协合新能源(00182) - 2022 - 中期财报

Corporate Information This section provides fundamental details about the company Management Discussion and Analysis This section reviews the company's performance and financial condition, along with future outlook Operating Environment In H1 2022, the complex global environment accelerated energy transition, with China's renewable plan targeting doubled wind and solar power, supported by low equipment prices, rapid energy storage, and loose credit - China's "14th Five-Year Plan" for Renewable Energy Development targets annual renewable energy generation of approximately 3.3 trillion kWh by 2025, with wind and solar power generation doubling[13][15] - As of June 2022, China's wind power installed capacity was approximately 340 GW, a 17.2% year-on-year increase, and solar power installed capacity was approximately 340 GW, a 25.8% year-on-year increase[14][15] - Industry trends show wind turbine prices remaining at historical lows (below RMB 2,000/kW), new energy storage policies promoting large-scale development, and loose credit conditions reducing financing costs[18][19][23] Business Review In H1 2022, the Group achieved 37.63% revenue growth and 9.6% profit growth, making significant strides in project development, construction, operation, financing, and asset optimization, marked by record construction scale and improved asset quality Project Development and Power Plant Construction In H1, the Group achieved significant project development, securing 800 MW wind quotas and 1,101 MW new projects, expanding resource reserves to 30.84 GW, and increasing attributable installed capacity by 19.5% to 2,875.4 MW, with solar PV growing 137.4% - In the first half, 800 MW of wind power quotas were obtained, with 4 new wind power projects and 2 new solar PV projects approved/filed, totaling 1,101 MW[30][31] - As of June end, the Group's signed and pending effective wind and solar resource reserves totaled 30.84 GW, comprising approximately 15.65 GW of wind power and 15.20 GW of solar PV[31] Power Plant Attributable Capacity Changes (MW) | Business Segment | H1 2022 | H1 2021 | Change Rate | | :--- | :--- | :--- | :--- | | Wind Power | 2,424.7 | 2,216.0 | 9.4% | | Solar PV | 450.7 | 189.7 | 137.4% | | Total | 2,875.4 | 2,405.7 | 19.5% | Power Plant Production and Operation Power plant production was safe and efficient, with attributable generation up 24.5% (solar PV up 202.0%), utilization hours exceeding national averages, and curtailment rates down, leading to steady revenue and net profit growth despite lower average on-grid tariffs Attributable Power Generation (GWh) | Business Segment | H1 2022 | H1 2021 | Change Rate | | :--- | :--- | :--- | :--- | | Wind Power | 2,958.8 | 2,543.8 | 16.3% | | Solar PV | 356.3 | 118.0 | 202.0% | | Total | 3,315.1 | 2,661.8 | 24.5% | - The Group's invested wind power plants had a weighted average utilization of 1,321 hours, 167 hours higher than China's average; solar PV power plants had 791 hours, 101 hours higher than China's average[44][45] Revenue and Net Profit of Controlled Subsidiary Power Plants (RMB) | Metric | H1 2022 | H1 2021 | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 1,044,201,000 | 868,095,000 | 20.3% | | Net Profit | 437,502,000 | 410,528,000 | 6.6% | - Due to the commissioning of parity projects, the weighted average on-grid tariff for wind power decreased from RMB 0.5118/kWh to RMB 0.4649/kWh, and for solar PV from RMB 0.9398/kWh to RMB 0.5338/kWh[58][60] Financing Channels and Cost Benefiting from loose credit, the Group achieved record new project financing at historical low rates, with RMB 2.45 billion in drawdowns, and period-end capital expenditure commitments significantly increased to RMB 4.36 billion - In the first half, new project drawdowns reached RMB 2.45 billion, with a significant decrease in new project financing costs[61] - As of June 30, 2022, contracted but unexpended capital commitments amounted to RMB 4,364,494,000, a substantial increase from the end of 2021[61] Asset Optimization The Group continuously optimizes assets through dynamic analysis and rolling replacement of existing power plants to reduce reliance on green electricity subsidies and improve cash flow, having signed agreements to transfer 144 MW of projects in the first half, effectively improving asset structure and quality - In the first half, the Group signed agreements to transfer 144 MW of projects, aiming to improve cash flow and reduce reliance on subsidies through asset replacement[63][65] Intelligent O&M The intelligent O&M segment achieved revenue of RMB 116 million, a 25.7% year-on-year increase, serving various types of clean energy assets and actively integrating new technologies, with over 12 GW of service capacity under management - The intelligent O&M segment achieved revenue of RMB 115,718,000, a 25.7% year-on-year increase[64][66] - Service capacity under management exceeds 12 GW, with continuous deep integration of digital systems and service