山高新能源(01250) - 2021 - 中期财报

Company Information and Group Structure Company Information This section provides the company's basic information, including board members, committee composition, registered office, principal place of business, share registrar, auditor (EY), principal bankers, and company website, noting changes in directors, committee members, and company secretary during the reporting period - The company underwent several senior personnel changes during the reporting period, including the appointment of Mr. Zhang Tiefu and Mr. Hu Xiaoyong as Co-Chairmen, Mr. Yang Guang as CEO, and a change in company secretary[4] Group Structure This section visually presents BEWG Clean Energy Group's equity structure and main business segments, showing BEWG Company Limited (stock code: 371) holds 31.88% of the company's shares, with core businesses in solar, wind, and clean heating - BEWG Company Limited is the company's major shareholder, holding 31.88% of the shares[5] - The Group's business primarily consists of three segments: solar power generation, wind power generation, and clean heating, with projects across multiple provinces including Hebei, Henan, Shandong, and Jiangsu[6] Chairman's Report Macro Environment and Policies The Chairman's Report reviews the macroeconomic situation in H1 2021, highlighting China's steady economic recovery and significant policy tailwinds for the renewable energy sector under the national "dual carbon" goals - National policies actively promote renewable energy development, with total renewable energy power consumption expected to reach 30.27% and non-hydro renewable energy consumption 13.38% in 2021[7] - The launch of green electricity certificate trading and the national carbon emission trading market has created new revenue opportunities for new energy power enterprises[7] - The nation proposes building a new power system dominated by new energy and significantly increasing wind and solar power generation, outlining an ambitious development blueprint for the industry[8] Performance Review In H1 2021, the Group achieved steady performance growth with a 32% increase in operating revenue, 20% growth in gross profit, and 24% growth in profit for the period, despite a slight decline in gross margin Key Financial Indicators for H1 2021 | Indicator | H1 2021 | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | Approx. 3,019.2 million HKD | Approx. 32% | | Gross Profit | N/A | Approx. 20% | | Gross Margin | 49.5% | Decreased from 54.8% | | Profit for the Period | Approx. 504.3 million HKD | Approx. 24% | | Profit Attributable to Equity Holders | Approx. 340.3 million HKD | Approx. 2% | Business Review During the reporting period, the Group's business segments progressed, with total operating power generation increasing by 23.4%, significant growth in wind power, and continued expansion in clean heating, alongside new ventures into hydropower and successful strategic financing Operational Data for Each Business Segment in H1 2021 | Business Segment | Indicator | Data | | :--- | :--- | :--- | | Overall | Total Operating Power Generation | Approx. 3.068 billion kWh (YoY growth of 23.4%) | | Solar Power Generation | Centralized Grid-connected Capacity | Approx. 2,154 MW | | | Distributed Total Installed Capacity | Approx. 700 MW | | | Consolidated Power Generation | Approx. 1.721 billion kWh (YoY growth of 5.2%) | | | Centralized Weighted Average Utilization Hours | 650 hours | | Wind Power Generation | Grid-connected Installed Capacity | Approx. 606 MW | | | Consolidated Power Generation | Approx. 0.910 billion kWh (YoY growth of 210.8%) | | | Weighted Average Utilization Hours | 1,623 hours (higher than national average of 1,212 hours) | | Clean Heating | Operating Clean Heating Area | Approx. 29.36 million square meters (YoY growth of 7.2%) | | | Heating Service Households | Approx. 228,449 households (YoY growth of 3.5%) | - The Group successfully bid for the contracted operation rights of Tanling Hydropower Plant in Lianzhou, Guangdong Province, officially entering the hydropower business and planning to build an integrated wind, solar, hydro, and storage multi-energy complementary clean energy industrial base[11] - In March 2021, the Group entered into capital increase agreements with multiple strategic investors, raising a total of RMB 1.076 billion, with cumulative strategic investment exceeding RMB 2 billion[11] Corporate Governance and Future Outlook The Group continuously improves its internal control system to enhance operational and investment decision-making efficiency, prioritizes safety