北京能源国际(00686) - 2024 - 中期财报

Corporate Information Corporate Basic Information This section provides a list of the company's core management, board of directors, and committee members, along with key partners including auditors, legal advisors, and principal bankers, also disclosing the registered office and principal place of business - The Chairman of the Company's Board of Directors is Mr. Zhang Ping. The chairpersons of the Audit Committee, Remuneration Committee, Nomination Committee, Risk Control Committee, and Sustainable Development Committee are Ms. Li Hongwei and Mr. Zhang Ping, respectively[5] - The Company's auditor is Grant Thornton Hong Kong Limited. Principal bankers include Agricultural Bank of China, Bank of Beijing, Bank of China, and several other large financial institutions[6] Management Discussion and Analysis Business Review During the reporting period, the Group accelerated clean energy expansion, increasing total grid-connected installed capacity from 8,577 MW at the end of 2023 to 10,045 MW, with total power generation significantly growing by 49.5% to 7,590,356 MWh Installed Capacity Overview | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Number of Solar Power Plants | 153 | 140 | | Number of Wind Power Plants | 34 | 28 | | Number of Hydro Power Plants | 26 | 26 | | Total Grid-connected Installed Capacity (MW) | 10,045 | 8,577 | - During the reporting period, the total power generation from subsidiary power plants was approximately 7,590,356 MWh, a significant increase of approximately 49.5% compared to 5,078,765 MWh in the same period last year[12][13] - The Group's power plants are diversified across 27 provinces in China, as well as Vietnam and Australia, achieving geographical and portfolio diversification[9][11] Financial Review During the reporting period, the Group achieved a net profit of RMB 292 million, a 18.2% year-on-year increase, with revenue growing 27.1% to RMB 3,272 million and EBITDA increasing 26.2% to RMB 2,686 million, primarily driven by expanded grid-connected capacity Key Financial Indicators | Financial Indicator (RMB million) | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 3,272 | 2,574 | +27.1% | | EBITDA | 2,686 | 2,129 | +26.2% | | Net Profit | 292 | 247 | +18.2% | | Finance Costs | 1,105 | 1,063 | +4.0% | - The average electricity price per kWh (excluding VAT) decreased from RMB 0.51 in the same period last year to RMB 0.43, mainly due to an increased proportion of grid-parity solar and hydro power projects[22] - The gearing ratio decreased from 76.7% at the end of 2023 to 74.9%, primarily attributed to the issuance of perpetual medium-term notes which increased equity[40][41] Key Performance Indicators | Key Performance Indicator | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | EBITDA Margin | ~82% | ~83% | | Debt to EBITDA Ratio | ~22.7 | ~20.3 | | Interest Coverage Ratio | ~2.61 | ~2.19 | Material Acquisitions and Disposals During the reporting period, the Group completed a significant acquisition in April 2024, where its subsidiary acquired all equity of Heshun Runneng New Energy Co., Ltd. for approximately RMB 149 million, making it a wholly-owned subsidiary - In April 2024, the company completed the acquisition of all equity in Heshun Runneng New Energy Co., Ltd. for approximately RMB 149 million[47][50] Prospects Looking ahead, the company will align with national 'dual carbon' strategies, deepening green development, and plans to form a new pattern with 'Energy + Intelligent Computing' as its core business, synergistically developing six major segments - The company's strategic core is to build an 'Energy + Intelligent Computing' main business, achieving synergistic development across six major segments: wind, solar, hydro, integrated energy, gas turbines, green hydrogen, and intelligent computing[58] - 2024 annual targets: installed capacity to exceed 15 million kW, and asset scale to reach RMB 130 billion[59] - The company will accelerate the construction of the Beijing Artificial Intelligence Public Intelligent Computing Platform, providing digital infrastructure for the AI industry and fostering new growth points[58][62] Interim Condensed Consolidated Financial Statements Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2024, the company's revenue was RMB 3,272 million, a 27.1% year-on-year increase, with profit for the period at RMB 292 million, up 18.2%, and profit attributable to company shareholders at RMB 33 million, with basic and diluted earnings per share of RMB 0.15 cents Interim Condensed Consolidated Statement of Profit or Loss | Item (RMB million) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 3,272 | 2,574 | | EBITDA | 2,686 | 2,129 | | Finance costs | (1,105) | (1,063) | | Profit before income tax | 434 | 342 | | Profit for the period | 292 | 247 | | Profit attributable to owners of the Company | 33 | 107 | | Basic and diluted earnings per share (RMB cents) | 0.15 | 0.48 | Interim Condensed Consolidated Statement of Comprehensive Income During the reporting