HK Stock Market Move | DATANG POWER (00991) is currently down nearly 5%, its subsidiary has acquired a power generation company with negative assets, and impairment restrictions have released performance flexibility.

DATANG POWER (00991) is currently down by nearly 5%, and at the time of writing, it has dropped by 4.03% to 2.38 Hong Kong dollars, with a trading volume of 81.5992 million Hong Kong dollars. On the news front, DATANG POWER recently announced that its wholly-owned subsidiary, Datang Anhui Power Generation Co., Ltd., has purchased 50% equity of Anhui Electric Power Co., Ltd. from Huainan Mining at a price of 1 yuan. After the completion of the transaction, Anhui Electric Power Co., Ltd. will indirectly become a wholly-owned subsidiary of Datang International Power Generation Co., Ltd. and will be included in its consolidated financial statements. The announcement shows that as of the evaluation reference date on April 30, 2025, the total assets of Anhui Electric Power Co., Ltd. are approximately 787 million yuan, total liabilities reach around 2.473 billion yuan, and the owner's equity is negative 1.686 billion yuan, with an asset-liability ratio of approximately 314%. This transaction is expected to reduce the company's consolidated net profit attributable to the parent by approximately 589 million yuan. Changjiang Research Report stated that in the third quarter, Datang Power made a provision for asset impairment losses of 1.206 billion yuan. The main reason is the provision for impairment of goodwill of 779 million yuan related to the acquisition of Anhui Electric Power Company's equity, which to a certain extent limits the release of the company's performance elasticity.