Datang International Power Generation Co., Ltd. Announces Discloseable Transaction: Establishment of Joint Venture for Major Power Transmission Project

Key Highlights

• Joint Venture Formation: On 28 April 2026, Datang International Power Generation Co., Ltd. (the “Company”) entered into a Capital Contribution Agreement with Jiangsu Guoxin Group and Ordos New Energy to jointly establish Datang (Ordos) Energy Development Co., Ltd. (the “Joint Venture”).
• Project Purpose: The Joint Venture is set up to develop and construct the Inner Mongolia to Jiangsu Power Transmission Project—a large-scale initiative involving wind, solar, coal-fired power generation, and energy storage technologies.
• Registered Capital: Total registered capital of RMB10.0 billion. The Company will contribute RMB5.1 billion (51%), Jiangsu Guoxin Group RMB3.4 billion (34%), and Ordos New Energy RMB1.5 billion (15%), all in cash.
• Discloseable Transaction: The size of the transaction triggers a discloseable event under Chapter 14 of the Hong Kong Listing Rules, requiring reporting and public announcement due to its potential material impact.
• Project Scale: The project base has a planned capacity of 14.64 million kW, including 4 million kW of wind, 8 million kW of photovoltaic, and 2.64 million kW of coal-fired power, plus 2.04 million kW/8.16 million kWh of energy storage.
• Strategic Significance: The initiative is closely aligned with Chinese government policy for clean energy transition, carbon neutrality, and strengthening national energy security.

Transaction Details

The Capital Contribution Agreement was signed on 28 April 2026. The main terms are as follows:

• Initial Paid-in Capital: RMB100 million to be contributed by 31 August 2026. Contributions will be made in proportion to each party’s shareholding.
• Further Capital Contributions: When 20% of total project investment is needed as Project Capital, the Joint Venture’s general meeting will determine the capital plan. Each party will continue to contribute proportionally, with the full amount due by the earlier of five years from establishment or project commissioning.
• Total Project Investment: Estimated at RMB58.1 billion. The registered capital of RMB10 billion covers the equity portion, while the remainder will be financed by the Joint Venture.
• Allocation of Capital: RMB2.8 billion for wind, RMB5.4 billion for photovoltaic, RMB1.8 billion for coal-fired power. Energy storage investment is included in wind and solar allocations based on capacity.
• Use of Initial Capital: To fund feasibility studies, required documentation, project approval processes, and preliminary management expenses.
• Default Liabilities: Parties breaching the agreement must compensate for losses, barring force majeure. In case the Company loses control over the Joint Venture (except transfers to connected parties), the Joint Venture must stop using the “Datang” brand and related intangible assets or face compensation liabilities.

Project Overview and Strategic Impact

• Infrastructure: The project includes a ±800 kV direct current transmission line with an 8 million kW transmission capacity, spanning 1,886 km from Hangjin Banner in Ordos, Inner Mongolia, to Jiangning District in Nanjing, Jiangsu, crossing five provinces.
• National Policy: This initiative supports China’s carbon peaking and neutrality goals and the development of large-scale energy bases in desert and Gobi areas. It leverages resource advantages in Inner Mongolia and economic strength in Jiangsu.
• Company Strategy: The project will strengthen the Company’s leadership in Inner Mongolia, expand new energy capacity, and consolidate its power market presence in Jiangsu. It also positions the Company for further lead development rights in the region.

Business Scope of the Joint Venture

• Licensed Activities: Power supply, generation, transmission, distribution, installation, maintenance, and testing of power facilities; heat production and supply; construction engineering.
• General Business: Technical services for power generation (including wind, solar, energy storage, and biomass), new energy R&D, ecological restoration, equipment repair, technology development and transfer.

Information on Parties to the Agreement

• The Company: Datang International Power Generation Co., Ltd., established in December 1994, engaged in power generation and related services. Ultimately owned by the State-owned Assets Supervision and Administration Commission (SASAC) of the PRC.
• Jiangsu Guoxin Group: Established August 2001, engaged in state-owned capital investment and management, asset restructuring, and other approved activities. Owned by the Jiangsu Provincial People’s Government.
• Ordos New Energy: Restructured September 2020, engaged in development of new energy, oil, gas, hydrogen, uranium, and related industrial projects. Ultimately owned by the SASAC of Ordos City.

Board Approval and Listing Rules Implications

• The Board approved the transaction at its twelfth session meeting on 28 April 2026. No Director has a material interest or was required to abstain from voting.
• The highest applicable percentage ratio under the Listing Rules exceeds 5% but is less than 25%, making this a discloseable transaction subject to public reporting and announcement requirements.

Potentially Price Sensitive Information for Shareholders

• Major Capital Commitment: The Company is committing RMB5.1 billion in equity to a strategically significant, large-scale project.
• Growth and Expansion: The project’s scale and alignment with national policy could substantially expand the Company’s asset base and revenue streams, especially in renewable energy.
• Market Positioning: Successful execution will reinforce the Company’s standing as a leading power producer in key regions and new energy markets.
• Long-term Impact: The financial and operational commitments, if well managed, could drive medium- to long-term value for shareholders, but also entail significant project and execution risks.
• Risk Factors: Preliminary project stage means outcomes are subject to government approvals, regulatory changes, and execution challenges.

Conclusion

This transaction marks a significant strategic move by Datang International Power Generation Co., Ltd. into large-scale, integrated renewable and conventional energy generation and transmission, with strong government backing and multi-billion RMB investments. Shareholders should closely monitor project developments, regulatory approvals, and subsequent capital requirements, as these may have material impacts on the Company’s financial performance and share value.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult professional advisors before making investment decisions.

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