Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 0.99, indicating a potential upside of 60% from the current price of HKD 0.62 [5][14]. Core Insights - The company achieved a year-on-year increase of 14.14% in total equity power generation for the first half of the year, with wind power generation growing by 13.96% [6][11]. - The average cost of capital is expected to decline further in 2024-2025, with current project bank loan rates around 3% and financing lease rates between 3.8% and 3.9% [7][12]. - The company aims to maintain its target of adding 1GW of new capacity in 2024, although the grid connection may be slightly delayed by 1-2 months [8][13]. Summary by Sections Investment Rating - The report sets a target price of HKD 0.99, representing a 60% upside from the current price of HKD 0.62, and maintains a "Buy" rating [5][14]. Financial Performance - For the first half of the year, total equity power generation reached 4,737.96 GWh, a 14.14% increase year-on-year, with wind power contributing 4,265.53 GWh, up 13.96% [6][11]. - The company’s net profit for 2024 is projected to be HKD 1,122 million, reflecting a 16.4% year-on-year growth [9][17]. Cost of Capital - The average cost of capital at the end of 2023 is approximately 4.6%, with expectations for further reductions in 2024 due to favorable market conditions [7][12]. Capacity Expansion - The company plans to keep its 2024 new capacity addition target at 1GW, with potential asset transfers in regions with traditional power restrictions [8][13].

Capacity and Growth - In 2023, the Group achieved a total installed capacity of 4,050 MW, an increase from the previous year, with 2,099 MW of new wind and solar PV projects secured[16] - The total scale of projects under construction reached 2,299 MW, indicating robust project development efforts[16] - The Group's attributable installed capacity of grid-connected wind and solar PV power plants reached 4,050 MW, a 12.9% increase from 3,588 MW in 2022[75] - Newly secured investment projects in 2023 totaled 2,099 MW, including 1,713 MW from wind power and 386 MW from solar power[62] - The capacity of newly added standalone energy storage stations was 340 MW/600 MWh in 2023[69] - The total construction capacity of the Group reached 2,299 MW in 2023, up from 1,982 MW in 2022, supporting sustained growth[69] Financial Performance - In 2023, the Group achieved a revenue of RMB2,588,646,000, representing a year-on-year increase of 7.8% compared to RMB2,400,276,000 in 2022[57] - Profit attributable to equity holders increased by 10.6% to RMB963,774,000 in 2023, up from RMB871,817,000 in 2022[57] - The Group's subsidiary-owned power plants generated revenue of RMB2,259,413,000, a 6.9% increase from last year, accounting for 87.3% of the Group's continuing operations revenue[106] - Net profit from owned power plants decreased to RMB 762,048,000, down 6.8% from RMB 817,876,000 in 2022[111] - Wind power revenue rose to RMB 1,893,041,000, reflecting a 7.0% increase year-over-year[111] - The Group's net assets increased to RMB8,435,414,000 as of December 31, 2023, compared to RMB8,094,892,000 in 2022, reflecting a growth of 4.22%[154] Market and Industry Trends - The renewable energy financing environment in China and the US is expected to improve, with anticipated reductions in financing costs[27] - Continued high-intensity investments in R&D for renewable energy are expected to drive faster technological innovation[27] - In 2023, global renewable capacity additions reached approximately 510 GW, marking a 50% increase from the previous year, the fastest growth in nearly 20 years[31] - China's installed capacity additions in 2023 included 75.9 GW in wind and 216.9 GW in solar PV, surpassing a cumulative total of 1,400 GW in renewable energy[33] - Renewable energy generation in China exceeded 3 trillion kWh in 2023, accounting for about one-third of the country's total electricity consumption, with wind and solar contributing over 15%[34] Operational Efficiency - The operational quality of the Group's power plants improved, with wind farms achieving an availability of 98.77% and solar PV plants reaching 99.92%[87] - The average wind curtailment rate for the Group's wind farms was 3.7%, while the solar curtailment rate was 5.9%, both showing an increase from the previous year[99] - The weighted average utilization hours for wind farms were 2,449 hours, which is 224 hours higher than the national average, but 94 hours lower than the previous year[94] - The weighted average utilization hours for solar PV power plants were 1,455 hours, 169 hours higher than the national average, but 92 hours lower than last year[94] Environmental Impact - The Group achieved a total emission reduction of 7,916 kilotons of CO2 in 2023, contributing to a cumulative reduction of 55,460 kilotons[142] - The Group's MSCI ESG rating was upgraded from A to AA, making it the only company in the renewable power generation sector in mainland China and Hong Kong to receive this rating[19] Strategic Initiatives - The Group is focusing on enhancing operational management and cultivating core competitive capabilities to achieve better results in 2024[14] - The Group actively broadened its market presence and initiated new businesses such as energy storage, emphasizing technological innovation[21] - The Group aims to enhance project development capabilities and distribute power plants globally to