CLP HOLDINGS(00002)2023-03-10 08:57Economic Challenges - In 2022, the company faced significant challenges due to the COVID-19 pandemic and the energy crisis caused by the Ukraine war, impacting commodity prices[2]. - The operating profit decreased by HKD 2,291 million to HKD 7,560 million, primarily due to operational challenges in the Australian power generation segment[15]. - The net cash inflow from operating activities decreased by 28.5% to HKD 12,734 million[16]. - The total assets as of December 31 were HKD 236,026 million, a decrease of 1.6% from the previous year[16]. - The company reported a total profit of HKD 924 million, significantly down from the previous year due to unrealized fair value losses[15]. - EnergyAustralia faced operational issues in 2022, leading to significant financial impacts, and plans to initiate major maintenance at Yallourn Power Station in 2023-2024[39]. - The company recorded a loss of HKD 185 million from the sale of its 70% stake in the Fangchenggang Power Plant, one of the most efficient coal power projects in mainland China[122]. Financial Performance - Total revenue increased by 19.9% to HKD 100,662 million, with Hong Kong power business revenue rising by 14.2% to HKD 50,600 million and revenue from outside Hong Kong increasing by 25.5% to HKD 48,873 million[16]. - Total profit reached HKD 924 million, with operating profit at HKD 4,623 million, and total dividends of HKD 7,832 million[22]. - The company maintained its dividend at the same level as 2021, reflecting a commitment to shareholder returns[15]. - The company’s credit ratings were confirmed as stable by S&P and Moody's, with ratings of A and A2 for the company and its subsidiaries[94]. - The group maintained a strong financial position with a debt ratio of 52% for fixed-rate debt excluding perpetual capital securities, and 55% including them[183]. - The group achieved a refinancing of non-recourse project loans totaling RMB 1.1 billion (HKD 1.2 billion) for four renewable energy projects, enhancing their economic value[183]. Sustainability and ESG Commitment - The company reported a commitment to ESG performance, aligning with regulatory frameworks such as the Hong Kong Stock Exchange's Listing Rules and GRI standards[2]. - The company emphasized the importance of sustainable development, releasing a separate Climate-Related Disclosure Report detailing its climate actions and commitments[2]. - The company aims to enhance its sustainable business portfolio and enhance resilience against climate change[19]. - The company is committed to digital transformation and decarbonization as key trends driving future opportunities in the energy sector[9]. - The dual materiality concept is adopted to assess both financial impacts and significant issues affecting humanity, the environment, and the economy[54]. - The company has optimized its dual materiality assessment process to better identify and evaluate ESG risks and opportunities[55]. - The total greenhouse gas emissions (Scope 1, 2, and 3) of the company decreased by 7.4% year-on-year to 60,223 kilotons of CO2 equivalent (kt CO2e) in 2022[171]. - The company plans to fully phase out coal-fired power generation by 2040 as part of its Climate Vision 2050 initiative[173]. Renewable Energy Initiatives - The company is focused on developing clean energy and customer-centric energy solutions in India through its Apraava Energy brand[13]. - Renewable energy generation capacity was 3,611 MW, slightly down from 3,624 MW in 2021[22]. - The renewable energy projects and nuclear power investments in mainland China showed strong performance, with three projects totaling 280 MW under construction[38]. - The company plans to focus on developing new renewable energy projects that are cost-competitive and contribute to local energy supply security[46]. - The total installed capacity of renewable energy projects reached 1,010.3 MW, with a generation output of 2,146 million kWh in 2022, up from 1,893 million kWh in 2021[124]. - The company is exploring offshore wind farm construction in Hong Kong and enhancing cross-border clean energy transmission systems[178]. Operational Improvements and Technology Investments - The company is investing in technology to improve operational performance and customer experience[21]. - The company aims to enhance its technology capabilities and develop an integrated energy service business model[34]. - The company is collaborating with universities and research institutions to conduct in-depth energy analysis for high-energy-consuming sectors like hospitals and data centers[200]. - The company is developing two new battery storage projects in New South Wales in collaboration with Edify Energy, aiming to support the transition to clean energy[47]. - The company signed a memorandum of understanding with the Shenzhen Longhua District People's Government for energy digitalization[24]. Customer Engagement and Service Reliability - The company aims to enhance its service reliability, providing power to over 2.75 million customers in Hong Kong with a reliability rate exceeding 99.997%[10]. - The reliability of power supply in Hong Kong was 99.997%, a decrease from 99.999% in 2021[23]. - The company connected over 1.78 million smart meters for customers in Hong Kong since 2018[27]. - Over 60% of common customer service requests were processed through electronic channels, a significant increase from 7% in 2018, with a target to raise this figure to over 80% in the coming years[107]. - The company provided a special rebate of HKD 715 million to alleviate customer burdens in 2022[97]. Strategic Partnerships and Collaborations - The company is collaborating with DBS Bank to provide energy management solutions to help businesses achieve sustainability goals and access sustainable financing[109]. - The company has received over 500 government funding applications for electric vehicle charging infrastructure, completing about 96% of preliminary assessments by the end of 2022[110]. - CLP Power has established a joint venture with Qingdao Tairui Electric Co., Ltd. to invest in electric vehicle charging infrastructure in the Greater Bay Area, focusing on Shenzhen, Dongguan, and Zhuhai[126]. - The company is exploring pilot projects with Israeli firm Hydro X, focusing on innovative hydrogen storage technology to reduce carbon emissions in the power sector[180]. Future Outlook and Growth Strategies - The company plans to expand its operations in Hong Kong, with a capital expenditure and investment growth strategy for 2024-2028[4]. - The company aims to strategically invest in growth opportunities while focusing on carbon reduction and sustainable energy solutions in Hong Kong and mainland China[42]. - The company plans to continue its focus on capital investments and market expansion strategies in the coming years[76]. - The company is prepared to invest in and implement more integrated energy service projects to shape the future of new energy in mainland China[127].