Financial Performance - Revenue for the six months ended June 30, 2024, was $982.3 million, a decrease of 19.7% compared to $1,223.8 million for the same period in 2023[3] - Profit attributable to equity shareholders for the six months ended June 30, 2024, was $183.5 million, down 7.3% from $197.8 million in the same period of 2023[3] - Earnings per share for the six months ended June 30, 2024, was 4.28 cents, a decrease of 7.3% compared to 4.61 cents for the same period in 2023[3] - The decrease in profit was primarily due to reduced fuel gross profit from the Korean project and decreased power generation from the Chinese wind power project due to power restrictions[3] - Operating profit for the six months ended June 30, 2024, was $303.9 million, compared to $344.6 million for the same period in 2023[5] - Other comprehensive income for the six months ended June 30, 2024, was $(46.1) million, compared to $(60.1) million for the same period in 2023[6] Operating Expenses - Total operating expenses for the six months ended June 30, 2024, were $678.4 million, down from $879.2 million in the same period of 2023[5] - Operating expenses for the first half of 2024 were $678.4 million, a decrease of 22.8% from $879.2 million in the first half of 2023, mainly due to reduced natural gas costs in the Korean gas projects[16] - Financial expenses for the first half of 2024 were $91.6 million, a decrease of 17.4% from $110.9 million in the first half of 2023, primarily due to a reduction in the weighted average balance of bank borrowings[19] Assets and Equity - Total assets as of June 30, 2024, were $8.4 billion, compared to $8.3 billion as of December 31, 2023[7] - Net assets as of June 30, 2024, were $1.78 billion, an increase from $1.69 billion as of December 31, 2023[8] - The company's total equity as of June 30, 2024, was $1,783.1 million, an increase from $1,688.6 million as of December 31, 2023[9] - The net debt-to-equity ratio decreased from 3.30 on December 31, 2023, to 3.23 on June 30, 2024, primarily due to an increase in equity[23] Dividends - The board has resolved not to declare an interim dividend for the six months ended June 30, 2024[3] - The company did not declare an interim dividend for the six months ended June 30, 2024[23] - The board has decided not to declare an interim dividend for the six months ending June 30, 2024[89] Trade Receivables and Payables - Trade receivables from customer contracts increased to $870.975 million as of June 30, 2024, compared to $780.784 million on December 31, 2023[25] - Total trade receivables, net of credit loss provisions, amounted to $855.643 million as of June 30, 2024, up from $766.028 million at the end of 2023[26] - Trade payables as of June 30, 2024, totaled $96.792 million, down from $108.671 million on December 31, 2023[29] Capacity and Generation - The company's total power generation for the six months ended June 30, 2024, was 9,660.4 GWh, a decrease of 4.7% compared to 10,140.6 GWh for the same period in 2023[62] - The power generation from Chinese solar projects increased by 22.1% year-on-year to 1,035.3 GWh, attributed to an increase in solar project capacity[63] - The company added 581.1 MW of solar equity installed capacity in the second half of 2023, contributing to a total of 1,759.4 MW as of June 30, 2024, representing a 49.3% year-on-year increase[56] - As of June 30, 2024, the company's total equity installed capacity reached 9,666.4 MW, an increase of 688.4 MW or 7.7% year-on-year, with wind and solar accounting for 64.1% of the total[56] Market and Regulatory Environment - The Chinese government is focusing on energy security and green low-carbon transformation, with regulatory emphasis on renewable energy projects and market participation[42] - The State Council issued a plan for 2024-2025 to enhance non-fossil energy development and improve renewable energy consumption capabilities[43] - The National Energy Administration announced in June 2024 that the utilization rate target for renewable energy should not be lower than 90% in favorable resource areas, with annual dynamic assessments based on consumption conditions[44] - Regulatory changes in China and South Korea may impact the company's power project operations, including pricing and compliance with environmental regulations[74] Innovation and Development - The company is committed to green and low-carbon development, focusing on strategic alliances and innovation to enhance production capacity[59] - Innovation will be emphasized as a core driver for development, with efforts to enhance the technology innovation management system[84] - The company is focusing on digital operation and maintenance innovations, aiming to achieve unmanned operation capabilities for power plants[70] Challenges and Risks - Fuel costs significantly impact the company's operating expenses, with no current hedging measures in place to mitigate price fluctuations[76] - The company faces interest rate risk due to floating rate debt, which is used to support asset acquisitions and general corporate purposes[77] - The functional currency is USD, but the majority of revenue is received in RMB and KRW, exposing the company to foreign exchange risk[78]

Investment Rating - The report does not explicitly state an investment rating for 中广核新能源 (CGN New Energy) Core Viewpoints - CGN New Energy is positioned as a leading player in the wind power sector, leveraging group resources for rapid growth, but faces challenges with limited new quality projects and shareholder returns [1][10] - The company has shown a significant increase in installed capacity, particularly in wind and solar energy, but the growth rate has slowed down recently [2][11] - The average profit per kilowatt-hour for CGN New Energy is competitive within the industry, indicating strong operational efficiency [9] Summary by Sections Company Overview - CGN New Energy is the only non-nuclear clean energy listed platform under CGN Group, which primarily focuses on nuclear power [1] - The company has diversified operations in wind, solar, and gas energy projects across China and South Korea [1] Financial Performance - In 2023, CGN New Energy reported revenue of $2.19 billion, a 9.8% decrease year-on-year due to falling electricity prices in South Korea, but adjusted net profit increased by 9.4% to $280 million [2][3] - The company's gross margin improved from 48.7% to 55.2% in 2023, driven by lower natural gas costs in South Korea [2][12] Revenue Structure - The main revenue sources include electricity sales, electricity price income, and capacity fees, contributing approximately 90% of total revenue [4] - As of the end of 2023, the company had receivables from government subsidies amounting to $370 million [4] Installed Capacity and Growth - CGN New Energy's installed capacity for wind and solar energy reached 4,438 MW and 1,759 MW respectively by the end of 2023, ranking fifth and sixth among listed companies in Hong Kong and A-shares [11][12] - The company experienced a 102% increase in wind power capacity from 2019 to 2021, but growth has slowed since then [7][10] Profitability and Leverage - The company maintains a high return on equity (ROE) of 17.8% in 2023, outperforming