Yunnan Energy Investment Co.Ltd(002053)
Feasibility analysis report on the use of funds raised by non-public offering of shares
Yunnan Energy Investment Co.Ltd(002053) (hereinafter referred to as “the company”) intends to raise funds through non-public offering of A-Shares (hereinafter referred to as “this non-public offering” or “this offering”) in order to further meet the company’s capital demand for incremental new energy project construction, optimize the company’s capital structure and improve profitability, After deducting the issuance expenses, it will be used to invest in the construction of Qujing Tongquan wind farm project, Huize Jinzhong wind farm phase I project and Honghe Yongning wind farm project. The feasibility analysis of the company’s use of the funds raised in this non-public offering is as follows:
1、 Use plan of the raised funds
The total amount of funds raised in this offering (including issuance expenses) shall not exceed RMB 1865890500 (including this amount). The net amount of funds raised after deducting issuance expenses will be used for the following items:
Unit: 10000 yuan
No. project name total investment of the project to be invested in raised funds
1 Qujing Tongquan wind farm project 224499314489986
2 Huize Jinzhong wind farm phase I project 235489104709782
3 Honghe Yongning wind farm project 472956849459137
Total 9329452518658905
After the funds raised in this non-public offering are in place, if the actual amount of funds raised (after deducting the issuance expenses) is less than the amount of funds to be invested in the above projects, within the scope of the finally determined investment projects of the raised funds, the board of directors and its authorized persons of the company will, according to the actual amount of funds raised, the progress of the project, capital demand and other actual conditions, Adjust and finally determine the specific investment projects and priorities of the raised funds and the specific investment amount of each project. The insufficient part of the raised funds shall be solved by the company with its own funds or through other financing methods.
Before the funds raised in this non-public offering are in place, the company can invest with self raised funds according to the actual situation of the investment projects with raised funds, and replace them according to the procedures of relevant laws and regulations after the raised funds are in place.
2、 Necessity and feasibility analysis of the project invested by the raised funds
(I) necessity of project implementation
1. Project implementation is an inevitable choice for the practical implementation of the national energy industry development strategy and the “double carbon” goal
Energy investment group is the main force of Yunnan Province to build a world-class “green energy brand”, and the company is the final undertaking platform of energy investment group’s new energy power generation business. The implementation of this raised investment project is the inevitable choice for the company to actively implement the national energy industry development strategy and the “double carbon” goal, and can fully transform the rich clean energy advantages in Yunnan Province into industrial and development advantages. It is conducive to meeting the needs of the rapid growth of social power consumption in Yunnan Province during the 14th Five Year Plan period, optimizing the power supply structure, improving the power supply capacity in dry season, forming a good complementarity with hydropower, effectively supporting the incremental layout of electrolytic aluminum and silicon material processing industrial belt in Yunnan Province, alleviating the structural contradiction between power supply and demand in Yunnan Province, and accelerating the transformation and development of regional economy, Help Yunnan Province accelerate the green transformation of industry, build China’s green aluminum Valley and photovoltaic capital, and promote the steady and rapid development of regional economy.
2. Project implementation is a key measure to strengthen the strategic positioning of the company’s new energy
This raised investment project is an important part of Yunnan’s “8 + 3” new energy planning. Starting with the investment and construction of this raised investment project, the company can quickly accumulate industrial resources and project implementation experience, effectively strengthen the operation and management ability of clean energy, consolidate the industrial development foundation, and significantly improve the status and market share of clean energy industry, In order to further seize the historic opportunity of the great development of green energy industry in Yunnan Province, integrate high-quality industrial resources in Yunnan Province, quickly expand the installed scale of clean energy power generation, create good conditions, strengthen the strategic positioning of the company’s new energy, and quickly consolidate, expand and strengthen the company’s main new energy business.
3. Project implementation is an important means to further enhance the company’s sustainable profitability and comprehensive competitiveness
Yunnan Province is vigorously introducing green aluminum and silicon leading intensive processing enterprises. With the continuous improvement of regional power demand, the contradiction between supply and demand will become increasingly prominent. The implementation area of the raised investment project has good resource endowment conditions. After the completion of the project investment and construction, the installed capacity of the company’s wind power will increase by 1450mw, and the installed capacity will be further expanded in the future. With the effective consumption of new power generation, it can significantly improve the overall profitability and core competitiveness of the company and achieve a good return on investment for the shareholders of the company.
