Investment Rating - The report maintains a "Buy" rating for China General Nuclear Power New Energy (1811.HK) with a target price of HKD 2.72, indicating a potential upside of 25% from the current price of HKD 2.18 [5][11]. Core Views - The company is expected to experience a slight increase in total power generation in 2024, with a year-on-year growth of 0.4%. However, wind power generation is projected to decline by 2.6% due to adverse wind resource conditions [2][8]. - In 2024, the company added 11.53 million kilowatts of new installed capacity, exceeding its planned guidance. The total operational capacity is expected to reach 56.83 million kilowatts by the end of 2024, approaching the strategic target of 70 million kilowatts by 2025 [3][9]. - The company is currently undervalued, with a dynamic PE of 4.8 and 4.0 for 2024 and 2025, respectively. The report anticipates a valuation recovery in 2025 as risks related to electricity price declines and subsidy arrears gradually ease [4][10]. Summary by Sections Financial Performance - The company's revenue for 2024 is projected to be USD 2.182 billion, reflecting a slight decrease of 0.5% compared to 2023. The net profit attributable to shareholders is expected to be USD 234 million, a decrease of 12.6% year-on-year [6][15]. - The report outlines a consistent operating profit margin of around 24% to 25% over the next few years, with an EBITDA margin expected to improve from 9% in 2024 to 12% by 2026 [15][17]. Installed Capacity and Generation - The company is focusing on increasing the proportion of onshore wind power projects while continuing to develop solar energy projects. The total installed capacity is expected to grow steadily, with a significant emphasis on wind and solar energy in the future [3][9]. Valuation Metrics - The report highlights that the company is trading at a price-to-book (PB) ratio of approximately 0.74 for 2024, indicating a potential for valuation recovery as market conditions improve [4][10].

