Core Points - Company reported a significant decline in revenue and profit for Q1 2025, with total revenue of 224 million yuan, down 90.18% year-on-year [1] - The net profit attributable to shareholders was -24.37 million yuan, a decrease of 164.85% compared to the same period last year [1] - Operating cash flow also decreased by 33.05% year-on-year, amounting to 35.36 million yuan [1] Financial Ratios - The latest debt-to-asset ratio is 57.48%, an increase of 1.81 percentage points from the previous quarter, but a decrease of 23.34 percentage points year-on-year [3] - Gross margin stands at 13.85%, down 7.22 percentage points from the previous quarter and down 7.44 percentage points year-on-year [3] - Return on equity (ROE) is -1.46%, a decrease of 7.49 percentage points compared to the same period last year [3] Earnings Per Share and Turnover Ratios - The diluted earnings per share is -0.05 yuan, a decline of 162.50% year-on-year [3] - Total asset turnover ratio is 0.06 times, down 53.14% year-on-year [3] - Inventory turnover ratio is 0.35 times, a decrease of 27.61% compared to the same period last year [3] Shareholder Information - The number of shareholders is 40,800, with the top ten shareholders holding 316 million shares, accounting for 63.85% of total equity [3] - The largest shareholder is China Chemical Science Research Institute Co., Ltd., holding 43.40% of shares [3]

Group 1 - The company has conducted a series of performance roadshows, including a 2024 annual performance release meeting in Hong Kong and an overseas roadshow in Singapore, focusing on energy security and green low-carbon development [1][2] - As of December 31, 2024, the company's total installed capacity reached approximately 17.437 million kilowatts, with non-fossil energy capacity at 12.662 million kilowatts, a year-on-year increase of 29.5% [1] - The total revenue for 2024 was approximately 20.562 billion yuan, an increase of 0.57% year-on-year, and the profit attributable to equity holders was about 3.245 billion yuan, up 6.13% year-on-year [1] Group 2 - The company has initiated a three-year dividend plan for 2025-2027, with a cash dividend ratio of no less than 42%, 44%, and 46% of the distributable profits for each respective year [3] - The management emphasizes the importance of policy guidance and compliance in business development, aiming to enhance investor relations and information disclosure quality through a multi-dimensional communication mechanism [2][3] - The company aims to adapt to new market conditions and strengthen its market awareness while promoting a virtuous cycle of performance growth, valuation recovery, and shareholder returns [3]

Investment Rating - The report assigns a "Buy" rating to the company 京能清洁能源 (579 HK) with a target price of HKD 2.46, indicating a potential upside of 20.6% from the current price of HKD 2.04 [1][14]. Core Insights - The company is expected to achieve a net profit of RMB 3.34 billion in 2024, reflecting a year-on-year increase of 6.1%, which is 15% higher than previous expectations. This is attributed to higher-than-expected compensation for shut-down hydropower projects, reduced operational costs for wind and solar projects, and a 7% decrease in financial expenses [6][15]. - The company plans to maintain a generous dividend of RMB 0.14 per share, which is a 2% increase year-on-year [6]. - The company has a total renewable energy capacity target of 21 GW by 2025, with a current construction of 2.1 GW. The ability to meet this target will be assessed in the upcoming half-year report [6][15]. Financial Overview - Revenue projections for the company are as follows: RMB 20.45 billion in 2023, RMB 20.56 billion in 2024, and RMB 21.88 billion in 2025, with a compound annual growth rate (CAGR) of 11% expected from 2024 to 2027 [3][15]. - The net profit is projected to grow from RMB 3.15 billion in 2023 to RMB 4.55 billion in 2027, with a steady increase in earnings per share from RMB 0.37 in 2023 to RMB 0.54 in 2027 [3][15]. - The company maintains a dividend yield of 7.5% for 2025 and 2026, which is considered attractive for investors [6][15]. Operational Data - The company’s installed capacity is expected to grow significantly, with wind power capacity increasing from 5,566 MW in 2023 to 11,958 MW by 2027, and solar power capacity from 3,818 MW to 10,368 MW in the same period [8][9]. - The proportion of wind and solar power in the total energy mix is projected to rise from 64.7% in 2023 to 81.2% by 2027 [8]. Market Position - The company is positioned favorably within the renewable energy sector, with a focus on wind and solar energy, which are expected to dominate its energy production in the coming years [6][15].

