China Shenhua Energy Company Limited, the state-owned enterprise giant with a 700 billion yuan market capitalization, has announced in its latest filing that the company's shares will resume trading on August 18 (tomorrow)!

The company plans to acquire 100% equity stakes in 10 companies held by its controlling shareholder China Energy Investment Group, as well as 41% equity in Shenyan Coal and 49% equity in Jinshen Energy through A-share issuance and cash payments. Additionally, it will purchase 100% equity in Inner Mongolia Construction Investment from Western Energy through cash payment.

Furthermore, China Shenhua plans to issue A-shares to no more than 35 specific investors to raise supporting funds.

**China Shenhua's Major Acquisition: Purchasing 13 Companies in One Move with Total Assets of 258.3 Billion Yuan**

Among the transaction counterparties in this restructuring, China Energy Investment Group is China Shenhua's controlling shareholder, while Western Energy is a wholly-owned subsidiary of China Energy Investment Group. This transaction constitutes a related-party transaction.

This transaction represents a large-scale asset integration involving 13 target companies, with businesses extensively covering core sectors including coal mining, pithead coal power generation, and coal chemicals.

The announcement shows that China Shenhua plans to acquire through A-share issuance and cash payments the following stakes held by China Energy Investment Group: 100% equity in Guoyuan Power, 100% equity in Xinjiang Energy, 100% equity in Chemical Company, 100% equity in Wuhai Energy, 100% equity in Pingzhuang Coal Industry, 41% equity in Shenyan Coal, 49% equity in Jinshen Energy, 100% equity in Baotou Mining, 100% equity in Shipping Company, 100% equity in Coal Trading Company, 100% equity in E-commerce Company, and 100% equity in Port Company. It will also purchase 100% equity in Inner Mongolia Construction Investment held by Western Energy through cash payment. The transaction price has not yet been determined.

As of the end of 2024, these target assets had combined total assets of 258.362 billion yuan and net assets attributable to parent company of 93.888 billion yuan. This series of moves will have profound impacts on China Shenhua itself and the entire energy industry.

**China's Second-Largest Open-Pit Coal Mine to be Fully Injected**

Based on 2024 performance calculations, the 13 companies achieved combined operating revenue of 125.996 billion yuan, combined non-recurring net profit attributable to parent company of 8.005 billion yuan, and combined non-recurring net profit attributable to parent company after excluding long-term asset impairment losses of 9.811 billion yuan. Among these, five companies - Guoyuan Power, Xinjiang Energy, Chemical Company, Pingzhuang Coal Industry, and Coal Trading Company - had revenues exceeding 10 billion yuan. Xinjiang Energy's Xinjiang Zhundong open-pit coal mine will also be included, which is China's second-largest open-pit coal mine.

Before the trading suspension, China Shenhua's A-share price was 37.56 yuan per share, with a total market capitalization of 746.3 billion yuan.

On August 16, a relevant official from China Shenhua stated that after the restructuring, coal mining entities will provide more stable resource supply, pithead coal power and coal-to-oil chemical platforms will enhance clean conversion and utilization levels, and autonomous control of the transportation logistics network will be further strengthened. This will not only strengthen China Shenhua's market position but also promote the acceleration of coal industry transformation toward greener and more intelligent development through building a cross-regional production capacity coordination system.

**Plans for 2025 Interim Profit Distribution**

On the evening of August 15, China Shenhua also disclosed a "Indicative Announcement Regarding Proposed 2025 Interim Profit Distribution." The company stated that based on shareholder return planning and considering the company's operating conditions, it plans to conduct 2025 interim profit distribution. The interim profit distribution amount will be no less than 75% of the net profit attributable to the company's shareholders achieved in the first half of 2025, and will not exceed the net profit attributable to company shareholders realized during that period.

According to China Shenhua's 2025 first-half performance forecast, the company expects to achieve net profit attributable to company shareholders of 23.6 billion to 25.6 billion yuan in the first half of 2025.

**Multiple SOEs Release Major Acquisition Plans**

It's worth noting that with the in-depth promotion of the "Six M&A Guidelines" and the gradual implementation of typical cases, this has greatly promoted the "innovation momentum" for traditional industry transformation and upgrading and the "action momentum" for industrial integration.

Taking SOE practices as an example, since September 24, 2024, multiple SOEs including China Power and Sinochemtech have released major acquisition plans, with industrial integration and upgrading becoming mainstream.

Particularly recently, several companies have disclosed M&A transaction progress. On July 29, Sinochem International disclosed a preliminary plan to issue shares to purchase 100% equity in Nantong Starchem, aiming to rapidly expand product layout in the high-performance, high-value-added engineering plastics field and quickly realize synergies between new products and the listed company's existing product lines.

On the same day, Sinochemtech disclosed a preliminary plan to purchase 100% equity in Yiyang Rubber Machinery and 100% equity in Beichemic, to further focus on the main business direction of "chemical equipment + rubber machinery," which is expected to increase the company's operating revenue and profit and help achieve turnaround.

Inner Mongolia Huadian, which disclosed its draft plan on July 10, plans to purchase 70% equity and 75.51% equity in Zhenglan Banner Wind Power through a combination of share issuance and cash payment. After the acquisition, the company expects to add 1.6 million kilowatts of new energy capacity, which will help build an industrial layout featuring coordinated development of "wind-thermal-storage."