Jiaze Renewables(SH:601619)2020-03-09 16:00Financial Performance - The company achieved a net profit of 293.21 million yuan for the year 2019, with a net profit attributable to shareholders of 293.21 million yuan[6]. - The proposed cash dividend is 0.43 yuan per 10 shares, totaling 89.19 million yuan, which accounts for 30.42% of the net profit attributable to shareholders[6]. - The company’s operating revenue for 2019 was CNY 1,115,526,822.12, representing a 4.34% increase compared to CNY 1,069,087,657.45 in 2018[29]. - The net profit attributable to shareholders for 2019 was CNY 293,209,604.92, an increase of 8.87% from CNY 269,312,456.63 in 2018[29]. - The net cash flow from operating activities for 2019 was CNY 661,436,722.45, a decrease of 19.48% compared to CNY 821,478,166.62 in 2018[29]. - The total assets at the end of 2019 were CNY 9,128,351,516.52, reflecting a 3.86% increase from CNY 8,788,739,108.38 at the end of 2018[29]. - The net assets attributable to shareholders at the end of 2019 were CNY 3,323,768,827.94, which is a 25.54% increase from CNY 2,647,499,629.99 at the end of 2018[29]. - The basic earnings per share for 2019 was CNY 0.15, up 7.14% from CNY 0.14 in 2018[32]. - The weighted average return on equity for 2019 was 10.73%, an increase of 0.12 percentage points from 10.61% in 2018[32]. Operational Efficiency - The company has established a one-stop service innovation model with qualified suppliers, enhancing operational efficiency and reducing maintenance costs[50]. - The company’s operational model includes a comprehensive assessment system based on electricity generation, ensuring accountability and performance from maintenance contractors[41]. - The average annual availability rate of the company's million-kilowatt units reached 99.88%, indicating high operational efficiency[60]. - The company’s cash flow from investing activities was -426,688.88 million yuan, a significant decrease of 472.98% compared to 2018, mainly due to increased project construction investments[77]. - The company’s cash flow from financing activities was -377,214.48 million yuan, an increase of 46.95% compared to 2018, primarily due to cash received from non-public stock issuance[77]. Market and Industry Trends - In 2019, the total national electricity generation was 7.33 trillion kWh, an increase of 4.7% year-on-year, with non-fossil energy generation accounting for 32.6% of total generation, up 1.7 percentage points from the previous year[48]. - The installed capacity of non-fossil energy generation is expected to continue to rise, with a projected total installed capacity of 2.13 billion kW by the end of 2020[49]. - The company anticipates a steady growth in electricity consumption, with an expected increase of 4%-5% in total electricity usage in 2020[49]. - The global wind energy market is expected to add approximately 720 GW of new installed capacity over the next decade, with China accounting for about 36% of this growth, or 249.5 GW[115]. - The wind power equipment industry is expected to see increased competition and technological advancements due to cost pressures and the need for efficiency improvements[121]. Risks and Challenges - The company’s future development strategies and operational plans are subject to risks and uncertainties[7]. - The company faces risks related to natural resource conditions, as unpredictable weather changes can adversely affect power production and revenue[163]. - The company faces risks of wind and solar power curtailment due to insufficient grid capacity, which could significantly impact its revenue[149]. - Future revenue levels may be adversely affected if the company cannot effectively control costs and improve generation efficiency amid potential reductions in grid benchmark electricity prices[141]. - The company is at risk of talent loss in the competitive renewable energy sector, which could affect its operational management and performance[169]. Corporate Governance and Compliance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has retained the accounting firm Xinyong Zhonghe for the 2019 audit, with a fee of 700,000 RMB[189]. - The company has not faced any risks of suspension or termination of listing during the reporting period[192]. - The company has maintained compliance with all commitments made during the initial public offering, ensuring stability in share prices[184]. - The company has fulfilled all commitments related to share restrictions and reduction intentions within the agreed effective period[181]. Investment and Development - The company has a strong project development pipeline, with new approved projects including a 150 MW wind project in Ningxia and a 50 MW project in Henan[60]. - The company completed its first post-listing refinancing, raising a net amount of RMB 466 million for the construction of three wind power projects totaling 250 MW[59]. - The company has established a project development team to expand and reserve project resources, targeting regions with favorable conditions for renewable energy[60]. - The company is actively expanding financing channels to support long-term development and project construction, focusing on reducing financing risks and utilizing capital markets effectively[130]. - The company has established a long-term partnership with its main supplier, but any operational issues with the supplier could negatively impact project construction and maintenance[168].