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China’s leading energy company, primarily focused on coal and electricity production, has halted trading of its shares as it prepares for a significant asset restructuring projected to transform the entire coal supply chain.
The company will acquire assets related to coal, surface coal power, coal-to-oil, coal-to-gas, and coal chemicals from thirteen subsidiaries of its major shareholder, including Xinjiang Energy Group, Wuhai Energy, and Shaanxi Shenyan Coal. This announcement was made on August 1.
Trading of the company’s stock, which closed at approximately $5.23 last week, is expected to be suspended for no more than ten trading days.
The purpose of this move is to strengthen strategic coal reserves and integrate operational capabilities, address overlaps in coal development activities within the parent organization, and support broader reforms in China’s energy system. This includes establishing a new system for coal production, supply, storage, and marketing, according to a spokesperson for the controlling entity.
By implementing a regional capacity coordination and scheduling system, the company will significantly improve its ability to adjust to seasonal and structural shifts in supply and demand across key energy-consuming areas. During peak seasons, such as winter and summer, a unified management approach can respond swiftly to national macro-control directives, thus bolstering China’s energy security.
This restructuring aims to ensure a steady resource supply for upstream coal mining, promote cleaner processing methods in midstream and downstream coal-to-oil and chemical industries, and strengthen energy utilization efficiency. Additionally, it will develop an independent logistics network to improve transportation from western regions to eastern China, according to industry analysts.
Founded in November 2004, the company held total assets worth approximately ¥658.1 billion (about $91.6 billion) at the end of last year, with a market valuation of roughly ¥822.1 billion.
The controlling group was formed in November 2017 through the merger of major power producer China Guodian and the Shenhua Group, a large mining and energy enterprise.
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