Jingneng Clean Energy (00579): Dachuan Company was notified by the competent authorities that its four hydropower plants in Sichuan need to be disconnected and decommissioned as soon as possible

According to the Zhitong Finance App, Jingneng Clean Energy (00579) announced that the company's subsidiary, Sichuan Dachuan Electric Power Co., Ltd. (Dachuan Company), under the company's Southwest Branch (Southwest Branch), recently received a notice from the competent local government department in Lushan County, Sichuan Province. In order to strengthen the protection of the ecological environment and landscape of the Giant Panda National Park in Sichuan Province, and reduce the adverse impact of power plant operations in the Giant Panda National Park on the surrounding environment, Dachuan's four hydropower stations located in Lushan County, Sichuan Province, need to be disconnected and decommissioned as soon as possible. The four hydropower stations are the Zhongzui Hydropower Station, with an installed capacity of 24,000 kilowatts; the Foshan Hydropower Station, with an installed capacity of 24,000 kilowatts; the Changshiba Hydropower Station, with an installed capacity of 22,000 kilowatts; and the Masangping Hydropower Station, with an installed capacity of 16,400 kilowatts.

According to the management accounts of Dachuan Company, the average annual revenue of the above four hydropower plants is approximately RMB 128 million, and the annual operating profit is approximately RMB 72.9 million. After these hydropower plants are decommissioned, the Southwest Branch's power generation capacity is expected to be reduced by about 110 million kilowatt-hours in 2024, and revenue is expected to decrease by about RMB 30 million. According to preliminary estimates, the withdrawal of these hydropower plants caused their individual assets and asset groups to face impairment estimates totaling between RMB 750 million and RMB 850 million, which will have an impact on the Group's profits. In addition, local government authorities have arranged to evaluate the assets of the four hydropower plants. The competent local government department will provide compensation for the disconnection and decommissioning of the four hydropower plants. The specific compensation arrangements are still in the process of being communicated. The company will continue to follow up on follow-up matters such as compensation and make further announcements in due course in accordance with the requirements of the listing rules.