中国电力(02380) - 2024 - 中期财报

2024 Interim Performance Summary During the reporting period, the company achieved strong performance growth, with profit attributable to equity holders increasing by 51.50% and total electricity sales by 33.33%, driven by significant clean energy generation 2024 H1 Key Financial and Operational Indicators | Indicator | 2024 H1 | 2023 H1 | YoY Growth | | :--- | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company | RMB 2,802.2 million | RMB 1,849.7 million | +51.50% | | Profit Attributable to Ordinary Equity Holders of the Company | RMB 2,569.9 million | RMB 1,679.9 million | +52.98% | | Total Electricity Sales | 64,344,154 MWh | 48,259,373 MWh | +33.33% | | Revenue | RMB 26,471.5 million | RMB 21,317.0 million | +24.18% | | Operating Profit | RMB 7,466.3 million | RMB 4,478.4 million | +66.72% | | Basic Earnings Per Share | RMB 0.21 | RMB 0.14 | +50.00% | | Consolidated Installed Capacity (Period-end) | 48,327.8 MW | 32,941.2 MW | +46.71% | Electricity Sales by Generation Type (MWh) | Generation Type | 2024 H1 | 2023 H1 | YoY Growth | | :--- | :--- | :--- | :--- | | Hydropower | 10,675,021 | 5,622,929 | +89.85% | | Wind Power | 13,147,946 | 8,345,931 | +57.54% | | Photovoltaic Power | 11,830,577 | 6,015,399 | +96.67% | | Coal Power | 26,805,724 | 26,702,281 | +0.39% | | Gas Power | 977,038 | 951,592 | +2.67% | | Environmental Protection Power | 907,848 | 621,241 | +46.13% | | Total | 64,344,154 | 48,259,373 | +33.33% | Net Profit by Business Segment (RMB in thousands) | Business Segment | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Hydropower | 766,476 | (146,863) | | Wind Power | 1,960,215 | 1,453,360 | | Photovoltaic Power | 1,135,216 | 775,053 | | Thermal Power | 1,107,884 | 561,718 | | Energy Storage | 40,063 | 35,085 | | Unallocated | (418,091) | (128,782) | | Total | 4,591,763 | 2,549,571 | Management Discussion and Analysis This section provides a detailed analysis of the company's operational and financial performance during the period Business Review In the first half of 2024, the Group achieved strong performance growth, with profit attributable to ordinary equity holders reaching RMB 2.57 billion, a significant year-on-year increase, primarily driven by contributions from clean energy acquisitions, hydropower's turnaround due to increased rainfall, and enhanced profitability in thermal power from lower coal prices 2024 H1 Profit Performance | Indicator | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Company | RMB 2,569.9 million | RMB 1,679.9 million | | Basic Earnings Per Share | RMB 0.21 | RMB 0.14 | - Clean energy projects acquired in September 2023 contributed RMB 628 million in net profit during the reporting period, serving as a key driver for profit growth[13] Installed Capacity As of June 30, 2024, the Group's consolidated installed capacity significantly increased by 46.71% to 48,327.8 MW, with clean energy accounting for 77.07%, reflecting successful green transformation Consolidated Installed Capacity Details (MW) | Generation Type | 2024 June 30 | 2023 June 30 | YoY Growth | | :--- | :--- | :--- | :--- | | Hydropower | 5,951.1 | 5,451.1 | +9.17% | | Wind Power | 13,221.5 | 7,516.9 | +75.89% | | Photovoltaic Power | 17,253.0 | 8,221.0 | +109.86% | | Coal Power | 11,080.0 | 11,080.0 | 0.00% | | Gas Power | 505.2 | 475.2 | +6.31% | | Environmental Protection Power | 317.0 | 197.0 | +60.91% | | Total | 48,327.8 | 32,941.2 | +46.71% | - Consolidated installed capacity of clean energy (including hydropower, wind, photovoltaic, gas, and environmental protection power) reached 37,247.8 MW, accounting for 77.07% of total installed capacity, a significant year-on-year increase of 10.71 percentage points[16] Key Projects and Technological Innovation The company successfully commissioned several large-scale clean energy projects, while its subsidiary Xinyuan Zhichu ranked highly in energy storage solutions and associate Qiyuan Xindongli expanded green power transportation services - The first and second phases of the Hubei multi-energy complementary million-kilowatt new energy base, totaling 700 MW of installed capacity, have commenced full commercial operation[21] - The Xinjiang Artux 400 