minimize risks associated with regional resource fluctuations and price uncertainties[169] - The Group will proactively embrace power market reform, enhancing trading and marketing capabilities to boost efficiency and profitability[181] Challenges and Risks - The Group faces several risks including international political risk, exchange rate risk, policy risk, market risk, climate risk, and power curtailment risk[168] - The decline in net profit for the Group's subsidiary-owned power plants was mainly due to a decrease in the comprehensive electricity price and an increase in the curtailment rate[107] Financing and Investment - The financing costs for renewable projects in China have significantly decreased due to a loose financing environment and the introduction of publicly traded REITs[54] - The Group's financing costs for newly added power station projects reached historically low levels in 2023[120] - Comprehensive financing rate improved to 4.60%, a reduction of 88 basis points from 5.48% in 2022[124] - The Loan Prime Rate (LPR) for loans with terms of 5 years or longer has decreased by 25 basis points to 3.95%, allowing the Group to lower financing costs[189] Employee Development - The Group conducted over 700 training sessions in 2023 to enhance employee skills and capabilities[148] - The Group is refining its incentive mechanisms to boost motivation and creativity in response to changes in the business environment[193] - The focus will be on talent value creation and capability building, continuously improving staff professional skills and overall quality[193] - The Group is committed to deepening corporate culture construction to enhance staff sense of belonging and cohesion, promoting business development[193]

更新报告 买入 2 月发电量表现亮眼，在建项目创新高 协合新能源（0182.HK） 2024-03-12 星期二 投资要点 目标价： 0.99 港元 ➢ 项目储备充裕，在建拟建项目创新高达到2.9GW： 现 价： 0.67港元 2023年公司实现收入人民币25.89亿元，同比增加7.85%;权益持有人应 预计升幅: 48% 占溢利 9.64 亿元，同比增加 10.55%;基本每股盈利 11.42 分，每股股息 0.035港元（派息率约28%）。公司项目储备充裕，2023年末在建拟建 重要数据 项目规模 2.9GW，强力保障装机容量持续增长，其中 2024 年目标新增 装机1GW，全年资本开支在人民币40-60亿元左右。 日期 2024-03-11 收盘价（港元） 0.67 ➢ 2月权益发电量同比增长46.32%，表现亮眼： 总股本（百万股） 8,121 2024年2月权益发电量总计 872.28GWh，同比增加 46.32%；其中，风 总市值（百万港元） 5,441 电权益发电量 810.80GWh，同比增长 49.6%；太阳能权益发电量 净资产（百万元） 8,435 61.48GWh，同比增长13.52%。 ...

Investment Rating - The investment rating for the company is positive, with a target price set at 0.67 HKD, indicating potential for growth and investment opportunities [1]. Core Insights - The company has achieved a record high in equity installed capacity, exceeding 4 GW, with a year-on-year growth of 12.9% in equity installed capacity [1]. - The company’s equity power generation volume increased by 17.2% year-on-year, reaching 78.2 billion kWh, which is the leading growth rate in the renewable energy sector [1]. - The company actively participates in green certificate and green electricity trading, resulting in a significant increase in revenue and profit [1]. - The management emphasizes shareholder returns, with a dividend yield exceeding 5% and ongoing share buyback plans [1]. Summary by Sections Company Performance - The company’s equity installed capacity reached 4.05 GW, with wind power projects accounting for 85.6% and solar projects for 14.4% [1]. - The company’s equity power generation volume for 2023 was 78.2 billion kWh, with wind power generation increasing by 18.6% and solar power generation by 7.3% [1]. Market Engagement - The company issued 3.447 million green certificates in 2023, a 24% increase year-on-year, and green certificate sales revenue grew by 78% to 45.46 million RMB [1]. - The trading volume of green electricity increased by 117% year-on-year, amounting to 639 million kWh, contributing an additional 30.75 million RMB to revenue [1]. Shareholder Returns - The company plans to distribute a dividend of 0.035 HKD per share for 2023, with a total dividend payout of 284 million HKD, resulting in a payout ratio exceeding 25% and a dividend yield of 5.2% [1]. - The company repurchased 510 million shares in 2023, amounting to approximately 330 million HKD, which is about 6% of the total shares outstanding [1]. Valuation - The company’s market capitalization is 5.44 billion HKD, with a forecasted net profit of 998 million RMB for 2024, corresponding to a PE ratio of 4.9, which is considered low compared to industry standards [1].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 2,588,646,000, an increase of 7.8% from RMB 2,400,276,000 in 2022[2] - Gross profit for the same period was RMB 1,405,626,000, down 3.7% from RMB 1,459,693,000 in 2022[2] - Net profit attributable to shareholders for the year was RMB 963,774,000, representing an increase of 10.5% compared to RMB 871,817,000 in 2022[2] - Basic earnings per share for 2023 was RMB 11.42, up from RMB 9.90 in 2022, reflecting a growth of 15.4%[2] - The company reported a total profit for the year of RMB 988,750 thousand, compared to RMB 925,769 thousand in 2022, representing an increase of about 6.8%[15] - The profit attributable to ordinary shareholders from continuing operations for 2023 was RMB 877,502,000, compared to RMB 852,639,000 in 2022, reflecting an increase of approximately 2.9%[26] - The diluted earnings per share for 2023 was RMB 113.36, up from RMB 98.83 in 2022, representing an increase of about 14.7%[27] - The company declared a final dividend of HKD 0.035 per share for the year ending December 31, 2023, an increase from HKD 0.03 per share