scenarios[68][69] Power Design, Leasing and Other Service Businesses The design company actively expanded external markets and EPC business, while the leasing company saw new external business contract value increase by 190% year-on-year, and the Group strengthened green certificate management, with issuances for parity projects increasing by 29.7% - Tianjin Guoyin Xinyuan Leasing Co., Ltd.'s new external business contract value increased by 190% year-on-year[72][73] - The number of green certificates issued for parity projects increased by 29.7% year-on-year, with bulk sales contracts already initiated[77] Key Financial Indicators for H1 2022 | Metric | H1 2022 | H1 2021 | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Total Revenue | RMB 1,339,182,000 | RMB 973,014,000 | 37.63% | | Profit Attributable to Equity Holders | RMB 443,179,000 | RMB 404,344,000 | 9.6% | | Basic Earnings Per Share | 5.01 cents | 4.91 cents | - | | Gearing Ratio | 70.79% | - | (Increased from 68.55% at end of 2021) | Outlook In H2, the Group will focus on power generation and synergistic services, accelerating project construction for capacity growth, developing new energy and storage, expanding service businesses, ensuring safe production, and optimizing assets for enhanced efficiency - Accelerate the construction of new and ongoing projects to ensure timely commissioning, achieving rapid growth in attributable installed capacity and power plant earnings[83][85] - Innovate development models, increase energy storage project reserves, and formulate appropriate development strategies based on dynamic assessment of project investment returns relative to equipment prices[88] - Vigorously develop service businesses, strengthen external business expansion, and promote the synergistic development of design, financial leasing, and intelligent O&M services[89][91] - Persistently conduct dynamic inventory analysis of existing assets, continuously enhancing asset returns and efficiency through various means such as asset replacement, technological upgrades, and intelligent operations[94] Report of the Directors This section details the company's governance, including director interests, share award schemes, and major shareholders DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS The report discloses the interests of the company's directors and chief executives in the company's shares as of June 30, 2022, with Chairman Mr. Liu Shunxing holding approximately 20.34% of shares and Vice Chairman Ms. Liu Jianhong holding approximately 2.10% Directors' Long Positions in the Company's Shares (Partial) | Director Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | | Liu Shunxing (Chairman) | Personal and Corporate | 1,739,494,242 | 20.34% | | Liu Jianhong (Vice Chairman) | Personal and Corporate | 179,710,000 | 2.10% | SHARE AWARD SCHEME The company has a share award scheme to recognize and retain employees, with 448,773,457 award shares (5% of issued capital) available for grant, and during the period, 3,000,000 new shares were granted and 52,300,000 shares vested - As of the reporting date, the total number of shares available for grant under the share award scheme is 448,773,457, representing 5% of the issued share capital, with a remaining term of 3 years[110][113] - During the reporting period, a total of 52,300,000 award shares vested, and 3,000,000 new shares were granted to other employees[123] SUBSTANTIAL SHAREHOLDERS As of June 30, 2022, major shareholders holding over 5% included CWPI (11.20%), Huadian Fuxin (9.80%), and Splendor Power Limited (7.82%), with the latter two related to the Chairman Substantial Shareholders' Shareholdings | Shareholder Name | Number of Shares Held | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | | CWPI | 1,002,877,155 | 11.20% | | Huadian Fuxin | 880,000,000 | 9.80% | | Splendor Power Limited | 701,617,087 | 7.82% | PURCHASE, SALE OR REDEMPTION OF THE LISTED SECURITIES During H1 2022, the company repurchased 38,740,000 ordinary shares on the Hong Kong Stock Exchange for approximately HKD 25.98 million, and all repurchased shares have been cancelled Share Repurchase Details | Month | Number of Shares Repurchased | Highest Price Per Share (HKD) | Lowest Price Per Share (HKD) | Total Amount (HKD) | | :--- | :--- | :--- | :--- | :--- | | March 2022 | 38,740,000 | 0.69 | 0.62 | 25,976,200 | Corporate Governance Report This section outlines the company's adherence to corporate governance principles and practices Corporate Governance Report Summary The company consistently complied with the Corporate Governance Code in H1 2022, adopting a standard code for directors' securities transactions, with all directors confirming compliance, and the Audit Committee reviewing the interim financial statements - The company confirms compliance with all code provisions of the Corporate Governance Code during the reporting period[140] - The Audit Committee, comprising three independent non-executive directors, has reviewed these