peers [15] - However, CGN New Energy's debt levels are high, with a debt-to-asset ratio of 79.8% and a significant portion of loans from affiliated companies [16][17] Cash Flow and Shareholder Returns - Free cash flow improved to $40 million in 2023, but the company has a negative cumulative free cash flow of $2.43 billion since its listing [18] - The dividend payout ratio is relatively low at 25%, ranking among the lowest in the Hong Kong market for similar companies [19][20]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 3.8, implying a 47.29% upside from the current price of HKD 2.58 [2][4] Core Views - The company achieved steady growth in net profit, with 2023 net profit increasing by 37.2% YoY to USD 268 million, or 10.6% growth after adjusting for one-time items [1] - Wind power business remained stable, while the decline in revenue was mainly due to lower electricity generation and average tariffs in South Korea, where revenue fell by 16.4% YoY [1] - The company plans to increase its dividend payout ratio to 25% and announced a share buyback program of up to HKD 157 million, which is expected to drive valuation recovery [2] Financial Performance - 2023 revenue declined by 9.8% YoY to USD 2.193 billion, mainly due to the South Korean business [1] - For the first 4 months of 2024, total electricity generation decreased by 3.6% YoY to 6,544.3 GWh, with Chinese wind projects down 4.3% and solar projects up 19.5% [1] - The company's installed capacity reached 9.62 GW by end-2023, with clean and renewable energy accounting for 83.8% of the total [1] Valuation and Forecasts - The report forecasts 2024-2026 revenue of USD 2.419 billion, USD 2.494 billion, and USD 2.570 billion respectively [2] - Net profit is expected to grow to USD 301 million, USD 330 million, and USD 344 million in 2024-2026, with EPS of USD 0.07, USD 0.08, and USD 0.08 [2] - Current valuation multiples are attractive at 4.7x, 4.3x, and 4.1x 2024-2026 P/E [2] Industry and Operations - The company's installed capacity is expected to grow steadily, with annual additions of 500-1,000 MW for wind and solar projects [1] - Clean and renewable energy projects account for 83.8% of total installed capacity, with China and South Korea representing 77.5% and 22.5% respectively [1]

Investment Rating - The report maintains a "Buy" rating for CGN New Energy (1811 HK) [2] Core Views - CGN New Energy's 2023 performance met expectations, with a significant improvement in profitability driven by lower coal costs and better wind resources [2] - The company's dividend payout ratio increased to 25%, with an absolute dividend amount growing by 71% year-over-year, highlighting its high dividend value [2] - The company's renewable energy projects demonstrate high quality, with stable electricity prices and superior profitability compared to peers [2] - Backed by CGN Group, the company benefits from scale advantages and project acquisition capabilities, ensuring high growth and return rates [2] - The company's valuation remains attractive, with a forward PE ratio of 4 2x for 2024 and a dividend yield exceeding 6% [2] Financial Performance - In 2023, CGN New Energy reported revenue of USD 2 19 billion (RMB 15 53 billion), a year-over-year decline of 9 8%, while net profit attributable to shareholders increased by 37 2% to USD 268 million (RMB 1 896 billion) [2] - The company's coal-fired power projects in China turned profitable, contributing USD 15 million, compared to a loss of USD 50 million in 2022, due to a 17 3% decline in coal procurement costs [2] - Wind power projects in China generated USD 260 million, up 12% year-over-year, driven by a 10 6% increase in wind power generation [2] - Solar power projects in China generated USD 28 million, down 36% year-over-year, due to impairment of some receivables [2] Renewable Energy Projects - CGN New Energy's wind power projects achieved an electricity price of RMB 0 56/kWh (tax included), slightly down by RMB 0 01/kWh year-over-year, while solar power prices remained stable at RMB 0 64/kWh [2] - The company added 590 MW of new renewable energy capacity in 2023, including 20 MW of wind power and 570 MW of solar power, primarily in regions with low grid curtailment risks [2] - The company aims to add at least 500 MW of new renewable energy capacity annually, ensuring leading project return rates [2] Valuation and Forecasts - The report forecasts net profit attributable to shareholders of RMB 1 947 billion, RMB 2 055 billion, and RMB 2 17 billion for 2024, 2025, and 2026, respectively, with year-over-year growth rates of 2 7%, 5 53%, and 5 4% [2] - The company's forward PE ratios for 2024-2026 are 4 2x, 3 9x, and 3 7x, respectively, with dividend yields of 6 0%, 6 3%, and 6 7% assuming a 25% payout ratio [2] Market Performance - CGN New Energy's stock performance is compared to the Hang Seng China Enterprises Index, with significant underperformance over the past year [1]

Investment Rating - The report maintains a "Buy" rating with a target price of HKD 2.80, indicating a potential upside of 24% from the current price of HKD 2.25 [1][3][13] Core Insights - In 2023, the company reported a net profit of USD 268 million, a year-on-year increase of 37.2%, driven by reduced asset impairment losses and a turnaround in joint venture earnings [4][10] - The company has increased its dividend payout ratio to 25% in 2023, up from 20% in 2022, with a dividend of USD 0.0156 per share [4][10] - The company's wind power business generated revenue of USD 702 million in 2023, a slight increase of 1.4% year-on-year, despite a small decline in electricity prices [7][11] Financial Performance - The company achieved total revenue of USD 2.193 billion in 2023, a decrease of 9.8% compared to the previous year [4][15] - The earnings per share (EPS) for 2023 was USD 0.0624, reflecting a significant increase from the previous year [9][15] - The company plans to add 500-1000 MW of new wind and solar capacity by the end of 2024, aiming for stable growth in performance [8][12] Future Outlook - The company expects a 5.3% year-on-year increase in power generation for the first quarter of 2024, with significant growth in both wind and solar projects [8][12] - The projected revenue for 2024 is USD 2.567 billion, with an anticipated growth rate of 17% [9][15] - The company maintains a reasonable return on investment for its wind and solar projects despite a downward trend in electricity prices [8][12]