in 2022, resulting in a total distribution of RMB 278,487,000 for 2023 compared to RMB 230,272,000 in 2022[28] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 31,236,368,000, an increase of 15.1% from RMB 27,172,516,000 in 2022[4] - Non-current assets increased to RMB 24,249,929,000, up from RMB 20,508,021,000 in 2022, marking a growth of 18.5%[4] - The total liabilities increased to RMB 15,922,369,000, up from RMB 12,560,663,000 in 2022, reflecting a rise of 26.5%[4] - Total liabilities increased to RMB 22,800,954, up 19.3% from RMB 19,077,624 in 2022[5] - Current liabilities rose to RMB 6,878,585, an increase of 5.5% compared to RMB 6,516,961 in 2022[5] - Net assets increased to RMB 8,435,414, reflecting a growth of 4.2% from RMB 8,094,892 in 2022[5] - The company’s cash and cash equivalents decreased to RMB 2,445,465,000 from RMB 3,471,039,000 in 2022, a decline of 29.6%[4] - The company’s reserves increased to RMB 8,210,438, up 5.9% from RMB 7,754,304 in 2022[5] - The company’s lease liabilities increased to RMB 21,821, up 61.8% from RMB 13,502 in 2022[5] Revenue Sources - The company's external revenue from power generation business was RMB 2,259,413 thousand, with wind power and solar power contributing RMB 1,893,041 thousand and RMB 366,372 thousand, respectively[12] - Revenue for the period from January 1, 2023, to November 30, 2023, reached RMB 590,581 thousand, a significant increase from RMB 392,548 thousand in the same period of 2022, representing a growth of approximately 50.3%[10] - The revenue from electricity sales reached RMB 1,867,969 thousand in 2023, compared to RMB 1,687,148 thousand in 2022, marking an increase of 10.7%[21] - The total revenue from the group's power plants reached RMB 2,259,413 thousand in 2023, a 6.9% increase from the previous year, accounting for 87.3% of the group's ongoing business revenue[48] Operational Highlights - The company added 2,099 MW of new investment projects in China, including 1,713 MW of wind power and 386 MW of solar power[40] - The total installed capacity of the company's wind and solar power plants reached 4,050 MW, a 12.9% increase from 3,588 MW in 2022[42] - The company’s equity installed capacity for wind power was 3,467 MW, reflecting a 10.5% increase from 3,137 MW in 2022[42] - The company’s equity installed capacity for solar power was 583 MW, showing a 29.2% increase from 451 MW in 2022[42] - The company’s new independent energy storage capacity reached 340 MW/600 MWh in 2023[41] - The group completed green electricity transactions of 639 million kWh in 2023, generating additional revenue of RMB 30,752 thousand from green electricity sales, compared to RMB 13,053 thousand in 2022[48] Market Strategy and Future Plans - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[1] - The company plans to expand its market presence and enhance its product offerings in the renewable energy sector, focusing on wind and solar power technologies[11] - The company has also indicated ongoing investments in research and development to improve operational efficiency and service offerings in the energy sector[11] - The management highlighted the strategic importance of maintaining a diversified portfolio, including potential mergers and acquisitions to strengthen market position[11] - The group plans to enhance project development efforts and expand its global market presence, focusing on identifying and optimizing quality projects[68] - The group aims to accelerate project construction to achieve rapid capacity growth, emphasizing cost efficiency and quality standards[69] Customer and Market Relationships - The company’s major customers contributed significantly to revenue, with Customer A generating RMB 377,163 thousand and Customer B RMB 359,505 thousand in 2023[20] - The group maintained strong relationships with customers, with the top five customers accounting for 48.34% of total sales, and the largest customer contributing 12.62%[59] Compliance and Governance - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2023, ensuring compliance with corporate governance standards[79] - The company has maintained compliance with the corporate governance code as per the listing rules throughout the year ending December 31, 2023[77] - The company has adopted a standard code for securities trading by directors, confirming compliance by all directors for the year ending December 31, 2023[78] Employee and Organizational Development - The group has a total of 995 full-time employees as of December 31, 2023, with a focus on enhancing training and organizational structure[60] - The company will enhance its management capabilities by optimizing organizational structure and improving management processes to increase efficiency and competitiveness[72] Environmental Impact - The group achieved a cumulative CO2 reduction of 55,460 tons and saved 20,773 thousand tons of standard coal by the end of 2023[57]

智通财经APP讯，协合新能源(00182)发布公告，于2024年2月26日，供应方A、供应方B、承租人及融资 人以订立以下协议的方式协定融资租赁安排：供应方A、承租人及融资人订立采购协议A，融资人将向 供应方A购买设备A以出租设备A予承租人，购买价A约为人民币7868万元;供应方B、承租人及融资人订 立采购协议B，融资人将向供应方B购买设备B以出租设备B予承租人，购买价B约为人民币1.93亿元;及 承租人与融资人订立融资租赁协议，承租人将于租期内向融资人租赁设备A及设备B，且承租人须向融 资人支付季度租赁款作为代价。 据悉，设备A指部分用于电站的40兆瓦/80兆瓦时储能设备(包括用于储能电池系统的预制舱、储能监控 系统及其他辅助设施);设备B指用于电站的50兆瓦/100兆瓦时储能设备(包括储能电池系统、变压器、储 能监控系统及其他辅助设施)。 供应方A为公司的全资附属公司，主要从事研发、生产及买卖储能设备。供应方B为公司的全资附属公 司，主要于中国从事买卖风电及光伏发电项目设备。承租人为公司的全资附属公司，主要于中国从事储 能电站项目运营。 公司将于融资租赁安排下产生约人民币2.72亿元的出售所得款项净额，将 ...

