Zhejiang Fortune Holdings wins bid for Jinsha River Changbo Hydropower Station project with a contract value of 412 million yuan

[Finance Network News] Zhejiang Fuhua Holdings Group Co., Ltd. (Stock Code: 002266,简称 “Fuhua Holdings”) announced on March 16th that it has successfully won the bid for the procurement project of turbines and auxiliary equipment for the Shangpao Water Diversion Hydropower Station upstream of the Jinsha River. The total bid amount is RMB 412.3 million (approximately 412 million yuan).

The announcement states that the company recently received the “Winning Notice” from the bidding agency China Huadian Tendering Co., Ltd., confirming it as the winning bidder for this project. The counterparty is China Huadian Jinsha River Upstream Hydropower Development Co., Ltd. Shangpao Branch. Both parties will sign the formal procurement contract as soon as possible.

It is understood that the bid includes four sets of 185MW capacity mixed-flow turbines and their auxiliary equipment for the Shangpao Hydropower Station upstream of the Jinsha River. Delivery will be carried out in batches, with plans to deliver gradually from December 2026 to February 2029 (subject to official notification from the counterparty), in accordance with the procurement contract requirements, to designated locations.

• | | Establishment Date | September 12, 2023 | | Registered Address | 10th Floor, Area A, Jingkai Building, Economic Development Zone, Changdu City, Tibet Autonomous Region, No. 1001-A82, Area A | | Registration Authority | Changdu City Market Supervision Administration, Economic Development Zone Branch | | Business Scope | Permitted items: power generation, transmission, and distribution; hydropower generation; power supply (projects requiring approval must be approved by relevant departments before operation; specific projects are subject to approval documents or permits). General items: engineering and technical research and development; power generation technology services; technical services, technology development, consulting, exchange, transfer, and promotion (excluding projects that require approval by law, activities not prohibited or restricted by laws and regulations). |

The announcement points out that, after verification, China Huadian Tendering Co., Ltd. and China Huadian Jinsha River Upstream Hydropower Development Co., Ltd. Shangpao Branch have no affiliation with Zhejiang Fuhua Holdings.

Regarding the impact of this bid on the company, Fuhua Holdings stated that the total bid amount accounts for approximately 1.97% of the company’s projected revenue for 2024. With a delivery schedule of 27 months, this averages about 0.73% of the 2024 revenue annually. The company will produce components according to the delivery schedule and recognize sales revenue accordingly, which is expected to increase sales revenue and net profit from 2027 to 2029.

Data shows that the Shangpao Hydropower Station is located on the upper mainstream of the Jinsha River at the border of Sichuan Province and Tibet Autonomous Region. It is the 11th hydropower station in the “One Reservoir, 13 Levels” development plan for the upper Jinsha River. Upstream is the Suwulong Hydropower Station under construction, and downstream is the Xulong Hydropower Station. The project includes water retaining structures, spillway structures, water diversion and power generation buildings, etc. The water diversion power plant will install four 185,000-kilowatt mixed-flow turbines.

Once completed, the station is expected to generate over 4.3 billion kWh annually, saving approximately 1.4 million tons of standard coal per year and reducing CO2 emissions by nearly 3.6 million tons. It will serve as a power source for the “West-to-East Power Transmission” project, support the construction of the Sichuan-Tibet integrated water, wind, and solar demonstration base, and help with regional power grid peak regulation and clean energy absorption.

Fuhua Holdings also reminds investors that, as of the date of this announcement, the company has not yet signed a formal contract with the counterparty, and the contract terms still carry uncertainties. Investors are advised to be cautious of investment risks.

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