Investment Rating - The report assigns a "Buy" rating to the company 京能清洁能源 (579 HK) with a target price of HKD 2.46, indicating a potential upside of 20.6% from the current price of HKD 2.04 [1][14]. Core Insights - The company is expected to achieve a net profit of RMB 3.34 billion in 2024, representing a year-on-year increase of 6.1%, which is 15% higher than previous expectations. This is attributed to higher-than-expected compensation for shut-down hydropower projects, reduced operational costs for wind and solar projects, and a 7% decrease in financial expenses [6][15]. - The company plans to maintain a final dividend of RMB 0.14 per share, reflecting a 2% increase year-on-year [6]. - The company has a total renewable energy capacity target of 21 GW by 2025, with a current construction of 2.1 GW, primarily in solar projects. The ability to meet this target will be assessed in the upcoming half-year report [6][15]. Financial Overview - Revenue projections for the company are as follows: - 2023: RMB 20.45 billion - 2024: RMB 20.56 billion (0.6% YoY growth) - 2025E: RMB 21.88 billion (6.4% YoY growth) - 2026E: RMB 23.67 billion (8.1% YoY growth) - 2027E: RMB 25.41 billion (7.4% YoY growth) [3][15]. - Net profit forecasts are: - 2023: RMB 3.15 billion - 2024: RMB 3.34 billion (6.1% YoY growth) - 2025E: RMB 3.70 billion (11.1% YoY growth) - 2026E: RMB 4.13 billion (12.0% YoY growth) - 2027E: RMB 4.55 billion (10.3% YoY growth) [3][15]. - The company maintains a dividend yield of 7.5% for 2025 and 2026, which is considered attractive [6][15]. Operational Data - The company’s installed capacity is projected to grow significantly: - Wind power: from 5,566 MW in 2023 to 11,958 MW in 2027 - Solar power: from 3,818 MW in 2023 to 10,368 MW in 2027 - Total renewable energy capacity: from 14,500 MW in 2023 to 27,486 MW in 2027 [8][9]. - The proportion of wind and solar power in total capacity is expected to increase from 64.7% in 2023 to 81.2% in 2027 [8]. Valuation Metrics - The report maintains a price-to-earnings (P/E) ratio of 5.2x for 2025, based on a five-year historical average, with a target price adjustment reflecting the company's improved operational cost management [6][15]. - The company’s book value per share is projected to increase from RMB 3.72 in 2023 to RMB 5.06 in 2027 [3][15].

Financial Performance - For the year ending December 31, 2024, the company's revenue was RMB 20,561.7 million, an increase of 0.57% compared to the previous year[4] - The profit attributable to equity holders for the year was RMB 3,245.0 million, representing a growth of 6.13% year-on-year[4] - The basic and diluted earnings per share for the year were RMB 39.36[4] - The company's operating profit for the year was RMB 5,261.1 million, compared to RMB 5,187.9 million in the previous year[5] - The total comprehensive income for the year was RMB 3,367.9 million, up from RMB 3,264.8 million in the previous year[7] - Revenue from customer contracts for the year ended December 31, 2024, was RMB 20,512,847, an increase from RMB 20,364,969 in 2023, representing a growth of 0.73%[17] - Total revenue for the year ended December 31, 2024, reached RMB 20,561,740, compared to RMB 20,446,028 in 2023, indicating a growth of 0.56%[17] - The company reported a year-on-year increase in segment profit to RMB 5,257,422,000 for the year ended December 31, 2024, compared to RMB 5,172,960,000 in 2023[34] - The company reported a net profit attributable to ordinary shareholders of RMB 3,245,045,000 for 2024, up from RMB 3,057,641,000 in 2023, reflecting a growth of about 6.1%[61] Dividends - The board proposed a final dividend of RMB 0.143 per share, totaling approximately RMB 1,179.0 million[3] - The company approved a final ordinary share dividend of RMB 0.1398 per share for the year ending December 31, 2023, totaling RMB 1,152,582,000, to be paid on July 31, 2024[62] - For the year ending December 31, 2024, the board proposed a final ordinary share dividend of RMB 0.1430 per share, amounting to RMB 1,178,964,000, pending shareholder approval[62] - The company will withhold a 10% corporate income tax on dividends distributed to non-resident corporate shareholders[152] - Non-resident individual shareholders will not be subject to Chinese personal income tax on the dividends distributed by the company[153] Assets and Liabilities - Non-current assets increased to RMB 76,988.2 million from RMB 73,782.6 million year-on-year[8] - Cash and cash equivalents rose to RMB 7,401.6 million, compared to RMB 6,605.1 million in the previous year[8] - As of December 31, 2024, the total current liabilities amounted to RMB 28,114,771,000, an increase from RMB 22,211,211,000 in 2023, representing a growth of approximately 26.8%[9] - The net current liabilities stood at RMB (4,049,535,000) as of December 31, 2024, compared to RMB (2,399,402,000) in 2023, indicating a deterioration in liquidity position[9] - Total assets minus