Core Viewpoint - The company, Xiehe New Energy, has announced a financing lease agreement for wind power equipment valued at RMB 320 million, which will enhance its operational capabilities and financial resources [1] Group 1: Financing Lease Agreement - The financing lease agreement involves the company's wholly-owned subsidiary, Shangcheng Xiehe, acting as the lessee, with the financing party purchasing equipment for a power station [1] - The total purchase price for the equipment, which includes wind turbines, main transformers, cables, and other wind power equipment, is RMB 320 million [1] - The lessee is required to make semi-annual lease payments to the financing party during the lease term [1] Group 2: Financial Implications - The lease arrangement is part of the company's routine business operations, allowing it to secure necessary financial resources and equipment for its operations [1] - The board believes that the terms of the financing lease are established on normal commercial terms, deemed fair and reasonable, and in the overall interest of shareholders [1] - As of December 31, 2023, the unaudited book value of the equipment is approximately RMB 293 million, and the transaction will not result in any gain or loss for the group according to Hong Kong Financial Reporting Standards [1]

Clean Energy Investment and Market Trends - The global clean energy investment is projected to increase to $1.7 trillion in 2023, with China, the EU, and the US leading in investment scale [14]. - Wind turbines continue to trend towards larger sizes, with onshore models reaching 10MW and offshore models reaching 18MW, while prices have remained stable with declines over the past six months [15]. - N-type photovoltaic panels, particularly TOPCon, are gaining market popularity due to their performance advantages, leading to a rapid increase in market penetration and a downward trend in prices [19]. - The novel energy storage market, especially battery energy storage, is experiencing rapid growth, with decreasing levelized costs driven by technological innovations and increased production capacity [20]. - The green hydrogen industry is viewed positively by governments worldwide, with support for technological innovations and pilot projects expected to enhance its economic viability and scalability [21]. Financial Performance - In the first half of 2023, the Group achieved total revenue of RMB1,490,141,000, an increase of 11.3% compared to RMB1,339,182,000 in the same period last year [22]. - Profit attributable to equity holders was RMB496,304,000, reflecting a 12.0% increase from RMB443,179,000 in the prior year; basic earnings per share were RMB5.83 cents, up from RMB5.01 cents [22]. - The Group's attributable power generation grew significantly by 25.2% year-on-year, with wind power generation increasing by 26.5% and solar PV generation by 14.6% [28]. - The Group's subsidiary-owned power plants generated total revenue of RMB1,195,597,000 in the first half of 2023, reflecting a 14.5% increase year-on-year [37]. - Net profit from subsidiary-owned power plants reached RMB489,433,000, representing an 11.87% increase compared to the same period last year [37]. Asset and Liability Management - As of June 30, 2023, the net asset value of the Group was RMB8,293,159,000, up from RMB8,094,892,000 at the end of 2022; net assets per share increased to RMB0.94 from RMB0.91 [23]. - The asset-liability ratio increased to 72.14% as of June 30, 2023, compared to 70.21% at the end of 2022 [23]. - The Group held cash and bank balances of approximately RMB3,429,170,000, down from RMB4,049,279,000 at the end of 2022 [23]. - The Group's loans secured by houses and machinery amounted to RMB11,580,052,000, an increase from RMB10,488,820,000 as of December 31, 2022 [53]. Operational Efficiency and Safety - The Group's power plants maintained a safe and stable production environment, with no incidents of personal injury or significant equipment accidents during the reporting period [27]. - The Group's initiatives to enhance safety management have effectively improved overall safety levels and ensured stable operations of power plants [24]. - The Group's intelligent O&M segment achieved a revenue of RMB158,938,000 in 1H2023, representing a year-on-year increase of 37.3% compared to RMB115,718,000 in 1H2022 [54]. - The Group's intelligent operation and maintenance segment generated revenue of RMB227,076,000, while the "Others" segment contributed RMB665,267,000 [176]. Market Expansion and Project Development - The Group is actively expanding its international market presence by adapting to local conditions and developing greenfield projects [45]. - The Group maintained a high level of project construction activities with a total capacity of 2,194 MW from 23 ongoing and preparatory power plant projects [49]. - The Group successfully acquired 347.5 MW of wind power projects and 136 MW of solar power projects in China during the reporting period [46]. - The Group signed contracts for a total of 19.26 GW of wind and solar resource reserves to be developed, including approximately 12.53 GW of wind power and 6.73 GW of solar power [46]. Shareholder Information and Corporate Governance - As of June 30, 2023, Liu Shunxing holds 37,500,000 shares, representing approximately 20.52% of the total issued share capital of the company [85]. - The company has adopted a Share Award Scheme effective from June 15, 2015, which will expire on June 15, 2025 [93]. - The total number of Awarded Shares available for grant was 155,011,748 as of January 1, 2023, and decreased to 150,511,748 by June 30, 2023 [98]. - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2023 [137]. Environmental and Social Responsibility - The Group's emission reduction indicators for 1H2023 included CO2 reductions of 4,259 kilotons and standard coal savings of 1,665 kilotons [63]. - The Group's environmental management efforts included reducing greenhouse gas emissions and saving water resources, with a total of 106,950 kilotons saved [63]. - The Group's total donations for public welfare initiatives exceeded RMB 24 million during the reporting period [68].