Awards and Recognitions - Shandong Qingyun Shangtang Wind Power Project, Anqiu Huangminshan Wind Power Project, and Linqu Wind Power Project were awarded the "Excellent New Energy and Renewable Energy Enterprise for 2022" by Shandong Province Electricity Association[19] - Gansu Hongshagang Wind Power Project received the "Safety Management Excellence Award" and "Outstanding Contribution Award" in the Hongshagang Industrial Cluster Area for 2022[20] - The company obtained the first-class project of "National Power Industry Equipment Management Innovation Achievements for 2022" by the China Electric Equipment Management Association[21] - Inner Mongolia Kezuo Zhongqi Photovoltaic Poverty Alleviation Project was assessed as an "Integrity-compliant Enterprise" by the Inner Mongolia Autonomous Region Development and Reform Commission[23] - The company's Huaiyin Liulaozhuang Wind Power Project in Jiangsu Province was awarded the "Top Ten Excellent Wind Farm Stations" in 2023[25] - The company won eleven titles at the 9th Investor Relations Awards from the Hong Kong Investor Relations Association (HKIRA), including the "Grand ESG Award" (mid cap) and "Best IR Company" for three consecutive years[25][43] - The company was awarded the first-class project of "National Power Industry Equipment Management Innovation Achievements" in March 2023 for its efforts in turbine control system optimization[173] - The company's Minqin Wind Power Project and Hongshagang Wind Power Project in Gansu Province each won a second-class prize in the "2023 Electric Power Industry Equipment Management and Technological Innovation Achievements" [184] - The company's Dongzhi Zhaotan Wind Power Project in Anhui Province won one second-class prize, and the Dingyuan Phase I Fishing-Photovoltaic Power Complementary Project won two second-class prizes in the "Electric Power Industry Problem-Solving Topics Quality Management Activities" [184] - The company's Zhangbei Xinsheng Wind Farm in Hebei Province was awarded "5A-level Unit in the Benchmarking of Production and Operation Statistical Indicators for National Wind Farms in China" [186] - The company's Leling Zhuji Wind Farm in Shandong Province was awarded "4A-level Unit in the Benchmarking of Production and Operation Statistical Indicators for National Wind Farms in China" [186] - The company's Leling Tieying Photovoltaic Power Station in Shandong Province was awarded "4A-level Unit in the Benchmarking of Production and Operation Statistical Indicators for National Solar Photovoltaic Power Stations in China" [186] - The company's Qingyun Shangtang, Anqiu Huangminshan, and Linqu Wind Power Projects in Shandong Province were awarded the "Excellent New Energy and Renewable Energy Enterprise for 2022" [186] - The company's Hongshagang Wind Power Project in Gansu Province won the "Safety Management Excellence Award" and the "Outstanding Contribution Award" in 2022 [186] - The company's Kezuo Zhongqi Photovoltaic Poverty Alleviation Project in Inner Mongolia was assessed as an "Integrity-compliant Enterprise" [186] - The company's Huaiyin Liulaozhuang Wind Power Project in Jiangsu Province was awarded "Top Ten Excellent Wind Farm Stations" in the "2023 China Wind Power Industry Top 50 Selection Event" [186] - The company's Dongzhi Photovoltaic Project in Anhui Province won the "Quality Engineering Award" from the Anhui Province Electric Association [186] Financial Performance - Profit attributable to equity shareholders in 2023 was $267.7 million, a 37.2% increase compared to the previous year[33] - Basic earnings per share for 2023 was $6.24 cents (equivalent to HK$48.66 cents per share)[33] - EBITDA decreased by 2.8% compared to 2022, while profit attributable to equity shareholders increased by 37.2% and revenue decreased by 9.8%[83] - Total revenue for the year ended 31 December 2023 was $2,193.0 million, with operating profit of $552.5 million and net profit attributable to equity shareholders of $267.7 million[119] - Korea Projects profit decreased from $79.5 million in 2022 to $71.5 million in 2023, mainly due to decreased power generation[120][124] - PRC Coal-fired, Cogen and Gas-fired Projects turned from a loss of $43.2 million in 2022 to a profit of $16.4 million in 2023, driven by lower market coal prices[121][125] - PRC Wind Projects revenue increased due to higher power generation, but profit decreased from $286.2 million in 2022 to $269.0 million in 2023 due to higher operating expenses and depreciation[122][126] - PRC Solar Projects revenue remained stable, but profit decreased from $45.7 million in 2022 to $29.0 million in 2023 due to increased loss allowances and goodwill impairment[123][127] - Total segment revenue for 2023 was $2,192,977 thousand, with $1,012,714 thousand from power plants in the PRC and $1,151,008 thousand from power plants in Korea[161] - Total segment results for 2023 were $396,430 thousand, with $303,791 thousand from power plants in the PRC and $91,246 thousand from power plants in Korea[161] - Segment revenue for power plants in the PRC decreased by 1.2%, mainly due to the decrease in weighted average tariffs of PRC Cogen and Hydro Projects[159] - Segment revenue for power plants in Korea decreased by 16.4%, primarily due to a decrease in power generation and weighted average tariff of electricity[164] - Segment results for power plants in Korea increased by 7.2%, mainly due to a decrease in impairment losses on property, plant, and equipment[164] - Segment results for power plants in the PRC increased by 5.8%, primarily due to a decrease in impairment losses on property, plant, and equipment[161][162] Installed Capacity and Power Generation - The company's attributable installed capacity reached 9,622.8 MW by the end of 2023, a 7.1% year-on-year increase[33] - New attributable installed capacity added in 2023 was 644.8 MW[33] - Power generation in 2023 reached 19,076.6 GWh, remaining stable compared to the previous year[33] - The company's newly commissioned attributable installed capacity in 2023 included 18.7 MW of wind power and 581.1 MW of solar power[42] - The company added 18.7 MW of wind power and 581.1 MW of solar power in 2023, and successfully commissioned a 45 MW natural gas distributed generation project in Hubei[46] - Total attributable installed capacity reached 9,622.8 MW as of 31 December 2023, a 7.1% year-on-year increase, with wind and solar accounting for 64.4% of total capacity[133][134] - Wind power installed capacity increased by 18.7 MW (0.4%) to 4,437.8 MW, while solar power capacity increased by 572.6 MW (48.2%) to 1,759.4 MW in 2023[134][135] - Newly added attributable installed capacity in 2023 included 599.8 MW from wind and solar projects and 45.0 MW from gas-fired projects[133][134] - Total electricity generated by the Group's consolidated power generation projects in 2023 amounted to 19,076.6 GWh, remaining stable compared to 2022[146] - PRC wind projects generated 10,367.7 GWh in 2023, a 10.6% increase from 2022, driven by existing wind projects and newly commissioned solar projects[147] - PRC solar projects generated 1,733.5 GWh in 2023, a 2.4% increase from 2022, mainly due to contributions from newly commissioned solar projects[147] - PRC cogen and gas-fired projects generated 387.1 GWh in 2023, a 6.7% year-on-year increase, driven by higher electricity demand in Jiangsu Province[147] - PRC hydro projects generated 227.0 GWh in 2023, a 53.5% year-on-year decrease, due to the expiration of the Fushi I hydro project cooperation in Guangxi[149] - Korea projects generated 6,361.3 GWh in 2023, a 12.6% year-on-year decrease, primarily due to reduced power dispatch load of gas-fired projects[151] - The Group sold 2,970,000 tonnes of steam in 2023, a 3.8% decrease compared to 2022[151] - Average utilization hours for PRC wind projects remained stable at 2,285 hours in 2023, compared to 2,284 hours in 2022[152] - Average utilization hours for PRC coal-fired projects decreased to 