Operating Results Record High with Continued High-quality Growth ——Concord New Energy’s 2020 Annual Results Conference

Concord New Energy successfully held its 2020 annual results conference on March 10, 2021. Mr. Liu Shunxing, Chairman of the Board of Directors, and the management team of CNE had in-depth and fruitful communication on the overall performance of CNE and specific issues of concern to investors.

2020 saw continued high-quality growth in Concord New Energy’s performance and another new high in net profit. CNE achieved revenue of RMB 2.00 billion, net profit of RMB 680 million and closing net assets of RMB 6.49 billion, representing year-on-year growth of 9.0%, 11.6% and 8.8%, respectively. Meanwhile, CNE’s total debt-to-asset ratio was 66.7%, down 3.3 percentage points compared to last year.

In 2020, 4,750 GWh was attributable to CNE’s equity interests, up 8.7% on a year-on-year basis. In particular, the electrical energy generated by its wholly-owned wind power plants increased by 15.3% year-on-year.

In 2020, CNE vigorously developed grid parity wind power projects and PV power projects, which set new highs in capacity and significantly increased its project reserves. In 2020, CNE had several 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 was 907MW. New construction index obtained and newly approved projects during the year were all grid parity projects, which has provided sufficient guarantee for CNE’s sustainable development.

CNE fully promoted the progress of project construction to ensure its realization of the grid connection target of key projects. The attributable installed capacity of new projects put into production reached a historic high with 662MW. For asset optimization, a total installed capacity attributable to CNE of 643.7 MW was sold in 2020, reduced the renewable energy subsidy receivables and contract assets by RMB 856 million, and effectively reduced the reliance on renewable energy subsidies. Besides, CNE has recovered RMB 2.5 billion in funds to support the development and construction of grid parity projects.

CNE proposed a dividend of HKD 0.03 per share to mark its returns to shareholders, an increase of 20% year-on-year, resulting in a total dividend payout of HKD 250 million, a record high over the years.

Liu Shunxing, Chairman of the Board, commented: “Over the past three years, CNE has adhered to the concept of ‘asset replacement and structure optimization’ and has made steady progress in improving asset quality while achieving steady growth.”

Looking ahead, with the national policy further emphasizing the development goals of “ CO2 emissions peak and carbon neutrality”, CNE will step up project development and construction efforts to bring new projects to completion and operation, and strive to achieve an annual increase of more than one million kilowatts. Moreover, CNE will continue to optimize the quality of assets, dynamically track and measure the performance of projects, increase the replacement of power plants that rely on green power subsidies and have a low return on capital, and optimize the stock of assets. Adhering to the core strategy of “lowest cost per kWh”, CNE will enhance its core competitiveness in the era of grid parity and prepare for the full-scale market-based transactions of renewable energy generation. In addition to actively developing its main business, CNE will also vigorously expand its service business, such as operation and maintenance, in an effort to build an influential service business brand in the industry. Besides, CNE will put emphasis on investment in and application of technology to upgrade the Energy IoT and intelligent O&M.

CNE will seize the golden opportunities in the new energy industry and keep overcoming difficulties so as to achieve sustainable and high-quality development and create better returns for shareholders.