Financial Performance - The company reported a profit attributable to shareholders of RMB 496,304,000 for the six months ended June 30, 2023, compared to RMB 443,179,000 for the same period in 2022, representing an increase of 11.99%[2] - Total revenue for the six months ended June 30, 2023, was RMB 1,490,141,000, up 11.31% from RMB 1,339,182,000 in the same period of 2022[3] - Gross profit increased to RMB 905,324,000, reflecting a gross margin of approximately 60.7%, compared to RMB 796,546,000 in the previous year[3] - Basic earnings per share for the period were RMB 5.83, compared to RMB 5.01 for the same period in 2022, marking an increase of 16.3%[4] - The total comprehensive income for the period was RMB 526,657,000, compared to RMB 485,858,000 in the previous year, an increase of 8.4%[5] - The company reported a net profit before tax of RMB 564,395,000, an increase from RMB 513,129,000 in the previous year, reflecting a growth of 9.97%[3] - Other income for the period was RMB 41,359,000, up from RMB 25,981,000 in the same period of 2022, representing a growth of 59.0%[3] Assets and Liabilities - The company’s total assets as of June 30, 2023, amounted to RMB 29,769,288,000, an increase from RMB 27,172,516,000 as of December 31, 2022[6] - Cash and cash equivalents decreased to RMB 2,627,569,000 from RMB 3,471,039,000 at the end of 2022, indicating a reduction of 24.3%[6] - The company’s non-current liabilities increased to RMB 13,468,183,000 from RMB 12,560,663,000, reflecting a rise of 7.2%[6] - As of June 30, 2023, the total liabilities amounted to RMB 21,476,129 thousand, an increase of 12.6% from RMB 19,077,624 thousand as of December 31, 2022[7] - The net asset value increased to RMB 8,293,159 thousand, up from RMB 8,094,892 thousand, reflecting a growth of 2.5%[7] Revenue Breakdown - Revenue from the power generation business reached RMB 1,195,597 thousand, with wind power and solar power contributing RMB 1,011,545 thousand and RMB 184,052 thousand, respectively[11] - The revenue from electricity sales included RMB 995,319,000 from benchmark electricity prices and RMB 182,862,000 from renewable energy subsidies for the six months ended June 30, 2023[13] - The total revenue for the group was RMB 1,490,141 thousand, with inter-segment sales of RMB 597,799 thousand being eliminated[11] Operational Highlights - The operating profit for the group was RMB 830,808 thousand, indicating a strong operational performance[11] - The company reported a net profit of RMB 519,594 thousand for the period[11] - The company plans to continue expanding its renewable energy projects and enhance operational efficiency in the coming periods[10] - The company is focusing on technological advancements in smart operation and maintenance services for wind and solar power plants[10] Shareholder Actions - The company declared a dividend of HKD 0.035 per ordinary share for the year ended December 31, 2022, totaling RMB 278,487,000 for the interim period[20] - The company has repurchased 345,390,000 shares at a cost of RMB 205,585,000, reducing the total issued shares to 8,630,079 thousand as of June 30, 2023[29] - The company repurchased a total of 11,170,000 shares at a total cost of HKD 8,354,900 (approximately RMB 7,333,000) during the six months ended June 30, 2023[58] Market and Industry Trends - The global clean energy investment is projected to rise to USD 1.7 trillion in 2023, with China, the EU, and the US leading the investment scale[30] - The demand for N-type photovoltaic components is increasing, with a rapid decline in prices due to enhanced production capacity and market penetration[32] - The new energy storage market is thriving, with significant cost reductions in battery storage and growing government support for green hydrogen initiatives[33] Environmental and Social Responsibility - The group has achieved significant emissions reductions, including 4,259 thousand tons of CO2 and 1,665 thousand tons of standard coal savings in the first half of 2023[51] - The group is actively involved in various public welfare projects across multiple provinces in China, with donations exceeding RMB 24 million during the reporting period[52] Future Plans and Strategies - The company plans to continue optimizing its development layout and innovating development models to actively expand its renewable energy projects in international markets[56] - The company aims to enhance operational awareness and continuously optimize asset quality, focusing on reducing costs and increasing efficiency throughout the entire lifecycle[57] - The company is committed to the continuous growth of smart operation and maintenance services, integrating advanced digital technologies and AI algorithms to improve service quality[56] - The company will strengthen project construction management to ensure steady growth in installed capacity while controlling costs and maintaining quality standards[56] - The company is actively expanding its financing channels and methods to continuously lower financing costs[57] - The company emphasizes the importance of understanding key national policies and revenue models in its international business layout[56] Compliance and Governance - The company has adopted a standard code for securities trading, confirming compliance by all directors for the six months ended June 30, 2023[61] - The audit committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2023[62]