4,545 hours in 2023 from 5,018 hours in 2022, due to reduced local demand[152] - Korea gas-fired projects' average utilization hours decreased to 3,514 hours in 2023 from 4,065 hours in 2022, mainly due to lower power generation at the Yulchon II Power Project[153] Energy Transition and Renewable Energy Development - By the end of 2023, the nationwide installed capacity of power generation reached 2,919.7 GW, a 13.9% year-on-year increase, with non-fossil energy power generation exceeding thermal power generation for the first time[40] - The combined installed capacity of grid-connected wind power and solar power exceeded 1,000 GW by the end of 2023, accounting for over one-third of the total installed capacity[40] - China's total installed power generation capacity reached 2,919.7 GW by the end of 2023, a year-on-year increase of 13.9%[45] - Non-fossil energy power generation capacity exceeded thermal power for the first time in 2023, accounting for 53.9% of total capacity, while coal power dropped below 40%[45] - Combined installed capacity of grid-connected wind and solar power exceeded 1,000 GW, accounting for over one-third of total capacity, an increase of 6.4 percentage points year-on-year[45] - The first batch of large-scale wind and photovoltaic base projects in desert, Gobi, and barren areas have all started, with the second batch of projects also underway[87] - The NEA issued guidelines in 2023 to promote the grid connection and operation of large-scale wind and photovoltaic base projects, and to plan for offshore solar farms[88] - China and the US issued a statement in 2023 to triple global renewable energy capacity by 2030 and accelerate renewable energy deployment in their respective economies[89] - The National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) jointly issued a notice to expand the scope of spot market construction, with most regions outside the Tibet Autonomous Region expected to meet trial operation conditions for settlement by the end of 2023[98][103] - The NDRC issued the "National Carbon Peak Pilot Construction Program," selecting 100 representative cities and zones nationwide to carry out carbon peak pilot construction, focusing on energy infrastructure, energy-saving, and carbon-reducing projects[99] - The NDRC and NEA jointly issued a notice to establish a capacity tariff mechanism for coal power, transitioning from a single-part tariff to a two-part tariff, reflecting market-based electricity volume pricing and gradually adjusting capacity tariffs based on transition progress[100] - The NEA issued a notice to promote large-scale development of solar thermal power generation, aiming for an annual new construction scale of about 3 GW during the "14th Five-Year Plan" period[102] - The NEA issued the "Blue Book on the Development of New Power Systems," outlining a "three-step" development approach with key tasks including hydropower, nuclear power, new energy, and biomass power generation development[106] - The NEA issued a notice on pilot demonstration of new energy storage, aiming to drive innovation in technology and business models through pilot projects and support policies[105] - The NDRC and other departments issued the "Implementation Program for Demonstration Projects of Green and Low-carbon Advanced Technologies," targeting key areas such as deep-sea wind, advanced power grid, green hydrogen, and CCUS by 2025[107] - The NDRC, Ministry of Finance, and NEA jointly issued a notice to achieve full coverage of green certificate issuance for renewable energy projects, promoting renewable energy consumption[96] - The NEA issued a notice to organize renewable energy development pilot demonstrations, including projects like deep-sea wind, advanced photovoltaic, and green energy demonstration zones[96] - The company highlighted progress in energy transition, with over 90 GW of peaking potential tapped and rapid growth in lithium batteries, compressed air, and flow battery projects[101] - Offshore wind power indicators in 2023 reached 25 GW, including 16 GW in national jurisdiction sea areas, marking a shift towards deep-sea development[111] - China developed the world's largest 18 GW offshore wind turbine, reducing project costs and enhancing economic efficiency[112] - The Group's attributable installed capacity as of December 31, 2023, was 9,622.8 MW, with 83.8% from clean and renewable energy projects[117] - The Group's operations in China accounted for 77.5% of its total installed capacity, while Korea accounted for 22.5%[117] - The "Guiding Opinions on Strengthening the Stability of the Power System in the New Situation" emphasized the transformation of new energy from passive access to active support[108] - The "Notice on Exploring and Promoting the Work of Establishing Multidimensional Layered Rights in Sea Areas" encourages multi-dimensional sea use, benefiting new energy enterprises[113] - The Korean power market is undergoing energy structure transformation, with increased competition expected to hinder profitability for gas-fired power generation companies[115] Tariffs and Fuel Prices - Weighted average tariff for PRC Wind Projects remained stable at RMB 0.56 per kWh in 2023, compared to RMB 0.57 per kWh in 2022[155] - Weighted average tariff for PRC Solar Projects remained stable at RMB 0.64 per kWh in 2023, compared to RMB 0.64 per kWh in 2022[155] - Weighted average tariff for PRC Hydro Projects decreased to RMB 0.24 per kWh in 2023 from RMB 0.30 per kWh in 2022, mainly due to the expiration of the Fushi I hydro project cooperation[155] - Weighted average tariff for Korea Gas-fired Projects decreased to KRW 232.12 per kWh in 2023 from KRW 251.67 per kWh in 2022, in line with the decrease in gas prices in Korea[155] - PRC weighted average standard coal price decreased to RMB 1,187.6 per ton in 2023 from RMB 1,436.5 per ton in 2022, due to a decrease in market coal prices[157] - Korea weighted average gas price decreased to KRW 1,107.6 per Nm3 in 2023 from KRW 1,228.6 per Nm3 in 2022, influenced by the decrease in Japanese Crude Cocktail prices[157] Regional Installed Capacity - The company's total installed capacity in Guangdong is 16.4 MW, in Shanghai is 4.5 MW, and in Hainan is 124.3 MW[48][49] - The company's total installed capacity in Anhui is 66.2 MW and 394.6 MW, and in Shanxi is 199 MW[50] - The company's total installed capacity in Zhejiang is 404.2 MW and 137.6 MW, and in Hebei is 104.6 MW[51] - The company's total installed capacity in Hubei is 24 MW, 100 MW, 251.5 MW, and 2,020 MW[52] - The company's total installed capacity in Shandong is 567.6 MW and 35 MW[53] - The company's total installed capacity in Fujian is 8.9 MW, and in Jiangsu is 554 MW, 231 MW, and 63 MW[54] - Total installed capacity in Zhejiang, China is 404.2 MW, with an additional 137.6 MW[75] - Total installed capacity in Hubei, China is 24 MW, with an additional 100 MW and 251.5 MW, and 2,020 MW through associates (49% stake)[76] - Total installed capacity in Fujian, China is 8.9 MW, and in Korea, it is 507 MW, 1,549.1 MW, and 109.5 MW[77] - Total installed capacity in Shandong, China is 567.6 MW and 35 MW, while in Shaanxi, it is 0.7 MW[81] - Total installed capacity in Jiangsu, China