協合新能源集團有限公司 CONCORD NEW ENERGY GROUP LIMITED (於百慕達註冊成立之有限公司) (incorporated in Bermuda with limited liability) 023 INTERIM REPORT a 截至二零二三年六月三十日止半年度 FOR THE HALF YEAR ENDED 30 JUNE 2023 股票代碼 STOCK CODE 182 能，創未來 GENERATE FOR GENERATIONS 協合新能源集團有限公司 2023 中期報告 CONCORD NEW ENERGY GROUP LIMITED 2023 INTERIM REPORT CONTENTS 目錄 | --- | |-----------------------------------------------------| | | | Corporate Information | | 公司資料 | | Management Discussion and Analysis 管理層討論及分析 | | Report of the Directors 董事會報告 | Corp ...

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

CONCORD NEW ENERGY ⼿ざ倝腊彂꧋㕰剣ꣳⰖ CONCORD NEW ENERGY GROUP LIMITED 倴涰䢏麧鏽ⱁ䧭用⛓剣ꣳⰖ incorporated in Bermuda with limited liability) 2019 䎃㜡 ANNUAL REPORT 䨔荛✳ꨪ♧⛰䎃⼧✳剢♲⼧♧傈姺䎃䏞 FOR THE YEAR ENDED 31 DECEMBER 2019 肅牰➿焺 STOCK CODE 182 | --- | --- | --- | |-----------------------------------------------------------------------------|-------|----------------------------------| | CONTENTS | | CONCORD NEW ENERGY GROUP LIMITED | | 目錄 | | | | | | | | | | | | Corporate Information 2 | | 公司資料 | | Chairman's Statement 4 | | 主席致詞 | ...