? The Group’s principal power generation business performed steadily and grew robustly, power generation output and profit were both higher than expected. Profit attributable to equity holders of the Group amounted to RMB399,232,000, representing 44.8% increase for the same period of last year
? The Group’s attributable power generation increased by 29.0% over the same period of last year to 2,403.0Gwh, of which the power generation of wholly-owned power plant increased by 45.7% to 1,649.7Gwh compared with the same period of last year
? The Group has adequate project reserves and strong development potential. The Group had 7 projects, 641MW in total, included in the list of the First Batch of Wind Power and Photovoltaic Power Generation Grid-Parity Projects for 2019 which was announced by NEA.
? Via capital operation between international clean energy funds, the Group developed a new business model that provided the industrial funds with management services that unified development and operation for new energy projects
(PRC, Hong Kong, 1 August, 2019) Concord New Energy Group Limited* (“Concord New Energy” or “the Company”, together with its subsidiaries, collectively “the Group,” stock code: 0182), is pleased to announce its interim results for the six months ended 30 June 2019 (“the Period”).
During the Period, the Group materialized a total income of RMB963,349,000 (1H 2018: RMB809,609,000), accounting for 19.0% increase for the same period of last year. Profit attributable to equity holders of the Group amounted to RMB399,232,000 (1H 2018: RMB275,713,000), representing 44.8% increase for the same period of last year. The basic earnings per share were RMB4.75 cents (1H 2018: RMB3.21 cents); and the fully diluted earnings per share were RMB4.54 cents (1H 2018: RMB3.19 cents).
As of 30 June 2019, the net assets of the Group amounted to RMB5,783,283,000 (31 December 2018: RMB5,546,739,000) and its net assets per share was RMB0.68 (31 December 2018: RMB0.65).
Continuous Enhancement of Power Plants Profitability and Notable Increase in Power Generation of Wholly-owned Power Plants
During the Period, the Group’s power generation business achieved robust growth, and the attributable power generation notably increased, representing 29.0% increase for the same period of last year, of which the power generation of wholly-owned power plants accounted for 45.7% increase for the same period of last year. In the first half of the year, benefiting from power plant scale expansion, though the wind resources of Southern regions decreased, the Group's wind power generation still kept at the high level growth of 30.8%; benefiting from drop of PV power curtailment rate in Tibet and Northern regions, attributable PV power generation represented a notable increase of 16.2% for the same period of last year, of which the power generation of wholly-owned power plant rose by 16.7%; benefiting from continual mitigation of Northern regions' power curtailment and improvement of operational efficiency, the Group's attributable power generation from its jointly-owned power plants grew by 3.2% over the same period of last year.
During the Period, income and profit of the Group’s wholly-owned power plants increased significantly. Wholly-owned power plants achieved a total income of RMB886,325,00, an increase of 41.3% over the same period of last year, accounting for 92% of the Group’s revenue (1H 2018: 78%); net profit of wholly-owned power plants increased by 41.4% to RMB410,246,000 over the same period of last year.
Affected by decrease in wind resources in Southern China, during the Period, the weighted average utilization hours of the Group's invested wind power plants were substantially consistent with those of the same period of last year, reaching 1,189, higher than the national average level (1,133 hours). The weighted average utilization hours of the Group's invested PV power plants reached 813, representing 14.5% growth over the same period of last year. In addition, the curtailment situation was improved significantly, average wind power curtailment rate of the Group's invested wind power plants was 3.9%, lower than the national average. Benefiting from significant fall of curtailment rate of the projects in Tibet, the average curtailment rate of the Group's invested PV power plants was 7.1%, representing a decrease of 52.7% over the same period of last year.
Power Plants’ Development and Construction
During the Period, the Group went on developing and constructing quality wind power projects in the southern regions without power curtailment and also aggressively developed grid parity projects, which had better resources and stable revenue, in the northern regions. In the course of construction of the projects, actively promoting use of new technology and application of latest wind turbines, the Group effectively controlled overall construction price of the engineering, increased power generation, continued lowering LCOE and heightened power plants' competitiveness via the measures such as optimized design and reinforced progress management of construction projects.
During the Period, the total installed capacity of the Group’s invested power plants for construction was 933MW (1H 2018: 1,067MW), all of which are wholly-owned projects. Among then, 7 were continued construction projects, 4 new construction projects were started. Project constructions were normally carried out according to the Group’s construction plan and will successively come into grid-connected production. In addition, during the Period, he Group newly signed contracts for wind resources of 3,682MW and PV resources of 868MW in total, assuring construction and sustainability development of the Group's subsequent projects.
The First Batch of Wind Power and Photovoltaic Power Generation Grid-Parity Projects for 2019 was announced by NDRC and NEA. The Group had 7 projects, 641MW in total, included in the list, among which there were 6 wind power projects, 596MW in total, and 1 PV power project, 45MW in total, mainly located in the northern regions with better resources. In “Wind Power Development and Construction Plan for 2019” published by provincial energy bureaus, the Group had 8 wind power projects, 114.9MW in total, included in the list of annual development and construction plan. During the Period, the Group added 1 approved distributed PV power project.
During the Period, while focusing on core business, the Group continued to further develop the areas related to renewable energy industry, such as energy IoT business, intelligent O&M, power plant design business, financing lease business as well as energy storage.
During the Period, the works of Malta energy storage R&D project that the Group invested in the US were commenced as planned.
Looking ahead, Mr. Liu Shunxing, Executive Director and Chairman of Concord New Energy*, commented: “The Group has paid close attention to industrial policy, actively optimized our assets quality, transformed operating model and adjusted our investment strategies with accurate strategies for development and operation, the capability has been further increased. In the second half of 2019, the Group will insist on sparing great efforts in the development of renewable energy’s industrial chain, as an investor as well as a service provider of renewable energy field. With focus on practical work and laborious efforts, the Group will continue to pursue the principle of healthy development, concentrating on the strategies involving production safety, accelerating progress in project construction and operation, lowering LCOE, enhancing pre-development, expediting the construction of Energy IoT and intelligent O&M, optimizing asset structure and improving asset quality. Focusing on sustainably innovation relevant to the industry to create significant returns for our shareholders and society.”