is 554 MW, 231 MW, and 63 MW[82] Corporate Social Responsibility and Community Engagement - The company's Shengsi 56 Offshore Wind Power Project in Zhejiang Province commenced a fish stocking scheme in June 2023, promoting fishery efficiency and increasing fishermen's income[176] - The company's Rudong H8 Offshore Wind Power Project in Jiangsu Province built emergency rescue points around offshore wind turbines in June 2023, available for use by fishermen and nearby victims[176] - The company's Renxian Phase I Wind Power Project in Hebei Province donated to the Xingtai Charity Federation in August 2023 for disaster relief and post-disaster reconstruction work in Renze District[179] - The company's Dachaidan Solar Project in Qinghai Province donated to the Experimental Primary School in Delingha City in August 2023, benefiting approximately 830 students, including 270 ethnic minority students[180] - The company was awarded a medal by the Delingha Municipal People's Government for its donation project, recognized as a "School-Enterprise Twinning and Supporting Caring Enterprise"[180] - The company was invited to attend the opening ceremony of the 19th Western China International Fair and the 11th Western China International Cooperation Forum in June 2023, highlighting its role in Western China's opening up and cooperation[182] Technology and Innovation - The company focused on digital operation and maintenance, developing intelligent equipment to achieve unattended operation of wind and photovoltaic power stations[169] - The company promoted the integration of advanced offshore wind power technology, including floating wind and photovoltaic power, and new power systems[170] Segment Assets and Liabilities - Segment assets for power plants in the PRC increased to $6,894,919 thousand in 2023, up from $6,743,376 thousand in 2022, mainly due to increased purchases of property, plant, and equipment[165][166] - Segment liabilities for power plants

Financial Performance - For the year ended December 31, 2023, the revenue was $2,193.0 million, a decrease of 9.8% from $2,430.1 million for the year ended December 31, 2022[3]. - The profit attributable to equity shareholders for the year was $267.7 million, an increase of 37.2% compared to $195.1 million for the previous year[3]. - The basic earnings per share for the year was 6.24 cents, up 37.2% from 4.55 cents for the year ended December 31, 2022[7]. - The total operating expenses for the year were $1,640.5 million, down from $1,840.4 million in the previous year, reflecting a decrease of approximately 10.8%[4]. - The operating profit for the year was $552.5 million, compared to $589.7 million in the previous year[4]. - The total comprehensive income for the year was $228.5 million, compared to $26.7 million in the previous year[5]. - Operating profit before tax increased to $352,528 thousand in 2023 from $272,994 thousand in 2022, representing a growth of approximately 29.2%[12]. - The company's total equity increased to $1,688,559 thousand in 2023 from $1,499,556 thousand in 2022, reflecting a growth of approximately 12.6%[10]. - The company's total liabilities decreased to $6,661,583 thousand in 2023 from $6,844,377 thousand in 2022, indicating a positive trend in financial health[13]. - The company's income tax expense increased by 24.5% to $72.9 million, up from $58.6 million in the previous year[30]. Revenue Breakdown - The total revenue from the China power plants was $1,012,714 thousand, while the revenue from the Korea power plants was $1,151,008 thousand, showing a decline in both segments compared to the previous year[12]. - Revenue from wind power projects in China was $702.4 million, an increase of 1.4% from $692.8 million in the previous year[23]. - Revenue from South Korea decreased by 16.4% to $1,151.0 million, down from $1,377.4 million in the previous year[23]. Assets and Liabilities - Non-current assets, including property, plant, and equipment, amounted to $5,883.4 million as of December 31, 2023, compared to $5,812.4 million in the previous year[8]. - The cash and cash equivalents decreased to $287.5 million from $440.6 million in the previous year[8]. - As of December 31, 2023, total assets decreased to $8,350,142 thousand from $8,343,933 thousand in 2022, reflecting a slight increase in total liabilities to $6,661,583 thousand from $6,844,377 thousand[13]. - The net current liabilities improved to $(234,651) thousand in 2023 from $(574,539) thousand in 2022, indicating a significant reduction in current liabilities[16]. - The company’s non-current liabilities decreased to $4,658,957 thousand in 2023 from $4,376,926 thousand in 2022, indicating a reduction in long-term financial obligations[13]. Dividends and Shareholder Returns - The company proposed a final dividend of 1.56 cents per share, totaling approximately $66.9 million, which is equivalent to about 25% of the profit attributable to equity shareholders[3]. - The proposed final dividend for the year ended December 31, 2023, is $1.56 per share, representing a payout ratio of 25% of the profit attributable to equity shareholders[32]. Operational Highlights - The company added 581.1 MW of solar capacity in 2023, with significant contributions from Jiangsu (200.0 MW) and Zhejiang (121.1 MW)[63]. - The installed capacity of wind power in China reached 441.3 GW in 2023, a year-on-year increase of 20.7%[49]. - The total installed capacity of solar power in China reached 609.5 GW in 2023, a year-on-year increase of 55.2%[49]. - The company is actively involved in the renewable energy sector, supporting the goal of tripling global renewable energy capacity by 2030[50]. Risk Management and Governance - The company faces risks related to fuel price fluctuations, regulatory changes, and extreme weather conditions affecting its energy projects[84][85][86][87]. - The company has maintained compliance with corporate governance codes throughout the fiscal year, with a noted exception regarding the roles of the chairman and CEO from January 1 to September 4, 2023[97]. - The company is focused on risk management and control, enhancing its ability to navigate complex industry challenges[94]. Social Responsibility and Community Engagement - The company actively participates in rural revitalization projects, including educational support and disaster relief efforts, demonstrating its commitment to social responsibility[78]. - In August 2023, the company donated to disaster relief efforts in Xingtai City, Hebei Province, in response to severe flooding, receiving recognition from local government[79]. Awards and Recognition - The company was awarded the "Best IR Hong Kong Stock Company" at the 5th New Fortune Awards in February 2023, highlighting its investor relations excellence[81]. - The company won multiple awards at the HKIRA Investor Relations Awards in June 2023, including "Best Investor Relations Company" and "Best ESG" awards[81]. Future Outlook - The company plans to maintain stable growth in new capacity additions in 2024[63]. - The company aims to enhance its market competitiveness and achieve high-quality development through continuous management improvement and optimization of its management system[83].

