GuiZhou QianYuan Power Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of GuiZhou QianYuan Power Co., Ltd.

GuiZhou QianYuan Power Co., Ltd. was founded in 2005 and has since developed into a significant player in the energy sector in China, particularly in power generation and supply. The company is based in GuiZhou Province and operates primarily in the field of hydroelectric power.

As of the end of 2022, the company had a total installed capacity of approximately 2,500 MW, with hydroelectric plants contributing more than 80% of this capacity. The company has strategically focused on renewable energy sources, aligning with national goals to increase clean energy production.

In 2023, GuiZhou QianYuan Power reported a revenue of approximately ¥4.5 billion (around $640 million), demonstrating a year-on-year growth of 15% compared to ¥3.9 billion in 2022. The net profit for 2023 reached about ¥1.2 billion, marking an increase of 12% from the previous year.

The company has expanded its footprint beyond hydroelectric power, venturing into wind and solar energy projects. As of 2023, GuiZhou QianYuan Power had invested approximately ¥1 billion in renewable projects, targeting an additional 500 MW of capacity from these sources by 2025.

Additionally, GuiZhou QianYuan Power is listed on the Shanghai Stock Exchange under the ticker symbol 601927. In the stock market, the company has demonstrated a stable performance, with shares trading at around ¥15 in October 2023, reflecting a market capitalization of approximately ¥30 billion (around $4.3 billion).

The company’s activities are crucial in supporting the Chinese government's renewable energy targets, which aim for non-fossil fuel sources to account for 20% of total energy consumption by 2025. GuiZhou QianYuan Power plays a vital role in this shift, benefiting from favorable policies and investments aimed at sustainable development.

Moreover, GuiZhou QianYuan Power's commitment to environmental protection and social responsibility is evident through various community engagement programs and eco-friendly initiatives, which further enhance its operational longevity and market reputation.

The company has also been recognized for its technological advancements in energy efficiency, integrating smart grid technologies to enhance the reliability and sustainability of its power generation processes.

A Who Owns GuiZhou QianYuan Power Co., Ltd.

GuiZhou QianYuan Power Co., Ltd. is primarily owned by a combination of state-owned enterprises and individual shareholders. As of the latest disclosures, the largest shareholder is the Guizhou Provincial Energy Group Co., Ltd., which holds approximately 41.26% of the total shares. This significant stake showcases the state’s influence in the energy sector within the region.

Other notable shareholders include various institutional investors and private entities that hold smaller portions. The second largest shareholder is Guizhou QianYuan Investment Group Co., Ltd., holding around 15.75% of the stock. Following this, retail investors and smaller institutional funds account for the remaining shares within the public float.

In terms of market activity, the company’s stock has shown considerable movement on the Shanghai Stock Exchange, with a recent market capitalization recorded at approximately CNY 15.5 billion as of the last trading session. The stock price has fluctuated within the last year, reaching a high of CNY 18.50 per share and a low of CNY 10.30.

The company's governance is overseen by a board of directors that includes representatives from its major shareholders, ensuring that the interests of state and private stakeholders are balanced. Their commitment to developing sustainable energy solutions aligns with national policies aimed at increasing renewable energy production.

Financially, GuiZhou QianYuan Power Co., Ltd. reported a revenue of CNY 8.2 billion for the fiscal year ending December 2022, reflecting a year-over-year growth of 12.5%. The net profit for the same period was approximately CNY 1.1 billion, with a profit margin of 13.4%.

The company continues to be a vital player in the energy landscape of Guizhou province, with plans for further expansion and investment in renewable energy sources, indicating potential shifts in ownership dynamics in the future as new investors may seek to align with these initiatives.

GuiZhou QianYuan Power Co., Ltd. Mission Statement

GuiZhou QianYuan Power Co., Ltd. aims to be a leading player in the electricity generation sector in China, focusing on sustainable and renewable energy sources. The company strives to provide reliable and efficient power to enhance the quality of life and support economic development in its service areas.

The mission emphasizes a commitment to environmental responsibility and innovation, seeking to reduce carbon emissions while meeting the growing energy demands of the region. The company is dedicated to leveraging advanced technology and best practices in energy production and distribution.

Furthermore, the mission statement reflects the company’s proactive approach to corporate social responsibility (CSR). GuiZhou QianYuan Power places significant emphasis on reducing the environmental impact of its operations. In the last fiscal year, it reported a 15% decrease in greenhouse gas emissions compared to previous years.

