中国核能科技(00611) - 2024 - 中期业绩

Financial Summary Financial Summary For the six months ended June 30, 2024, the company's revenue decreased by 9.8% to HKD 821 million, while profit for the period surged by 40.0% to HKD 77.29 million, and basic earnings per share grew by 16.7% Financial Summary Table | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue (HKD Thousands) | 821,101 | 909,811 | (9.8) | | Profit Before Income Tax Expense (HKD Thousands) | 101,388 | 72,482 | 39.9 | | Profit for the Period (HKD Thousands) | 77,292 | 55,193 | 40.0 | | Basic Earnings Per Share (HK cents) | 3.84 | 3.29 | 16.7 | | | As of June 30, 2024 | As of December 31, 2023 | Change (%) | | Total Assets (HKD Thousands) | 10,890,790 | 11,437,221 | (4.8) | | Net Assets (HKD Thousands) | 1,834,998 | 1,773,810 | 3.4 | Management Discussion and Analysis Industry Development Review China continues to advance its energy security strategy and green transition, with new energy sectors like solar, wind, and storage experiencing rapid growth in installed capacity despite challenges from price pressures and grid integration issues Key Policies in China's Energy Industry In H1 2024, China issued key policies to advance carbon neutrality and a new energy system, focusing on green power certificates, distributed energy, and new energy storage, with specific targets for non-fossil energy consumption and generation capacity - The government work report emphasized actively and steadily promoting carbon peaking and carbon neutrality, accelerating the construction of a new energy system, strengthening the development of large-scale wind and solar power bases and transmission channels, and developing new energy storage[5] - The National Energy Administration issued guidelines targeting a non-fossil energy power generation capacity share of approximately 55% and wind and solar power generation share of over 17% by the end of 2024[5] - The State Council issued an energy-saving and carbon reduction action plan, targeting a non-fossil energy consumption share of approximately 20% by 2025, and accelerating the construction of large-scale wind and solar bases with supporting energy storage[6] Photovoltaic Power Generation Industry In H1 2024, China's new PV installed capacity growth slowed, yet cumulative capacity surged over 50%, driven by technology iteration and larger modules, despite industry-wide price pressures pushing module prices below cash cost - In H1 2024, national new PV installed capacity reached 102.48 GW, a 30.7% year-on-year increase; cumulative installed capacity reached 713.5 GW by end of June, up 51.6% year-on-year[7] - Prices across the PV industry chain fell below cash cost, with TOPCon module prices decreasing from RMB 0.9/W at the beginning of the year to RMB 0.78/W[8] Wind Power Generation Industry In H1 2024, national new wind power installed capacity growth slightly slowed, yet cumulative capacity steadily increased, driven by accelerated large-scale turbine development, over 95% localization, and stable price reductions due to technological upgrades - In H1 2024, national new wind power installed capacity reached 25.84 GW, a 12.4% year-on-year increase; cumulative installed capacity reached 466.71 GW by end of June, up 19.9% year-on-year[9] - Wind turbine prices continued to decline, with onshore wind turbine costs falling to approximately RMB 1/W and offshore wind turbine (excluding tower) prices decreasing to RMB 2.8/W[9] Energy Storage Industry In H1 2024, new energy storage installed capacity reached 69% of last year's total, indicating explosive growth, driven by accelerated 314Ah cell adoption and non-lithium technologies, alongside significant cost reductions for lithium carbonate, systems, and cells - In H1 2024, national new energy storage power station installed capacity reached 14.40 GW/35.39 GWh, achieving 69% of the full-year installed capacity of 2023[10] - Energy storage costs significantly decreased: 2-hour energy storage system prices fell from RMB 1.57/Wh in early 2023 to approximately RMB 0.6/Wh; energy storage cell prices decreased from RMB 0.95/Wh to approximately RMB 0.35/Wh[10] Business Review Despite a complex macro environment, the Group actively secured new PV and energy storage projects; while total revenue decreased by 9.8% due to EPC business contraction, significant growth in power generation business drove a 16.7% increase in profit attributable to owners - In H1, the Group secured multiple project quotas, including Taizhou 50 MW PV project, Suining 50 MW PV project, and Linxiang 100 MW/200 MWh energy storage project, with over 4 GW of projects currently being tracked[11] Key Financial Metrics | Financial Metric | H1 2024 (HKD Thousands) | H1 2023 (HKD Thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 821,101 | 909,811 | (9.8) | | Profit Attributable to Equity Holders | 71,129 | 60,919 | 16.7 | | Basic Earnings Per Share (HK cents) | 3.84 | 3.29 | 16.7 | EPC, Consulting and General Construction Business External revenue for this segment decreased by 34.8% to HKD 399 million, primarily due to a strategic shift towards internal new energy EPC projects and a planned exit from low-margin municipal EPC business, while securing 6 new energy EPC projects worth HKD 510 million - Segment sales to