On November 5th, State Power Rixin Technology Co., Ltd. (referred to as State Power Rixin) announced a plan to establish a joint venture with Oriental New Energy (Note: Assuming Oriental New Energy is the professional name, as no confirmed formal name was provided). The formation of the joint venture, Oriental New Energy (Beijing) Energy Storage Industry Development Co., Ltd., is based on the company's strategic development plan and its expansion into asset operation business areas.
The total capital contribution for the joint venture is set at RMB 400 million.
Oriental New Energy will subscribe to a capital contribution of RMB 240 million, holding a 60% stake in the registered capital of the joint venture.
State Power Rixin will subscribe to a capital contribution of RMB 160 million using its own funds, holding a 40% stake in the registered capital of the joint venture.
According to the announcement, the responsibilities of each party are as follows:
Oriental New Energy is responsible for establishing localized project companies within specific regions—eligible for new energy quotas through competitive allocation—when developing new energy projects in those areas. Oriental New Energy will also be responsible for the financing and operational management of both the joint venture and its project companies.
State Power Rixin is responsible for the feasibility and economic analysis of new energy projects, providing the basis for project decision-making. Under equivalent conditions, State Power Rixin will have priority in undertaking the operations and maintenance (O&M) services for the projects.
State Power Rixin stated that this collaboration will fully leverage the joint venture partners' strengths in new energy asset development and industry resources, while simultaneously capitalizing on the company's technical and service advantages in the field of new energy asset third-party operation and management.
This initiative aims to jointly explore new business models, such as asset third-party operation and management services, and expand their market reach. State Power Rixin believes this partnership will facilitate a beneficial synergy of resources, solidify the company's competitive advantage in the industry, and create a new profit growth point, aligning with the company's development strategy and the interests of all shareholders.
Source：EnergyTrend