Financial Performance - Revenue for the six months ended June 30, 2023, was US$1,400 million, an increase from US$1,224 million in the same period of 2022, representing a growth of 14.4%[13] - EBITDA for the same period was US$600 million, compared to US$503 million in the prior year, reflecting a year-on-year increase of 19.3%[13] - Revenue for the six months ended June 30, 2023, reached US$1,223.8 million, an increase from US$1,133.7 million in the same period of 2022[50] - Operating profit for the period was US$344.6 million, compared to US$329.6 million for the same period in 2022[50] - Profit attributable to equity shareholders for the period was US$197.8 million, up from US$177.9 million in the prior year[50] - The profit for Korea projects increased from US$28.9 million to US$41.5 million, driven by higher fuel margins and increased power generation[51] - The Group's operating profit was US$344.6 million, representing a 4.5% increase from US$329.6 million in the first half of 2022, driven by new wind projects and improved fuel margins[96] - Basic and diluted earnings per share rose to 4.61 US cents for the six months ended June 30, 2023, compared to 4.15 US cents for the same period in 2022[106] Installed Capacity and Generation - The attributable installed capacity as of June 30, 2023, was 8,516 MW, a slight decrease from 8,978 MW in 2022[17] - As of June 30, 2023, the attributable installed capacity of the Group is 8,978.0 MW, with 75.9% from the PRC and 24.1% from Korea[48] - The attributable installed capacity of wind power was 4,419.1 MW, up 458.7 MW or 11.6% from the previous year, while solar power capacity increased to 1,178.3 MW, a rise of 41.5 MW or 3.7%[60] - For the six months ended June 30, 2023, the total electricity generated by the Group's consolidated power generation projects amounted to 10,140.6 GWh, representing an increase of 6.6% from 9,517.0 GWh for the same period in 2022[69] - The electricity generated by PRC wind projects reached 5,601.1 GWh, with a growth rate of 16.7% compared to the same period in 2022[69] Market and Regulatory Environment - China's electricity consumption increased by 5.0% year-on-year to 4,307.6 TWh from January to June 2023[21] - The installed power generation capacity in China reached 2,707.7 GW, marking a 10.8% increase compared to the same period last year[21] - The NEA's "Guiding Opinions on Energy Work in 2023" set a target for non-fossil energy's share of installed power generation capacity to increase to approximately 51.9%[24] - The government aims to reduce energy consumption per unit of GDP and major pollutant discharge, prioritizing the development of a new energy system[23] - Regulatory changes in China and Korea may impact electricity generation, tariffs, and environmental compliance, affecting project operations[138] Clean Energy Initiatives - The company plans to continue expanding its clean energy capacity in line with China's green development goals[22] - The accumulated installed wind power capacity in China was 389.2 GW, up 13.7% year-on-year, while solar power capacity reached 470.7 GW, an increase of 39.8%[21] - The NEA encourages the connection of large-scale wind and solar power projects to the grid, with an additional 160 GW of installed capacity expected from these sources[24] - The total installed capacity of renewable energy in China has significantly increased since the dual carbon goals were proposed, reflecting a commitment to high-quality development[28] Financial Position and Cash Flow - The Group's cash and cash equivalents decreased from US$440.6 million as of December 31, 2022, to US$341.1 million as of June 30, 2023, primarily due to cash used in investing and financing activities offsetting cash generated from operating activities[101] - The net debt/equity ratio improved from 3.64 as of December 31, 2022, to 3.32 as of June 30, 2023, mainly due to a reduction in bank borrowings[101] - Net cash generated from operating activities for the six months ended June 30, 2023, was US$340,111,000, compared to US$321,255,000 for the same period in 2022, representing an increase of approximately 5.7%[191] - Net cash used in investing activities amounted to US$240,139,000 for the six months ended June 30, 2023, compared to US$251,112,000 in the prior year, indicating a decrease of about 4.4%[191] Corporate Governance and Compliance - As of June 30, 2023, the Company has complied with all applicable provisions of the Corporate Governance Code, except for code provision C.2.1 regarding the separation of the roles of chairman and chief executive[162] - Mr. Zhang Zhiwu served as both Chairman and President until August 22, 2023, when he ceased to be President, and Mr. Li Guangming was appointed as President effective September 4, 2023, bringing the Company into compliance with code provision C.2.1[162] - The audit committee and KPMG reviewed the unaudited consolidated interim financial report for the six months ended June 30, 2023[162] Innovation and Development - The company is focusing on innovation-driven development, particularly in offshore wind power and digital operation and maintenance, to create competitive advantages in "Offshore+" and "Green Power+"[80] - The company aims to enhance its innovation capability and talent pool to lead technology and industrial innovation in China[86] - The Company is committed to expanding the scale of green power sales and raising the premium level of green power tariffs to enhance investment returns on key projects[157] - The company is promoting digital transformation of existing power stations and intelligent operation and maintenance of offshore wind turbine units[158]

