Why is Meng Yao Power Plant under China Coal Group?

In order to reduce losses and realize coal-electricity joint venture.

From June 5438 to February 2022, China Electric Power, a listed company under the State Power Investment Group, held a public tender on the Beijing Equity Exchange to sell its wholly-owned subsidiary Xinyuan Ronghe (holding Dabie Mountain Power Plant and Meng Yao Power Plant). The sale of loss-making thermal power assets is of self-evident significance to the national power investment, which can not only reduce losses, but also introduce China Coal Group, a large coal-electricity group, as the backing to realize coal-electricity joint venture.

The buyer of this transaction, China Coal Power, is a wholly-owned subsidiary of China Coal Group. Its main business is wind power generation, engineering design, technical services, technology development, contract energy management services and power supply. 65438 On February 26th, 2022, China Electric Power signed a property right transaction contract with China Coal Power, and China Coal Power agreed to buy 60% equity of Xinyuan Ronghe at a price of 65438 yuan+26.5 million yuan.