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According to Caixin on December 30 (Reporter Liu Yue), Huaihe Energy (600575.SH) has once again received an asset injection from its controlling shareholder, with plans to purchase 89.3% of the shares of Huaihe Energy Power Group Co., Ltd. (hereinafter referred to as "Power Group") held by Huainan Mining. The company’s stocks will resume trading starting tomorrow.

An announcement released by Huaihe Energy this evening shows that the aforementioned transaction will be conducted through the issuance of shares and payment of cash, along with the raising of supporting funds. The company expects this transaction to constitute a major asset restructuring, but it will not result in a change of the company’s actual controller and does not constitute a listing restructuring.

Regarding the share issuance and fundraising, the company plans to issue shares to no more than 35 qualifying specific investors to raise supporting funds. The issuance price for the shares is set at 3.03 yuan/share. After deducting related transaction fees from the raised supporting funds, the funds will be used to pay cash consideration for this transaction, fund project construction in the symbol company, and augment the listed company's working capital. The proportion used for augmenting the listed company's working capital will not exceed 25% of the cash consideration for this transaction or 50% of the total raised supporting funds.

However, the price of this transaction and the number of shares to be issued are yet to be determined. The company stated that specific ratios for cash consideration payment, related payment arrangements, and details of compensation will be determined through negotiation between both parties after the symbol company’s audit and assessment work is completed.

It's worth noting that the controlling shareholder Huainan Mining has previously planned twice to use Huaihe Energy as a platform for overall group asset listing, both of which ended in failure. However, the pace of Huainan Mining’s asset injection has not ceased.

In September, the company mentioned on its interactive platform that it had completed the acquisition of 100% of the equity of Panji Power Company, a subsidiary of its controlling shareholder Huainan Mining Group, in December 2023. Additionally, according to the commitments made during Huainan Mining Group's restructuring in 2016, its currently under-construction or planned projects, including Phase II of Panji Power Plant, Xieqiao Power Plant, Phase IV of Luhe Power Plant, and later coal power projects, will also be injected into the listed company once they meet the conditions for production and operation. If this restructuring is successfully completed, it means that the 89.3% equity asset of the Power Group held by Huainan Mining Group will be fully integrated into the listed company Huaihe Energy.

Huaihe Energy stated in the announcement that the Electrical Utilities Group serves as the holding platform for the electrical business under Huaihe Holdings, conducting thermal power generation and some New energy generation businesses through holding or participating shares, and holds a supporting coal mine through its subsidiaries.

Public information shows that Huaihe Energy mainly operates thermal power generation, electricity sales, railroad transportation, and coal blending businesses. Huainan Mining is the company's controlling Shareholder, holding 56.61% of its shares, with the Anhui State-owned Assets Supervision and Administration Commission as the actual controller of the company.

Huaihe Energy indicated that the background of this transaction includes national policies encouraging listed companies to utilize the Capital Markets for mergers and restructuring to optimize and strengthen themselves. Since the beginning of this year, driven by favorable national policies, local state-owned enterprises have launched a new round of mergers and restructuring. Recently, the Sichuan Provincial People's Government plans to initiate strategic restructuring between Sichuan Investment Group and Sichuan Energy Investment, which is expected to create an energy giant with a total asset of over 370 billion yuan. In June, the significant asset restructuring plan of Gepic Energy Development (000791.SZ) was approved by the provincial SASAC. In March, Hunan Energy Investment Group, formed with Hunan Xiang Investment Holding Group Co., Ltd. as the main body, was officially inaugurated.