MW photovoltaic power generation project, equipped with 100 MW / 400 MWh energy storage facilities, has commenced full commercial operation[22] - Subsidiary Xinyuan Zhichu ranked second nationwide and fourth globally among "AC-side energy storage system solution" suppliers by shipment volume[25] - Associate Qiyuan Xindongli successfully launched its first overseas charging and battery swapping business in Indonesia and fully commissioned its first unmanned driving and electric heavy-duty truck project in a mining area in Xinjiang[28][30] Project Reserves The company maintains substantial clean energy project reserves, with 6,157.6 MW under construction and approximately 23,593 MW in early-stage development, all dedicated to clean energy - Consolidated installed capacity of projects under construction is 6,157.6 MW, all of which are clean energy projects[32] - New development projects in the preliminary work stage total approximately 23,593 MW of installed capacity, all clean energy projects, including large-scale projects like the 2,000 MW offshore wind power project on Shandong Peninsula[33] Power Generation and Sales Volume In the first half of 2024, the Group's total electricity sales increased by 33.33% to 64,344,154 MWh, primarily driven by significant increases in hydropower, wind, and photovoltaic sales 2024 H1 Electricity Sales Overview | Generation Type | Electricity Sales (MWh) | YoY Growth | | :--- | :--- | :--- | | Hydropower | 10,675,021 | +89.85% | | Wind Power | 13,147,946 | +57.54% | | Photovoltaic Power | 11,830,577 | +96.67% | | Coal Power | 26,805,724 | +0.39% | | Total | 64,344,154 | +33.33% | - Total heat sales volume from subsidiaries increased by 39.47% year-on-year, mainly due to intensified market development efforts and a significant increase in customer base[44] Operational Metrics Analysis Average on-grid tariffs for most power segments declined due to new grid-parity projects and lower fuel prices, while hydropower utilization hours significantly increased due to rainfall - Changes in average on-grid tariffs for various power segments: - Hydropower: RMB 251.81/MWh, a decrease of RMB 11.84 - Wind Power: RMB 446.62/MWh, a decrease of RMB 30.11 - Photovoltaic Power: RMB 400.72/MWh, a decrease of RMB 17.92 - Coal Power: RMB 392.16/MWh, a decrease of RMB 10.52[48] - Changes in average utilization hours for power generating units: - Hydropower: 1,821 hours, an increase of 775 hours - Wind Power: 1,066 hours, a decrease of 97 hours - Photovoltaic Power: 738 hours, a decrease of 31 hours - Coal Power: 2,565 hours, flat year-on-year[53] Energy Storage Business In the first half of 2024, the energy storage business saw a slight revenue decrease but achieved a 14.19% net profit increase through cost optimization, demonstrating strong profitability despite market competition 2024 H1 Energy Storage Business Performance | Indicator | Amount | YoY Change | | :--- | :--- | :--- | | Revenue | RMB 1,528.0 million | -6.05% (decrease of RMB 98.4 million) | | Net Profit | RMB 40.1 million | +14.19% (increase of RMB 5.0 million) | Operating Performance Analysis The Group's net profit increased by 80.10% to RMB 4.59 billion, driven by higher clean energy sales and reduced fuel costs, despite an increase in finance costs due to acquisitions Net Profit by Operating Segment (RMB in thousands) | Operating Segment | 2024 H1 | 2023 H1 | Change | | :--- | :--- | :--- | :--- | | Hydropower | 766,476 | (146,863) | +621.90% | | Wind Power | 1,960,215 | 1,453,360 | +34.87% | | Photovoltaic Power | 1,135,216 | 775,053 | +46.47% | | Thermal Power | 1,107,884 | 561,718 | +97.23% | | Total | 4,591,763 | 2,549,571 | +80.10% | Revenue by Operating Segment (RMB in thousands) | Operating Segment | 2024 H1 | 2023 H1 | Change | | :--- | :--- | :--- | :--- | | Hydropower | 2,688,047 | 1,482,497 | +81.32% | | Wind Power | 5,872,111 | 3,978,786 | +47.59% | | Photovoltaic Power | 4,740,803 | 2,518,311 | +88.25% | | Thermal Power | 11,642,580 | 11,711,066 | -0.58% | | Total | 26,471,527 | 21,317,030 | +24.18% | - Total fuel costs decreased by 6.51% year-on-year, primarily due to lower coal prices, with the average unit fuel cost for coal power business decreasing by 