Financial Performance - Revenue for the six months ended June 30, 2024, was US$1,400 million, an increase from US$1,224 million in the same period of 2023, representing a growth of approximately 14.4%[11] - EBITDA for the same period was US$600 million, up from US$519 million in 2023, indicating a year-over-year increase of about 15.6%[11] - Profit attributable to equity shareholders for the six months ended June 30, 2024, was US$982 million, compared to US$485 million in 2023, reflecting a significant increase of approximately 102%[11] - Earnings per share (EPS) for the period was reported at US$0.12 per share, compared to US$0.06 per share in the previous year, marking a 100% increase[11] - The Group's revenue for the six months ended June 30, 2024, was US$982.3 million, a decrease from US$1,223.8 million in the same period of 2023[54][55] - Operating profit for the period decreased to US$303.9 million from US$344.6 million year-on-year[54][55] - Profit attributable to equity shareholders decreased to US$183.5 million, down US$14.3 million or 7.3% from US$197.8 million in the first half of 2023[93] - The profit for the period for the six months ended June 30, 2024, was $183,454,000, down from $197,828,000 in the previous year, representing a decline of approximately 7%[189] Market and Strategic Initiatives - The company is focusing on expanding its market presence and enhancing its product offerings through new technology developments[11] - Future outlook includes strategic initiatives aimed at increasing operational efficiency and market share in the renewable energy sector[11] - The company plans to invest in new product lines and technologies to drive growth and sustainability[11] - Management indicated potential mergers and acquisitions as part of their growth strategy to enhance competitive positioning[11] - The company aims to achieve a revenue target of US$1,800 million for the full year 2024, reflecting continued growth momentum[11] - The management emphasized the importance of maintaining strong financial health while pursuing aggressive market expansion strategies[11] Power Generation and Capacity - As of June 30, 2024, the attributable installed capacity was 8,978 MW, a decrease of 7.1% from 9,666 MW in the same period of 2023[12] - Power generation for the six months ended June 30, 2024, was 10,141 GWh, an increase of 4.9% compared to 9,660 GWh in the same period of 2023[12] - The Group's attributable installed capacity reached 9,666.4 MW, an increase of 688.4 MW or 7.7% year-over-year, with wind and solar power accounting for 64.1% of this capacity[64] - The attributable installed capacity of wind power was 4,436.4 MW, reflecting a slight increase of 17.3 MW or 0.4% from the previous year, while solar power capacity surged to 1,759.4 MW, up 581.1 MW or 49.3% year-over-year[64] Regulatory and Policy Environment - The NDRC's 2024-2025 action plan emphasizes the acceleration of non-fossil energy development and the construction of large-scale wind and photovoltaic bases[21] - The NDRC and NEA's "Guiding Opinions" in February 2024 highlighted the importance of enhancing peak-shaving capacity and promoting energy storage construction across various sectors, including pumped storage and new energy storage technologies[25] - The NDRC's "Power Market Regulatory Measures" issued in April 2024 established supervision over power market participants to ensure compliance with safety obligations and fair competition in wholesale transactions[35] - The NEA's notice in June 2024 called for improved planning and management of supporting grid projects, particularly for those above 500 kV, to enhance the carrying capacity of distributed new energy[33] Financial Position and Cash Flow - The Group's cash and cash equivalents decreased from US$287.5 million as of December 31, 2023, to US$121.9 million as of June 30, 2024, primarily due to increased net cash used in investing activities[97] - Current assets decreased from US$1,768.0 million as of December 31, 2023, to US$1,668.4 million as of June 30, 2024, mainly due to a reduction in cash and cash equivalents[107] - The Group's total bank borrowings decreased from US$4,448.2 million as of December 31, 2023, to US$4,397.1 million as of June 30, 2024, reflecting a reduction of approximately 1.15%[115] - The Group's capital expenditures increased by US$202.4 million to US$386.4 million in the first half of 2024 from US$184.0 million in the first half of 2023, primarily due to increased spending on wind and solar power projects[120] Environmental and Social Responsibility - The Company is committed to promoting the consumption of green power and enhancing the trading scale of green electricity[16] - The introduction of green power certificates aims to strengthen the connection between renewable energy consumption and energy-saving policies[23] - The Company has actively engaged in public welfare projects, including assisting local fire brigades and promoting biodiversity protection since 2024[86] - The Company constructed a 1-kilometer hardened cement road and installed 30 streetlights in Hainan Province to facilitate villagers' travel in May 2024[89] Operational Challenges - The Group's operations in the PRC and Korea accounted for approximately 77.6% and 22.4% of the total installed capacity, respectively[52][53] - Power generation from PRC wind projects reached 5,288.9 GWh, a decrease of 5.6% year-on-year, primarily due to increased grid curtailment[75] - Average utilization hours for PRC wind projects decreased to 1,161 hours in the first half of 2024 from 1,185 hours in 2023, mainly due to increased grid curtailment[77] - The weighted average tariff for PRC solar projects decreased to RMB 0.58 per kWh in the first half of 2024, down from RMB 0.64 per kWh in 2023, primarily due to intense competition in electricity bid trading[79] Future Outlook - The Company will focus on its annual business development objectives in the second half of 2024, aiming to strengthen weaknesses and promote high-quality development[139] - The Company will prioritize safe production and operation, enhancing the safety management system to eliminate potential hazards[144] - The Company aims to improve the success rate of project conversion and promote the development of new energy projects in a sustained and high-quality manner[146]

Investment Rating - The report maintains a "Buy" rating for the company [3][4]. Core Views - The company reported a mid-year revenue of USD 1.002 billion (RMB 7.144 billion), a year-on-year decline of 18.7%, and a net profit of USD 183 million (RMB 1.307 billion), down 7.3% year-on-year, slightly better than market expectations [3]. - Wind power curtailment has negatively impacted performance, although reduced fuel costs have mitigated some of the effects. The company's power generation decreased by 5.6% year-on-year to 5,289 GWh, primarily due to curtailment [3]. - The company has a total installed capacity of 9,666 MW as of June 30, 2024, with clean energy accounting for 8,107 MW, an increase of 688 MW year-on-year, mainly from solar power [3][4]. - The company benefits from its affiliation with China General Nuclear Power Group, which provides advantages in project development and management [4]. - The long-term demand for renewable energy remains promising due to the dual carbon strategy and supportive government policies [4]. Summary by Sections Financial Performance - The company’s total revenue for 2024 is projected to be RMB 13.720 billion, with a year-on-year decline of 11.84%. The net profit is expected to be RMB 1.947 billion, reflecting a slight increase of 2.67% [5]. - The earnings per share (EPS) for 2024 is estimated at RMB 0.45, with a projected price-to-earnings (PE) ratio of 4.8 [5]. Installed Capacity and Pricing - As of June 30, 2024, the company’s clean energy capacity includes 4,436 MW of wind power and 1,759 MW of solar power, with an average domestic wind and solar electricity price of RMB 0.57 and RMB 0.58 per kWh, respectively [3][4]. Market Outlook - The report anticipates that the operating return rates in the renewable energy sector will stabilize, aligning more closely with utility-like returns due to various supportive policies [4].

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].