external customers decreased by approximately 34.8% year-on-year to HKD 398.86 million, primarily due to a business strategy shift towards self-invested and self-built projects and a planned exit from municipal EPC business[12] - In H1, 6 new energy EPC projects were undertaken with a contract value of approximately HKD 510 million, and several projects achieved full capacity grid connection[12] - The Group successfully upgraded or extended multiple engineering and design qualifications and was re-selected as a High-Tech Enterprise in Jiangsu Province, enjoying tax incentives[13] Power Generation Business The power generation business showed strong performance, with revenue up 44.9% to HKD 410 million and segment profit up 33.4%, driven by a record 607 MW of new grid-connected capacity, reaching a total operating scale of 1,685 MW and generating 927 million kWh, supplemented by green power and certificate transactions - Segment revenue increased by approximately 44.9% year-on-year to HKD 410.05 million, primarily driven by revenue growth from new projects such as Boshang 300 MW and Zhenkang 360 MW grid connections[15] - In H1, newly grid-connected installed capacity reached 607 MW, a historical high. As of the end of the period, total operating capacity reached 1,685 MW, with 927 million kWh of electricity generated[14] - Actively participated in green power and green certificate transactions, generating approximately HKD 1.88 million in additional revenue from green power transactions and approximately HKD 0.32 million from green certificate transactions in H1[14] Financing Business External revenue for the financing segment decreased by 16.2% to HKD 12.2 million due to intense competition; the Group adopted a "One Core, Two Wings, Three Drivers" strategy focusing on new energy in the Greater Bay Area, aiming for integrated financing, investment, and management, with breakthroughs in energy storage and distributed wind power leasing - Segment revenue from external customers decreased by approximately 16.2% year-on-year to HKD 12.20 million, primarily due to intense peer competition and difficulties in project expansion[16] - Proposed a "One Core, Two Wings, Three Drivers" development strategy, centering on new energy, focusing on debt and fund operations, and building integrated financing, investment, and management capabilities[16] - Achieved breakthroughs in energy storage and distributed wind power financial leasing businesses through collaborations with companies like Megarevo Energy Storage and Hengqin Huatong Financial Leasing[17] Business Outlook China's new energy installed capacity is projected to surpass coal power in 2024, offering vast market potential; the Group will focus on "New Energy + Storage" by investing in PV and wind power while vigorously developing energy storage, with domestic new installations expected to exceed 200 GW for PV, 80 GW for wind, and 35 GW for new storage - The Group will focus on a "New Energy + Storage" layout, based on photovoltaic and wind power investments, developing energy storage business, and expanding its new energy industry footprint[18] - It is projected that domestic new PV installed capacity will exceed 200 GW, new wind power installed capacity will reach approximately 80 GW, and new energy storage installed capacity will exceed 35 GW in 2024[19][20][21] - By the end of 2024, China's non-fossil energy power generation installed capacity is expected to rise to approximately 57%, and the combined grid-connected wind and solar power installed capacity will surpass coal power installed capacity for the first time[18] Financial Review Operating Results The Group's total revenue decreased by 9.8% to HKD 821 million due to reduced EPC business, yet profit for the period increased by 40.0% to HKD 77.29 million, driven by a 44.9% surge in power generation revenue, improving net profit margin from 6.1% to 9.4% Revenue by Segment (HKD Thousands) | Segment | H1 2024 | Share (%) | H1 2023 | Share (%) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | EPC, Consulting and General Construction | 398,858 | 48.6 | 612,210 | 67.3 | (34.8) | | Power Generation | 410,046 | 49.9 | 283,042 | 31.1 | 44.9 | | Financing | 12,197 | 1.5 | 14,559 | 1.6 | (16.2) | | Total | 821,101 | 100.0 | 909,811 | 100.0 | (9.8) | - Profit for the period increased by 40.0% year-on-year to HKD 77.29 million, primarily due to an 82.1% year-on-year increase in power generation from newly grid-connected power stations and lower operation and maintenance costs for new projects[25] - The Group's net profit margin increased from 6.1% in the same period last year to 9.4%[25] Costs and Expenses During the period, cost of sales decreased by 20.7% due to EPC business adjustments, and other operating expenses fell by 12.9% from reduced R&D; however, finance costs increased by 26.8% to HKD 113 million due to increased long-term borrowings for power generation business expansion - Cost of sales decreased by approximately 20.7% year-on-year to HKD 565.94 million, primarily due to business adjustments in the EPC segment[27] - Other operating expenses decreased by approximately 12.9% year-on-year to HKD 52.44 million, primarily due to reduced research and development expenses during the period[28] - Finance