China Resources Power accused of losing billions of state-owned assets

The assets of coal mines and coking plants owned by Shanxi Jinye Group, a privately owned company (hereinafter referred to as Jinye Group), were acquired by the central bank China Resources Power Holdings Co., Ltd. (hereinafter referred to as China Resources Power) for 8 billion yuan. Therefore, the alleged assets are seriously overvalued. The loss of billions of dollars in state-owned assets; problems in the acquisition of projects, serious losses, one of which has become a local sheep grazing site for farmers.

Analysts inside the industry said that China Resources Power acquired the assets of the Gold Group at an incredibly high price. Its assessment has serious problems, and the illegal advance payment of the acquisition money is suspected of causing the loss of several billion yuan of state-owned assets, which should attract the attention of the regulatory authorities.

80% equity valuation of 8 billion gold purchase projects is 5 billion higher than coal coal prices China Resources Power was established in August 2001 and is a Hong Kong listed company controlled by China Resources Group. Jinye Group is a private enterprise integrating ancient coal mining, washing, coking, and rail transportation in Gujiao City, Shanxi Province.

At the end of 2009, China Resources Power began to negotiate the acquisition of its assets with the troubled gold industry group. China Resources Power established a working group for this purpose, and the group leader was Du Huadong, executive vice president of the company. On February 9, 2010, China Resources Power, Shanxi Huarun Liansheng Energy Investment Co., Ltd. (CR Power Affiliate, hereinafter referred to as Shanxi Huarun Liansheng), and Jinye Group and Jinye Group Chairman Zhang Xinming jointly signed the “Master Agreement on Corporate Reorganization and Cooperation”. , China Resources Resources acquired a 80% stake in the asset group of Jinye Group for a price of no more than 7.9 billion yuan. The asset package consists of 10 entities of the Jinye Group, including three claims of recoverable reserves of 255 million tons. Coal mines (original coal mine, Zhongshe coal mine, Hongyatou coal mine) and two coking plants, a coal washing plant, a coal gangue power plant, a transportation company, a railway delivery station, and a chemical plant.

After that, the asset package was injected into Taiyuan China Resources Coal Industry Co., Ltd. (hereinafter referred to as Taiyuan China Resources). Taiyuan China Resources is 80% owned by China Resources, and Jinye Group is a 20% share of the asset package sold by Taiyuan China Resources.

In September 2009, which was less than three months before China Resources Power intervened in the acquisition, Datong Coal Mining Group Corporation (hereinafter referred to as Tongmei Group) had initiated the acquisition of the assets package of the Jinye Group. A staff member of the Finance Department of Tongji Group told the reporter that at that time, the two parties valued some of the assets of about 5.2 billion yuan, but shortly afterwards, the asset acquisition that had started was eventually halted for some reason.

Just three months later, the purchase price of the assets of China Resources Group Jinye Group was more than 5 billion yuan more than that of the coal group.

China Resources Power and Gold Industry Group signed the "corporate reorganization and cooperation agreement" shows that the acquisition of gold assets 80% of the equity package of the consideration of 7.9 billion (100% converted to 9.875 billion yuan); Taiyuan China Resources has to be acquired The Jinye Second Coking Plant obtained all land use certificates and paid RMB 45 million to the land and resources department. When Tongmei Coal Group withdrew from the acquisition, it reached an agreement with China Resources Power, which had previously invested RMB 0.44 billion in 10 asset packages when the same coal group restructured the Group, and was also returned to Tongmei Group by Taiyuan China Resources. In the statistics above, the overall value of the asset group equity of the Jinye Group was approximately 10.3 billion yuan.

For the above transactions, CR Power only briefly stated in its 2010 interim report and annual report, but its purchase price was not announced.

With regard to the same asset package of the Jinye Group, why was CR Power acquired at a price of RMB 5 billion higher than that of the Tongmei Coal Group when the time span was not large? Gao Guojiang, deputy manager of China Resources Power Coal Business Group, asked in a telephone interview: “Do you understand the situation at the time?” Gao Guojiang refused to continue to respond to reporters' questions on this issue.