(Yicai Global) March 22 -- Shares in China Resources Power Holdings advanced as much as 5.4 percent today after the Chinese state-backed power giant said it will calve off its new energy unit for a separate listing on the mainland stock markets to accelerate business development.

CR Power’s share price [HKG:0836] rose 4.9 percent to HKD17.20 (USD2.19), giving it a market capitalization of HKD82.7 billion (USD10.5 billion). Earlier in the day it hit HKD17.30.

China Resources New Energy Holding will go public on the mainland to raise capital to fund its renewable energy business, the Hong Kong-based parent firm said today, without going into further detail.

CR New Energy, which is mainly involved in the investment, development and operation of wind farms and solar power plants, will remain a subsidiary of CR Power, it added.

CR Power plans to put 7,000 megawatts of new wind power and photovoltaic projects into operation this year, more than double that of last year, according to its annual report released today. It is preparing to add 40 million kilowatts of renewable energy between 2021 to 2025, resulting in a renewable energy share of more than 50 percent by the end of 2025, it added.

CR Power's net profit more than tripled last year from the year before to HKD7 billion (USD892.2 million) and revenue surged 14 percent to HKD103.3 billion (USD13.1 billion), thanks to increased electricity consumption and higher electricity prices, the report said.

The firm announced a final dividend of HKD0.376 (USD0.048) per share today, which together with the interim dividend of HKD0.21 per share, means that 40 percent of last year’s net profit will be paid out as cash dividends.

Editor: Kim Taylor