high-quality talent team, has formed the core competence of key business lines such as development, construction, operation and maintenance. Especially during the 13th Five-Year Plan period, the cumulative installed capacity, operating revenue and total profit of new energy increased in double in CGN, the equivalent utilization hours of wind power and photovoltaic power were 4.5% higher than the industry average for three consecutive years, The Cost Per Kilowatt Hour of the Generated Electricity and other core competitiveness indicators continued to maintain the industry leadership, and the overall business performance achieved leapfrog growth.