China Yangtze Power Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of China Yangtze Power Co., Ltd.

China Yangtze Power Co., Ltd. (CYPC), established in 1994, has grown to become one of the largest hydropower producers globally. The company's primary focus is on the operation and management of the Three Gorges Project, which has a total installed capacity of 22,500 MW.

In 2003, CYPC was listed on the Shanghai Stock Exchange, becoming a significant player in the market. As of June 2023, CYPC's market capitalization stood at approximately ¥1.6 trillion (around $245 billion), reflecting the company's vast operational scale and profitability.

By the end of 2022, the company reported a total electricity generation of 108.85 TWh, marking a year-on-year increase of 8.1%. This growth is attributed to enhanced operational efficiency and favorable hydrological conditions.

CYPC operates a diversified portfolio of assets beyond the Three Gorges Project, including over 20 hydropower plants across various provinces. The company's total installed capacity reached 51,000 MW by the end of 2022, with plans to expand by an additional 6,000 MW in the coming years.

The company has consistently delivered strong financial performance. In the first half of 2023, CYPC reported a net profit of ¥12.5 billion (approximately $1.92 billion), an increase of 10.2% from the same period in 2022. The revenue for H1 2023 amounted to ¥56.3 billion (approximately $8.69 billion), showcasing robust demand for clean energy.

As of now, CYPC holds a strong position in the renewable energy sector and aims to invest around ¥100 billion (approximately $15.5 billion) in renewable energy projects by 2025, focusing primarily on hydropower and wind energy sources.

In addition to its robust financials, China Yangtze Power has been recognized for its commitment to sustainability. The company reported a reduction in carbon emissions by 17% in its operations from 2016 to 2022, aligning with China's broader environmental goals.

Overall, China Yangtze Power's strategic initiatives and operational achievements position it as a leader in the hydropower industry, with promising prospects for future growth and environmental stewardship.

A Who Owns China Yangtze Power Co., Ltd.

China Yangtze Power Co., Ltd. (CYPC) is a publicly traded company listed on the Shanghai Stock Exchange, specifically under the ticker 600900. The company is primarily focused on hydropower generation and is a subsidiary of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).

As of the latest available information, the ownership structure of China Yangtze Power is as follows:

China Three Gorges Corporation (CTGC) is the majority shareholder, holding close to 64% of the company's shares, which underscores the state's significant influence over the operations and strategic direction of CYPC.

In recent financial reports, CYPC has demonstrated solid performance metrics. In 2022, the company reported an operating revenue of approximately RMB 43.3 billion (around USD 6.65 billion), marking an increase compared to previous years. The net profit attributable to shareholders was reported at RMB 16.9 billion (approximately USD 2.61 billion), reflecting a 7.3% year-over-year increase.

Furthermore, as of the end of 2022, CYPC had total assets amounting to RMB 280.7 billion (roughly USD 43.5 billion). The company's total liabilities stood at RMB 187.4 billion (around USD 28.9 billion), yielding a debt-to-equity ratio of approximately 0.67 which indicates a balanced capital structure.

CYPC's market capitalization was around RMB 285 billion (approximately USD 44 billion) as of October 2023. The stock has demonstrated resilience, with a return on equity (ROE) of 12.1% in the same fiscal year, showcasing effective management of shareholder equity.

The company has continually invested in expanding its renewable energy portfolio, with an installed capacity of around 49,000 MW, positioning itself as one of the largest hydropower producers globally.

In terms of dividend policy, CYPC has a history of providing consistent dividends to its shareholders, with a payout ratio of approximately 45% in the last fiscal year, reflecting its commitment to returning value to investors.

China Yangtze Power Co., Ltd. Mission Statement

China Yangtze Power Co., Ltd. (CYPC) is the largest publicly listed hydropower company in the world. Its mission statement reflects its commitment to sustainable development and clean energy. The company aims to "provide clean energy and contribute to the construction of a resource-saving and environmentally friendly society." This mission is aligned with China’s broader goals concerning renewable energy and emission reductions.

As of 2022, CYPC generates over 100,000 GWh of electricity annually, driven by its hydroelectric power plants, primarily the Three Gorges Dam, which alone has a capacity of 22,500 MW. The company’s core values revolve around innovation, responsibility, and strategic growth, emphasizing the role of renewable energy in combating climate change.