Financial Performance - Revenue for the six months ended June 30, 2023, was $1,223.8 million, an increase of 7.9% compared to $1,133.7 million for the same period in 2022[3]. - Profit attributable to equity shareholders for the six months ended June 30, 2023, was $197.8 million, up 11.2% from $177.9 million for the same period in 2022[3]. - Earnings per share for the six months ended June 30, 2023, was 4.61 cents, an increase of 11.2% from 4.15 cents for the same period in 2022[3]. - The increase in profit was mainly due to higher fuel margins from Korean projects, contributions from new wind power projects, and the turnaround of equity-accounted investees[3]. - Total operating expenses for the six months ended June 30, 2023, were $879.2 million, compared to $804.1 million for the same period in 2022, reflecting an increase of 9.3%[5]. - The operating profit for the first half of 2023 was $206.9 million, an increase of $13.5 million or 7.0% compared to $193.4 million in the first half of 2022[17]. - Other income decreased to $8.4 million in the first half of 2023 from $27.7 million in the same period of 2022, a decline of 19.3 million, mainly due to lower sales of power generation capacity[21]. - Financial expenses decreased to $110.9 million in the first half of 2023 from $120.3 million in the first half of 2022, a reduction of 7.8%, attributed to a decrease in the weighted average balance of bank borrowings[22]. - Income tax expenses rose to $38.1 million in the first half of 2023 from $33.3 million in the first half of 2022, an increase of $4.8 million, mainly due to higher pre-tax profits[25]. - The company did not declare an interim dividend for the six months ended June 30, 2023[3]. Assets and Liabilities - Non-current assets as of June 30, 2023, were $6,263.3 million, a decrease from $6,451.0 million as of December 31, 2022[7]. - Current assets as of June 30, 2023, were $1,859.9 million, slightly down from $1,892.9 million as of December 31, 2022[7]. - Total liabilities as of June 30, 2023, were $4,649.1 million, compared to $4,376.9 million as of December 31, 2022[8]. - Net assets as of June 30, 2023, were $1,617.1 million, an increase from $1,499.6 million as of December 31, 2022[8]. - Total equity as of June 30, 2023, was $1,617.1 million, compared to $1,499.6 million as of December 31, 2022[10]. - Cash and cash equivalents decreased from $440.6 million on December 31, 2022, to $341.1 million on June 30, 2023, primarily due to cash used in investing and financing activities offsetting cash generated from operations[25]. - The net debt-to-equity ratio improved from 3.64 on December 31, 2022, to 3.32 on June 30, 2023, mainly due to a reduction in bank borrowings[26]. - Total bank borrowings decreased from $4,364.5 million on December 31, 2022, to $4,169.9 million on June 30, 2023[34]. Operational Highlights - The company reported a total segment revenue of $1,223.8 million for the first half of 2023, with contributions from China, Korea, and management services[11]. - The segment performance for the Chinese power plants was $206.9 million, while the Korean power plants reported $56.5 million in segment performance for the first half of 2023[11]. - The power generation of the group reached 10,140.6 GWh for the six months ended June 30, 2023, an increase of 6.6% compared to 9,517.0 GWh for the same period in 2022[65]. - The power generation from China's wind power projects was 5,601.1 GWh, representing a growth rate of 16.7% compared to 4,800.1 GWh in the previous year[65]. - The power generation from China's solar power projects was 848.1 GWh, with a growth rate of 0.7% compared to 841.8 GWh in the previous year[65]. - The installed capacity of wind power in China reached 389.2 GW by June 30, 2023, reflecting a year-on-year growth of 13.7%[45]. - The installed capacity of solar power in China reached 470.7 GW by June 30, 2023, showing a significant year-on-year increase of 39.8%[45]. - The installed capacity of wind power increased by 458.7 MW year-on-year to 4,419.1 MW as of June 30, 2023, representing a growth of 11.6%[60]. - The installed capacity of solar energy reached 1,178.3 MW, an increase of 41.5 MW or 3.7% year-on-year[60]. Strategic Initiatives - The company is actively responding to national requirements to expand its industrial scale and enhance efficiency, focusing on the development of strategic emerging industries[62]. - The company is focusing on innovation-driven development strategies, emphasizing the integration of advanced offshore wind technology and digital operation and maintenance[73]. - The company has made progress in integrating advanced offshore wind technology, with multiple research projects completed and demonstrating a differentiated competitive advantage in the offshore wind sector[74]. - The company aims to enhance project conversion rates and resource assurance through strategic alliances in "strategy, industry, and technology"[87]. - The company is focused on technological innovation to drive development, including key technology research and digital transformation of existing power stations[90]. Regulatory and Compliance - The company has adhered to corporate governance codes, with a noted exception regarding the dual role of the chairman and CEO[92]. - The company confirmed compliance with the standard code and its own code by all directors for the six months ended June 30, 2023[93]. - The audit committee and KPMG reviewed the unaudited consolidated interim results for the six months ended June 30, 2023[94]. - The company operates under the governance code as per the listing rules, ensuring adherence to corporate governance standards[95]. - The company’s financial reporting adheres to international accounting standards[96]. Market and Industry Trends - The National Energy Administration aims for an installed power generation capacity of approximately 2,790 GW in 2023, with an increase of 160 GW in wind and solar power, raising the share of non-fossil energy generation to about 51.9%[46]. - The new energy sector has seen significant growth in renewable energy installations since the dual carbon goals were proposed, with policies being introduced to guide industry development during the 14th Five-Year Plan period[46]. - The offshore wind power sector is experiencing rapid development, with significant breakthroughs in scale and technology, supported by improved management policies and planning[50]. - The green electricity trading market is being expanded, allowing all renewable energy projects to participate in market transactions, thereby increasing the scale of green electricity participation[51]. - The National Development and Reform Commission has announced the provincial grid transmission and distribution prices for 2023-2026, effective from June 1, 2023, as part of ongoing reforms in the electricity market[52]. Social Responsibility and Recognition - The company actively engages in social responsibility initiatives, including emergency rescue points and biodiversity protection, contributing to local community support[76]. - In June 2023, the company was awarded the "Best IR Hong Kong Company" by New Fortune and received multiple awards at the HKIRA Investor Relations Awards, including "Best ESG" and "Best Annual Report"[78]. - The company has been recognized for its projects, with several wind and solar projects receiving awards for excellence in renewable energy and safety management in 2023[78][79].

