Understanding the Market | Datang Power currently down nearly 5% as subsidiary acquires loss-making power generation company, limiting impairment and releasing performance elasticity
Datang Power is currently down nearly 5%, as of the time of writing, down 4.03%, reported at HKD 2.38, with a trading volume of HKD 81.5992 million. In terms of news, Datang Power recently announced that its wholly-owned subsidiary Datang Anhui Power Co., Ltd. purchased a 50% stake in Anhui Electric Power Co., Ltd. held by Huainan Mining for a price of 1 yuan. After the transaction is completed, Anhui Electric Power Co., Ltd. will indirectly become a wholly-owned subsidiary of Datang International Power Generation Co., Ltd. and will be included in its consolidated financial statements. The announcement shows that as of the assessment benchmark date of April 30, 2025, the total assets of Anhui Electric Power Co., Ltd. are approximately 787 million yuan, total liabilities reach approximately 2.473 billion yuan, and owner's equity is -1.686 billion yuan, with a debt-to-asset ratio of approximately 314%. This transaction is expected to impact the company's consolidated net profit attributable to the parent by a decrease of approximately 589 million yuan. Changjiang Securities released a research report stating that in the third quarter, Datang Power recognized an asset impairment loss of 1.206 billion yuan, mainly due to the goodwill impairment provision of 779 million yuan related to the acquisition of Anhui Electric Power Co., Ltd. equity, which somewhat limits the company's performance elasticity release
According to Zhitong Finance APP, Datang Power (00991) is currently down nearly 5%. As of the time of writing, it has dropped by 4.03%, trading at HKD 2.38, with a transaction volume of HKD 81.5992 million.
In terms of news, Datang Power recently announced that its wholly-owned subsidiary, Datang Anhui Power Co., Ltd., will purchase a 50% stake in Anhui Electric Power Co., Ltd. held by Huainan Mining for a price of 1 yuan. Upon completion of the transaction, Anhui Electric Power Co., Ltd. will indirectly become a wholly-owned subsidiary of Datang International Power Generation Co., Ltd. and will be included in its consolidated financial statements.
The announcement shows that as of the assessment benchmark date of April 30, 2025, the total assets of Anhui Electric Power Co., Ltd. are approximately 787 million yuan, total liabilities amount to about 2.473 billion yuan, and shareholders' equity is -1.686 billion yuan, with a debt-to-asset ratio of approximately 314%. This transaction is expected to impact the company's consolidated net profit attributable to the parent by a reduction of about 589 million yuan. Changjiang Securities released a research report stating that in the third quarter, Datang Power recognized an asset impairment loss of 1.206 billion yuan, mainly due to the recognition of goodwill impairment provision of 779 million yuan related to the acquisition of Anhui Electric Power Co., Ltd., which somewhat limits the company's performance elasticity release
