For the first time, four out of five of the largest power companies are suffering from huge losses due to an increase in the price of coal, said Xinhua. The four are state-owned Datang Corporation, China Power Investment Corporation, Huadian Corporation and Guodian Corporation. All these power companies are state-owned.
According to official statistics released in April 2008, of the 4,773 power companies in China, 1,990 (41.69%) were in the red in the Jan-Feb period, which was 6.35 % higher than last year. The losses reached 13.79 billion yuan in the Jan-Feb period, a 218% increase over the same period last year.
In February 2008, Guandong Yudian Group Co., a Chinese power cmpany, purchased 7.5% stakes in Australia’s Whitehaven Coal Ltd (WHC) to ensure a consistent supply of coal.
Source:
Xinhua, April 8, 2008
http://news.xinhuanet.com/fortune/2008-04/08/content_7938753.htm
China News, April 20, 2008
http://www.chinanews.com.cn/cj/kong/news/2008/04-21/1226298.shtml