(PRC, Hong Kong, 28 February, 2019) Concord New Energy Group Limited (“the Company” and its subsidiaries “the Group,” HK stock code: 182), is pleased to announce its annual results for the year ended 31 December 2018 (“The Year”).
In 2018, the Group’s total income was RMB1,414,070,000 (2017: RMB1,035,967,000), an increase of 36.50 % over the same period of the previous year; profit attributable to equity holders of the Group amounted to RMB502,406,000 (2017: RMB200,036,000), an increase of 151.16 % as compared with the same period in the previous year. Basic earnings per share were RMB5.88 cents (2017: RMB2.33 cents); fully diluted earnings per share were RMB5.87 cents (2017: RMB2.33 cents).
The Group made correct judgments of the time and situation, accurately set its development direction and grasp the market opportunities. The Group strengthened its efforts in the development and construction of wind power projects in regions where power curtailment was not implemented, and increased the income quality of incremental assets through the investment in a number of power generation plants that enjoyed high electricity prices in areas with no power curtailment, as well as through the aggressive application of new technologies and new wind turbine types. The Group also utilised the intelligent operation technology of Internet of Things (“IoT”) to reduce power generation costs, and properly managed its existing assets to achieve meaningful increases in power generation capacities and profit for the Group’s power generation plant. Additionally, all businesses related to the renewable energy industry grew strongly, including the Group’s Energy IoT, distributed wind power, distributed photovoltaic power, energy storage, and financial leasing businesses.
As at the end of the Year, net assets of the Group amounted to RMB 5,546,739,000 (31 December 2017: RMB5,255,146,000) and its net assets per share was RMB0.65 (2017: RMB0.61).
Rapid Growth in Power Plant Efficiency and Significant Increase in Asset Quality
In 2018, power generation output attributable to the Group increased by 48.55% to 3,635.77 GWh over the previous year. The Group’s wholly-owned power plants showed significant 88.91% increase to 2,295.97GWh in power generation compared to the previous year. During the Year, the Group’s share of power generation from its jointly-owned power plants grew by 8.74% over the previous year, benefiting from continuing reduced curtailment in the northern regions and improved operating efficiency.
During the year, the Group’s wholly-owned power plants achieved a total income of RMB1,251,109,000, an increase of 74.36% over the same period of the previous year, accounting for 88.48% of the Group’s revenue (2017: 69.27%).
In 2018, the Group achived significant increase in utilization hours and further reduction in curtailment rates. The weighted average utilization hours of the wind power plants in which the Group is invested increased to 2,148 hours, higher than the national average of 2,095 hours. In addition, benefiting from the significant improvement in the nationwide grid curtailment and the increase of high-quality wind power projects in southern China areas with no power curtailment, the Group’s operating efficiency showed strong improvement for the Year. The average wind power curtailment rate of the wind power plants invested by the Group was 4.03%, a significant decrease as compared with the same period of previous year, and lower than the national average. The wind power curtailment rate of wholly-owned power plants was only 0.06%.
Investment and Constuction of Power Plants
In 2018, construction of the Group’s projects proceeded steadily. The power plants in which the Group is invested were all high-quality wind power plants in regions with no power curtailment in southern China, and the Group’s installed capacity increased. During the Year, the Group reduced its LCOE and increased the power generation efficiency by aggressively promoting the use of new technologies, adopting the latest wind turbines, and at the same time optimising designs and strengthening the management of project construction progress, whereby the Group effectively reduced the overall construction cost of projects, greatly increased the amount of power generation, significantly reducing LCOE, and increasing competitiveness of the power plants.
During the year, the total installed capacity of the Group’s invested power plants under construction was 1,068MW (the same period of 2017: 1,006MW), all of which were wholly-owned projects. The Group also added ten power plants into operation with a total installed capacity of 471MW (the same period of 2017: 439MW), all of which were wholly-owned projects.
In the “2018 Wind Power Development and Construction Plan” issued by the provincial energy bureaus, the Group had five wind power projects (a total of 400MW) listed in the annual development and construction plan, all of which were located in regions with good grid access conditions and without power curtailment. In 2018, the Group had four new approved wind power projects (a total of 349MW), and four approved/registered photovoltaic projects (a total of 55.4MW). Currently, the scale of total wind power projects of the Group which are in construction but not yet in operation reached 833MW, and the scale of the projects which have been approved but not yet commenced reached 598MW. During the year, the Group signed new contracts for wind resources of 4,078MW and photovoltaic resources of 137MW.
While focusing on the core power generation business, the Group also relied on the investments in the renewable energy industry to carry out related business along the renewable energy industry chain based on its main power generation business. In 2018, the Group made progress in its Energy IoT business, intelligent operation and maintenance business, power plant design services, financial leasing services, and energy storage and incremental distribution network.
Looking ahead, Mr. Liu Shunxing, Executive Director and Chairman of Concord New Energy*, commented:”in recent years, the Group has optimised the assets quality, transformed operating model and adjusted investment strategies with accurate strategies for development and operation. The Group has also successfully addressed various changes in the external operating environment. In 2019, the Group will respond to competitive bidding and grid-parity, and will continue to focus on the strategies involving production safety, lowering LCOE, enhancing pre-development, expediting the production of Energy IoT and intelligent operation and maintenance, optimising asset structures, improving asset quality, and continuous innovation relvant to the industry, to further enhance the overall competitiveness of the Group.”
“Going forward, focusing on research and development along the renewable energy industry chain, the Group will position itself as an investor and service provider, and strive to become an industry-leading, world-class enterprise that creates significant and continuous returns for its shareholders and society.”