8.01% to RMB 274 yuan/MWh[61][64] - To celebrate its 20th listing anniversary, the Board resolved to declare a special dividend of RMB 0.05 yuan per share[76] Financial Position and Liquidity As of June 30, 2024, total assets increased to RMB 325.58 billion, with a stable gearing ratio of approximately 64%, and operating cash flow significantly improved, supported by diversified financing Key Financial Position Indicators (RMB in thousands) | Indicator | 2024 June 30 | 2023 December 31 | | :--- | :--- | :--- | | Total Assets | 325,580,796 | 305,806,779 | | Total Debt | 183,097,639 | 168,714,840 | | Cash and Cash Equivalents | 6,263,294 | 5,738,815 | | Current Ratio | 0.58 | 0.61 | | Gearing Ratio | Approx. 64% | Approx. 63% | - Cash flow changes in the first half: - Net cash generated from operating activities: RMB 5.42 billion (vs. RMB 3.25 billion in prior period), due to a significant increase in operating profit[83] - Net cash used in investing activities: RMB 14.06 billion (vs. RMB 7.53 billion in prior period), due to increased payments for acquisitions and project construction[83] - Net cash generated from financing activities: RMB 9.16 billion (vs. RMB 8.18 billion in prior period)[83] - Successfully issued corporate bonds totaling RMB 3.0 billion and green medium-term notes totaling RMB 3.5 billion during the period, used to repay existing borrowings[87][88][89] Policies and Risk Management The company actively monitors national energy policies that support clean energy development and maintains a comprehensive risk management framework to address foreign exchange, funding, and policy change risks - National policies emphasize increasing the share of non-fossil energy installed capacity to approximately 55% and accelerating the construction of large-scale wind and solar bases, which benefits the company's clean energy business development[95][97] - The Group has established a systematic risk management mechanism, covering governance, management, and internal audit, with a Risk Management Committee and a Strategy and Sustainable Development Committee[101] - Key risks include: - Foreign Exchange Risk: Over 99% of debt is RMB-denominated, with foreign currency borrowings accounting for only 0.49%, making the risk controllable[102] - Funding Risk: Managed through diversified financing and cooperation with SPIC Finance, with RMB 45.25 billion in undrawn credit facilities[106] - Policy Change Risk: Addressed by strengthening market analysis and optimizing power generation structure to cope with electricity price competition from new energy marketization[107] Social and Environmental Governance The Group upholds high ESG standards, achieving zero major safety incidents, increasing its workforce, actively addressing climate change through TCFD, and maintaining strict pollutant emission controls - No major incidents related to employees, equipment, or environmental protection occurred in the first half, and all operating power plants complied with local safety production regulations[108][111] - As of June 30, 2024, the Group employed 14,241 full-time employees, an increase from 10,636 in the same period last year[113] - The Group highly values ESG work, has established a Strategy and Sustainable Development Committee, and successfully joined the United Nations Global Compact (UNGC) The company has identified and analyzed climate risks and opportunities in accordance with the TCFD framework[117][118] - The coal consumption rate for power supply in the first half was 299.60 g/kWh, and the operation rates of desulfurization and denitrification units were both 100%, maintaining low pollutant emission performance across all indicators[120][122][123] Outlook and Special Dividend The company aims for high-quality transformation to become a world-class clean energy supplier and declared a special dividend to celebrate its 20th listing anniversary and reward shareholders Outlook The company will continue to pursue high-quality transformation, focusing on optimizing existing assets, developing new projects, and securing future growth to become a world-class clean energy supplier - The company will continue to adhere to the main theme of "improving existing