Wide range of information source

The company has a wide range of acquisition information source, covering the listing information of property exchange, promotion of cooperator, and collection of regional personnel, etc.

Clear and definite merger and acquisition direction and subject matter

1 Orientation：

It is aimed at the small and medium-sized hydropower stations with installed capacity of 10MW-50MW.

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Focus on the subdivision

Copy the mature management mode

Raise the operation efficiency

3 Priorities：

Give priority to the acquisition of the assets that have been generated

Give priority to the acquisition of the assets with growth potential

Give priority to the acquisition of the assets with high reliability

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With no need to input the construction fund and manpower and material resources, generate the cash flow immediately. At the same time, find the risks and tap the potential capacity, electric quantity, electricity price and other benefits with multi-means, and improve the investment income.

1 Distribution：

Accelerate the nationwide distribution, and make investment diversification among regions.

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Hedge the hydro meteorology and electricity price risk.

Take into account other composite factors:

Own the right of control

Potential for tariff rise

Reservoir with strong regulating ability

Enjoy preferential tax rate and CDM projects, etc.

Strict, comprehensive and cross-disciplinary due diligence

Conduct due diligence on the subject matter from the aspects of law, technology, finance and social environment, so as to identify the exposed or potential risks of such asset.

Legal due diligence: the professional legal team investigates a series of legal issues on the subject matter, such as the subject's legal existence, enterprise qualification, external guarantee, major contract, incidence relation, environmental protection, labor relation, so as to reduce the legal risks after merger and acquisition.

Technical due diligence: the professional legal team evaluates the important technical indicators of the subject matter, among which the core indicators are electricity sales and price;

Financial due diligence: the professional finance team makes investigation on the review and analysis of the financial status of the subject matter, to fully disclose the financial risks or crises, analyze the enterprise profitability and cash flow, and predict the future prospect of the enterprise.

Complete project review system

Establish a hydropower project investment management system from project information collection, preliminary screening, due diligence, project approval, investment committee review, investment implementation to post-investment management.

Project information collection - preliminary screening - due diligence - project approval - investment committee review - investment implementation - post-investment management

Each procedure is set with unified document requirements of enterprise investment project, which shall be prepared by relevant personnel, such as project information registration form, project analysis database, technical due diligence report of project and project approval application form.

Project information registration form, project analysis database, technical due diligence report of project and project approval application form

Senior, high-level and cross-professional due diligence team

It consists of professionals from all departments (professionals from the headquarters + various regions) and external expert advisors. The company's experts include foreign professional doctors, senior engineers, certified public accountants and senior lawyers, who have rich experience in merger and acquisition, construction, technical innovation in hydropower industry. The external advisors are from AECOM, PWC, ARCADIS and other internationally renowned advisory bodies. Information collection preliminary screening investment implementation post-investment management