More than a week of trading in hubei energy released on July 27 non-

public issuance of stocks plans. The company to raise funds shares

have total will not more than 3.25 billion yuan, will be used in hubei

JiYueShan lichuan respectively a wind farm, phase ii project and

natural gas pipeline engineering projects.

The Yangtze river power or participate in the subscription

Announcement, hubei energy plan to not less than 7.33 yuan per share

price, directional issue no more than 443.5 million shares to raise

money, total will not exceed 3.25 billion yuan, of which, after

deducting issuance expenses of net raising money is no more than 3.19

billion yuan. The second largest shareholder power may participated in

the Yangtze river non-public issuance of stocks. By December 31, 2010,

the Yangtze river of hubei electric power energy hold 36.76% of the

shares.

Be worth what carry is, the successful implementation of the word if

shares, can help to improve financial status, hubei energy sinking

lower risk. Related data show that by the end of December 31, 2010,

hubei province energy consolidated financial statements for working

capital 5.741 billion yuan, asset-liability ratio to 67.25% in 2010

and the financial cost is 974 million yuan. The announcement also

said: "higher financial expenses and debt levels influence the

company's profitability and the ability to resist risk caused to the

company, a heavy burden."

Whip round to 7 big projects

As for the use of raising funds, hubei energy, said will be used in

hubei lichuan JiYueShan wind farms in the first and second phase of

the project and XiaoChang-qianjiang, jingzhou-public security-first,

wuhan-the red stone, HuangBei macheng-four natural gas pipeline

engineering projects. In addition, still can use $957 million added

operating funds.

It is reported, JiYueShan wind farm project is located in lichuan

city, hubei province JiYue planning area three periods of development.

The first two phase is expected to raise funds to use a total

investment of 764 million yuan. JiYueShan wind farms first period

engineering total installed capacity of 49.3 mw, plan 18 months is

built, the completion of the project is expected to fasten the

Internet for 86.97 million kilowatt hour average power; JiYueShan wind

farms phase ii project total installed capacity of 49.5 mw, plan 15

months after the completion of the project is expected to build, year

after year for 88.2796 million kilowatt hours of electricity

generating capacity average Internet access.

In addition, hubei energy will also be a total investment of 1.47

billion yuan for the construction of XiaoChang-qianjiang natural gas

pipeline, jingzhou-public security-stone first gas transmission

pipeline, wuhan-red cliff natural gas pipeline, HuangBei-(GongAn)

natural gas pipelines macheng 'a engineering projects. These natural

gas pipeline engineering built in wuhan city, red, to MaChengShi,

JiaYuXian, ChiBiShi, ShiShouShi, GongAnXian, loose the AIDS and

natural gas transportation county.

Related material shows, hubei energy the main three business, natural

gas business grab an eye most performance. Hubei in 2010 sales volume

of 135 million natural gas energy standard cubic, in the province of

market share quickly from the zero up to 9%. In 2010 the annual

report, hubei, "1025 energy revealed" during will gradually formed

hydropower and thermal power, nuclear power, new energy, natural gas,

coal and financial "6 + 1" the business combination, "1025 plate at

the end of the" energy supply of hubei a proportion of the total

energy consumption by 2.87% in 2009 will increase to 13% or so.