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Dacheng Advises Hainan Tihierg Co., Ltd. on NEEQ Listing

On July 14, 2015, Hainan Tihierg Co., Ltd. (“Tihierg”, stock code: 833042) gained approval from National Equities Exchange and Quotations Co., Ltd. for a NEEQ listing. Tihierg is one of the few NEEQ-listed, wholly state-owned companies and the first clean energy enterprise launched at the system in Hainan province.

A Dacheng team led by Beijing-based senior partner Xu Huijie and Haikou-based senior partner Zhou Zhaoxia advised Tihierg on the listing. The team also included Beijing-based attorneys Zhang Yanting and Gao Shuai, and Haikou-based attorney Liu Qiliang.

Tihierg is the pillar of the clean energy unit of Hainan Development Holdings Co., Ltd., a wholly state-owned enterprise of Hainan province. in October 2010, Tihierg was founded by the State-owned Assets Supervision and Administration Commission of Hainan Provincial Government by integrating hydropower assets in Hainan, with registered capital of RMB199,000,000. In November 2014, Tihierg was further expanded by integrating the province’s solar power and wind power businesses and assets, after which the total assets of the company reached RMB1.8bn. Tihierg currently operates 17 hydropower stations, 9 photovaltaic power generation projects and one wind-solar hybrid generation project, with a combined installed capacity of 250,000 kilowatts and an average annual output of 700mln kilowatt hours. The company has seven branches and subsidiaries and 707 employees.

As the hydropower stations were built long time ago and a lot of historical problems remain, while photovaltaic power generation is new in the energy sector and relevant laws and policies regulating it are absent, to be listed on the NEEQ system, therefore, becomes an opportunity for Tihierg to deepen state-owned enterprise reform, solve residual problems, and standardize its operation and management. It was a “reborn process” as described by the client.

The NEEQ system has become an important financing platform that helps stimulate reform of state-funded and state-owned enterprises. The listing of Tihierg will prepare the company for entering higher-level capital markets, further expand its financing channels, improve the company’s internal governance and reputation, and ultimately lead to growth by leaps and bounds.