CLP HOLDINGS(00002)2022-03-11 08:32Sustainable Development and Climate Goals - CLP Holdings reported a focus on sustainable development as an integral part of its business strategy, celebrating its 120th anniversary in 2021[2]. - The company is committed to carbon reduction actions under the "Climate Vision 2050" initiative, addressing the impact of the Omicron variant on business units and future dividend policies[9]. - The report emphasizes a dual materiality approach, focusing on ESG topics that could create or diminish corporate value, while also addressing broader impacts on humanity, the environment, and the economy[3]. - The company is committed to achieving net-zero emissions and enhancing community resilience in response to climate change[26]. - The company committed to achieving net-zero emissions by the end of 2050 and aims to phase out coal-fired power generation by 2040, ten years earlier than previously planned[33]. - The company is committed to achieving net-zero greenhouse gas emissions by 2050, with interim targets of reducing greenhouse gas emissions intensity by 84% by 2030 and 52% by 2040 from 2019 levels[45]. - The company has revised its "Climate Vision 2050" to set more aggressive targets and accelerate the phase-out of coal-fired power generation[41]. - The company emphasizes the importance of collaboration with local governments and business partners to achieve climate goals and implement feasible decarbonization plans[38]. - The company aims to enhance operational capabilities and adapt to market needs while supporting carbon neutrality goals in Hong Kong[98]. - The company is committed to supporting the sustainable development of Hong Kong through strategic investments and partnerships[38]. Financial Performance and Investments - The total profit, excluding comparable items, decreased to HKD 8,491 million, yet the dividend remained at the same level as in 2020[20]. - Total revenue for 2021 reached HKD 83,959 million, an increase of 5.5% from HKD 79,590 million in 2020[21]. - The group's net profit for 2021 was HKD 9,474 million, down from HKD 12,508 million in 2020, indicating a decrease of about 24.3%[70]. - The company reported a capital return of 7.5%, down from 10.5% in 2020[21]. - The company has over 50 power projects across 15 provinces in mainland China, focusing on low-carbon energy development, including nuclear and renewable energy[15]. - The company plans to invest significantly in decarbonization projects across Hong Kong, mainland China, Australia, and India, demonstrating confidence in market prospects[34]. - The company reported net financial expenses of HKD 1,774 million, indicating a stable financial position despite challenges[28]. - The company has strengthened its relationships with stakeholders and provided community support to mitigate the impacts of the COVID-19 pandemic, with tax payments amounting to HKD 1,720 million[29]. - The company aims to enhance employee quality and productivity by fostering a flexible, innovative, and safe working environment[64]. - The company aims to leverage technology and its expertise in Hong Kong to expand sustainable energy solutions in the Greater Bay Area, responding to increasing demand for smart green energy services[36]. Operational Performance and Challenges - The group's operating profit decreased by 17.8% to HKD 9,517 million, primarily due to a decline in the Australian generation portfolio and high coal prices in mainland China[20]. - Operating profit from Hong Kong electricity and related businesses was HKD 8,490 million, while mainland China contributed HKD 1,660 million[15]. - The company is exploring potential investments in offshore wind power, new gas-fired power generation units, and the introduction of hydrogen power generation technology to reduce carbon intensity[9]. - The company is actively exploring zero-carbon project development opportunities in India through its partnership with CDPQ, with multiple large investment projects underway[36]. - The company is closely monitoring the trend of electrification in transportation and supports the Hong Kong government's roadmap for promoting electric vehicle adoption[46]. - The company is exploring electrification trends in certain market sectors, which will drive electricity demand growth and provide opportunities for market expansion[64]. - The company is actively seeking investment opportunities in low-carbon and zero-carbon projects to support Australia's energy transition[50]. - The company is exploring opportunities in smart energy development, including data centers and energy management systems, in response to ongoing market reforms[47]. - The company is committed to supporting China's carbon neutrality goals by maintaining high utilization rates for nuclear power projects[131]. Customer and Market Insights - The company serves approximately 2.71 million customers in Hong Kong, accounting for about 80% of the local population[16]. - The Australian market is characterized by competitive wholesale electricity services, with EnergyAustralia being one of the largest private generators[18]. - The company has launched a new website in October, modernizing its system technology to enhance customer experience and digital service offerings[110]. - The company continues to provide free charging facilities to support the development of electric vehicles in Hong Kong[110]. - The company has received 130 applications from various commercial entities for its "Green Building Fund" to support energy efficiency upgrades by the end of 2021[112]. Renewable Energy and Technological Advancements - The company is committed to developing smart energy services and expanding its renewable energy portfolio[15]. - The renewable energy generation capacity reached 3,624 MW in 2020, up from 3,398 MW in 2019[24]. - The company is exploring new technologies, including the conversion of gas units to support the use of green fuels like zero-carbon hydrogen[108]. - The company is constructing a second combined cycle gas turbine unit at the Lung Kwu Tan Power Station and an offshore liquefied natural gas receiving terminal, both crucial for the transition to natural gas as a key transitional fuel[43]. - The company has established a roadmap for hydrogen utilization in its gas-fired power facilities in Hong Kong, in collaboration with General Electric[43]. - The company is actively promoting the installation of smart meters and enhancing digital services to improve customer experience[44]. - The company has developed a large-scale battery storage system with a maximum output of 4 MW, which serves as an emergency backup power source[110]. - The company is exploring the development of zero-carbon hydrogen energy and other technologies to further reduce carbon emissions from power generation[110]. Strategic Partnerships and Collaborations - The company is exploring collaborations with CLP Group in hydrogen, microgrid, battery, and storage technologies to enhance capabilities and support a cleaner energy future[154]. - The company is actively collaborating with the Guangxi government to address power supply shortages and ensure stable operations at the Fangchenggang power plant[131]. - The company signed the "India's Electric Vehicle Ambition Statement" at COP26 to support the energy transition in the transportation sector[173]. - The company has invested in the "Southern Grid Energy Innovation Equity Investment Fund" to support new projects related to smart energy and innovation[132].