Huaneng Lancang River Hydropower said on 25 October 2026 that it will buy 100% of HNYL Company from its controlling shareholder, China Huaneng Group, for RMB8,701.2m (about US$1.28bn) in cash.
Why Huaneng Lancang River Hydropower Inc. is buying HNYL Company (China Huaneng Group)
The company said the purchase fulfils China Huaneng Group's commitment to avoid competition with the listed company, optimises its hydropower asset base and improves asset quality. HNYL had 1,541.4MW in operation at 31 May 2026, of which 870MW hydro and 671.4MW wind and solar, plus 830MW under construction (600MW hydro and 230MW new energy).
Deal terms and financing
The price equals the income-approach valuation at 31 May 2026, 4.98% above HNYL's consolidated book net assets of RMB8,288.7m. Huaneng Shuidian will pay RMB1,305.2m within five working days of the transfer agreement taking effect and the remaining RMB7,396.0m within five working days of the change in business registration, using its own funds and bank loans. HNYL reported 2025 revenue of RMB1,063.7m and net profit of RMB338.9m. The agreement had not been formally signed at the time of the announcement.
Regulatory approvals and timing
Five related directors abstained and the other ten approved the deal at a board meeting on 25 October 2026. It requires approval at a shareholder meeting. It is a related-party transaction but not a major asset restructuring.
Market context
HNYL was set up in 2007 and has registered capital of RMB9.79bn after China Huaneng Group injected RMB1.26bn in December 2025. Its total assets were RMB16.79bn at 31 May 2026.
