GD Power Development To Inject Capital Into Subsidiary


November 10 – GD Power Development (600795.SH) plans to inject 1.49 billion yuan into controlling subsidiary Younglight Energy Chemical Group to fund its chemical park in Ningdong, reports China Business News, citing a company filing. The chemical park, which began construction last year, had total investment of 9.72 billion yuan and capital of 2.92 billion yuan raised by Younglight Energy itself.

According to people close to GD Power, Younglight Energy faced a capital shortage. GD Power agreed to make the capital injection because it had high expectations for its coal chemical output.

The chemical park is under construction and is expected to be operational next year. Half of GD Power’s thermal power plants were hit with massive losses. A small number of its plants with capacity of more than one million kilowatts reported slim profits due to low coal consumption.

As of the end of the third quarter, the firm had total installed capacity of 30.97 million kilowatts, of which 22.69 million kilowatts accounted for thermoelectric power. The figure accounts for 73.3 percent of total capacity. Hydropower and wind power accounted for the remaining 26.91 percent.


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