China Power has announced its intention to sell its entire 24.8726% equity interest in Qiyuan Power, an associate of the company.

Being a state-owned enterprise, the proposed transfer of this equity interest is subject to Chinese laws and regulations governing the transfer of state-owned property. Consequently, the stake must be offered for sale through a public listing on the Shanghai Property Rights Exchange, an approved equity exchange platform.

The minimum listing price for the stake has been set at RMB 2.556 billion.

This potential divestment would allow the group to sharpen its focus on core operations and support its strategic development of an integrated clean energy platform encompassing thermal, hydro, wind, and photovoltaic power generation.

Furthermore, the minimum listing price represents a favorable premium over the stake's book value, providing the company with an opportunity to realize the investment value of its holding in Qiyuan Power.

Upon completion of the potential sale, the expected proceeds are anticipated to strengthen the group's capital structure, improve its cash flow position, and support the creation of long-term value for shareholders.

As of the announcement date, the company has not entered into any binding agreements, arrangements, or commitments regarding the potential sale.

Given that the transaction may or may not proceed, shareholders and potential investors are advised to exercise caution when dealing in the company's shares.