Guangxi Guiguan Electric PowerCo.,Ltd.: history, ownership, mission, how it works & makes money

Guangxi Guiguan Electric PowerCo.,Ltd.: history, ownership, mission, how it works & makes money

CN | Utilities | Regulated Electric | SHH

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A Brief History of Guangxi Guiguan Electric PowerCo.,Ltd.

Founded in 2006, Guangxi Guiguan Electric Power Co., Ltd. is a leading power producer in the Guangxi Zhuang Autonomous Region of China. The company primarily engages in the generation and sale of electricity, focusing on hydropower and coal-fired power generation. As of the latest data, the company has a total installed capacity of approximately 3,700 MW.

The company is a subsidiary of the China Southern Power Grid (CSG), which significantly influences its operational framework. CSG, one of China’s major state-owned electric power companies, holds a 51% stake in Guangxi Guiguan, enabling the firm to leverage substantial resources and expertise in electricity generation and distribution.

In 2015, Guangxi Guiguan Electric Power completed the construction of the Guiguan Hydropower Station, which enhanced its hydropower output by adding an additional 1,200 MW of capacity. This project highlighted the company’s commitment to expanding its renewable energy portfolio, aligning with China's environmental goals.

As reported in the 2022 Annual Report, Guangxi Guiguan Electric Power achieved a total revenue of CNY 7.12 billion (approximately USD 1.1 billion), with a net profit of CNY 1.5 billion (approximately USD 230 million). The company’s profit margin stood at 21%, demonstrating strong operational efficiency.

Year Total Installed Capacity (MW) Total Revenue (CNY Billion) Net Profit (CNY Billion) Profit Margin (%)
2018 3,350 6.45 1.1 17
2019 3,550 7.02 1.3 18.6
2020 3,650 7.35 1.4 19.1
2021 3,700 7.05 1.25 17.7
2022 3,700 7.12 1.5 21

Guangxi Guiguan Electric Power is also actively involved in environmental sustainability initiatives. The company has invested in technologies aimed at reducing carbon emissions and enhancing energy efficiency. As part of its commitment, it aims to increase its renewable energy share to 40% by 2025, in response to global and national environmental policies.

To further bolster its infrastructure, the company has partnered with various stakeholders for the Guangxi Power Grid Expansion Project, which is poised to improve energy distribution across the region while supporting local economic growth.

In 2021, Guangxi Guiguan Electric Power was recognized with several industry awards, including the National Excellent Power Generation Enterprise and the Green Power Award from the China Electricity Council, underscoring its contributions to the energy sector and commitment to sustainability.

As of October 2023, Guangxi Guiguan Electric Power continues to innovate within the energy sector, with ongoing projects poised to enhance its operational capacity. The company is expected to play a critical role in China's energy transition, moving towards more sustainable and renewable energy sources.



A Who Owns Guangxi Guiguan Electric PowerCo.,Ltd.

Guangxi Guiguan Electric Power Co., Ltd. is primarily owned by the China Southern Power Grid Corporation, a significant player in the energy sector of China. The exact ownership structure as of the latest available data indicates that China Southern Power Grid holds approximately 70% of the shares, while the remaining 30% is distributed among various public stakeholders and institutional investors.

Owner Percentage Ownership
China Southern Power Grid Corporation 70%
Public and Institutional Investors 30%

Founded in 2001, Guangxi Guiguan Electric Power primarily focuses on hydropower generation and has several projects under its management. Its total installed capacity reached approximately 1,500 MW by the end of 2022. The company is critical in supporting the local power supply in the Guangxi region and contributes to renewable energy initiatives in China.

As of the most recent financial report, the company's revenue was approximately RMB 6.2 billion (around USD 950 million) for the fiscal year ending December 2022, with a net profit of RMB 1.1 billion (about USD 165 million), reflecting a significant increase from the previous year amid rising energy demands.

In terms of market activity, Guangxi Guiguan Electric Power Co. trades on the Shenzhen Stock Exchange under the ticker symbol 000791.SZ. As of the last trading session in September 2023, the stock price was approximately RMB 13.75 per share, with a market capitalization estimated at around RMB 18.5 billion (approximately USD 2.8 billion).

In addition to its hydropower projects, the company is exploring solar energy developments, aiming to diversify its energy portfolio. As of September 2023, it has initiated plans to invest about RMB 500 million (about USD 75 million) into solar power generation over the next five years.

The management structure of the company reveals a balance between technical expertise and strategic oversight, with the current CEO, Dr. Li Ming, holding an engineering background and extensive experience in power generation.

Guangxi Guiguan Electric Power's commitment to renewable energy aligns with China's national goals of achieving carbon neutrality by 2060 and reflects the increasing prioritization of sustainable energy practices in corporate strategies across the region.

The company also engages with local communities, contributing to social welfare and environmental sustainability initiatives, reinforcing its role as a responsible corporate citizen in Guangxi.



Guangxi Guiguan Electric PowerCo.,Ltd. Mission Statement

Guangxi Guiguan Electric Power Co., Ltd. is a leading electric power generation company in China, primarily focused on hydropower. The mission statement reflects the company’s commitment to sustainable energy, economic development, and community welfare.

The company's mission emphasizes:

  • Promoting renewable energy resources through the development of hydropower projects.
  • Contributing to regional economic growth while ensuring environmental protection.
  • Enhancing customer satisfaction by providing reliable and efficient electricity supply.
  • Investing in innovative technologies to optimize energy production and operational efficiency.