management, and plans to build a "clean energy + smart energy" development system to become a regional integrated energy manager - The company is committed to enhancing internal management efficiency, including improving the cost quota database, streamlining procurement processes, and deploying financial BPs and HRBPs to support business development[12] - The future strategic core is "Clean Energy + Smart Energy," aiming to provide regional integrated energy management services and contribute to the nation's "carbon peak and carbon neutrality" goals[12][13] Management Discussion and Analysis Business Review This section details the Group's core operations in solar, wind, and clean heating, noting a 23.4% increase in total operating power generation and a 27% rise in electricity sales and entrusted operation revenue, with most projects now eligible for national subsidies Financial Summary for H1 2021 | Indicator (thousand HKD) | H1 2021 (Unaudited) | H1 2020 (Unaudited) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,019,152 | 2,285,001 | 32% | | Gross Profit | 1,495,842 | 1,251,086 | 20% | | Profit for the Period | 504,332 | 406,715 | 24% | | Profit Attributable to Equity Holders | 340,347 | 334,527 | 2% | - As of June 30, 2021, approximately 2,850 MW of the Group's total installed solar and wind power plants (accounting for over 80% of total grid-connected capacity) have been successfully included in the national renewable energy power generation subsidy list, expected to improve cash flow[19] Electricity Sales and Entrusted Operation Electricity sales and entrusted operation, a core revenue source, reached HKD 2.18 billion in H1 2021, up 27% year-on-year, driven by stable solar operations and rapid expansion in wind power, which saw over 260% revenue growth Solar Power Plant Operational Data (As of June 30, 2021) | Type | Total Grid-connected/Installed Capacity | H1 2021 Revenue (million HKD) | H1 2021 Power Generation (MWh) | | :--- | :--- | :--- | :--- | | Centralized | 2,241 MW | 1,299.8 | 1,451,214 | | Distributed | Approx. 700 MW | 309.9 | N/A | Wind Power Plant Operational Data (As of June 30, 2021) | Indicator | June 30, 2021 | June 30, 2020 | | :--- | :--- | :--- | | Total Grid-connected Capacity | 606 MW | 225 MW | | Total Power Generation (MWh) | 909,891 | 292,731 | | H1 2021 Revenue (million HKD) | 544.1 | 149.7 | | Weighted Average Utilization Hours | 1,623 hours | 1,541 hours | Engineering, Procurement and Construction (EPC) and Technical Consulting Services The Group leverages its expertise to provide EPC and technical consulting services for both its own and third-party projects, with EPC service revenue significantly increasing to approximately HKD 289 million in the reporting period - In H1 2021, operating revenue from EPC services was approximately HKD 289 million, a significant increase from HKD 60.9 million in the same period last year[40] Clean Heating Services Supported by national policies, the Group's clean heating business continued to grow, with actual heating area increasing by 7.2% to 29.36 million square meters and service households rising by 3.5% to approximately 228,449, generating approximately HKD 515 million in revenue Clean Heating Business Operational Data | Indicator | June 30, 2021 | YoY Growth | | :--- | :--- | :--- | | Actual Clean Heating Area | 29.36 million square meters | 7.2% | | Heating Service Households | 228,449 households | 3.5% | | Operating Revenue (H1 2021) | Approx. 515 million HKD | Approx. 11% | Other Clean Energy Businesses The Group is actively exploring multi-energy complementary businesses like hydropower, energy storage, power distribution, and hydrogen production to become a leading integrated clean energy service provider, with hydropower now a new strategic segment expected to contribute stable revenue - The Group has added hydropower as a new strategic segment, aiming to establish an integrated wind, solar, hydro, storage, and transmission energy base to achieve greater economies of scale and operational efficiency[45] Financial Performance In H1 2021, operating revenue grew 32% to HKD 3.02 billion, driven by electricity sales and construction services, while gross profit increased 20% despite a gross margin decline, and trade receivables significantly rose due to increased subsidy receivables Revenue and Gross Margin by Business Segment (H1 2021) | Business Segment | Operating Revenue (million HKD) | Gross Margin (%) | | :--- | :--- | :--- | | Electricity Sales - Solar | 1,609.7 | 64.3% | | Electricity Sales - Wind | 544.1 | 64.9% | | Construction Services | 301.1 | 19.8% | | Technical Consulting Services | 23.3 | 57.1% | | Entrusted Operation Services | 26.3 | 52.2% | | Clean Heating Services | 514.7 | 4.1% | | Total | 3,019.2 | 49.5% | - Finance costs increased by HKD 79.9 million year-on-year to HKD 758 million, primarily due to an increase in the average balance of corporate bonds, bank loans, and other borrowings[51] - Trade receivables and bills receivable increased from HKD 7.06 billion to HKD 9.22 billion, mainly due to an increase in electricity tariff subsidies receivable included in the subsidy list, from HKD 4.42 billion to HKD 6.74 billion[57] - As of June 30, 2021, the Group's net debt-to-equity ratio was 68%, a slight increase from 67% at the end of 2020[68] Major Asset Restructuring, Investments, Acquisitions and Disposals During the reporting period, the Group undertook significant capital activities, including a proposed major asset restructuring involving its subsidiary BECE, a fourth round of capital increase for BECE raising RMB 1.076 billion, and securing a 20-year operating right for Tanling Hydropower Plant - The Group's indirect non-wholly owned subsidiary, BECE, intends to undergo a major asset restructuring with A-share listed company Zhongdian Electric[69] - BECE completed its fourth round of capital increase, introducing new capital totaling RMB 1.076 billion in exchange for approximately 9.14% of its enlarged capital[69][70] - The Group obtained a 20-year operating right for Tanling Hydropower Plant in Lianzhou, Guangdong Province, marking its substantial expansion into the hydropower sector[71] Other Financial Information This section covers the Group's asset pledges, contingent liabilities, foreign exchange risks, and employee numbers, noting that most bank loans are secured by various assets and the Board does not recommend an interim dividend - Most of the Group's borrowings are secured by assets including property, plant and equipment, concession rights, trade receivables, equity interests in subsidiaries, and bank balances[72] - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021[72] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2021, the Group reported operating revenue of HKD 3.019 billion (up 32.1%), gross profit of HKD 1.496 billion (up 19.6%), and profit attributable to equity holders of HKD 340 million (up 1.7%), with basic earnings per share remaining at HKD 0.47 cents Condensed Consolidated Statement of Profit or Loss Summary (For the six months ended June 30) | Indicator (thousand HKD) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Operating Revenue | 3,019,152 | 2,285,001 | | Gross Profit | 1,495,842 | 1,251,086 | | Finance Costs | (757,827) | (677,936) | | Profit Before Tax | 604,232 | 470,246 | | Profit for the Period | 504,332 | 406,715 | | Profit Attributable to Equity Holders of the Company | 340,347 | 334,527 | | Basic Earnings Per Share | 0.47 HK cents | 0.47 HK cents | Condensed Consolidated Statement of Financial Position As of June 30, 2021, the Group's total assets reached HKD 58.86 billion (up 3.0%), with total liabilities at HKD 45.21 billion and total equity at HKD 13.65 billion (up 4.0%), characterized by a significant portion of non-current assets and a notable increase in trade receivables Condensed Consolidated Statement of Financial Position Summary | Indicator (thousand HKD) | June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | | :--- | :--- | :--- | | Assets | | | | Total Non-current Assets | 40,075,821 | 39,489,115 | | Total Current Assets | 18,784,946 | 17,638,132 | | Total Assets | 58,860,767 | 57,127,247 | | Liabilities and Equity | | | | Total Current Liabilities | 18,434,482 | 16,588,807 | | Total Non-current Liabilities | 26,776,175 | 27,413,550 | | Total Liabilities | 45,210,657 | 44,002,357 | | Total Equity | 13,650,110 | 13,124,890 | Condensed Consolidated Statement of Cash Flows In H1 2021, net cash from operating activities decreased to HKD 647 million, while net cash used in investing activities was HKD 1.579 billion, and net cash from financing activities was HKD 760 million, resulting in a net decrease of HKD 148 million in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Summary (For the six months ended June 30) | Indicator (thousand HKD) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 647,457 | 1,113,707 | | Net Cash Flows Used in Investing Activities | (1,579,040) | (1,762,883) | | Net Cash Flows from/(Used in) Financing Activities | 760,193 | (187,173) | | Net Decrease in Cash and Cash Equivalents | (171,390) | (836,349) | | Cash and Cash Equivalents at End of Period | 