current liabilities reached RMB 72,938,670,000 in 2024, slightly up from RMB 71,383,230,000 in 2023[9] - Non-current liabilities decreased to RMB 35,455,895,000 in 2024 from RMB 36,862,552,000 in 2023, reflecting a reduction of about 3.8%[9] - The company's net asset value increased to RMB 37,482,775,000 in 2024, up from RMB 34,520,678,000 in 2023, marking an increase of approximately 8.5%[9] - The total equity attributable to equity holders of the company rose to RMB 33,161,082,000 in 2024, compared to RMB 30,678,046,000 in 2023, representing a growth of about 8.1%[9] - Total assets reached RMB 1010.5 billion by the end of 2024, marking an 8.0% increase year-on-year, and the first time total assets surpassed the RMB 100 billion mark[76] Revenue Segmentation - The revenue breakdown for 2024 shows electricity sales at RMB 18,342,675, heat sales at RMB 2,157,466, and maintenance services at RMB 12,706[21] - The report indicates that the performance of the gas power and heating segment generated revenue of RMB 12,410,304, while wind power, solar power, and hydropower contributed RMB 4,709,301, RMB 3,086,397, and RMB 294,139 respectively[30] - The revenue from the gas power and heating segment decreased by 1.26% from RMB 12,568.2 million in 2023 to RMB 12,410.3 million in 2024, primarily due to a reduction in electricity prices and sales volume[102] - The wind power segment's revenue increased by 4.38% from RMB 4,511.9 million in 2023 to RMB 4,709.3 million in 2024, attributed to an increase in grid-connected capacity[103] - The photovoltaic segment's revenue rose by 4.35% from RMB 2,957.8 million in 2023 to RMB 3,086.4 million in 2024, also due to increased grid-connected capacity[105] - The hydropower segment's revenue decreased by 8.86% from RMB 322.7 million in 2023 to RMB 294.1 million in 2024, resulting from a decline in sales volume[106] Government Support and Subsidies - The company received government subsidies related to clean energy production amounting to RMB 22,760 and subsidies related to asset construction totaling RMB 60,887[30] - The company received government subsidies related to clean energy production amounting to RMB 589,835,000, with additional subsidies for asset construction totaling RMB 42,650,000[32] Strategic Initiatives and Future Outlook - The company anticipates continued growth in revenue and profitability driven by increased demand for clean energy solutions and government support[40] - The company plans to enhance its market presence through strategic investments in new technologies and potential acquisitions in the renewable energy sector[40] - The company is focusing on developing renewable energy businesses and exploring hydrogen energy and energy storage to adapt to macroeconomic changes[145] - The company plans to accelerate the development of strategic emerging projects, including the completion of the first batch of the integrated wind and sand control project in Xilin Gol League[95] - The company aims to enhance its market awareness and utilize AI tools to optimize trading strategies and improve marketing efficiency[92] - The company will actively explore new business models such as "new energy+" and virtual power plants to solidify its foundation for high-quality development[96] Corporate Governance - The company is committed to maintaining high standards of corporate governance and has complied with the relevant rules during the year ending December 31, 2024[156] - The audit committee has reviewed the group's annual performance and the financial statements prepared in accordance with international financial reporting standards[160] - The annual performance announcement is published on the Hong Kong Stock Exchange's "Disclosure Easy" website and the company's website[161] - The company will release its 2024 annual report containing all information required by the Listing Rules at an appropriate time[161] Research and Development - Research and development investment for the year was approximately RMB 880 million, with an R&D intensity of 3.6%, resulting in 19 invention patents and 76 utility model patents[86] Market Position and Recognition - The group was recognized as one of the "Top 500 Global New Energy Enterprises" and ranked among the "Top 100 ESG Best Practices" in 2024[88]

