Fu Neng Shares (600483): Joint Channel Power Generation And Construction Of Changle Offshore Wind Farm C Area Project Total Investment Of 10 Billion 413 Million Yuan.

600483.SH announced that in order to better promote the construction and operation of offshore wind power projects, in 2018, the company and the Straits Power Generation Co Ltd set up a joint venture to set up Fujian Funeng Strait Power Generation Co., Ltd. ("fortune Neng Strait"), which is responsible for the development, construction and operation of the B and C area (800MW) project of offshore offshore wind farm in Changle, Fuzhou, Fujian. The company directly and indirectly owns 68.15% of the fortune energy Strait. The above C area project has been approved by the Fujian provincial development and Reform Commission for approval of the C area project for offshore wind farms in Changle, which is approved by No. 2018 of Fujian development and transformation network (No. 214).

The offshore area of Changle offshore wind farm C project is located in the coastal waters 33-48 kilometers east of the Changle coastline of Fuzhou City, Fujian province. The land centralized control station is located in the village of Shou Yi, Matsushita Town, Changle. The scale of the project is 498MW, mainly building offshore wind turbines of 8MW or above, and building 1 220KV sea rising voltage substations and ancillary works and 1 land centralized control stations.

The total investment of the project is 10 billion 413 million yuan, of which the proportion of project capital accounts for 30% of the total project investment. The source of the project construction funds is the capital channel of Fu Neng Strait and other financing methods such as bank loans. The construction period of the project is 4 years, and the main project will start construction in March 2020.

According to the feasibility study report of the project, the annual equivalent generating hours of the project are about 3506 hours, and the annual net power consumption is about 1 billion 739 million kwh. The annual operating profit is about 1 billion 304 million yuan, with an average annual profit of about 500 million yuan. The total investment internal rate of return of the project is about 8.27% after tax and the internal rate of return of capital is about 13.88% after tax.

The company is located in the key areas of the national wind power policy, and investing in the construction of C project of offshore offshore wind farm in Changle will strengthen the market competitiveness and market position of the company's wind power business. After the completion of the project, the company will form a new profit growth point for the company and will enhance the company's future profitability.