2,374,039 | 2,801,922 | Notes to the Condensed Consolidated Financial Statements Operating Segment Information The Group's operations are categorized into construction-related businesses and operating clean energy projects, with the latter being the primary source of revenue (HKD 2.69 billion) and profit (HKD 778 million) during the reporting period Operating Segment Results (H1 2021, Unaudited) | Segment (thousand HKD) | External Operating Revenue | Segment Results | | :--- | :--- | :--- | | Construction-related Businesses | 324,375 | 63,394 | | Operating Clean Energy Projects | 2,694,777 | 778,128 | Contract Assets and Trade Receivables Contract assets and trade receivables are significant balance sheet items, primarily reflecting electricity tariff payments and national subsidies, with approximately HKD 8.027 billion in electricity tariff subsidies receivable, highlighting their critical impact on the Group's cash flow - Electricity tariff subsidies receivable are a major component of contract assets and trade receivables, totaling approximately HKD 8.027 billion (HKD 1.284 billion + HKD 6.743 billion), and their collection progress is crucial for the Group's cash flow[109][111] - The aging analysis of trade receivables (excluding subsidies) indicates a higher proportion of receivables over one year, amounting to approximately HKD 980 million, posing some collection risk[114] Interest-Bearing Bank Borrowings, Other Borrowings and Corporate Bonds As of June 30, 2021, the Group's total interest-bearing bank and other borrowings amounted to HKD 30.862 billion, with corporate bonds totaling HKD 1.707 billion, resulting in combined total borrowings of approximately HKD 32.569 billion, predominantly long-term and secured Borrowing Structure (June 30, 2021) | Item (thousand HKD) | Current | Non-current | Total | | :--- | :--- | :--- | :--- | | Interest-bearing bank and other borrowings | 7,753,000 | 23,109,240 | 30,862,240 | | Corporate bonds | 1,706,539 | - | 1,706,539 | | Total | 9,459,539 | 23,109,240 | 32,568,779 | Events After Reporting Period Subsequent to the reporting period, the company implemented board and committee personnel adjustments on July 29, 2021, with Mr. Zhang Tiefu and Mr. Hu Xiaoyong appointed as Co-Chairmen of the Board - On July 29, 2021, the company officially implemented a Co-Chairmen system, with Mr. Zhang Tiefu and Mr. Hu Xiaoyong jointly serving as Co-Chairmen of the Board[132] Disclosures Disclosure of Interests This section discloses the shareholdings of directors, chief executives, and substantial shareholders as of June 30, 2021, with BEWG Group holding 31.88%, CITIC Securities Co., Ltd. 23.91%, and Tus-Holdings Co., Ltd. 6.37% Major Shareholders' Shareholding (As of June 30, 2021) | Shareholder Name | Shareholding Percentage | | :--- | :--- | | Beijing Enterprises Holdings Limited (BE Group) | 31.88% | | CITIC Securities Co., Ltd. | 23.91% | | Tus-Holdings Co., Ltd. | 6.37% | Share Option Scheme The company's share option scheme aims to incentivize and retain talent, with 1,020,000,000 unexercised share options outstanding as of June 30, 2021, representing approximately 1.61% of issued shares, and no new options granted or exercised during the period - As of June 30, 2021, unexercised share options granted under the share option scheme involved 1,020,000,000 shares, representing approximately 1.61% of the issued shares[151][159] Specific Performance Obligations of Controlling Shareholders Loan agreements stipulate that a breach of certain minimum shareholding or control levels by controlling shareholders (BEWG Group, Beijing Enterprises, and BE Group) would trigger default clauses, none of which have occurred as of the report approval date - Multiple loan agreements require controlling shareholders (BEWG Company Limited, Beijing Enterprises, and BE Group) to maintain specific minimum shareholding percentages and control status, otherwise potentially leading to immediate repayment demands for loans[165] Corporate Governance Corporate Governance The company emphasizes maintaining high corporate governance standards and compliance with legal and business norms, confirming adherence to all applicable code provisions of the Corporate Governance Code during the reporting period, with the audit committee having reviewed the interim results - The company states that it has complied with all applicable provisions of the Corporate Governance Code for the six months ended June 30, 2021[168] - The Audit Committee, comprising three independent non-executive directors, has reviewed this interim financial report[169]