Assets and Liabilities - As of September 30, 2024, the total current assets amounted to RMB 20,566,260,049.05, an increase from RMB 19,658,065,103.28 at the beginning of the period[3] - Non-current assets totaled RMB 76,234,259,090.60, an increase from RMB 74,304,062,883.78 at the beginning of the period[4] - The total assets of the company amounted to RMB 96,800,519,139.65, compared to RMB 93,962,127,987.06 at the start of the period, reflecting a growth of approximately 3.9%[4] - Total current liabilities amounted to RMB 21,989,815,223.60, an increase from RMB 13,543,158,109.72 at the beginning of the period[5] - Non-current liabilities totaled RMB 38,706,695,252.01, compared to RMB 37,719,278,301.13 at the beginning of the period[6] - The total liabilities reached RMB 60,696,510,475.61, up from RMB 59,268,683,414.05 at the start of the period[6] - The total equity attributable to shareholders was RMB 35,268,098,998.19, an increase from RMB 32,940,783,669.09 at the beginning of the period[7] Revenue and Profit - Total operating revenue for the period reached RMB 14,832,094,322.22, a decrease from RMB 15,123,755,367.47 in the previous period[8] - Total operating costs amounted to RMB 12,469,285,174.30, compared to RMB 12,539,427,133.92 in the previous period[8] - Operating profit for the period was RMB 2,807,103,612.46, down from RMB 3,071,273,612.97 in the previous period[9] - Net profit for the period was RMB 2,604,024,972.32, a decrease from RMB 3,072,641,613.91 in the previous period[9] - The net profit attributable to the parent company's shareholders was RMB 2,569,355,902.93, compared to RMB 3,072,641,613.91 in the previous period[9] - Total comprehensive income for the period was RMB 2,513,541,609.65, down from RMB 3,072,641,613.91 in the previous period[10] Cash Flow - The net cash flow from operating activities for the current period is RMB 3,934,719,705.31, compared to a net outflow of RMB 1,328,116,842.66 in the previous period[11] - Cash inflow from operating activities totaled RMB 18,917,472,521.04, while cash outflow was RMB 14,982,752,815.73, resulting in a net cash flow of RMB 3,934,719,705.31[11] - The cash flow from investment activities showed a net outflow of RMB 3,978,313,614.58, a significant decrease from a net inflow of RMB 1,785,420,669.51 in the previous period[12] - Cash inflow from financing activities was RMB 18,622,883,728.24, while cash outflow was RMB 18,760,513,300.05, leading to a net cash flow of RMB -137,629,571.81[12] - The total cash and cash equivalents at the end of the period amounted to RMB 6,403,225,598.86, down from RMB 1,083,248,268.62 in the previous period[13] Investments and Expenses - The company's long-term equity investments were valued at RMB 1,654,249,297.61, showing a slight increase from RMB 1,626,781,466.57 at the beginning of the period[4] - The company reported a total of RMB 13,690,309,857.48 in construction in progress, an increase from RMB 11,108,602,081.20 at the beginning of the period[4] - Research and development expenses for the company were RMB 2,726,517.88, compared to RMB 3,405,405.96 in the previous period[8] Other Information - The company has not disclosed any new product developments or market expansion strategies in the current report[1] - The exit of four hydropower stations in Sichuan Province is expected to impact the company's profits, with compensation arrangements still under discussion[10] - The company reported a government subsidy of RMB 21,270,421.00 during the period[9] - Other comprehensive income after tax was negative RMB 90,483,362.67, reflecting a decline from the previous period[10] - The impact of exchange rate changes on cash and cash equivalents was a decrease of RMB 4,438,773.31[13]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 2.37, indicating a potential upside of 16.2% from the current price of HKD 2.04 [11]. Core Insights - The impact of the Sichuan hydropower plant's exit from operation is expected to be minor, with compensation payments anticipated to be received in 2025 [1]. - The company forecasts a reduction in hydropower generation by approximately 110 million kWh in 2024, leading to a revenue decrease of about RMB 30 million [1]. - A one-time impairment is expected in 2024, but the core earnings impact for 2025-2026 is projected to be minimal [1]. - The dividend policy for 2024 is expected to remain unchanged, with a forecasted dividend of RMB 0.14 per share [1]. Financial Summary - Revenue projections for the company are as follows: RMB 20,867 million for 2024, RMB 22,696 million for 2025, and RMB 24,982 million for 2026, reflecting growth rates of 2.1%, 8.8%, and 10.1% respectively [2]. - Net profit estimates are RMB 2,932 million for 2024, RMB 3,523 million for 2025, and RMB 4,240 million for 2026, with a projected decline of 7.6% in 2024 followed by a recovery in subsequent years [2]. - The company’s earnings per share (EPS) is expected to be RMB 0.34 for 2024, RMB 0.41 for 2025, and RMB 0.50 for 2026 [2]. - The price-to-earnings (P/E) ratio is projected to be 5.4 for 2024, decreasing to 4.5 for 2025 and 3.7 for 2026 [2]. Operational Insights - The company’s total electricity sales for 2024 are projected to be 40,927 million kWh, with contributions from various energy sources: wind (13,836 million kWh), natural gas (19,424 million kWh), solar (6,066 million kWh), and hydropower (1,600 million kWh) [5]. - The operational profit from the wind and solar segments is expected to be significant, while the hydropower segment's contribution to operating profit is anticipated to be only 1% in 2025-2026 [1].

