BEIJING, Jan 21, 2009 -- SinoCast Daily Business Beat


Investors have recently favored companies engaged in the wind power generation industry, and several listed companies have marched into the industry or increased investment in the production of wind power generators.

Fuhua Group Co., Ltd. (SZSE: 000507), based in Zhuhai, a wind-rich city in the southern province of Guangdong, announced that its board approved a plan to invest in the Gaolandao wind farm project in the city.

The project, with an exploitable capacity of 630,000 kilowatts, will have a planned installed capacity of 49,500 kilowatts and a dynamic investment of CNY 463 million, with 40 percent or about CNY 139 million as its capital base.

The Shenzhen-lised company stressed that the project would have a stable income due to the increasing power prices and preferential taxation policies, and would help form a new major business and a new profit source.

Inner Mongolia Mengdian Huaneng Thermal Power Corp., Ltd. (SHSE: 600863), based in Inner Mongolia, North China, disclosed on January 5 that it would join the battle for shares in a wind power company under the wing of its parent North United Power Corp.

Shanghai-listed Mengdian Huaneng will purchase 18.75 percent of the wind power company, and China Longyuan Electric Power Group Corp., the other parent of the latter, has put up the stake for auction on the China Beijing Equity Exchange.

On January 13, Jiangsu Miracle Logistics System Engineering Co., Ltd. (SZSE: 002009) announced that it would buy out Wuxi Ryle Zhufeng Technology Co., Ltd. (transliterated), its joint venture in partnership with UK-based Ryle Technology.

The Chinese parent agreed to buy a 49.999995 percent stake in the venture, focusing on the production of wind turbine blades, from Ryle Technology for CNY 1 when the venture and the UK parent have been split on operation and management ideas and confronted with great difficulty in further cooperation.

Miracle Logistics injected cash of CNY 5.000001 million and its UK partner contributed technology worth CNY 5 million to form the venture in August 2006. By December 31, 2008, the venture had had total assets of CNY 18.1130 million and total liabilities of CNY 13.5489 million.

In late 2008, China's top wind turbine generator producer Xinjiang Goldwind Science and Technology Co., Ltd. (SZSE: 002202) announced the provision of CNY 300 million guarantee through a wholly owned subsidiary for Damaoqi Tianrun Wind Power Co., Ltd. under its wing.

It suggests that Damaoqi Tianrun Wind is making progress in a wind farm project located in Damao Banner, Inner Mongolia, North China although the global giant British Petroleum (NYSE: BP) withdrew from Damaoqi Tianrun Wind.

The guarantee accounts for 10.17 percent of Xinjiang Goldwind's net assets and 5.49 percent of its total assets audited on December 31, 2007, data showed.

(USD 1 = CNY 6.83)

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