The company has made significant investments in innovation and environmental protection technologies to further its mission. In 2021, it allocated about 2.5 billion CNY towards R&D for cleaner energy solutions. CYPC is also committed to reducing carbon emissions, targeting a 20% reduction by 2030 compared to 2020 levels.

CYPC's strategic initiatives include expanding its renewable energy portfolio through investments in wind and solar power projects, aligning with China's goal for non-fossil energy sources to account for 25% of the total energy mix by 2030. The company also aims for its hydropower technologies to remain a benchmark, not only within China but across global markets.

As a testament to its dedication to sustainability, CYPC has achieved several accolades concerning environmental management standards, earning recognition for its operational practices that emphasize ecological conservation and community development.

How China Yangtze Power Co., Ltd. Works

China Yangtze Power Co., Ltd. (CYPC) operates primarily in the power generation sector, focusing on hydropower. As the largest hydropower producer in China and one of the leading companies globally, it plays a crucial role in the country's energy landscape. The company is a subsidiary of State Grid Corporation of China and is mainly known for its operation of the Three Gorges Project on the Yangtze River.

In 2022, CYPC reported a total installed capacity of approximately 50,000 MW, with hydropower accounting for the vast majority. The company generated about 178.9 billion kWh of electricity, representing a year-on-year increase of 13.9%.

The company’s financial performance is also noteworthy. For the fiscal year 2022, CYPC's revenue reached approximately ¥109.15 billion (about USD 15.6 billion), with a net profit of ¥36.31 billion (about USD 5.3 billion). This reflects a profit margin of approximately 33.3%.

CYPC's operational strategy is deeply tied to renewable energy sources, particularly hydropower, which aligns with China's environmental goals. The company also pursues investments in wind and solar energy to diversify its energy portfolio. In 2022, investments in renewable energy projects totaled around ¥16 billion (about USD 2.3 billion).

Furthermore, CYPC benefits from government policies aimed at enhancing energy efficiency and reducing carbon emissions. The Chinese government prioritizes hydropower in its energy mix, as evidenced by the 14th Five-Year Plan which emphasizes renewable energy development and a target of 1,200 GW of hydropower capacity by 2030.

As of October 2023, the stock price of CYPC was approximately ¥27.56, with a market capitalization around ¥347.7 billion (about USD 50.6 billion). The company has maintained a consistent dividend policy, with a dividend yield of approximately 2.6%.

CYPC not only focuses on its environmental responsibilities but also engages in community development programs. Investments in local infrastructure and social welfare in the regions surrounding its hydroelectric facilities contribute to sustainable development and enhance the company's corporate social responsibility profile.

Overall, China Yangtze Power Co., Ltd. exemplifies a model of renewable energy generation that combines profitability with sustainable practices, while also playing a strategic role in China's energy transition efforts.

How China Yangtze Power Co., Ltd. Makes Money

China Yangtze Power Co., Ltd., one of the largest hydropower producers in the world, primarily generates revenue through the operation of hydropower plants, particularly the Three Gorges Dam, which is the largest of its kind globally. The company's revenue model is focused on electricity generation and sales, supplemented by investments in related sectors.

Revenue Sources

• Electricity Generation
• Investment Income
• Engineering and Consulting Services

The primary source of revenue for China Yangtze Power is electricity generation. In the fiscal year 2022, the company reported a total electricity generation volume of 112.8 billion kWh. The average selling price of electricity was approximately 0.32 CNY per kWh, leading to a total revenue of around 36.3 billion CNY from electricity sales.

Financial Performance

In 2022, China Yangtze Power Co., Ltd. reported a total operating income of 43.4 billion CNY, up from 40.1 billion CNY in 2021. Net profit during the same period reached 20.2 billion CNY, translating to a profit margin of approximately 46.5%.

Cost Structure

The major costs for China Yangtze Power include operational and maintenance expenses, which accounted for roughly 15 billion CNY in 2022. Depreciation of assets contributed another 7 billion CNY to the overall expenses. Consequently, operating expenses totaled about 22 billion CNY, resulting in an operating profit of 21.4 billion CNY.

Investment and Diversification

China Yangtze Power has also diversified its investment portfolio, engaging in projects related to renewable energy and infrastructure. In 2022, the company allocated approximately 3 billion CNY towards new energy projects, including wind and solar power developments, aiming to reduce reliance on fossil fuels and further contribute to China's green energy goals.

Overall, the company’s strategic focus on expanding its hydropower capabilities while investing in renewable energy projects plays a crucial role in sustaining its revenue growth and operational efficiency.