Concord New Energy Announces 2020 Annual Results

Concord New Energy Announces 2020 Annual Results

Power Plant Development and Construction Scale Achieve Excellent Results Once Again

Project Reserves Increase Significantly

Profit Attributable to Equity Holders Reaches A Historic High to RMB673.4 Million

Ÿ For the Year ended 31 December 2020, Concord New Energy generated a total income of RMB2,000.8 million, and realised a profit attributable to equity holder of RMB673.4 million, representing an increase of 9.0% and 11.4% respectively as compared with the corresponding period last year, the Group’s result maintained steady growth

Ÿ Vigorously developing high quality grid parity wind power projects and PV power projects, project development achieved excellent results once again. The Group had a total of 13 projects (1,068 MW in total) included in the Wind Power and PV Power Construction Plan for 2020 published by the state and various provinces

Ÿ Actively integrating resource, a total installed capacity attributable to the Group of 643.7 MW was sold, reduced the renewable energy subsidy receivables and contract assets by RMB856 million during the Year, effectively optimized asset structure and reduced the reliance on renewable energy subsidies

Ÿ Industry Advancement to the Era of Grid Parity, new construction index obtained and newly approved projects during the Year were all grid parity projects. The Group possesses strong development capability and professional construction capability in the industry, which has significant competitive advantages

Ÿ During the Year, final dividend in respect of the year ended 31 December 2020 of HK$0.03 per ordinary share has been proposed by the Group (final dividend in respect of the year ended 31 December 2019 of HK$0.025 per ordinary share)

(PRC, Hong Kong, 9 March, 2021) Concord New Energy Group Limited (HK stock code: 0182, hereinafter referred to as “the Group”), is pleased to announce its annual results for the year ended 31 December 2020 (“the Year”).

In 2020, the Group materialized a total income of RMB2,000,754,000 (2019: RMB1,835,922,000), accounting for 9.0% increase over the same period of last year. Profit attributable to equity holders of the Group amounted to RMB673,405,000 (2019: RMB604,293,000), representing 11.4% increase over the same period of last year. The basic earnings per share were RMB8.18 cents (2019: RMB7.22 cents); and the fully diluted earnings per share amounted to RMB7.86 cents (2019: RMB6.86 cents).

As at the end of the Year, the net assets of the Group amounted to RMB6,494,502,000 (31 December 2019: RMB5,969,201,000) and its net assets per share was RMB0.78 (31 December 2019: RMB0.70).

During the Year, final dividend in respect of the year ended 31 December 2020 of HK$0.03 per ordinary share has been proposed by the Group (final dividend in respect of the year ended 31 December 2019 of HK$0.025 per ordinary share).

Steady Growth of Power Generation Business

In 2020, the Group overcame the insufficient power load, lagging in the progress of grid-connected operation and delays in fault handling as well as the adverse situations such as decrease in resources and increase of power curtailment due to the outbreak of COVID-19 epidemic at the beginning of the Year, and the power generation volume recovered rapidly. The attributable power generation in 2020 achieved a year-on-year growth and recorded an increase of 8.7% over the same period of last year, with the amount of power generated by wholly-owned power plants increased by 11.1%. The Group’s attributable wind power generation had a year-on-year growth rate of 11.3%, mainly due to the improved asset quality of the newly added power plants and the increased installed capacities. Due to the decrease of installed capacity, the increase of power curtailment and the decrease of PV resources, the annual attributable power generation of PV power generation decreased by 11.2%.

During the Year, the Group’s wholly-owned power plants achieved a total revenue of RMB1,728,443,000, an increase of 5.6% over the same period of last year, accounting for 86.0% of the Group’s revenue (2019: 89.0%). The Group’s wholly-owned power plants achieved a total net profit from power generation of RMB731,757,000, an increase of 16.5% over the same period of last year, and the Group shared net profits totaling RMB131,852,000 from power generation business of its associates and joint ventures.

Remarkable Achievements in the Development and Constuction of Power Plants

During the Year, the COVID-19 epidemic resulted in the lagging in project application in the first half of the Year. The Group took the initiative to integrate its resource advantages and vigorously develope grid parity wind power projects and PV power projects. The project development had achieved excellent results with the Group’s project reserves significantly increased. In 2020, the Group had a total of 13 projects (1,608 MW in total) included in the Wind Power and PV Power Construction Plan for 2020 published by the state and various provinces. The newly approved (recorded) capacity is 907MW, with a total of 11 projects, including 6 wind power projects (497 MW in total) and 5 PV projects (410 MW in total). New construction index obtained and newly approved projects during the Year were all grid parity projects, which provided sufficient guarantee for the Group’s strategy of replacing renewable energy subsidized projects with grid parity projects and the Group’s sustainable development.

In 2020, the Group fully promoted the progress of project construction to ensure its realization of grid connection target. The capacity of new projects to be put into production reached a historic high, and the Group still maintained the growth of installed capacity while transferring a large number of renewable energy subsidized projects. As of 31 December 2020, the Group owned equity interest of 70 grid-connected wind power and PV power plants with a total installed capacity of 3,504 MW (2019: 3,446 MW), and an attributable installed capacity of 2,413 MW (2019: 2,394 MW). Among them, 56 were wind power plants with an installed capacity of 3,340 MW (2019: 3,113 MW) and an attributable installed capacity of 2,263 MW, and 14 were PV power plants with an installed capacity of 163 MW (2019: 332 MW), and an attributable capacity of 150 MW. During the Year, the Group put into operation a total of 8 new power plants with a total installed capacity of 798 MW, and the attributable installed capacity was 662 MW, all of which were wind power projects. For asset optimization, a total installed capacity attributable to the Group of 643.7 MW was sold in 2020, reduced the renewable energy subsidy receivables and contract assets by RMB856 million, effectively reduced the reliance on renewable energy subsidies.

Other Businesses

During the Year, other business segments of the Group contributed RMB272,311,000 to the Group (2019: RMB199,628,000), representing a year-on-year increase of 36.0%. While focusing on its core power generation business, the Group also actively developed related business along the renewable energy industry chain and conducted extensive research and development. In 2020, the Group has actively overcome the epidemic impact and spared great efforts in expanding the businesses of intelligent O&M and Energy IoT, engineering consultancy and design as well as financial leasing and made some achievements.

Looking ahead, Mr. Liu Shunxing, Chairman of the Board of Concord New Energy*, commented: “ As the national policy further emphasizes the realization of development goal on ‘the peak of carbon dioxide emissions’ and ‘carbon neutrality’ to accelerate the development of renewable energy industry in China. The Group will actively adopt measures to increase investment and development effort of renewable energy projects, and promote technological advancement, reduce the LCOE of renewable power generation so as to consolidate the competitive advantage of the Group. Looking forward to the era of grid parity, the Group will seize on the industry opportunities to vigorously develop grid parity projects, and adopts a “build & transfer” strategy to replace renewable energy subsidized projects with grid parity projects and replace economically unfavourable projects with projects of low LCOE, in order to improve the Group’s overall asset quality and achieve sustainable and stable development of the Group. In the future, the Group will continue to improve its operation management and development policy, and continuously optimize asset quality to strengthen the sustainable development of the Group as well as seizing the new opportunities in the era of parity to continously create maximum returns for shareholders.”