(II) feasibility of project implementation
1. The project has good development value
There are many stable strong wind and gale days in winter and spring in the East and north of Yunnan Province, and the wind direction is stable in the afternoon, and the available time is long. It is an area with relatively concentrated wind energy resources, which is rich in wind energy resources. Malong district and Huize County of Qujing City, Maitreya city and Luxi County of Honghe Prefecture are all located in this area. It is an ideal area for the utilization of wind energy resources and has good development value.
2. The company has rich experience in wind power operation and management
In March 2019, the company completed the purchase of equity of four wind power companies held by new energy companies. The four wind power companies have unique experience in the situation of wind resources and the construction and operation of wind power plants in Yunnan Province. Through this acquisition, the company has obtained a complete wind power development, construction and operation management team, which can ensure the construction and operation of this raised investment project. At the same time, the company has continuously summarized experience, made technological innovation, trained and trained a number of professional operation and maintenance technical teams. The availability and failure rate of wind turbines of the company’s projects have performed well in the benchmarking of wind power projects in Yunnan Province.
According to the benchmarking results of wind power operation indicators of the power industry in 2020 released by China Electricity Council, hailiangzi wind farm of Huize company and Dazhongshan wind farm of Dayao company stand out from the 49 power generation groups and 2488 wind farms participating in the evaluation. Hailiangzi wind farm and Dazhongshan wind farm are rated as the superior wind farm (AAAA) in the power industry in 2020, It shows the excellent asset management ability and wind farm operation level of the company’s wind power business segment.
3、 Details of the project raised funds
(I) Qujing Tongquan wind farm project
1. Basic information of the project
The planned site of Qujing Tongquan wind farm project is located in Malong District, Qujing City, Yunnan Province. The planned installed capacity of the project is 350MW, and the total investment is 2244993100 yuan. It is planned to invest 448998600 yuan raised in this non-public offering. The project implementation subject is Malone company, a wholly-owned subsidiary of the company.
2. Project investment estimate
The investment estimate of the project is as follows:
Project or cost name total investment (10000 yuan) in investment proportion
Construction auxiliary works 236120 1.05%
Equipment and installation works 16449949 73.27%
Construction 2776495 12.37%
Other expenses 1718485 7.65%
Basic reserve fund 423621 1.89%
Interest during construction period: 739839 3.30%
Working capital 105420 0.47%
Total investment 22449931 100.00%
3. Economic benefit analysis of the project
According to the feasibility study report of the project, the financial internal rate of return of the capital fund of Qujing Tongquan wind farm project is 9.11%, and the investment payback period (after income tax) is 12.52 years, with good economic benefits.
4. Project approval
(1) Approval or filing documents
On June 23, 2021, the project has obtained the reply on the approval of Qujing Tongquan wind farm project (yfgaiye [2021] No. 549) issued by Yunnan development and Reform Commission.
(2) Land use related documents
On June 3, 2021, the project obtained the opinions on preliminary review and site selection of construction project land issued by the Department of natural resources of Yunnan Province.
(3) EIA approval document
On August 19, 2021, the project obtained the reply of Qujing Ecological Environment Bureau on the environmental impact report form of Qujing Tongquan wind farm project issued by Qujing Ecological Environment Bureau (Quhuan Shen [2021] No. 44).
(II) Huize Jinzhong wind farm phase I Project
1. Basic information of the project
The planned site of Huize Jinzhong wind farm phase I project is located in Huize County, Qujing City, Yunnan Province. The planned installed capacity of the project is 350MW, with a total investment of 2354891 million yuan. It is proposed to invest 4709782 million yuan in the non-public offering. The project implementation subject is Huize company, a wholly-owned subsidiary of the company.
2. Project investment estimate
The investment estimate of the project is as follows:
Project or cost name total investment (10000 yuan) in investment proportion
Construction auxiliary works 350297 1.49%
Equipment and installation works 15883049 67.45%
Construction works 3515247 14.93%
Other expenses 2272050 9.65%
Basic reserve fund 440413 1.87%
Project or cost name total investment (10000 yuan) in investment proportion
Project supporting expenditure 500000 2.12%
Interest during construction period 482855 2.05%
Working capital 105000 0.45%
Total investment 23548910 100.00%
3. Economic benefit analysis of the project
According to the feasibility study report of the project, the financial internal rate of return of the capital fund of phase I project of Huize Jinzhong wind farm is 8.51%, and the investment payback period (after income tax) is 13.78 years, with good economic benefits.
4. Project approval
(1) Approval or filing documents
On December 5, 2021, the project has obtained the reply on the approval of phase I project of Huize Jinzhong wind farm (yfgyy [2021] No. 1052) issued by Yunnan development and Reform Commission