Financial Performance - Revenue for the year ended 31 December 2022 was RMB2,679 million, representing a 22.0% increase compared to the previous year[9] - Profit for the year ended 31 December 2022 was RMB872 million, a 10.7% increase compared to the previous year[9] - The Group achieved a total revenue of RMB2,679,368,000 in 2022, representing a year-on-year increase of 22.0%[47] - Profit attributable to equity holders of the Group amounted to RMB871,817,000 in 2022, representing a year-on-year increase of 10.7%[47] - Basic earnings per share was RMB9.90 cents in 2022, compared to RMB9.46 cents in 2021[47] - Revenue for the year reached RMB 2,679.37 million, a 22.0% increase compared to the previous year[49] - Net profit attributable to equity holders was RMB 871.82 million, up 10.7% year-on-year[49] - Subsidiary-owned power plants achieved revenue of RMB 2,114,106,000, a 20.9% year-on-year increase, accounting for 78.9% of total group revenue[81][82] - The Group's subsidiary-owned power plants achieved a total net profit of RMB 817,876,000 from power generation in 2022, representing a 7.0% increase over the previous year[85][86] - Revenue from subsidiary-owned power plants increased by 20.9% to RMB 2,114,106,000 in 2022, with wind power revenue growing by 13.9% to RMB 1,769,309,000 and PV revenue surging by 76.4% to RMB 344,797,000[87] Assets and Liabilities - Net assets as of 31 December 2022 amounted to RMB8,095 million with a liability-to-asset ratio of 70.2%[9] - The Group had net assets of RMB8,094,892,000 as of 31 December 2022, compared to RMB7,562,887,000 in 2021[48] - Net assets increased to RMB8,094,892,000 in 2022 from RMB7,562,887,000 in 2021[116] - Bank and other borrowings rose to RMB13,321,143,000 in 2022 from RMB10,939,507,000 in 2021[116] - Liability-to-asset ratio increased to 70.2% in 2022 from 68.6% in 2021[116] - Pledged assets for borrowings amounted to RMB10,488,820,000 in 2022, up from RMB9,702,631,000 in 2021[116] - Contingent liabilities for joint liability guarantees totaled RMB338,643,000 as of 31 December 2022[116] - Contracted but not yet incurred capital expenditure was RMB2,380,563,000 in 2022, compared to RMB2,068,344,000 in 2021[116] - Equity capital contracted but not yet paid to joint ventures and associates decreased to RMB44,500,000 in 2022 from RMB103,540,000 in 2021[116] - Cash and bank balances as of 31 December 2022 were approximately RMB4,049,279,000, a decrease from RMB4,151,437,000 in 2021[116] Wind and Solar Power Development - The Group obtained new annual wind power development and construction permits of 1,355MW and national approval of 4,000MW[15] - Under-construction capacity reached 1,982MW, and newly added capacity was 1,111MW, both setting historical records for the Group[15] - Attributable installed capacity increased to 3,588MW through the disposal of power plants with green electricity subsidies[15] - China's newly installed capacity of wind power and photovoltaic exceeded 120GW in 2022, reaching a new record high[13] - The Chinese government aims to achieve a total installed capacity of over 1,200GW of wind and solar power by 2030[13] - The Group obtained wind power construction permits of 1,355MW and secured preliminary approved renewable energy projects of 4,000MW in China[52] - Newly approved/registered projects in 2022 included 7 wind power projects and 4 PV power projects, totaling 1,556MW[52] - The Group signed new contracts for 3,505MW of wind power resources, 4,000MW of PV power resources, and 4,020MW/8,040MWh of energy storage pipeline projects[54] - Total capacity of power plants under construction reached 1,982MW, with 10 new power plants commissioned, adding 1,111MW of installed capacity[54] - As of December 31, 2022, the Group's attributable installed capacity for grid-connected wind and solar power plants was 3,588MW, with 81.2% owned by subsidiary power plants[57] - The attributable installed capacity of subsidy-free projects reached 2,161MW, accounting for 60.2% of the total attributable installed capacity[57] - Wind power attributable installed capacity increased by 31.4% to 3,137MW, while PV capacity grew by 18.4% to 451MW[59] - Attributable power generation increased by 27.7% year-on-year in 2022, with subsidiary-owned power plants accounting for 78.5% of the total[66][67] - Wind power generation reached 5,893.7 GWh, a 19.5% increase from 2021, while PV power generation surged 165.2% to 779.3 GWh[68] - Weighted average utilization hours for subsidiary-owned wind power plants reached 2,921 hours, 31.5% higher than China's average[71][73] - Consolidated power curtailment rate decreased by 0.4 percentage points to 2.8% for group-invested power plants, with subsidiary-owned plants at 2.5%[76][77] Green Energy and Environmental Impact - The Group's levelized cost of electricity continued to decline, achieving impressive results in green power trading and green certificate sales[13] - The Group received an A rating from Morgan Stanley's MSCI ESG Rating for its environmental protection, compliance, and social responsibility in 2022[16] - The Group's wind and PV power plants reduced CO2, SO2, and NOx emissions, saving standard coal and water compared to conventional thermal power plants[110] - Emissions reduction in 2022: CO2 reduction of 7,092 kilotons (accumulated 47,543 kilotons), SO2 reduction of 1,679 tons (accumulated 27,757 tons), NOX reduction of 1,751 tons (accumulated 25,509 tons), standard coal saving of 2,751 kilotons (accumulated 17,673 kilotons), and water saving of 10,864 kilotons (accumulated 100,374 kilotons)[111] - The Group issued 1.519 million green certificates for grid-parity projects in 2022, a 64% year-on-year increase, and generated RMB 25,494,000 in revenue from green certificate sales[94][95] - The Group transacted