On August 29, Shandong Gaoxin Holding Group Co., Ltd. (stock code: 00412.HK) released its 2022 interim results report. During the reporting period, the company achieved operating revenue of approximately HK$1.2 billion, a 1.25-fold increase compared to the end of last year. Of this, approximately HK$930 million came from the acquisition of Beijing Enterprises Clean Energy Group (now renamed “Shandong Gaoxin New Energy”, stock code: 1250.HK). Operating data shows that Shandong Gaoxin Holding’s strategic transformation into an industrial investment group has achieved significant results.
Focusing on Industrial Investment
Shandong Gaoxin Holding began its strategic transformation into an industrial investment group in June last year. According to its new development strategy, Shandong Gaoxin Holding is committed to becoming an excellent industrial holding group, focusing on strategic emerging industries such as new energy and new technologies. It carefully selects investment targets with good growth potential and strategic and industrial synergies with the controlling shareholder’s business, and continues to steadily increase the proportion of industrial investment.
The interim results report shows that Shandong Gaoxin Holding’s strategic transformation has achieved substantial breakthroughs. As of June 2022, the company’s total assets reached HK$77.65 billion, a 2.38-fold increase compared to the end of 2021 (HK$22.95 billion). Of this, industrial investment assets amounted to HK$55 billion, accounting for approximately 71% of total assets.
Public information shows that Shandong High-Tech Holdings is accelerating its industrial investment layout, with its investment portfolio including both minority stake investments and controlling stakes, resulting in substantial realized book profits. In May 2022, the company invested HK$4.685 billion to acquire a 43.45% stake in Shandong High-Tech New Energy, becoming its controlling shareholder and the largest single shareholder of the A-share listed company, Beiqing Environmental Energy (000803.SZ).
Through the acquisition of Shandong High-Tech New Energy, Shandong High-Tech Holdings has been able to quickly enter the renewable energy and clean energy market, and under the backdrop of China’s “dual-carbon” strategy, it is expected to obtain stable and considerable investment returns. Shandong High-Tech New Energy Co., Ltd. (Shanggao New Energy) primarily engages in photovoltaic power generation, wind power generation, and clean heating. Currently, it operates 2266 MW of centralized photovoltaic power plants, 700 MW of distributed photovoltaic power plants, and 976 MW of onshore wind power plants, providing clean heating services for over 50 million square meters. It has achieved a large-scale, industrialized layout and is experiencing strong growth momentum. Beijing Qingyuan Environmental Energy Co., Ltd. (Beiqing Huaneng) is the only Shenzhen Stock Exchange main board listed company in China whose main business is the resource utilization of kitchen waste. Focusing on the “environmental energy” sector, it is a leading enterprise in the domestic organic solid waste investment and operation field. Previously, the company also invested in high-quality projects such as the IoT unicorn company Nenglian Group and Horizon Robotics, a global leader in edge AI computing platforms, gaining a good reputation in the investment industry.
Deepening the New Energy Industry Chain
In 2021, in accordance with strategic transformation needs, Shanggao Holdings promoted organizational restructuring, establishing three investment business units: industrial investment, standardized equity, and fixed income. It implemented a professional investment research and operation mechanism, created an investment decision-making system that matches the characteristics of its business, improved the professionalism of the company’s investment decisions, and further improved its comprehensive internal control system based on comprehensive risk management. Shandong High-Tech Holdings aims to further optimize its layout and adjust its structure through strategic transformation, professional integration, and systematic restructuring, thereby comprehensively enhancing its competitiveness and sustainable development capabilities.
Shandong High-Tech Holdings stated that it will continue to focus on industrial investment, paying particular attention to emerging industries and those in a favorable development cycle, and deeply exploring investment targets in niche sectors with investment potential to obtain long-term and stable investment returns.
