On April 13, Jiangsu Linyang Energy Co.Ltd(601222) ( Jiangsu Linyang Energy Co.Ltd(601222) ) announced that Anhui Linyang, a wholly-owned subsidiary of the company, signed an equity transfer agreement with Wuhan lvxi. Anhui Linyang plans to transfer 100% equity of its five subsidiaries (Suzhou Jinyang, Suzhou Jinyao, Xiaoxian Huayao, Xiaoxian Huafeng and Xiaoxian Yusheng) (hereinafter referred to as the target company) to Wuhan lvxi, involving a total installed capacity of 154mw and an equity transfer consideration of about 365 million yuan.
As of the benchmark date, the target company still owes Anhui Linyang and its related parties a total of 654 million yuan (including loans and dividends). After preliminary calculation, this transaction is expected to increase the pre tax net profit of the listed company by about 40.85 million yuan (calculated from the merger level, the final audit result shall prevail), which will have a certain positive impact on the operating performance of the company.
According to the announcement, Jiangsu Linyang Energy Co.Ltd(601222) the power stations to be transferred this time are all located in Suzhou City, Anhui Province. The transaction involves a variety of power station types, including roof distributed, agricultural light complementary and ground distributed photovoltaic power stations. According to public information, the counterparty Wuhan lvxi new energy Co., Ltd. was established in December 2021. It is a wholly-owned subsidiary of Hubei Lvdong new energy Co., Ltd. of the state power investment group, with a registered capital of 75.94 million yuan.
According to the data of the third quarterly report of Jiangsu Linyang Energy Co.Ltd(601222) 2021, the company’s total assets are 20.551 billion yuan and accounts receivable are 4.487 billion yuan, of which the amount of state subsidies in arrears is about 3.1 billion yuan, and the asset liability ratio is 30.03%. The company is about 1.6gw of various new energy self-supporting photovoltaic power station projects.
Jiangsu Linyang Energy Co.Ltd(601222) said that the transfer of stock power stations will further optimize the company’s power station asset structure, revitalize stock assets and recover cash flow, which is conducive to cooperating with the company’s strategic deployment and planning for the future business of new energy and accelerating the development speed of the company’s new energy business.
Meanwhile, Jiangsu Linyang Energy Co.Ltd(601222) will continue to pay attention to the progress of national renewable energy subsidy arrears. The transfer of stock photovoltaic power stations with subsidy arrears will help the company improve the capital turnover efficiency and gradually increase the proportion of affordable photovoltaic power stations in self-owned power stations, which is in line with the company’s strategic arrangements such as continuously optimizing the asset structure of power stations, increasing the development scale of affordable power stations and deepening future business cooperation with state-owned enterprise partners.
It is understood that Jiangsu Linyang Energy Co.Ltd(601222) currently has sufficient new energy reserve projects in hand. By the end of the third quarter of last year, the company was working on various new energy reserve projects exceeding 6Gw In 2021, Jiangsu Linyang Energy Co.Ltd(601222) obtained more than 1.5gw ground power station index in the Middle East of its layout, including about 280mW projects in the competitive configuration of the first and second batch of photovoltaic power generation projects in Anhui in 2021.
In addition, in July 2021, the company signed an investment cooperation agreement with the people’s Government of Wuhe County, Anhui Province, and invested in the construction of 2gw new energy power generation project in Wuhe County through the combination of “scenery storage +” mode and local characteristics.
