DATANG POWER (00991) fell nearly 5% in trading, dropping 4.03% to HKD 2.38 by the time of writing, with a turnover of HKD 81.6 million. The decline follows the company's announcement that its wholly-owned subsidiary, Datang Anhui Power Generation Co., Ltd., acquired a 50% stake in Anhui Electric Power Co., Ltd. from Huainan Mining for HKD 1. Post-transaction, Anhui Electric Power will become an indirect wholly-owned subsidiary of DATANG POWER and be consolidated into its financial statements.

As of the valuation date on April 30, 2025, Anhui Electric Power reported total assets of approximately RMB 787 million, total liabilities of RMB 2.473 billion, and negative equity of RMB -1.686 billion, with a debt-to-asset ratio of around 314%. The acquisition is expected to reduce DATANG POWER's consolidated net profit attributable to shareholders by approximately RMB 589 million.

Changjiang Securities noted in a research report that DATANG POWER recorded an asset impairment loss of RMB 1.206 billion in Q3, primarily due to a RMB 779 million goodwill impairment related to the Anhui Electric Power acquisition. This impairment is expected to constrain the company's earnings flexibility to some extent.