approximately 295 GWh of green electricity in 2022, achieving an average price increase of RMB 0.05/kWh compared to the reference thermal power tariff[94][95] Strategic Development and Innovation - The Group formulated a new five-year development strategy (2023-2027) focusing on proactive business growth, differentiated competitive strategy, and global market expansion[17] - The Group plans to increase investment in technological innovation and promote the application of new technologies to create more value[17] - The development of large-sized wind turbines accelerated, with models upgraded from 5.X to 6.X, and 7.X models being deployed[31] - N-type cell technology, including TOPCon, HJT, HBC, and perovskite, is replacing P-type as the next-generation technology in the PV industry[31] - The Group's consolidated levelized cost of electricity (LCOE) decreased by 10.4% in 2022 compared to the previous year, driven by technology innovation and the operation of grid parity projects[89][91] - The Group plans to focus on power generation, leverage professional advantages, and collaborate with the service business sector for multi-wing development[119][121] - Accelerate project development and construction to achieve rapid growth in installed capacity, focusing on wind and solar power to align with national policy and available resources[123] - Continuously reduce LCOE (Levelized Cost of Energy) to enhance operational excellence and explore scientific trading strategies to ensure steady profit growth from power generation[123] - Vigorously develop the service business of renewable energy, focusing on intelligent O&M and optimizing energy management products to strengthen competitiveness[124] - Establish an international investment platform to create a global market presence, leveraging experience in renewable power plant development and exploring overseas low-carbon and high-tech sectors[125] - Continuously optimize asset quality through dynamic analysis of power plants and adjustment of asset structure to improve cash flow and maintain a reasonable liability-to-asset ratio[128] - Strengthen safety management efforts by implementing a closed-loop management mechanism and focusing on risk management to ensure safety in generation and construction[128] - Enhance management and foster corporate culture by optimizing organizational structure, performance management, and incentive mechanisms to support rapid business expansion[131] Market and Policy Environment - China's newly installed capacity of wind power was 37,630MW, and PV was 87,410MW in 2022[29] - China's total electricity consumption in 2022 was 8.6 trillion kWh, with renewable energy generation reaching 2.7 trillion kWh, accounting for 31.6% of total consumption[29] - Wind and PV generation in China reached about 1.2 trillion kWh, accounting for 13.8% of total electricity consumption, a 2 percentage point increase year-on-year[29] - The proportion of transacted electricity volume in China reached approximately 60.8% of total electricity consumption in 2022, an increase of 15.4 percentage points compared to the previous year[40] - The price of wind turbines dropped to RMB2,000/kW in early 2022 and continued to decline, with bid prices as low as RMB1,500/kW reported in the industry[36] - More than 90% of regions in China have released mandatory energy storage requirements for wind and solar power plants[33] - The EU will levy additional duties on steel, aluminum, cement, fertilizer, electricity, and hydrogen energy importers from 2026 onwards as part of the Carbon Border Adjustment Mechanism[43] - The domestic lending rate (LPR) in China is currently at a low level in the past three years, supporting the financing environment for renewable energy power plants[44] - The issuance of Green Certificates will cover all renewable energy power projects, establishing a nationwide unified green certificate system[41] Corporate Governance and Leadership - Mr. Liu Shunxing, aged 61, has been the Chairman of the Company since June 2009 and holds a Bachelor's degree in Electricity Generation from Tianjin University and a Master's degree in Energy Source Economy Management from Harbin Institute of Technology[133] - Ms. Liu Jianhong, aged 54, has been the Vice Chairperson of the Company since January 2016 and holds a Bachelor's degree and a Master's degree from the Law School of Renmin University of China and an EMBA degree from China Europe International Business School[134] - Mr. Gui Kai, aged 64, has been the Chief Executive Officer of the Company since August 2020 and holds a Bachelor's degree from Anhui University of Science & Technology and a Master's degree from China University of Mining and Technology[135] - Mr. Niu Wenhui, aged 52, has been the Chief Financial Officer of the Company since January 2017 and holds a Bachelor's degree in Financial Accounting from Hangzhou Institute of Electronics Technology and a Master's degree in Business Administration from Beihang University[137] - Mr. Zhai Feng, aged 56, has been an Executive Director of the Company since January 2020 and holds a Bachelor's degree in law from Fudan University and a Master's degree in Business Administration from Peking University[138] - Ms. Shang Jia, aged 59, has been an Executive Director of the Company since April 2021 and holds a Bachelor's degree in Industrial Economic & Management from Zhongnan University of Economics and Law[139] - Mr. Wang Feng, aged 53, has been a non-executive director of the Company since February 2019 and holds a Bachelor's degree from Hohai University and a Master's degree from North China Electric Power