The Three Gorges Group takes a stake in Beikong, a new path ...

Posted in: Source: Energy Intelligence

Some media reports speculate that the Three Gorges Group may control Beikong, thereby impacting the world's top 500. However, there is currently no official confirmation. The total assets of the two companies are close to 1.4 trillion dollars, exceeding the threshold of the top 500.

The Three Gorges Group is a state-owned enterprise deeply involved in clean energy. Relying on the Three Gorges Project, the Three Gorges Group leads hydropower construction, implements “going global” and “Belt and Road”, strives to create an upgraded version of China's hydropower “going global”, and is committed to becoming a leader in “going global” in the entire hydropower industry chain in China. The international investment business focuses on the markets of neighboring countries with interconnection conditions, the water-rich markets in South America and Africa, and the new energy markets of developed countries in Europe and the US, and carries out mergers, acquisitions and new construction projects. By the end of 2018, the total overseas controllable and equity installed capacity of the Three Gorges Group exceeded 17 million kilowatts, forming an influential Three Gorges brand in the international market.

The new energy business implements a differentiated development strategy. As of June 2021, the Three Gorges Energy business has covered 30 provinces, autonomous regions and municipalities directly under the Central Government. The installed capacity of grid-connected wind power, photovoltaics, and small to medium hydropower has exceeded 16 million kilowatts, and total assets have exceeded 150 billion yuan. In June, Three Gorges Renewable Energy was listed on the Shanghai Stock Exchange.

By the end of 2020, the Three Gorges Group's controllable, under construction, and installed equity capacity reached 140 million kilowatts; the asset size was close to 1 trillion yuan, and the balance ratio was 50.78%, maintaining the highest international credit rating. It has been awarded A grade for 13 consecutive years in the annual business performance assessment of central enterprises. The Three Gorges Group closely follows the five major power generation groups in terms of installed capacity and assets, and its installed power generation capacity is clean energy.

The Three Gorges Group was born out of the Three Gorges Project.

On September 27, 1993, the State Council approved the establishment of the China Yangtze River Three Gorges Project Development Corporation. As the owner of the Three Gorges Project, it is fully responsible for the construction and operation management of the Three Gorges Project. On September 27, 2009, it changed its name to China Yangtze River Three Gorges Group Corporation.

On December 28, 2017, China Yangtze River Three Gorges Group Corporation completed corporate restructuring, changed to a wholly state-owned company, and changed its name to China Yangtze River Three Gorges Group Co., Ltd. After nearly 30 years of continuous rapid and high-quality development, the Three Gorges Group has become the world's largest hydropower development and operation enterprise and the largest clean energy group in China. It is one of the first 10 companies determined by the State Council's State-owned Assets Administration Commission to establish world-class demonstration enterprises.

As the main body in the development of the Three Gorges, the Three Gorges Group plays a unique role in the development strategy of the Yangtze River Economic Belt.

In April 2018, the National Development and Reform Commission and the State Council's State-owned Assets Administration Commission jointly approved the Three Gorges Group's strategic development position: actively serving the development of the Yangtze River Economic Belt and the “Belt and Road” construction, etc., play a key role in deeply integrating into the Yangtze River Economic Belt and jointly protecting the Yangtze River, assume basic security functions in promoting regional sustainable development, assume leading responsibility in promoting the upgrading and innovative development of the clean energy industry, promote enterprise deepening reforms, and accelerate the construction of a world-class multinational clean energy group with strong innovation capabilities and global competitiveness.

At the same time, it is required to play a good “six major roles”, namely: play a basic guarantee role in promoting the development of the Yangtze River Economic Belt, play a key role in jointly protecting the Yangtze River, play a leading role in leading China's hydropower “go global”, play a driving role in promoting the upgrading of the clean energy industry, play an exemplary role in deepening the reform of state-owned enterprises, and play an exemplary role in fulfilling social responsibilities.

In summary, they all have a role to play in the Yangtze River Economic Belt, clean energy industry upgrading, going global, and state-owned enterprise reform.

Beijing Holdings is not easy; it is the largest state-owned enterprise in Beijing. Its business covers all aspects of city operations.

Beijing Holding Group Co., Ltd. was established in January 2005. It is a large municipal state-owned enterprise group jointly formed by the former Jingtai Industrial Group, Beijing Holdings and Beijing Gas Group.

Beijing Holdings Group takes “making urban life better” as its social responsibility mission, grasps the important engine of modern urban construction, meets the country's strategic needs, focuses on public services, infrastructure, ecological protection, livelihood improvement and strategic emerging industries, promotes equalization of public services and infrastructure connectivity, and is committed to providing leading domestic and world-class integrated services for modern cities.

Beijing Holdings provides overall solutions for urban operation. The business involves urban gas, water supply, sewage treatment, comprehensive water environment management, waste generation, sanitation, hazardous waste treatment, urban heat, smart pipe networks, regional energy internet, underground integrated pipe galleries, urban sponge projects, groundwater pollution remediation, ecological restoration of abandoned mines, etc., forming a matrix for urban operation.

Its business covers more than 400 cities across the country, and its overseas business extends to Europe, America, Oceania and Southeast Asia. Beijing Holdings Group has more than 700 holding and participating companies at all levels, and has 11 listed companies, including 9 Hong Kong listed companies. By the end of 2018, the total assets of Beijing Holdings Group reached 32.4 billion yuan, and the total market value of Beijing Enterprises listed companies was 233.6 billion yuan, ranking 202th in the “Top 500 Chinese Enterprises” and 79th in the “Top 500 Chinese Service Enterprises”.

Beijing Holdings has been exploring water treatment and ecological restoration for a long time. This experience is useful for water environment management, ecological restoration, etc. in the construction of the Yangtze River Economic Belt.

Beijing Holdings and the Three Gorges have cooperated since the Yangtze River Economic Belt strategy was proposed.

In November 2019, Three Gorges Group, Three Gorges Capital Holdings Co., Ltd., a subsidiary of Beikong Water Group, and Beikong Financial Services (Beijing) Investment Holdings Co., Ltd. jointly launched Changjiang Green Development Fund Management Co., Ltd.

The Yangtze River Green Development Investment Fund was jointly initiated and established by the National Development and Reform Commission and the Three Gorges Group. It is positioned as a national industrial investment fund. The initial scale is 20 billion yuan, and will reach 100 billion yuan in the future. The fund focuses on water pollution control, aquatic ecological restoration, water resource protection, green environmental protection and innovative energy revolution technology in the Yangtze River Economic Belt, fully supporting the green development of the Yangtze River Economic Belt and achieving the goals of a harmonious Yangtze River, a healthy Yangtze River, a clean Yangtze River, a beautiful Yangtze River, and a safe Yangtze River.

In terms of energy, Beijing Holdings not only has traditional businesses such as gas, water, and heat for utilities, but also lays out clean energy. Beijing Holdings Clean Energy is already listed in Hong Kong. However, its installed capacity is insignificant compared to the Three Gorges.

As part of the construction of the Yangtze River Economic Belt, the protection of the Yangtze River, greening the Yangtze River, and gasification of the Yangtze River have been mentioned for many years. However, the construction of filling stations and shore power stations on the Yangtze River is still a bit slow; these two companies can be expanded jointly.

The Three Gorges Group took a stake in Beikong, opening a new path of cooperation between central enterprises and powerful local state-owned enterprises: strong alliances to implement the new strategy. Of course, when the Three Gorges have taken a stake in Beikong, there are also signs of policy implementation that are worth carefully tasting.