Securities code: Xinjiang Tianfu Energy Co.Ltd(600509) securities abbreviation: Xinjiang Tianfu Energy Co.Ltd(600509) Xinjiang Tianfu Energy Co.Ltd(600509)
XINJIANG TIANFU ENERGY CO.,LTD
(registered address: No. 2, Beiyi East Road, Shihezi City, Xinjiang Uygur Autonomous Region) use of funds raised by non-public offering of a shares
Feasibility analysis report
February, 2002
The words or abbreviations mentioned in this feasibility analysis report have the same meaning as the words or abbreviations mentioned in “interpretation” in Xinjiang Tianfu Energy Co.Ltd(600509) non public development bank A-share stock plan.
The company intends to apply for non-public offering of A-Shares (hereinafter referred to as “non-public offering of shares”), and now the feasibility analysis of the investment project raised by this non-public offering is described as follows:
1、 Use plan of the raised funds
The total amount of funds raised in this non-public offering does not exceed 150 million yuan. After deducting the issuance expenses, the net amount of funds raised is used for “1 million KW photovoltaic base project in Shihezi, Northern Xinjiang, BINGTUAN, Tianfu 400000 kW photovoltaic power generation project”. The details are as follows:
No. project name total investment (10000 yuan) proposed amount of raised funds (10000 yuan)
1 Corps Shihezi 1 million KW photovoltaic base project 1953190115000000 Tianfu 400000 kW photovoltaic power generation project
Before the raised funds 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 in accordance with the procedures specified in relevant laws and regulations after the raised funds are in place. After the raised funds are in place, if the actual net amount of raised funds after deducting the issuance expenses is less than the total amount of raised funds to be invested, the insufficient part shall be solved by the company with self raised funds.
2、 Basic information of this raised investment project
(I) basic information of project investment
1. Geographical location
The 1 million KW photovoltaic base project in Shihezi, Northern Xinjiang, BINGTUAN Tianfu 400000 kW photovoltaic power generation project site is located in the 134 regiment area of Shihezi eighth division, about 60km northwest of Shihezi City, about 40km to the south of Shawan County. The south of the site is close to S312 line. The surrounding rural roads are crisscross and the transportation is convenient. The site is a state-owned wasteland with flat and open terrain. The altitude of the site is between 340 ~ 370m. The site is wasteland with sparse vegetation on the surface. It is an ideal photovoltaic project site. The relationship between the project site and various restrictive factors shall be subject to the final conclusion of the supporting documents of various government departments.
2. Project installation planning
The project plans to build Cecep Solar Energy Co.Ltd(000591) photovoltaic power generation system with a total capacity of 400000 kW on the AC side, and build 60MW / 120mwh energy storage equipment and corresponding supporting online facilities according to the requirements of competitive distribution.
(II) project implementation and project budget estimate
The project company plans to set up a subsidiary to be responsible for implementation, construction and operation. The planned investment of the project is 19531901 million yuan.
(III) economic evaluation
The financial internal rate of return (after income tax) of the project investment is expected to be about 5%, and the economic benefit of the project is good. (IV) progress of projects invested with raised funds involving approval
Up to now, the project approval procedures involved in the project are being handled.
3、 The development prospect of this raised investment project
In recent years, global ecological and environmental problems have become increasingly prominent, and global warming and other problems need to be solved urgently. Governments all over the world have proposed to accelerate the transformation to clean energy. China is one of the largest coal producers and consumers in the world, and one of the few countries with coal as the main energy. In energy production and consumption, coal accounts for the highest proportion of commodity energy consumption and is the main source of China’s atmospheric carbon emissions, Vigorously developing Cecep Solar Energy Co.Ltd(000591) and other new and renewable energy utilization technologies will become one of China’s important measures to reduce carbon emissions.
