Analysis On The Motivation And Effect Of Huadian Group’s Asset Restructuring Under The Background Of "Double Carbon"

To address global climate change and promote greenhouse gas emissions reduction,General Secretary Xi Jinping announced at the UN General Assembly in September2020 a new target for reducing China’s carbon emissions: to strive to achieve "peak carbon" by 2030 and "carbon neutral" by 2060.The goal is to achieve "carbon peaking" by 2030 and "carbon neutrality" by 2060.At the same time,the report of the 20 th Party Congress clearly put forward the government’s objectives of promoting green development,promoting the harmonious coexistence of man and nature,and speeding up the adjustment and optimization of industrial and energy structures.Against this background,China’s energy system will transform to clean and low-carbon development by further reducing the use of fossil raw materials and actively developing clean energy.As one of the five largest power generation groups in China,Huadian Group,by transferring the wind power and photovoltaic power generation resources of its subsidiary Huadian International to its subsidiary Huadian Fuxin,has integrated its new energy power generation assets and built the only new energy power development platform within the Group,thereby promoting the high-quality and rapid development of the Group’s new energy industry,which is a typical example of asset restructuring after the "double carbon" target was proposed.This is a typical case of asset restructuring after the introduction of the "double carbon" target.This paper firstly reviews the relevant literature on asset restructuring,explains the concept of "dual carbon" target and asset restructuring,and introduces the background of the M&A and the profile of both parties.The paper then examines the motivations for the restructuring of Huadian Group’s assets through a review of relevant policies and information,and examines the economic and non-economic performance of the merger and acquisition with the help of data analysis.Finally,conclusions and recommendations are drawn.This paper finds that the power industry has been influenced by government policies in the context of the "double carbon" and has started a wave of transformation of its own industrial structure,resulting in a fierce competition pattern in the new energy market.The Group’s internal asset restructuring.Through the collection and collation of relevant data and the use of performance analysis methods,this paper finds that the asset restructuring has had a positive effect on the long-term performance of the subsidiary Huadian International,although its short-term market performance and some financial indicators are poor,and has helped the company to specialise in thermal power development,improve its business restructuring capabilities and improve its operating results.For Huadian Fuxin,it directly enhances the company’s performance,establishes its scale advantage,improves its market position and creates better conditions for its next public listing.Finally,this paper draws conclusions and insights from the case of Huadian International’s asset restructuring,in the hope of providing some reference and suggestions for other companies to restructure their assets.