The future roadmap outlines aggressive goals, including achieving a 30% share of renewable energy in its total energy mix by 2025. GuiZhou QianYuan Power also aims to expand its renewable energy capacity by an additional 500 MW over the next three years.

By aligning its mission statement with actionable goals and measurable outcomes, GuiZhou QianYuan Power Co., Ltd. positions itself not only as a power generation company but also as a vital partner in the sustainable development of the region.

How GuiZhou QianYuan Power Co., Ltd. Works

GuiZhou QianYuan Power Co., Ltd., headquartered in Guiyang, Guizhou, China, primarily engages in power generation and sales. As a state-owned enterprise, it plays a critical role in supplying electricity across the Guizhou province. The company focuses on harnessing hydroelectric power, which accounts for a significant portion of its energy output.

As of the latest reports, GuiZhou QianYuan Power has a total installed capacity of approximately 2,300 MW, with around 2,000 MW derived from hydroelectric sources. The remainder comes from a mix of thermal and renewable energy sources, reflecting the company’s commitment to sustainable energy practices.

GuiZhou QianYuan Power's primary business segments include electricity generation, electricity sales, and ancillary services. The company operates multiple hydroelectric plants, including the highly productive Yinjiang Hydropower Station, which alone contributes more than 1,000 MW to its total capacity.

In terms of power generation mix, the company reports that roughly 87% of its electricity comes from hydroelectric sources. This aligns with China's national strategy to increase reliance on renewable energy while reducing carbon emissions.

The company also participates in energy trading and sales, leveraging the National Electricity Market to optimize revenue. In recent years, GuiZhou QianYuan Power has focused on modernizing its grid infrastructure to enhance efficiency and reliability in energy distribution.

The company’s operational efficiency is evidenced by its 95% capacity utilization rate, which is well above the industry average of 85%. This high efficiency is partly due to the geographical advantages of its hydroelectric facilities, situated in areas with favorable rainfall and river systems.

GuiZhou QianYuan Power also invests in technological advancements, including smart grid technologies and automation systems, to improve operational effectiveness and customer service. Additionally, the firm is exploring potential expansions into solar energy projects, reflecting broader trends in the energy sector towards diversification and innovation.

In the financial market, GuiZhou QianYuan Power trades on the Shanghai Stock Exchange under the ticker 600145. The stock has shown a steady growth pattern, with a year-to-date increase of around 15% as of October 2023. The company’s price-to-earnings (P/E) ratio stands at approximately 12.3, which is competitive within the utility sector.

How GuiZhou QianYuan Power Co., Ltd. Makes Money

GuiZhou QianYuan Power Co., Ltd., primarily engaged in the generation and sale of electricity, operates in the hydraulic power sector, leveraging the abundant water resources of Guizhou Province, China. The company’s revenue streams originate from several operational segments, including electricity generation, sales, and ancillary power services.

Revenue Breakdown

For the fiscal year 2022, GuiZhou QianYuan Power reported a total revenue of RMB 2.67 billion, reflecting a year-on-year increase of 8.5%. The major components of revenue include:

• Electricity Sales: RMB 2.5 billion (accounting for approximately 93% of total revenue)
• Ancillary Services: RMB 170 million (about 6.4% of total revenue)
• Other Sources: RMB 0.1 billion (approximately 0.6% of total revenue)

Electricity Generation Capacity

As of December 2022, the total installed generating capacity of GuiZhou QianYuan Power reached 1,120 MW, primarily from hydroelectric sources. The company operates several hydroelectric power stations, with details as follows:

Cost Structure

The cost structure of GuiZhou QianYuan Power Co., Ltd. significantly influences its profitability. The operating costs for 2022 were reported at RMB 2.1 billion, with the following allocations:

• Operational Expenses: RMB 1.4 billion
• Maintenance Costs: RMB 400 million
• Administrative Expenses: RMB 300 million

Profitability Metrics

In terms of profitability, the company demonstrated solid performance in 2022:

• Net Profit: RMB 570 million
• Profit Margin: 21.4%
• Return on Equity (ROE): 13.7%

Market Trends and Future Outlook

GuiZhou QianYuan Power is positioned to benefit from the national shift towards renewable energy, with projections indicating a compound annual growth rate (CAGR) of 10% in the hydropower sector over the next five years. The company plans to expand its capacity to 1,500 MW by 2025, aiming to enhance its market share and profitability.

The continued investment in infrastructure and technology, along with strategic partnerships, will likely drive sustained revenue growth, particularly as China increases efforts towards carbon neutrality by 2060.