Li chuangjun, director of the new and renewable energy department of China’s national energy administration, said that China clearly proposed to reach the peak of carbon by 2030 and carbon neutralization by 2060, putting forward clear requirements for the development of renewable energy. During the “14th five year plan” period, China’s annual installed capacity of renewable energy will increase significantly. By the end of the “14th five year plan”, the installed capacity of renewable energy power generation will account for more than 50% of China’s total installed capacity of electricity. The proportion of renewable energy in energy consumption will continue to increase. By the end of the 14th five year plan, it is expected that the proportion of renewable energy in the increment of power consumption of the whole society will reach about two-thirds, and the proportion in the increment of primary energy consumption will exceed 50%. Renewable energy will become the main body of the increment of energy and power consumption from the increment supplement of original energy and power consumption.
The 14th five year plan for national economic and social development of the people’s Republic of China and the outline of long-term objectives for 2035 put forward: accelerate the development of non fossil energy, adhere to both centralized and distributed development, vigorously increase the scale of wind power and photovoltaic power generation, and increase the proportion of non fossil energy in total energy consumption to about 20%.
Therefore, this raised investment project conforms to the national industrial policy and has good development prospects.
4、 Necessity of raising funds this time
(I) actively respond to the national energy development strategy, promote energy conservation and emission reduction and reduce environmental pollution
The fund raised for the investment and construction of photovoltaic power station projects is a specific action in a positive response to the national energy development strategy, which is conducive to improving the proportion and efficiency of clean energy consumption, contributing to the adjustment of China’s energy consumption structure, greatly saving the coal consumption brought by traditional coal-fired power generation, promoting energy conservation and emission reduction and reducing environmental pollution.
(II) optimize power structure, enhance core competitiveness and enhance sustainable profitability
As a major power generation enterprise in Shihezi region of Xinjiang Uygur Autonomous Region, the company has a total installed capacity of 3.261 million KW as of December 31, 2021, including 2.99 million KW thermal power units, 231000 kW hydropower units and 40000 kW photovoltaic units. At present, the company’s thermal power business accounts for a relatively high proportion. The implementation of this raised investment project is conducive to optimizing the company’s power supply structure, enhancing the core competitiveness of power business, bringing good economic benefits to the company and improving the company’s sustainable profitability.
(III) enhance the company’s capital strength and optimize the financial structure
With the growth of business scale and the increase of investment demand, the company is facing greater capital pressure and relatively high debt level. Through this non-public offering, enhance the capital strength of the company, alleviate the capital pressure, further reduce the asset liability ratio, optimize the financial structure and improve the anti risk ability.
5、 Feasibility of using the raised funds
(I) the project area is rich in Cecep Solar Energy Co.Ltd(000591) resources, with good engineering geological conditions and good development value. The area where the raised photovoltaic base project is located has sufficient annual average sunshine time. It is an area rich in Cecep Solar Energy Co.Ltd(000591) resources in China and has good development value.
The project area has carried out the investigation of land use, forest and grass, environmental protection, mining, military, cultural relics and other bumpy factors. It does not occupy basic farmland and does not involve areas restricted by development such as ecological red line. The engineering geological conditions are good and suitable for the construction of the project.
(II) the company has good basic reserves
As an earlier power generation and supply enterprise, the company has accumulated rich experience in the operation and management of power generation and supply enterprises, and has a group of experienced managers and technical talents. The company has the operation experience of photovoltaic power station, which can meet the smooth implementation of investment projects with raised funds. In addition, the power demand of industry and residents is expected to further increase, which provides a solid market foundation for the consumption of the company’s new power generation.
6、 Matters related to the investment project of the raised funds for approval
After deducting the issuance expenses, the funds raised in this non-public offering are intended to be used for the 1 million KW photovoltaic base project in Shihezi, Northern Xinjiang, BINGTUAN, Tianfu 400000 kW photovoltaic power generation project, and the project approval procedures are being handled.
7、 Conclusion of feasibility analysis on the use of raised funds
To sum up, the availability and use of the raised funds will help to enhance the company’s overall competitive strength and enhance the company’s sustainable development ability. The use of the raised funds complies with relevant policies, laws and regulations, conforms to the interests of the company and all shareholders, and is necessary and feasible.
Xinjiang Tianfu Energy Co.Ltd(600509) board of directors February 28, 2022