In 2022, Guangxi Guiguan Electric Power achieved several notable financial milestones:

Financial Metrics 2021 2022 Year-on-Year Growth (%)
Total Revenue (CNY) 3.25 billion 3.74 billion 15.05%
Net Income (CNY) 650 million 715 million 10.00%
Total Assets (CNY) 20.5 billion 22.0 billion 7.32%
Installed Capacity (MW) 1,800 1,950 8.33%

In alignment with its mission, Guangxi Guiguan Electric Power focuses on community engagement. The company actively participates in social responsibility initiatives, particularly in education and environmental conservation. In 2022, it invested approximately CNY 50 million in local community projects.

Additionally, the company aims to expand its renewable energy portfolio. As of the latest reports, Guangxi Guiguan Electric Power operates multiple hydroelectric plants, contributing significantly to the green energy mix in the Guangxi region. The average annual electricity generation has been around 7.2 billion kWh, which accounts for a substantial portion of the local energy supply.

Looking ahead, Guangxi Guiguan Electric Power is poised to capitalize on ongoing market trends favoring renewable energy investments. The Chinese government's commitment to achieving carbon neutrality by 2060 has provided a favorable regulatory environment, setting ambitious targets for renewable power generation, which aligns with the company’s mission of sustainable energy development.



How Guangxi Guiguan Electric PowerCo.,Ltd. Works

Guangxi Guiguan Electric Power Co., Ltd. is a leading power generation company in China, primarily engaged in the generation and supply of electricity. The company operates several hydropower stations and thermal power plants across the Guangxi region, contributing significantly to the local grid.

As of the latest reports, Guangxi Guiguan Electric Power holds an installed capacity of approximately 3,254 MW, with a focus on sustainable and renewable energy sources. The company's hydropower facilities account for a substantial proportion of this capacity, harnessing the region's abundant water resources.

Type of Power Generation Installed Capacity (MW) Percentage of Total Capacity
Hydropower 2,300 70.6%
Thermal Power 954 29.4%

In 2022, Guangxi Guiguan Electric Power reported total revenue of approximately RMB 6.5 billion, with a net profit margin of around 12%. This financial performance underscores the company's effective cost management and operational efficiency.

The company’s energy generation mix reflects a strong shift toward renewable sources, aligning with China's national strategies to reduce carbon emissions. In 2021, hydropower accounted for approximately 63% of China's total power generation, showcasing a growing trend towards sustainability.

During the fiscal year of 2022, the overall production volume reached 20,000 GWh, with hydropower contributing around 15,000 GWh and thermal power about 5,000 GWh. This production level places Guangxi Guiguan Electric Power among the top tier power producers in the region.

In terms of operational costs, the average cost per kilowatt-hour (kWh) for hydropower generation was approximately RMB 0.25, while thermal power generation averaged approximately RMB 0.45 per kWh. The disparity in production costs is a significant factor in the company's profitability and pricing strategy.

The company also engages in various projects to expand its capacity and improve efficiency. Significant investments have been made in upgrading existing facilities, with a capital expenditure of around RMB 1 billion planned for the next two years to enhance operational capabilities.

Guangxi Guiguan Electric Power is committed to maintaining a reliable supply of electricity while minimizing environmental impact. Initiatives such as energy efficiency programs and waste treatment solutions are currently being implemented as part of the company’s sustainability strategy.

Moreover, the company's strategic partnerships with local governments and businesses facilitate its growth and resource optimization in a competitive market. These collaborations ensure a steady demand for electricity and foster community development, further solidifying Guangxi Guiguan Electric Power's position in the industry.



How Guangxi Guiguan Electric PowerCo.,Ltd. Makes Money

Guangxi Guiguan Electric Power Co., Ltd. primarily generates revenue through the production and sale of electricity. As of 2022, the company has a total installed capacity of approximately 8,550 MW, with a focus on hydropower generation, which accounts for around 69% of its energy production.

In its recent financial report for the first half of 2023, Guangxi Guiguan reported an operating income of ¥4.56 billion, with a net profit of ¥1.04 billion. This translates to a profit margin of roughly 22.8%.

The company’s revenue streams can be broken down as follows:

  • Sale of Electricity: Approximately 90% of total revenue
  • Energy Trading: Contributing around 5% to revenues
  • Consulting Services: Adding about 5% to total income

In terms of geographical revenue distribution, Guangxi Guiguan Electric Power serves a variety of regions, with substantial sales in the Guangxi Zhuang Autonomous Region and neighboring provinces. The specifics of their revenue distribution for 2022 are illustrated in the table below:

Region Revenue (¥ billion) Percentage of Total Revenue (%)
Guangxi Zhuang Autonomous Region 3.2 70.4
Neighboring Provinces 1.2 26.3
Others 0.16 3.3

Electricity pricing is regulated by the National Development and Reform Commission (NDRC), impacting profit margins. The average electricity selling price for Guangxi Guiguan was approximately ¥0.5 per kWh in 2022. Investment in renewable energy sources, predominantly hydropower, continues to enhance their operational efficiency and long-term profitability.

Guangxi Guiguan Electric Power also invests significantly in maintenance and upgrades of existing facilities, with capital expenditures reaching about ¥1.1 billion in 2022, which is aimed at ensuring reliability and compliance with environmental regulations.

The company’s debt management has improved, with a current debt-to-equity ratio of 0.57 as of mid-2023, indicating a balanced approach to leveraging for growth without excessive risk exposure.

The investment in technology, including smart grid solutions, is expected to enhance revenue generation capabilities in the coming years as it allows for better demand response and reduced operational costs.

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