Achievements and Awards - CGN New Energy Holdings reported significant achievements in 2022, including multiple awards for its projects, such as the Shengsi 56 Offshore Wind Power project recognized as a "Pioneer among Zhejiang Workers" by the Zhejiang Federation of Trade Union[22]. - The Taipingshan Wind Power project in Shandong Province received four second-class prizes and several third-class prizes for quality management achievements in 2021 and 2022 from various associations[23]. - The company’s projects in Anhui Province won multiple awards, including first-class and third-class prizes for quality control in the electric power industry[25]. - The Minqin Wind Power project and Hongshagang Wind Power project in Gansu Province were awarded second-class prizes for technological innovation achievements[26]. - The company achieved its first Innovation Achievement Award in material management from the China Electric Power Equipment Management Association, highlighting its commitment to innovation[27]. - The Company received multiple awards at the 8th Investor Relations Awards of the HKIRA, including "Best IR Company" and "Best ESG (E)"[34]. - The Company was recognized for its projects, with several wind and solar power projects awarded AAAA-level honors in production and operation statistical indicators[30]. - The Taipingshan Wind Power project won four second-class prizes in the "Achievements of Quality Management Team of Power Construction of 2021"[194]. - The Dangtu Fishing-Photovoltaic Power Complementary project received a first-class prize in the "Achievements of Quality Control of Electric Power Industry in Anhui Province of 2022"[195]. - The Qingyun Shangtang Wind Farm and other projects received the honorary title of "AAAA-level Unit" in the Benchmarking of Production and Operation Statistical Indicators for National Wind Farms in China[200]. Financial Performance - In 2022, the profit attributable to equity shareholders amounted to US$195.1 million, representing a decrease of 20.1% compared to the previous year[41]. - Basic earnings per share were US$4.55 cents, equivalent to HK$35.47 cents per share[41]. - Revenue for the year ended December 31, 2022, was $2,430.1 million, an increase from $1,775.3 million in 2021, representing a year-on-year growth of 37.0%[119]. - Operating profit for the year was $589.7 million, compared to $479.6 million in 2021, reflecting an increase of 23.0%[119]. - Profit before taxation for the Group was US$272,994,000 in 2022, down from US$295,180,000 in 2021[170]. - Segment revenue from power plants in the PRC increased by 16.0% to US$1,024,780,000 in 2022, attributed to higher power generation and newly commissioned wind and solar projects[170]. - Segment results for power plants in the PRC were US$287,229,000 in 2022, a decrease from US$325,237,000 in 2021[170]. - Segment revenue for power plants in the PRC decreased by 11.7% due to post-tax impairment losses of US$45.0 million[172]. Installed Capacity and Power Generation - As of December 31, 2022, the attributable installed capacity of the Company's power plants reached 8,986.5 MW, a year-on-year increase of 6.9%[41]. - The new attributable installed capacity for the year was 619.7 MW[41]. - The Company's power generation reached 19,189.7 GWh, an increase of 5.7% compared to 18,162.0 GWh in the previous year[41]. - The electricity generated by PRC wind projects was 9,370.8 GWh, representing a growth rate of 22.9% compared to the previous year[156]. - The electricity generated by PRC solar projects amounted to 1,692.4 GWh, with a year-on-year growth of 6.4%[156]. - The total electricity generated by the Group's projects reached 19,189.7 GWh, an increase of 5.7% from 18,162.0 GWh in 2021[156]. - The wind power and solar power accounted for 62.4% of the Group's total attributable installed capacity as of December 31, 2022[135]. - The attributable installed capacity of the Group reached 8,986.5 MW as of December 31, 2022, representing a year-on-year increase of 6.9%[135]. - Newly commissioned attributable installed capacity of wind projects amounted to 569.7 MW in 2022, contributing to an operating profit increase of $42.7 million to $394.9 million[123]. - Newly commissioned attributable installed capacity of solar projects was 50.0 MW, with a slight profit increase of $3.8 million to $45.7 million[124]. Strategic Initiatives and Market Focus - The company is focused on expanding its renewable energy projects, as evidenced by the various awards and recognitions received for its wind and photovoltaic projects[20]. - The Company aims to ensure the safe and efficient operation of equipment to contribute to achieving the national "dual carbon" goal[44]. - The Company plans to continue its focus on stringent and pragmatic work styles to ensure high-quality development[44]. - The Company expects steady growth in new operating capacity in 2023, adhering to high-quality development principles[137]. - The company aims to optimize its development layout in the renewable energy market, focusing on wind and solar power while contributing to carbon neutrality goals[153]. - The Company is committed to enhancing its operational efficiency and quality management, as demonstrated by the accolades received across multiple projects[24]. - The Company is committed to optimizing its development layouts in the new energy market, focusing on wind and photovoltaic power as its main businesses[151]. - The Company has implemented a dual-prevention mechanism to enhance risk identification and management across its operations[144]. Policy and Regulatory Environment - A series of policies have been released in 2022 to guide the new energy sector towards high-quality development, aligning with the "dual carbon" goals[93]. - The focus on large-scale wind and photovoltaic power bases marks a significant trend in the new energy industry, driven by the "dual carbon" objectives[84]. - The NEA's 2022 guidelines emphasize the construction of complementary hydropower, wind, and photovoltaic power bases, and the development of smart micro-grids[89]. - The establishment of a national unified electricity market system is being accelerated to optimize power resource allocation[105]. - The national policy encourages local governments to implement supportive measures for the wind and solar power industries, aiming for high-quality development[106]. - The implementation plan emphasizes the construction of a clean, low-carbon, safe, and efficient energy system[97]. Environmental and Social Responsibility - The Company actively participated in rural revitalization and environmental protection initiatives, contributing to energy saving and emission reduction[186]. - The Company made donations to support pandemic prevention and rural revitalization efforts in Shengsi County[187]. - The Cenxi Dalong Wind Farm in Guangxi received the "2022 Environment-friendly Practical Technologies and Demonstration Projects" award for its strict compliance with environmental protection requirements[188]. - The Company actively promotes clean energy development while contributing to biodiversity protection and energy conservation efforts[190]. - The Company participated in the 28th Think Tank Salon of State-owned Enterprises, discussing the role of major energy enterprises in achieving the "Carbon Peak, Carbon Neutrality" goals[189]. Technological Innovation and Digital Transformation - The Company focused on digital transformation through technologies like big data and artificial intelligence to enhance operational efficiency[180]. - The Company aims to enhance offshore wind power capabilities by researching key technologies such as offshore price parity and deep-sea floating wind power[181]. - In 2022, the Company received the AAA-level Integration of Informatization and Industrialization Management System Certificate, marking a significant achievement in digital transformation[182]. - The Company emphasized scientific and technological innovation to achieve low-carbon, green, and sustainable development[183].