University[141] - Mr. Yap Fat Suan, Henry, aged 77, has been an independent non-executive director of the Company since 2006 and holds a Master's degree in Business Administration from the University of Strathclyde, Glasgow[142] - Dr. Jesse Zhixi Fang, aged 76, has been an independent non-executive director of the Company since January 2018 and holds a Bachelor's degree from Fudan University, a doctorate degree from the University of Nebraska-Lincoln, and a Postdoctoral Degree from the University of Illinois[143] - Ms. Huang Jian, aged 54, has been an independent non-executive director of the Company since December 2012 and holds a Bachelor's degree and a Master's degree from the Central University of Finance and Economics of the PRC[145] - The company repurchased a total of 384,130,000 ordinary shares for an aggregate consideration of HK$250,947,000 during the year ended 31 December 2022[164] - The highest purchase price per share was HK$0.70, and the lowest was HK$0.60 during the share repurchases in 2022[165] - The company purchased 21,750,000 ordinary shares through Tricor Trust (Hong Kong) Limited to satisfy share awards under the Share Award Scheme[165][166] - The company's principal activity is investment holding, with further details of subsidiary activities provided in Note 52 to the consolidated financial statements[157] - The group's income and contribution to operating profit for the year are analyzed in Notes 5 and 6 to the consolidated financial statements[157] - Details of the company's distributable reserves as of 31 December 2022 are provided in Note 51 to the consolidated financial statements[167] - The company's property, plant, and equipment movements are detailed in Note 17 to the consolidated financial statements[161] - Share capital movements are outlined in Note 40 to the consolidated financial statements[162] - A summary of the group's results, assets, liabilities, and equities for the last five financial years is provided on page 292[170] - The board recommends a final dividend of HK$0.035 per ordinary share for the year ended 31 December 2022, amounting to HK$302,053,000 based on issued shares as of the approval date[171][174] - The proposed final dividend represents an increase from HK$0.03 per share in 2021[171][174] - The final dividend is expected to be paid around the end of June 2023, subject to shareholder approval at the annual general meeting[171][174] - The total number of shares available for issue under the Share Award Scheme is 155,011,748, with 62,250,000 shares held by the Trustee, representing approximately 3.538% of issued shares[182] - As of 31 December 2022, the Trustee held 85,100,000 unvested shares under the Share Award Scheme[183] - The Share Award Scheme has a limit of 5% of the issued share capital as of the Adoption Date for total awards and 1% for individual awards[182] - The Share Award Scheme will expire on 15 June 2025 unless terminated earlier by the Board[177][180] - The Share Award Scheme aims to recognize employee contributions, provide incentives for retention, and attract suitable personnel for the Group's development[176][179] - The Board may impose vesting conditions on awarded shares and must obtain approval from independent non-executive directors for awards to connected persons[178][185] - Awarded shares and related income will vest on the vesting date if all conditions are met, otherwise they will lapse unless the Board determines otherwise[186] - The total number of Awarded Shares unvested as of 1 January 2022 was 135,900,000, with 3,000,000 granted during the year and 52,300,000 vested during the year[194] - As of 31 December 2022, the total number of unvested Awarded Shares was 85,100,000[194] - Executive Directors received a total of 23,550,000 vested Awarded Shares during the year, with Liu Shunxing (Chairman) receiving 4,500,000 and Liu Jianhong (Vice Chairperson) receiving 3,750,000[192] - Non-executive Directors and Independent Non-executive Directors received a total of 1,500,000 vested Awarded Shares during the year[194] - Other employees received a total of 28,200,000 vested Awarded Shares during the year[194] - The Share Award Scheme will terminate on the earlier of the 10th anniversary of the Adoption Date or the date of early termination determined by the Board[190] - In the event of a change of control of the Company, all unvested Awarded Shares will immediately vest on the date the change of control becomes unconditional[188] - Selected Employees do not have any interest or rights in Awarded Shares or Related Income until the Trustee vests the ownership of such shares in them[189] - The Trustee is not allowed to exercise voting rights in respect of any Shares held under the Trust[189] - Any Awarded Shares that do not vest and become Returned Shares may be granted to other Selected Employees under conditions determined by the Board[187] - The fair value of the Awarded Shares at the date of grant was HK$0.71 per Share and vested on 10 May 2022[195] - The closing price immediately before the date on which the Awarded Shares were granted on 21 April 2022 was HK$0.74 per Share[195] - The weighted average closing price of the Shares immediately before the dates on which the awards were vested in 2022 was approximately HK$0.65 per Share[195] - The Awarded Shares granted during the year ended 31 December 2022 were made without any performance targets[195] - The grant price for the Awarded Shares was nil[195] - The vesting periods for the Awarded Shares are spread over multiple years with 25% vesting each year from 2020 to 2025[195] - The fair value of the Awarded