The company today announced its intent to acquire stakes in two hydropower development companies based in Sichuan Province. The company announced that it has signed an Equity Transfer Framework Agreement with two shareholders of Sichuan Hongyang Hydropower Co., Ltd., in which the company intends to acquire no less than a 75% stake. With registered capital of RMB 54.6 mln, Sichuan Hongyang Hydropower operates the Tiexi Hydropower Plant with 30 MW (3 x 10 MW) of power generation capacity. Two generator units went into operation in January 2008, with the third beginning operations prior to the rainy season in 2008.

In addition, the company is also seeking to control a stake in Sichuan Hetai Hydropower Development Co., Ltd. With registered capital of RMB 29.6 mln, it plans to develop the Mantan Hydropower Plant in Sichuan with a designed generation capacity of 75 MW (3 x 25 MW). A project feasibility study is still ongoing.

Source: Shanghai Securities News

Date: 25 Jun 2008

CN01/RZ/RZ/BT/MM