Renewable Energy Performance - In 2021, wind speeds at the Danjinghe wind farm increased by 7% compared to 2020, reaching 6.2 meters per second, and dispatched 423.8 Giga-Watt-hours of clean energy, an increase of 11%[8]. - Overall wind resources for the Group's wind farms improved significantly in 2021, with wind speeds at Siziwang Qi in Inner Mongolia and Changma in Gansu province increasing by 8% compared to 2020[10]. - The overall curtailment rate for 2021 was 5.6%, a significant improvement from 12.2% in 2014, attributed to new transmission lines and increased demand for renewable energy[11]. - The Group's wind farms were instrumental in powering the 2022 Beijing Winter Olympics, marking the first Olympic games to operate on 100% renewable energy[8]. - The Danjinghe wind farm was highly profitable due to its acquisition through a national tender, with all its power required to be purchased by the grid, resulting in very little curtailment[8]. - The peak months for wind resources were January, February, November, and December, allowing the Group to dispatch power well above 2020 levels[10]. - The Group's wind farms in Inner Mongolia and Gansu performed well, contributing to the overall improvement in wind resources[10]. - The increase in wind speeds and reduction in curtailment reflect the growing demand for renewable energy compared to coal-fired power[11]. - The Group's strategic focus on renewable energy aligns with national policies promoting sustainable energy sources[8]. - Wind power output rose 40% year on year, now accounting for 8% of the total power generated across China[19]. - Total wind power output was 652,600 GWh, a 40% increase compared to 2020, accounting for 8% of total power generation[30]. - The Group's total gross power generating capacity is 738 MW, with a net capacity of 427 MW as of December 31, 2021[30]. - The Group aims to continuously improve in the renewable energy sector while balancing the needs of shareholders, the environment, and local communities[47]. - The Group will continue to support the goal of decreasing carbon emissions by investing in various renewable energy projects[47]. - The Group's renewable energy projects contribute to local economic development by reducing pollution and hiring local staff[176]. Financial Performance - For 2021, revenues reached HK$250.3 million, an increase of 21% compared to last year's HK$206.1 million[17]. - Gross profit increased 45% to HK$112.1 million, with a net profit after tax attributable to equity holders increasing 32% to HK$113.4 million[17]. - Total power dispatch in 2021 reached 1,541.2 GWh, an increase of 14% compared to 1,350.1 GWh in 2020[18]. - Power demand increased by 10.3% in 2021, a significant improvement over the 1.3% decline in 2020[18]. - The appreciation of the Renminbi contributed to an exchange gain, benefiting the Company's overall financial performance[17]. - As of 31 December 2021, the Group's total bank borrowings decreased to HK$588.0 million from HK$673.3 million in 2020[28]. - Unrestricted bank deposits and cash increased to HK$197.2 million as of 31 December 2021, compared to HK$190.4 million in 2020[28]. - The Group's net gearing ratio improved to 27% as of 31 December 2021, down from 35% in the previous year[28]. - The Group's associate company wind farms saw a net profit increase of 39% to HK$75.7 million, up from HK$54.3 million in the previous year[26]. Corporate Governance - The Company maintained a balanced board with seven Directors, including four Executive Directors and three Independent Non-executive Directors, ensuring strong independent oversight[64]. - All Independent Non-executive Directors provided annual confirmations of independence, and the Company considers all of them to be independent[65]. - The Company complied with the Corporate Governance Code and the Listing Rules, with deviations explained in relevant paragraphs[63]. - The Company has maintained a strong independent element in its board composition throughout the year ended December 31, 2021[64]. - The Company’s governance practices are designed to safeguard the interests of shareholders, customers, and employees[62]. - The Company has established multiple committees, including the Audit, Nomination, and Remuneration Committees, to oversee specific areas of the Group's affairs[83]. - The Board is collectively responsible for promoting the success of the Group and maximizing financial performance and shareholder value[69]. - The Company has adopted a Dividend Policy aimed at allowing shareholders to participate in profits while retaining adequate reserves for future growth[145]. - The Company has implemented an Inside Information Disclosure Policy to ensure compliance with relevant regulations regarding the disclosure of inside information[143]. - The Company has adopted the Model Code for Securities Transactions by Directors, confirming compliance from all Directors for the year ended December 31, 2021[112]. Environmental, Social, and Governance (ESG) Initiatives - The Group has been involved in environmental protection and low carbon development in China since 2006, adapting to changing stakeholder expectations[157]. - The Board has reviewed and approved the ESG strategy and reporting for the financial year ended December 31, 2021[157]. - The ESG report emphasizes the importance of measurable key performance indicators (KPIs) for assessing ESG impacts[161]. - The Group aims to enhance its ESG policies and management system through consistent reviews and improvements[161]. - The Group has identified key ESG issues relevant to its renewable energy business, including wind power and distributed solar projects[163]. - The Group values the trust and support from stakeholders, which are critical to its sustainable development[170]. - The Group welcomes feedback from stakeholders on its ESG approach and performance through various communication channels[176]. - The Group is committed to achieving environmental sustainability through best practices and integrating environmental protection into daily operations[182]. - The Group has implemented energy-saving measures, including maintaining room temperature at 25 °C and encouraging video conferencing[180]. - The Group has not generated any hazardous waste and has minimal water consumption in its renewable energy business[180]. Employee and Workplace Safety - The company reported zero work-related fatalities in the past three years, maintaining a consistent safety record[192]. - There was one work injury case in 2021, resulting in 180 lost workdays, with a work injury rate of 0.01%[192]. - The employee turnover rate was 8.1% for males and 0% for females, indicating a stable workforce[188]. - The company has implemented various health and safety measures, including safety training and risk assessments, to ensure a safe working environment[191]. - The company provides comprehensive health care and medical insurance coverage for its employees[188]. - The Group has complied with all relevant health and safety regulations during the year ended December 31, 2021[198]. - The Group's procurement procedures ensure that suppliers meet safety, environmental, and quality standards, with a focus on ISO qualifications[198]. Strategic Focus and Future Outlook - The Group plans to continue developing renewable energy projects and seek growth investment opportunities[36]. - The demand for renewable energy is expected to remain strong due to government priorities for carbon neutrality by 2060 and the increasing attractiveness of renewable energy compared to coal[40]. - The Group's strategy focuses on "Grow • Advance • Sustain," aiming to enhance profitability and create sustainable value[36]. - The Group's investment opportunities are evaluated based on economic, environmental, and social benefits[36]. - The Group acknowledges the increasing requirements for climate-related information disclosures due to stricter environmental laws[184].
中国再生能源投资(00987) - 2021 - 年度财报