Energy Consumption and Generation - In the first half of 2024, the total electricity consumption in China reached 4.66 trillion kWh, representing a year-on-year growth of 8.1%[15] - The installed capacity of non-fossil energy power generation reached 1.71 billion kW, a year-on-year increase of 24.2%, accounting for 55.7% of the total installed capacity[15] - The total electricity generation from the gas power segment was 9.51 billion kWh, a year-on-year decrease of 1.2%[17] - Total power generation reached approximately 20.101 billion kWh, representing a year-on-year growth of 4.09%[19] - Wind power generation amounted to 7.14 billion kWh, up 8.67% year-on-year, with an equipment utilization of 1,137 hours, exceeding the industry average by 3 hours[19] Financial Performance - In the first half of 2024, the company's profit attributable to equity holders was approximately RMB 2.087 billion, a year-on-year increase of 1.55%[19] - Total operating revenue decreased by 0.84% from RMB 10,548.8 million in the first half of 2023 to RMB 10,460.0 million in the first half of 2024, attributed to lower electricity prices in gas power and heating segments, decreased sales volume in wind power, and lower average prices in photovoltaic projects[31] - Operating profit decreased by 0.36% from RMB 3,133.8 million in the first half of 2023 to RMB 3,122.6 million in the first half of 2024[43] - Net profit for the period increased by 1.20% from RMB 2,161.1 million in the first half of 2023 to RMB 2,187.0 million in the first half of 2024[51] - Basic and diluted earnings per share for the period were RMB 25.31, up from RMB 24.92 in the previous year, representing a growth of 1.56%[81] Revenue Breakdown - Revenue from the gas power and heating segment decreased by 0.30% from RMB 6,336.7 million in the first half of 2023 to RMB 6,317.8 million in the first half of 2024, with electricity sales revenue down by 3.57% to RMB 5,040.1 million[32] - Wind power segment revenue decreased by 2.35% from RMB 2,516.3 million in the first half of 2023 to RMB 2,457.1 million in the first half of 2024 due to a decline in sales volume[33] - Photovoltaic segment revenue increased by 0.94% from RMB 1,499.9 million in the first half of 2023 to RMB 1,514.0 million in the first half of 2024, driven by new project contributions despite lower average prices[34] - The breakdown of revenue from customer contracts includes RMB 6,317,817 thousand from gas power and heating, RMB 2,457,115 thousand from wind power, RMB 1,513,994 thousand from photovoltaic power, and RMB 141,213 thousand from hydropower[97] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 95,090.7 million, with total liabilities of RMB 59,668.4 million and total equity of RMB 35,422.3 million[52] - Total assets increased by 1.60% from RMB 93,594.4 million on December 31, 2023, to RMB 95,090.7 million on June 30, 2024, due to increased investment in new projects[53] - Total liabilities rose by 1.01% from RMB 59,073.8 million to RMB 59,668.4 million, driven by funding needs for project construction[53] - Net current liabilities decreased by 26.36% from RMB 2,399.5 million to RMB 1,766.9 million as of June 30, 2024[54] Capital Expenditures and Investments - Capital expenditures for the first half of 2024 amounted to RMB 1,939.1 million, with RMB 1,384.2 million allocated to photovoltaic power generation projects[65] - The company has completed new filing capacity of approximately 2.416 million kW in the first half of 2024, including 900,000 kW for wind power and 1.516 million kW for solar power[21] - The company plans to enhance project development efforts and reserve high-quality projects for future growth, including key projects in wind and solar energy[27] Debt and Financing - The company issued a super short-term financing bond of RMB 1,700 million at an interest rate of 1.93% on April 16, 2024[64] - The company holds fixed interest rate loans totaling RMB 11,989 million as of June 30, 2024[55] - The company’s total borrowings increased by RMB 7,344,833,000 in the six months ended June 30, 2024, compared to an increase of RMB 11,125,750,000 in the same period of 2023, indicating a slowdown in borrowing growth[125] Employee and Workforce - Employee costs for the first half of 2024 were approximately RMB 535.4 million[61] - The proportion of employees under 35 years old is approximately 44.20%, indicating a younger workforce[57] Corporate Governance and Compliance - The company has been recognized with an AA rating in the Wind ESG assessment for three consecutive years, reflecting its commitment to environmental, social, and governance standards[24] - The company has adopted the corporate governance code and complied with all applicable provisions during the six months ending June 30, 2024[70] Future Outlook - The company aims to achieve a renewable energy installed capacity target of 12.5 million kW and a profit target of RMB 4.1 billion for the second half of 2024[26] - The company plans to continue its market expansion and investment in new technologies to enhance operational efficiency and profitability in the upcoming periods[90]

