With the approval by the State Council, China Huaneng Group (CHNG) has been reorganized into a Central-Government-administered state-owned enterprise on the foundation of its predecessor. CHNG is a state-authorized investment entity and a trial enterprise of state-holding corporations.
In accordance with the mandate of the nation’s power sector reform instituted by the State Council, CHNG conducts business independently and bears the full responsibility of profits and losses. CHNG is an incorporated business entity primarily focusing on the development of power with a diversified business portfolio.
CHNG restructured its wholly-owned, holding and minority-share enterprises into regulated enterprises with accepted practice based on Corporate Law. The internal restructuring has resulted in the establishment of capital-investment relationship in the form of parent company and its subsidiaries. The aim is to build up a socialist-market-economy-oriented management and operation mechanism.
CHNG is approved to set up wholly-owned or holding subsidiaries as well as regional branches and offices both at home and abroad out of its own business consideration and in line with state regulations.
The business guidelines of CHNG could be summarized as following: to abide by the state laws and regulations and to be compliant with the state policies; to conduct business activities on its own following the country’s economic development plan, national industrial policies and market demand; to continue the reform, restructuring and renovation, to enhance management, to improve business structure, to take the advantage of the combined strength of a group of enterprises, to upgrade economic performance, to increase competitiveness, and to insure the preservation and increment of the value of the state-owned assets, to adhere to the principle of "Taking power generation as the core business while building a diversified business portfolio” so as to turn CHNG into a large enterprise group with international competitiveness featuring “Solid Capability, world-class Management, Serving the Nation and Embracing the World”.
The major business of CHNG cover the following areas:
(1)The management of the state-owned assets (state equity included) of CHNG and its subsidiaries formed by the investment from the state and owned by CHNG in accordance with law.
(2)The investment, construction, operation and management of power generation assets and the production and sale of power and heat.
(3) The investment, construction and operation of business in IT, transportation, renewable energy, environment protection, trade and fuel.
(4)Business associated with foreign trade and international cooperation with government approval.
(5)The investment and financing in domestic and international markets with government approval.
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