Revenue increased by 36.27% to RMB809,609,000 over the same period last year
The power generation output attributable to the Group increased by 55% to 1,862.32Gwh over the previous year, wind power generation output surges by 73.95% to 1,634.99Gwh Compared with the Same Period Last Year
Total 1858MW wind power project reserves with locked feed-in tariffs – these projects have been approved or entered into provincial construction plan, and they were not be affected by 518 wind power bidding new policy
Concord New Energy Group Limited* (“the Company” and its subsidiaries “the Group,” HK stock code: 182), is pleased to announce its interim results for the six months ended 30 June 2018 (“the Period”).
For the six months ended 30 June 2018, the Group’s revenue amounted to RMB809,609,000 (1H 2017: RMB594,116,000), representing an increase of 36.27% compared with the same period last year. The profit attributable to equity holders of the Group amounted to RMB275,713,000 (1H 2017: RMB269,374,000), representing an increase of 2.35% compared with the same period last year, and deducting build and transfer profit the year-on-year increase is 146.56%. The basic earnings per share were RMB3.21 cents (1H 2017: RMB3.14 cents). The fully diluted earnings per share were RMB3.19 cents (1H 2017: RMB3.13 cents).
In the first half of 2018, benefiting from the Group’s investment in wind power projects in southern regions without curtailment and adhering to reduction of LCOE, and the sufficient reserve of Group’s approved projects, the Group maintained rapid and stable development. In power generation business, the Group will continue to increase investment and development of wind power plants. In response to the changes of external environment, the Group puts great efforts in developing businesses related to renewable energy industry such as energy internet, distributed wind power, distributed photovoltaic power, power distribution network, mico-grid, electricity sales, energy storage and financial leasing.
During the period, the net assets of the Group amounted to RMB5,457,063,000 (31 December 2017: RMB5,255,146,000) and its net assets per share RMB0.63 (31 December 2017: RMB0.61).
Power Generation Business and Power Plants Investment Business
For the six months ended 30 June 2018, the Group’s power generation output increased significantly, power generation efficiency increased and continued to remain stable and safe power production. During the period, the power generation output attributable to the Group increased by 55.06% to 1,862.32Gwh over the previous year. Of which, wind power generation output amounted to 1,634.99Gwh, representing an increase of 73.95% over the same period last year; The power generation output from the Group’s wholly-owned power plants soared by 192.01% to 913.78Gwh over the previous year. In the first half year, benefiting from continuous mitigation of curtailment in northern regions and improvement of operational efficiency, the Group’s share of power generation from the jointly-owned power plants grew by 14.54% over the previous year.
During the period, revenue and profit of the Group’s wholly-owned power plants increased significantly, and benefits of the jointly-owned power plants improved. The Group’s wholly-owned plants achieved a total income of RMB627,482,000, representing an increase of 78.93% over the same period last year, accounting for 77.50% of the Group’s revenue (1H 2017: 59.03%), achieved a total net profit from power generation of RMB290,051,000, and the Group shared net profits totalling RMB95,224,000 from its associates and joint ventures.
In power plants investment business, the Group focused on investing wholly-owned wind power projects. In the first half of 2018, the Group’s total installed capacity in construction was 1,067MW (1H 2017: 923MW), all of which were wholly-owned wind power projects. Among them, 6 were continued construction projects, with an installed capacity of 340MW; 14 new construction projects were started with an installed capacity of 727MW. During the period, the Group added 2 wind power plants into operation, with a total installed capacity of 96MW(1H 2017:136MW), all of which were wholly-owned wind power projects and located in southern China with no power curtailment.
In the “2018 Wind Power Development and Construction Plan” issued by the provincial energy bureaus, the Group had a total of 5 wind power projects (a total of 350MW) listed in the annual development and construction plan, all of which were located in regions with good grid access conditions and without power curtailment. The Group has approved or entered into the provincial construction plan, according to current policies, there are a total of 1859MW wind power project reserves have locked in the original feed-in tariff, these projects were not be affected by the 518 wind power bidding new policy.
The Group signed contracts for distributed wind resource of 420MW and distributed photovoltaic energy resource of 58.5MW. During the period, the Group has commenced the development of certain energy storage projects.
Renewable Energy Service Business
During the period, the Group’s subsidiary Concord Power Consulting & Design (Beijing) Corp., Ltd. (“Design Company”) had completed 108 wind (photovoltaic) resource assessments and technical advisory reports, 31 feasibility study reports, 12 microsite selection reports, 5 preliminary designs, 3 construction drawing designs and 2 record drawings. The Group’s affiliated design companies, equipment supply companies and engineering companies realised a total revenue of RMB137,001,000 (1H 2017: RMB205,060,000).
While focusing on its core power generation business, the Group also deployed some related service business, including energy industry to carry out energy internet services, intelligent operation and maintenance, energy storage, electricity ancillary services and financial leasing services, applying information technologies such as big data, internet of things, and artificial intelligence torenewable energy sector, whereby making some achievements.
During the period, the advanced energy internet cloud platform “POWER+” had undergone continuous optimisation and launched “POWER +2.0” system, which has been applied in depth in all of the Group’s wholly-owned wind power plants and photovoltaic power plants, with a cumulative total installed capacity of 1,408MW .
During the period, the intelligent inspection system “Yixun” was officially launched, which was a mobile client application available for plant maintenance personnel to use, and by which they can perform intelligent mobile inspection in an easy and practical manner.
With the Group’s “POWER+” products and advanced operation and maintenance, the Group’s subsidiary Beijing Century Concord Operation and Maintenance Co., Ltd. (“Concord O&M”) has become the only professional domestic company specialising in wind power and photovoltaic industry that offers products and services including consultation, operation, maintenance, overhaul, spare parts and assets management. During the period, Concord O&M was in charge of a total of 76 wind power and photovoltaic power plants’ overall operation and maintenance with a total of 4GW and scheduled inspection service contracts, and signed 10 contracts in areas such as preventive tests, technical renovation and overhaul and spare parts sales.
Looking ahead, Mr. Liu Shunxing, Executive Director and Chairman of Concord New Energy*, commented: “In the recent years, the Group optimised its assets structure and transformed operating model with accurate strategies for development and operation. With improved installed capacity of the Group’s wholly-owned and holding power plants and capability, the Group achieved rapid and stable performance. Looking forward, the Group will adhere to concentrating on the industry and spare great efforts in development as an investor in renewable energy field, which will enable the Group to become an international leading enterprise.”
“To this end, we will strive to achieve the following: focus on main business of power generation and expand the installed capacities; pursue the lowest LCOE, face the challenge of grid parity and competitive bidding; actively develop energy internet to promote the revolution of “Intelligent Operation and Maintenance; spare great efforts in the development of new businesses; seek new points of growth for profit; unswervingly and vigorously maintainsafety in production, so as to create significant and continuous returns for its shareholders and the society”