period, the company recorded a profit for the period of RMB 292 million, with other comprehensive loss from currency translation differences of RMB 134 million, resulting in a total comprehensive income for the period of RMB 158 million, a significant increase from RMB 60 million in the prior year Interim Condensed Consolidated Statement of Comprehensive Income | Item (RMB million) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Profit for the period | 292 | 247 | | Other comprehensive loss (currency translation differences) | (134) | (187) | | Total comprehensive income for the period | 158 | 60 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2024, the company's total assets reached RMB 101.802 billion, a 13.1% increase from the end of 2023, with total liabilities at RMB 81.364 billion and total equity at RMB 20.438 billion, indicating liquidity pressure as current liabilities exceed current assets Interim Condensed Consolidated Statement of Financial Position | Item (RMB million) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current assets | 78,667 | 72,318 | | Property, plant and equipment | 70,682 | 64,150 | | Current assets | 23,135 | 17,718 | | Cash and cash equivalents | 8,539 | 6,187 | | Total assets | 101,802 | 90,036 | | Non-current liabilities | 49,559 | 44,576 | | Bank and other borrowings (non-current) | 46,849 | 41,961 | | Current liabilities | 31,805 | 28,397 | | Bank and other borrowings (current) | 22,817 | 20,745 | | Total liabilities | 81,364 | 72,973 | | Total equity | 20,438 | 17,063 | Interim Condensed Consolidated Statement of Changes in Equity During the reporting period, the company's total equity increased from RMB 17.063 billion at the beginning of the year to RMB 20.438 billion, primarily driven by the issuance of RMB 2.294 billion in perpetual medium-term notes and RMB 1.323 billion in non-controlling interest contributions, partially offset by RMB 196 million in declared dividends and RMB 134 million in total comprehensive loss - Total equity increased from RMB 17.063 billion at the beginning of the year to RMB 20.438 billion at the end of the period[77] - The primary reasons for the increase in equity were the issuance of perpetual medium-term notes (RMB 2.294 billion) and non-controlling interest contributions (RMB 1.323 billion)[77] - During the period, a final dividend of RMB 196 million for 2023 was declared, and a total comprehensive loss of RMB 101 million (attributable to owners of the Company) was recorded[77] Interim Condensed Consolidated Statement of Cash Flows During the reporting period, net cash inflow from operating activities was RMB 1.273 billion, while investing activities resulted in a net cash outflow of RMB 7.012 billion due to significant capital expenditures, and financing activities generated a net cash inflow of RMB 8.052 billion, primarily from new bank borrowings and perpetual medium-term note issuance, increasing cash and cash equivalents to RMB 8.539 billion at period-end Interim Condensed Consolidated Statement of Cash Flows | Item (RMB million) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Net cash inflow from operating activities | 1,273 | 3,303 | | Net cash outflow from investing activities | (7,012) | (3,182) | | Net cash inflow/(outflow) from financing activities | 8,052 | (2,657) | | Net increase/(decrease) in cash and cash equivalents | 2,313 | (2,536) | | Cash and cash equivalents at end of period | 8,539 | 2,748 | Notes to the Unaudited Condensed Consolidated Interim Financial Information 2.1 Going Concern Despite current liabilities exceeding current assets by approximately RMB 8.67 billion at period-end, posing significant going concern uncertainty, the Board believes the Group has sufficient working capital for continued operations, considering new post-period financing, ongoing financial support from controlling shareholder Jingneng Group, and expected cash flows from existing power plants - As of June 30, 2024, the Group's current liabilities exceeded current assets by approximately RMB 8.67 billion, with approximately RMB 22.827 billion in borrowings maturing within the next twelve months, constituting a significant uncertainty regarding going concern[92][94] - Management has taken several measures, including: (1) successful issuance of RMB 1 billion medium-term notes in July 2024; (2) securing approximately RMB 2.364 billion in new bank borrowings in July; (3) substantial loan support from controlling shareholder Jingneng Group and its subsidiaries, with confidence in renewal or new loan acquisition[96] 3 Revenue and Segment Information The Group's business is divided into three main segments: solar, wind, and hydro power generation, with solar being the largest revenue source at RMB 2.168 billion, and the vast majority of revenue (RMB 3.123 billion) originating from mainland China, supplemented by Australia and Vietnam, while major customer concentration is high, with two customers contributing over 20% of total revenue Revenue and Segment Assets by Business Segment (H1 