interim financial statements[141] Consolidated Interim Financial Statements This section presents the company's financial performance and position for the interim period Consolidated Statement of Profit or Loss For H1 2022, the company achieved revenue of RMB 1.339 billion (up 37.6%), gross profit of RMB 797 million (up 24.7%), and profit attributable to shareholders of RMB 443 million (up 9.6%), with basic earnings per share of RMB 5.01 cents Consolidated Statement of Profit or Loss Summary (RMB Thousand Yuan) | Item | H1 2022 | H1 2021 (Restated) | | :--- | :--- | :--- | | Revenue | 1,339,182 | 973,014 | | Gross Profit | 796,546 | 638,651 | | Profit Before Income Tax | 513,129 | 444,830 | | Profit for the Period | 470,197 | 417,802 | | Profit Attributable to Company Shareholders | 443,179 | 404,344 | Consolidated Statement of Financial Position As of June 30, 2022, total assets were RMB 26.82 billion (up 11.5%), total liabilities were RMB 18.99 billion (gearing ratio 70.8%), and net assets were RMB 7.83 billion (up 3.6%), with property, plant and equipment being the main component at RMB 12.62 billion Consolidated Statement of Financial Position Summary (RMB Thousand Yuan) | Item | June 30, 2022 | December 31, 2021 (Restated) | | :--- | :--- | :--- | | Non-current Assets | 18,000,202 | 16,591,301 | | Current Assets | 8,819,795 | 7,453,517 | | Total Assets | 26,819,997 | 24,044,818 | | Non-current Liabilities | 11,526,630 | 10,774,594 | | Current Liabilities | 7,460,493 | 5,707,337 | | Total Liabilities | 18,987,123 | 16,481,931 | | Net Assets | 7,832,874 | 7,562,887 | Condensed Consolidated Cash Flow Statement In H1 2022, net cash from operating activities was RMB 831 million, net cash outflow from investing activities was RMB 1.982 billion, and net cash from financing activities was RMB 915 million, resulting in a net decrease in cash and cash equivalents of RMB 236 million to RMB 3.283 billion Consolidated Cash Flow Statement Summary (RMB Thousand Yuan) | Item | H1 2022 | H1 2021 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 831,222 | 376,531 | | Net Cash Used in Investing Activities | (1,982,483) | (509,591) | | Net Cash Generated from Financing Activities | 914,831 | (796,274) | | Net Decrease in Cash and Cash Equivalents | (236,430) | (929,334) | | Cash and Cash Equivalents at End of Period | 3,283,280 | 1,350,018 | Notes to the Consolidated Interim Financial Statements This section provides detailed explanations and breakdowns of the figures presented in the financial statements 3. Segment information The Group's operations are divided into power generation, intelligent O&M, and other businesses, with power generation being the primary source of revenue and profit in H1 2022, contributing RMB 1.044 billion in revenue and RMB 704 million in segment results H1 2022 Segment Revenue and Results (RMB Thousand Yuan) | Segment | Revenue from External Customers | Segment Results | | :--- | :--- | :--- | | Power Generation Business | 1,044,201 | 704,016 | | Intelligent O&M | 115,718 | 16,254 | | Other | 179,263 | 4,100 | | Total | 1,339,182 | 724,370 | 4. Revenue Total revenue for H1 2022 was RMB 1.339 billion, primarily from electricity sales at RMB 1.044 billion (including RMB 823 million from benchmark tariffs and RMB 221 million from subsidies), with EPC revenue significantly increasing to RMB 169 million Revenue Composition (RMB Thousand Yuan) | Item | H1 2022 | H1 2021 (Restated) | | :--- | :--- | :--- | | Electricity Sales Revenue | 1,044,201 | 868,095 | | Design, Procurement and Construction Revenue | 169,439 | 10,847 | | Power Plant Operation and Maintenance Revenue | 102,647 | 80,892 | | Finance Lease Income | 11,691 | 5,181 | | Other | 11,204 | 8,007 | | Total | 1,339,182 | 973,014 | 18. Assets/liabilities classified as held for sale During the reporting period, the Group decided to dispose of certain wind power plant subsidiaries, reclassifying RMB 1.170 billion in assets and RMB 926 million in liabilities as held for sale as of June 30, 2022 - As of June 30, 2022, total assets classified as held for sale amounted to RMB 1,170,377,000, with related liabilities totaling RMB 925,683,000[228][229] 27. Commitment As of June 30, 2022, the Group's contracted but unprovided capital expenditure commitments for property, plant and equipment acquisitions significantly increased to RMB 4.364 billion from RMB 2.068 billion at the end of 2021, indicating accelerated future investment - Contracted but unexpended capital commitments amounted to RMB 4,364,494,000, significantly higher than RMB 2,068,344,000 at the end of 2021[254][257] 30. Events after the end of the reporting period On June 21, 2022, the company announced a potential off-market share repurchase of up to 449 million ordinary shares held by Huadian Fuxin, pending shareholder approval - The company announced a potential off-market share repurchase of up to 449,000,000 ordinary shares held by Huadian, pending approval at a general meeting of shareholders[279]