Guangzhou Development Group Incorporated (600098.SH) announced the approval to implement the national clean and low-carbon transformation of coal-fired power, as well as the 'first establish, then reform' requirements for the coal-fired power industry.
In order to implement the national clean and low-carbon transformation of coal-fired power, as well as the 'first establish, then reform' requirements for the coal-fired power industry, and to ensure the energy and power supply security of Guangzhou city, the Development and Reform Commission of Guangzhou issued an approval, permitting the Guangzhou Development Power Group Co., Ltd. (referred to as 'Power Group'), a wholly-owned subsidiary of the company, to construct the Guangzhou Zhujiang Power Plant 2×600MW coal-fired power environmentally friendly substitution project.
In order to support the construction of the Guangzhou Zhujiang Power Plant 2×600MW coal-fired power environmentally friendly substitution project, to dispose of end-of-life equipment, maximize the recovery of asset value, the company's wholly-owned subsidiaries, Zhudian Company, Development Pier Company, and Fuel Company have been approved to sell Units #1 and #2 and related supporting equipment through public listing. Due to the absence of specific transferees for Units #1 and #2 and no relocation or usage plan, and the significant value of the equipment consisting of special steel, copper, aluminum, silver, and other precious metals, with certain recycling value, the plan is to dispose of them through dismantling and realization approach. According to the asset appraisal report, as of the appraisal reference date of June 30, 2024, the book value of the assets to be sold is 1.924 billion yuan, net book value is 0.106 billion yuan, appraisal value is 0.112 billion yuan (excluding tax), with an appreciation rate of 5.30%. Some devices and spare parts with high historic and spare value identified through technical assessment will be retained as spare parts for Units #3 and #4, while the rest of the equipment with no utility value are proposed to be publicly auctioned at the Guangdong United Property Exchange Center based on an assessed transfer floor price of 0.114 billion yuan (including tax).
