? Actively Optimize Asset Structure Abundant Project Reserves Continuously Maintains Stable and High-quality Development in Power Generation of Core Business
? As the China government is committed to solve the arrears problem of green electricity subsidy, cash flow and asset quality of the Group’s principal assets are expected to improve significantly, assets value usheres in revaluation
? Abundant reserves for the scale of projects under construction and newly approved grid parity and bidding projects. As of August 2020, the Group newly obtained 858 MW grid parity and bidding projects index
? The LCOE of grid parity projects have advantages of lower cost than thermal power plants, the development of clean energy is highly supported by the China Government, the Group has significant competitive advantages
(PRC, Hong Kong, 10 August, 2020) Concord New Energy Group Limited (HK stock code: 182, hereinafter referred to as “the Group”), is pleased to announce its interim results for the six months ended 30 June 2020 (“the Period”).
During the Period, the Group materialized a total income of RMB999,540,000 (1H 2019: RMB 963,349,000), accounting for 3.8% increase for the same period of last year. Profit attributable to equity holders of the Group amounted to RMB379,389,000 (1H 2019: RMB399,232,000), representing 5.0% decrease for the same period of last year. The basic earnings per share were RMB4.60 cents (1H 2019: RMB4.75 cents); and the fully diluted earnings per share were RMB4.31 cents (1H 2019: RMB4.54 cents).
As of 30 June 2020, the net assets of the Group amounted to RMB6,140,724,000 (31 December 2019: RMB5,969,201,000) and its net assets per share was RMB0.73 (31 December 2019: RMB0.70).
Maintains Growth of Power Generation
During the Period, the growth rate of the Group’s attributable power generation recorded an increase of 2.5% to 2,463.0 GWh as compared with the same period last year, with the amount of power generated by wholly-owned power plants increased by 6.6% to 1,759.2 GWh over the same period of last year, mainly due to the improved asset quality of the newly added power plants and their increased installed capacities. Both the Group’s attributable PV power generation and power generated by wholly-owned power plants decreased by 7.4% as compared with the same period of last year mainly due to a 5.3% decrease of light resources in the Group’s PV power stations as well as increase of solar power curtailment in regions such as Tibet.
During the Period, the Group's wholly-owned power plants achieved a total income of RMB908,418,000, an increase of 2.5% over the same period of last year, accounting for 91% of the Group's revenue (1H 2019: 92%). The Group's wholly-owned power plants achieved a total net profit from power generation of RMB390,746,000, and the Group shared net profits totalling RMB95,271,000 from its associates and joint ventures.
Increasing the Development and Constuction of Power Plants
The Group formulated development strategies with flexibility and aggressively launched grid parity wind power and PV power development projects by integrating its resource advantages to increase the Group’s earned assets. National Development and Reform Commission issued the “Notice on Grid Connected Wind Power and PV Power Projects in 2020” (《關於公佈2020年風電、光伏發電平價上網項目的通知》), the total of 758MW of Concord New Energy’s projects are included. Accumulating previously obtained grid parity projects, the Group has obtained 858 MW grid parity and bidding projects index in 2020 which is providing sufficient guarantee for the Group's sustainable development and the strategic accomplishment of replacing subsidized projects with grid parity projects.
In the first half of 2020, the total installed capacity of Group’s invested power plants was 946MW (1H 2019: 933MW) and the attributable installed capacity was 810MW, of which there were 9 continued projects with installed capacity of 646MW, 2 newly commenced construction projects with installed capacity of 300MW and attributable installed capacity of 164MW. During the period, the Group put 1 new, wholly-owned wind power plant into production, with total installed capacity of 100MW.
During the reporting period, other business segments of the Group contributed RMB91,122,000 to the Group (1H 2019: RMB77,024,000). While focusing on core business, the Group also developed other business related to renewable energy industry. In the first half of 2020, the Group continued to strengthen its developments in the areas such as intelligent O&M, power plant design business, energy IoT business, financing lease business as well as energy storage with certain progresses.
Looking ahead, Mr. Liu Shunxing, Executive Director and Chairman of Concord New Energy*, commented: “As the China government solved the arrears problem of green electricity subsidy about wind power and PV power project, cash flow and asset quality of the Group’s principal assets are expected to improve significantly. In project reserves, the scale of projects under construction and newly approved grid parity and bidding projects achieved above 2GW. These projects will maintain higher installed capacity and provide assurance to profit by power generation.Looking ahead,the newly built LCOE of grid connected wind power and PV power plants in renewable energy industry have advantages of lower cost than thermal power plants. As a result, renewable energy will be further appeared in the energy market and therefore the Group has a significant competitive advantage in future development”
“Looking forward to the second half of the year, the Group will strengthen its safety management and control to ensure a stable safety production environment. Utilizing strong development capability and professional construction capability strengthen continuously the development of grid parity projects and PV projects, by striving to fight for larger share of development projects and increasing high-quality projects in the pipeline. It will continuously optimize the asset quality of power plants and reduce the reliance on renewable energy subsidies by adopting the “build and transfer” strategy which also will improve cash flows, optimize asset structure and increase asset quality. Exploiting the smart energy management service through the high-tech measures of big data analysis and artificial intelligence will advance power plants to continuously increase the operation and management efficience. The Group continuously improves operating policy and grasps the development opportunities of grid parity projects to create significant returns for our shareholders and society.”