Financial Performance - For the six months ended June 30, 2024, revenue was RMB 10,460.0 million, a decrease of 0.84% compared to the same period in 2023[2]. - For the same period, profit before tax was RMB 2,615.2 million, an increase of 0.85% year-on-year[2]. - The profit attributable to equity holders of the company was RMB 2,086.7 million, reflecting a growth of 1.55% compared to the previous year[2]. - Basic and diluted earnings per share for the period were RMB 25.31[3]. - Total comprehensive income for the period was RMB 2,104.5 million, down from RMB 2,274.5 million in the same period last year[4]. - The net profit for the six months ended June 30, 2024, was RMB 2,086,711,000, an increase from RMB 2,054,907,000 for the same period in 2023, representing a growth of approximately 1.6%[28]. - Total operating revenue decreased by 0.84% from RMB 10,548.8 million in the first half of 2023 to RMB 10,460.0 million in the first half of 2024, primarily due to lower electricity prices in the gas power and heating segment[50]. Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to RMB 74,591.3 million, an increase from RMB 73,782.6 million at the end of 2023[5]. - Current assets totaled RMB 20,499.4 million, up from RMB 19,811.8 million at the end of 2023[5]. - As of June 30, 2024, the company's total assets amounted to RMB 72,824,339,000, an increase from RMB 71,383,230,000 as of December 31, 2023, reflecting a growth of approximately 2.0%[6]. - The total liabilities increased to RMB 59,824,351,000 from RMB 59,073,763,000, indicating a rise of approximately 1.3%[6]. - The net current liabilities decreased to RMB 1,766,946,000 from RMB 2,399,402,000, indicating a reduction of about 26.4%[6]. - The company's total equity increased to RMB 35,422,290,000 from RMB 34,520,678,000, representing a growth of approximately 2.6%[7]. - Total liabilities increased by 1.01% to RMB 59,668.4 million as of June 30, 2024, from RMB 59,073.8 million as of December 31, 2023, due to increased funding needs for project construction[69]. Revenue Breakdown - Revenue from customer contracts for the six months ended June 30, 2024, was RMB 10,431,908,000, slightly down from RMB 10,478,337,000 for the same period in 2023, a decrease of about 0.4%[12]. - The revenue breakdown shows that electricity sales contributed RMB 9,152,415,000, with gas power and heating generating RMB 5,040,093,000, wind power RMB 2,457,115,000, and solar power RMB 1,513,994,000[13]. - Revenue from gas power generation and heating was RMB 6,317,817 thousand, accounting for 60.4% of total revenue, while wind power revenue was RMB 2,457,115 thousand, contributing 23.5%[18]. - The wind power segment's revenue fell by 2.35% to RMB 2,457.1 million due to a decline in electricity sales from existing projects[52]. - The photovoltaic segment's revenue increased by 0.94% to RMB 1,514.0 million, driven by new projects and increased sales volume[53]. Expenses and Costs - Operating expenses decreased by 4.00% to RMB 7,691.0 million, attributed to compensation received for the dismantling of power stations[56]. - The total depreciation and amortization expenses for the six months ended June 30, 2024, amounted to RMB 2,034,760,000, compared to RMB 1,914,175,000 for the same period in 2023, reflecting an increase of about 6.3%[8]. - Financial expenses decreased by 5.73% to RMB 599.3 million, with the average financing cost dropping from 2.99% in the first half of 2023 to 2.79% in the first half of 2024[64]. Market and Operational Insights - The company maintained a stable operational performance despite various challenges, emphasizing a commitment to high-quality development[34]. - The group continues to focus on expanding its market presence and enhancing its product offerings, although specific new products or technologies were