costs increased by approximately 26.8% year-on-year to HKD 113.40 million, primarily due to increased long-term bank loans for expanding the power generation business[29] Financial Position and Liquidity As of June 30, 2024, the Group's total assets were HKD 10.89 billion and total liabilities HKD 9.06 billion, with net current assets of HKD 537 million and cash of HKD 997 million; the gearing ratio improved slightly to 4.05 from 4.39, indicating a better financial structure Financial Position Summary (HKD Thousands) | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | 10,890,790 | 11,437,221 | | Total Liabilities | 9,055,792 | 9,663,411 | | Total Equity | 1,834,998 | 1,773,810 | | Cash and Cash Equivalents | 997,328 | 1,779,293 | - As of June 30, 2024, the Group's gearing ratio was 4.05 (December 31, 2023: 4.39), and its debt-to-asset ratio was 0.83 (December 31, 2023: 0.84)[32] - The Group's outstanding bank and other borrowings totaled HKD 7.10 billion, of which 96.1% were RMB-denominated borrowings, all bearing floating interest rates[32] Capital Expenditure and Employees To expand operations, the Group significantly increased capital expenditure to HKD 697 million in H1, mainly for property, plant, and equipment acquisition; as of period-end, the Group had 325 employees with total staff costs of HKD 36.61 million - For the six months ended June 30, 2024, capital expenditure was HKD 696.61 million, a significant year-on-year increase (H1 2023: HKD 243.60 million)[36] - As of June 30, 2024, the Group's contractual commitments for the construction of power stations amounted to HKD 724.45 million[36] - As of June 30, 2024, the Group had a total of 325 employees, with staff costs for H1 amounting to HKD 36.61 million[37] Condensed Consolidated Interim Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement details the Group's operating results for the six months ended June 30, 2024, showing a gross profit of HKD 255 million, profit before tax of HKD 101 million, profit for the period of HKD 77.29 million, and profit attributable to parent company owners of HKD 71.13 million Profit or Loss Statement Summary (HKD Thousands) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 821,101 | 909,811 | | Gross Profit | 255,157 | 196,506 | | Profit Before Tax | 101,388 | 72,482 | | Profit for the Period | 77,292 | 55,193 | | Profit Attributable to Owners of the Parent Company | 71,129 | 60,919 | Condensed Consolidated Statement of Financial Position This statement presents the company's financial position as of June 30, 2024, showing total assets of HKD 10.89 billion and net assets of HKD 1.83 billion, with non-current assets, primarily property, plant, and equipment, totaling HKD 7.05 billion, and current liabilities exceeding non-current liabilities, mainly due to bank and other borrowings Statement of Financial Position Summary (HKD Thousands) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Non-Current Assets | 7,051,630 | 6,640,149 | | Total Current Assets | 3,839,160 | 4,797,072 | | Total Assets | 10,890,790 | 11,437,221 | | Total Current Liabilities | 3,302,252 | 3,971,881 | | Total Non-Current Liabilities | 5,753,540 | 5,691,530 | | Total Liabilities | 9,055,792 | 9,663,411 | | Net Assets | 1,834,998 | 1,773,810 | Notes to the Condensed Consolidated Financial Statements The notes provide detailed financial statement information, showing power generation as a core revenue source with the highest profit contribution, while approximately HKD 7.1 billion in borrowings primarily support capital-intensive power generation expansion, secured by various assets, and related party transactions involve lease contracts and electricity sales with major shareholders - The Group's operations are divided into three reportable segments: EPC, Consulting and General Construction; Power Generation; and Financing. The Power Generation segment contributed the highest segment result, reaching HKD 198 million[44][46] - The Group's total interest-bearing bank and other borrowings amounted to HKD 7.10 billion, with long-term borrowings accounting for over 76%, primarily used to support the power generation business[65] - Related party transactions include property leases with the controlling company of a major shareholder and electricity sales to related companies[70][71] Corporate Governance and Other Information Corporate Governance The company complied with the HKEX Corporate Governance Code during the period, with an Audit Committee of three independent non-executive directors overseeing financial reporting, risk management, and internal controls, and all directors confirmed adherence to the standard code for securities transactions - The company adopted and complied with the Corporate Governance Code set out in Appendix C1 to the Listing Rules during the period[74] - The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the period[75] Dividends and Share Repurchases The Board did not recommend an interim dividend for the six months ended June 30, 2024, and neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - The Board did not declare any interim dividend for the six months ended June 30, 2024[79][55] - For the six months ended June 30, 2024, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares of the company[77]