Guodian and Shenhua Merge to Form New Company

Shenhua Group will be renamed State Energy Investment Group Co., Ltd. (SEIG), as approved by State-owned Assets Supervision and Administration Commission of the State Council. As the parent company, SEIG will absorb China Guodian Corporation, and become the controlling shareholder of both GD Power Development Co., Ltd. (GD Power) and China Shenhua Energy Co., Ltd. (Shenhua Energy).
To avoid competition in the thermal power business, GD Power and Shenhua Energy intend to establish a joint venture, with shares and assets that the two companies own in related thermal power firms. Thanks to setting up the JV, installed capacity of GD Power will increase to 80.29 million KW, up around 53.05%. While expanding generating capacity and markets for power business, the JV will help GD Power greatly increase total assets, net assets, operating revenue and net profits.