Beijing-Shanghai High Speed Railway Co.Ltd(601816) join hands with China electric power to build the road of green energy empowerment

On the evening of the 12th, Beijing-Shanghai High Speed Railway Co.Ltd(601816) announced that it had signed a strategic cooperation agreement with China Power International Development Co., Ltd. on January 11.

The two well-known enterprises have attracted much market attention. Beijing-Shanghai High Speed Railway Co.Ltd(601816) company is the main body of investment, construction and operation of Beijing Shanghai high-speed railway and stations along the line. The company was completed and opened to traffic on June 30, 2011. It is a high-speed railway with the longest mileage and the highest technical standard in the world. In 2020, Beijing-Shanghai High Speed Railway Co.Ltd(601816) controlled and operated Beijing Fuzhou Railway Passenger Dedicated Line Co., Ltd.

At the same time, Beijing-Shanghai High Speed Railway Co.Ltd(601816) connects China’s political center and economic and financial center, and connects the two economic zones of “Beijing Tianjin Hebei” and “Yangtze River Delta“, with unique geographical advantages. As the core asset of China in the new era and the “first share of China’s high-speed railway”, Beijing-Shanghai High Speed Railway Co.Ltd(601816) has a unique position of “the world’s high-speed railway looks at China and China’s high-speed railway looks at Beijing and Shanghai”. Over the years, the transportation efficiency has continued to lead, and it is also unique in the operating efficiency of China’s high-speed railway.

China power is the flagship subsidiary of State Power Investment Group Co., Ltd. its main businesses include clean power production and supply, energy storage, hydrogen energy, green power transportation, comprehensive smart energy, power station services and energy management services. It is the first central power enterprise listed in Hong Kong Red chip in China.

Adhering to the concept of “green empowerment, intelligent innovation and common achievement”, the company is committed to building a world-class green and low-carbon energy supplier. It is disclosed that by the end of December 2021, the installed power generation capacity owned and managed by China power had exceeded 50 million KW, and clean energy accounted for more than 57%.

guarantee Beijing-Shanghai High Speed Railway Co.Ltd(601816) power supply control power cost

Electric power is the main energy in the railway transportation industry. The strategic cooperation between Beijing-Shanghai High Speed Railway Co.Ltd(601816) company and China electric power will undoubtedly provide an additional guarantee for the power supply of line operation.

The cooperation content shows that according to the construction progress of the power market in the country and provinces and cities along Beijing-Shanghai High Speed Railway Co.Ltd(601816) , under the same conditions, China power gives priority to providing power supply services for Beijing-Shanghai High Speed Railway Co.Ltd(601816) , and Beijing-Shanghai High Speed Railway Co.Ltd(601816) gives priority to China power as the power supplier.

At the same time, Beijing-Shanghai High Speed Railway Co.Ltd(601816) is undoubtedly a large power user. Beijing-Shanghai High Speed Railway Co.Ltd(601816) once said on the investor interaction platform that the proportion of power cost in cost is about 15%. If electricity prices rise sharply, it may lead to a decline in gross profit margin and operating performance.

The strategic cooperation reached this time will help Beijing-Shanghai High Speed Railway Co.Ltd(601816) control the power cost and deal with the risk of power price fluctuation. According to the announcement, Beijing-Shanghai High Speed Railway Co.Ltd(601816) company and China power have established a close, long-term and in-depth strategic partnership to give full play to and integrate their respective advantages, carry out strong alliance in many fields such as power market trading, realize resource sharing and complementary advantages, and jointly promote the extension and development of business of both sides.

It is noteworthy that Beijing-Shanghai High Speed Railway Co.Ltd(601816) company actively reached strategic cooperation with power suppliers and carried out cost control, which shows that Beijing-Shanghai High Speed Railway Co.Ltd(601816) company actively explored the extension of the industrial chain around the main industry and actively distributed upstream of the industrial chain on the basis of doing a good job in the main business of railway transportation. It also shows that Beijing-Shanghai High Speed Railway Co.Ltd(601816) has fully entered the stage of fine operation management. By strengthening integrated management and cost control, railway transportation efficiency and economic benefits can be improved.

build a green railway to help achieve the “double carbon” goal

Beijing-Shanghai High Speed Railway Co.Ltd(601816) both the company and China electric power have actively responded to the national call for low-carbon development and helped to achieve the goal of “carbon peak and carbon neutralization” by reaching strategic cooperation and business integration. At the same time, this strategic cooperation also shows Beijing-Shanghai High Speed Railway Co.Ltd(601816) its firm determination to promote the development of clean energy, develop green high-speed rail and build a green high-speed rail demonstration benchmark.

One of the important contents of this strategic cooperation is the supply of green and low-carbon energy. According to the national and provincial clean energy environmental attribute trading policies (such as green certificate, green power trading, renewable energy quota, carbon emission right, etc.), under the same conditions, China power gives priority to Beijing-Shanghai High Speed Railway Co.Ltd(601816) to provide environmental attribute supply services, and Beijing-Shanghai High Speed Railway Co.Ltd(601816) gives priority to China power as an environmental attribute supplier.

As a large power user, Beijing-Shanghai High Speed Railway Co.Ltd(601816) gives priority to the clean energy power of China power, which has taken a firm step on the road of building a green high-speed railway and promoted the low-carbon development of the railway industry. In the future, with the increasing proportion of clean energy power on the Beijing-Shanghai High Speed Railway Co.Ltd(601816) line, it is expected to become a demonstration benchmark project of Green high-speed railway.

In addition to power market-oriented trading and green and low-carbon energy supply, it is expected that Beijing-Shanghai High Speed Railway Co.Ltd(601816) and China power will further reach cooperation in the investment, construction and operation of comprehensive smart energy in the future. In other words, Beijing-Shanghai High Speed Railway Co.Ltd(601816) is expected to participate in the investment and operation of smart energy projects in the future and realize diversified operation layout around the main business. Beijing-Shanghai High Speed Railway Co.Ltd(601816) company and Jingfu Anhui company have 54 stations. In the future, Beijing-Shanghai High Speed Railway Co.Ltd(601816) company has imagination space in green energy Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) such as station building photoelectric application and intelligent energy storage.

According to the cooperation content, the two sides will focus on the national “carbon peak, carbon neutralization” strategy and green development strategy, give full play to their respective advantages, jointly study, explore and optimize the integration of advantageous resources, realize the development, construction and operation of a variety of comprehensive smart energy projects including but not limited to electricity, heat, cooling, gas and water, and achieve common high-quality development.

At the same time, the strong alliance of the two large enterprises also provides a new idea for the cooperation between high energy demand enterprises and green energy suppliers, which is expected to drive more enterprises to ensure clean energy supply and promote in-depth cooperation through strategic cooperation, so as to accelerate the use of clean energy and help achieve the “double carbon” goal as soon as possible.

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