2024) | Business Segment (H1 2024) | Revenue (RMB million) | Segment Assets (RMB million) | | :--- | :--- | :--- | | Solar Power Generation Business | 2,168 | 47,519 | | Wind Power Generation Business | 747 | 32,346 | | Hydro Power Generation Business | 357 | 9,240 | | Total | 3,272 | 93,053 | Revenue and Non-current Assets by Geographical Segment (H1 2024) | Geographical Segment (H1 2024) | Revenue (RMB million) | Non-current Assets (RMB million) | | :--- | :--- | :--- | | China | 3,123 | 69,278 | | Australia | 130 | 5,994 | | Vietnam | 19 | 519 | | Total | 3,272 | 75,796 | 17 Acquisitions of Subsidiaries During the reporting period, the Group completed the acquisition of two new energy companies through asset acquisition for a total cash consideration of RMB 217 million, primarily acquiring property, plant, and equipment valued at RMB 972 million while assuming RMB 598 million in bank and other borrowings, adding 100 MW of solar and 80 MW of wind grid-connected installed capacity Acquired Subsidiaries Overview | Acquired Company | Acquisition Month | Equity Acquired | Consideration (RMB million) | Type | New Installed Capacity (MW) | | :--- | :--- | :--- | :--- | :--- | :--- | | Pingquan Bangcheng New Energy Technology Co., Ltd. | March 2024 | 85.0% | 68 | Solar | 100.0 | | Heshun Runneng New Energy Co., Ltd. | April 2024 | 100.0% | 149 | Wind | 80.0 | - The acquisitions in this period were accounted for as asset acquisitions, with a total cash consideration of RMB 217 million, resulting in a net cash outflow from acquisitions of RMB 60 million[213][215] 18 Related-Party Transactions The Group engages in significant related-party transactions, primarily interest payments on loans to controlling shareholder Jingneng Group and its subsidiaries, with substantial outstanding bank and other loans from the controlling shareholder and its subsidiaries at period-end, indicating strong reliance on the controlling shareholder for financing Significant Related Party Balances | Significant Related Party Balances (RMB million) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Bank borrowings from subsidiaries of controlling shareholder | 5,800 | 7,470 | | Loans from controlling shareholder | 10,655 | 10,865 | | Financial institution loans from subsidiaries of controlling shareholder | 5,900 | 5,450 | - During the reporting period, interest expenses paid to controlling shareholder Jingneng Group were RMB 195 million, and to its subsidiaries were RMB 185 million[225] 20 Events after the Date of Statement of Financial Position Two significant post-balance sheet events occurred: the extension of the scheme implementation agreement for the acquisition of Australian listed company TPC to October 15, 2024, and the company's acquisition of ICBC Investment's 29.43% equity in subsidiary United Photovoltaics (Changzhou) for approximately RMB 3.02 billion in July 2024, making it a wholly-owned subsidiary - To acquire Australian listed company TPC Consolidated Limited, the company revised the last date for the scheme implementation agreement to October 15, 2024, awaiting the decision from the Australian Foreign Investment Review Board[253][254] - In July 2024, the company acquired 29.43% equity in United Photovoltaics (Changzhou) held by ICBC Investment for approximately RMB 3.02 billion, achieving full ownership of the subsidiary[257] Other Information Substantial Shareholders' Interests As of June 30, 2024, the company's substantial shareholders include controlling shareholder Beijing Energy Investment Group (Hong Kong) Co., Limited with a 32.14% stake, China Merchants Group Limited with 15.22%, Huaqing Photovoltaic Co., Ltd. with 13.65%, and China CITIC Financial Asset Management Co., Ltd. with 11.79% Substantial Shareholders | Substantial Shareholder | Shareholding Percentage | | :--- | :--- | | Beijing Energy Investment Group (Hong Kong) Co., Limited | 32.14% | | China Merchants Group Limited | 15.22% | | Huaqing Photovoltaic Co., Ltd. | 13.65% | | China CITIC Financial Asset Management Co., Ltd. | 11.79% | Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, the company repurchased 130 million of its own shares on the Stock Exchange for a total consideration of approximately HKD 30 million, held as treasury shares for potential future strategic acquisitions or resale based on market conditions - The company repurchased 130 million shares in June 2024 for a total consideration of approximately HKD 30 million, with repurchase prices ranging from HKD 0.219 to HKD 0.237 per share[291][293] Share Option Scheme The company adopted a share option scheme in June 2022, and during the reporting period, 134,650,200 share options lapsed due to unfulfilled vesting conditions, leaving 352,079,800 unexercised options as of June 30, 2024, with approximately four years remaining on the scheme - During the reporting period, 134,650,200 share options lapsed, with no new options granted or exercised[264] - As of June 30, 2024, 352,079,800 share options remained unexercised under the share option scheme[264]