assets, optimizing new increments, and building momentum for the future," fully promoting high-quality transformation and development, ensuring energy and power security, and fostering new productive forces[125] Special Dividend To commemorate its 20th listing anniversary, the Board resolved to declare a special cash dividend of RMB 0.05 per ordinary share to acknowledge long-term shareholder support Special Dividend Details | Item | Date | | :--- | :--- | | Dividend Per Share | RMB 0.05 (HKD 0.0547) | | Ex-dividend Date | September 30, 2024 | | Record Date | October 4, 2024 | | Payment Date | October 15, 2024 | Corporate Governance The company maintains high corporate governance standards, complying with the Corporate Governance Code, strengthening risk management and internal controls, and enhancing investor relations Risk Management and Internal Control During the reporting period, the company enhanced its risk management and internal control systems through comprehensive internal audits, targeted risk prevention, and optimized post-investment evaluations - During the period, fifteen audit projects were organized, and the "Digital Intelligence Audit System" was promoted to improve the quality and efficiency of audit work[134] - "One enterprise, one policy" major risk prevention and control checklists were formulated, and a job risk management manual was issued, closely integrating risk prevention and control with job responsibilities[136] Share Option Incentive Scheme As of June 30, 2024, 60,360,300 share options remained under the 2022 scheme, with RMB 11.52 million in share-based payment expenses recognized during the period Share Option Incentive Scheme Changes | Item | Number of Share Options | | :--- | :--- | | As of January 1, 2024 | 93,060,000 | | Expired during the period | (32,699,700) | | As of June 30, 2024 | 60,360,300 | - During the reporting period, the company recognized share-based payment expenses of RMB 11.52 million (2023 corresponding period: RMB 21.14 million)[91] Independent Review Report Ernst & Young, the independent auditor, conducted a review of the interim condensed consolidated financial information and found no material non-compliance with HKAS 34 - Independent auditor Ernst & Young issued an unmodified conclusion on the interim financial information[160] Interim Condensed Consolidated Financial Statements This section presents the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2024, including the statements of profit or loss, comprehensive income, financial position, changes in equity, and cash flows Interim Condensed Consolidated Statement of Profit or Loss The statement of profit or loss shows the Group's revenue of RMB 26.47 billion, operating profit of RMB 7.47 billion, and profit for the period of RMB 4.59 billion, all significantly increased year-on-year Interim Condensed Consolidated Statement of Comprehensive Income The statement of comprehensive income includes profit for the period and other comprehensive income items, with total comprehensive income for the period amounting to RMB 5.01 billion Interim Condensed Consolidated Statement of Financial Position The statement of financial position shows total assets of RMB 325.58 billion, total liabilities of RMB 225.31 billion, and total equity of RMB 100.27 billion as of June 30, 2024 Interim Condensed Consolidated Statement of Changes in Equity The statement of changes in equity details movements in equity items, including share capital, reserves, and retained profits, reflecting the impact of profit, dividends, and non-controlling interests Interim Condensed Consolidated Statement of Cash Flows The statement of cash flows indicates net cash generated from operating activities of RMB 5.42 billion, net cash used in investing activities of RMB 14.06 billion, and net cash generated from financing activities of RMB 9.16 billion Notes to the Interim Condensed Consolidated Financial Information This section provides detailed explanations and supplementary information for the interim condensed consolidated financial statements, covering accounting policies, segment information, revenue, related party transactions, financial instruments, and capital commitments