not detailed in the report[8]. - The group is actively expanding its market presence, leveraging its green electricity advantages in surrounding areas such as Chengde and Tianjin[40]. - The group aims to achieve a renewable energy installed capacity target of 12.5 million kW and a total profit target of RMB 4.1 billion in the second half of 2024[44]. Dividends and Shareholder Value - The company's proposed final dividend for the year ended December 31, 2023, was RMB 0.1398 per share, totaling RMB 1,152,582,000[27]. - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year's zero interim dividend[27]. - The group is committed to maximizing shareholder value through high dividend ratios and effective market communication strategies[46]. Environmental and Regulatory Aspects - Government subsidies related to clean energy production decreased to RMB 143,589 thousand in 2024 from RMB 352,697 thousand in 2023, a decline of approximately 59.3%[20]. - Carbon emission certificate income was RMB 72,864 thousand for the six months ended June 30, 2024, down from RMB 98,519 thousand in 2023, reflecting a decrease of about 26.0%[20]. - The group continues to benefit from a preferential tax rate of 15% for certain projects in western China, with tax exemptions for the first three years of operation[24]. - The group has not made provisions for Hong Kong profits tax as there are no taxable profits sourced from Hong Kong[25]. - The group has received an AA rating from Wind ESG for three consecutive years, reflecting its strong performance in environmental, social, and governance aspects[42]. Future Plans and Investments - The group plans to enhance project development efforts, focusing on key projects such as the wind power project in Shantou and the pumped storage project in Mentougou[45]. - The group has increased its R&D investment intensity to 2.10%, a year-on-year increase of 0.9 percentage points, to foster new productive forces[41]. - Capital expenditures for the first half of 2024 totaled RMB 1,939.1 million, with RMB 1,384.2 million allocated to photovoltaic power generation projects[74]. - The group established several new subsidiaries focused on photovoltaic power generation projects in 2024[75].

Investment Rating - The report maintains a **Buy** rating for the company with a target price of **HKD 2.50**, representing a potential upside of **+15.7%** from the current price of HKD 2.16 [1][2] Core Views - The company's profitability is expected to return to growth in **2025**, with the dividend yield remaining the highest in the sub-sector [1][2] - The company is expected to achieve a breakthrough in wind and solar installed capacity in **2024**, with a target of **2.7 GW** of new installations, compared to **0.8 GW** in 2023 [2] - The company's **2024/25** profit forecasts have been slightly revised downward by **0.3%/0.7%** due to adjustments in wind and solar utilization hours and operating costs [2] - The company's **2025/26** wind and solar installations are expected to reach **4.2 GW** annually, contingent on the utilization rate of projects in 2024 [2] Financial Performance - Revenue is projected to grow from **RMB 20,446 million** in 2023 to **RMB 25,880 million** in 2026, with a CAGR of **8.1%** [4] - Net profit is expected to increase from **RMB 3,150 million** in 2023 to **RMB 4,640 million** in 2026, with a CAGR of **13.8%** [4] - The company's **2024/25/26** dividend yield is expected to remain at **7.0%**, with a consistent dividend payout of **RMB 0.14** per share [2][4] Operational Highlights - The company's total installed capacity is expected to grow from **17,236 MW** in 2024 to **25,636 MW** in 2026, with wind and solar accounting for **80.1%** of the total by 2026 [5] - Wind and solar power generation is expected to increase from **20,274 GWh** in 2024 to **33,812 GWh** in 2026, despite a slight downward revision in utilization hours [5] - The company's **2024** wind and solar utilization hours are expected to decline by **2.0%** and **1.5%**, respectively, compared to previous forecasts [5] Valuation and Market Position - The company's valuation is based on a **5.2x** forward P/E ratio, in line with its 5-year historical average [2] - The company's **7.0%** dividend yield is the highest among its peers in the operator sub-sector, supporting its valuation [2] - The company's recent improvement in trading volume could enhance its chances of being included in the **Stock Connect** program [2]