Jiaze Renewables(SH:601619)2021-04-26 16:00Financial Performance - The company achieved a net profit of 198.06 million yuan for the year 2020, with a net profit attributable to shareholders also at 198.06 million yuan, representing a significant financial performance [7]. - The proposed cash dividend distribution for 2020 is 120 million yuan, which accounts for 60.59% of the net profit attributable to shareholders [7]. - The company reported a capital reserve of 517.36 million yuan and an undistributed profit of 788.91 million yuan as of the end of 2020 [7]. - The company's operating revenue for 2020 was approximately ¥1.01 billion, a decrease of 9.31% compared to ¥1.12 billion in 2019 [30]. - The net profit attributable to shareholders for 2020 was approximately ¥198 million, down 32.45% from ¥293 million in 2019 [30]. - The basic earnings per share for 2020 was ¥0.10, a decline of 33.33% compared to ¥0.15 in 2019 [34]. - The total assets at the end of 2020 were approximately ¥12.23 billion, an increase of 33.97% from ¥9.13 billion at the end of 2019 [33]. - The weighted average return on equity for 2020 was 5.73%, a decrease of 5 percentage points from 10.73% in 2019 [34]. - The net cash flow from operating activities for 2020 was approximately ¥649 million, a slight decrease of 1.88% from ¥661 million in 2019 [30]. - The company reported a total non-operating loss of RMB 2,543,017.78 in 2020, compared to a profit of RMB 2,572,310.32 in 2019 [38]. Dividend Policy - The company plans to maintain the total distribution amount unchanged, with adjustments to the per-share distribution ratio if there are changes in total share capital before the dividend distribution date [8]. - The company will not conduct capital reserve transfers to increase share capital for the year 2020 [8]. - The company’s cash dividend policy stipulates that at least 10% of the annual distributable profit should be distributed as cash dividends, subject to certain conditions [163]. - The company has not adjusted its cash dividend policy during the reporting period [164]. - The company’s net profit for 2019 was 293.21 million RMB, with a cash dividend of 89.19 million RMB, representing 30.42% of the net profit [167]. Operational Strategy and Market Position - The company plans to continue expanding its market presence and invest in new technologies to enhance operational efficiency [39]. - The company has been focusing on developing distributed energy solutions and smart microgrid systems to meet growing energy demands [39]. - The company’s main business remains focused on the development, investment, construction, operation, and management of renewable energy power, specifically centralized wind and solar power generation [40]. - The company is positioned as a leading private wind power enterprise in the Ningxia region, with plans to further increase its market share as new projects come online [57]. - The company is committed to supporting national carbon neutrality goals, with plans for significant annual increases in wind power capacity in alignment with government policies [63]. Project Development and Capacity - As of December 31, 2020, the company's installed capacity for renewable energy generation was 1,417.875 MW, including 1,361.5 MW from wind power and 50 MW from solar power [68]. - The company’s construction projects under development totaled 342.5 MW, including 242.5 MW from wind power and 100 MW from solar power [68]. - The company has significant ongoing projects, including the San Daoshan 150MW Wind Power Project, with a total project cost of RMB 1.1 billion and RMB 847 million invested in the current year [103]. - The company achieved the largest annual construction and grid connection scale in its history in 2020, successfully connecting all projects to the grid despite challenges [66]. - The company aims to enhance project reserves as a vital source for future growth, focusing on efficiency and quality in project development amidst increasing competition in the wind power sector [122]. Financial Management and Risks - The company is exposed to risks from changes in supportive policies and regulations that could impact the renewable energy sector [126]. - The company has faced risks related to the adjustment of on-grid electricity prices, which are set by the National Development and Reform Commission and can affect unconnected projects [132]. - The company is exposed to interest rate risks, as borrowing costs may rise with increases in benchmark interest rates, negatively impacting financial performance [145]. - The company must navigate government approval risks for its wind and solar projects, which could delay development and affect investment returns if standards become stricter [146]. - The company relies heavily on a single customer, the State Grid Ningxia Electric Power Company, for its electricity sales, which poses a credit risk if the customer fails to meet payment obligations [151]. Social Responsibility and Community Engagement - The company has committed CNY 422.19 million towards poverty alleviation efforts, including employment and vocational training initiatives [190]. - The company employed 39 local residents in its projects as part of its social responsibility efforts [191]. - The company has established a vocational training school to enhance skill development and employment opportunities in the renewable energy sector [190]. - The company continues to fulfill its social responsibility by providing employment and vocational training to help impoverished areas [194]. - The company’s social responsibility report was disclosed simultaneously with the annual report [195]. Environmental Compliance and Sustainability - The company has maintained strict compliance with environmental laws and regulations, with no pollution incidents reported during the reporting period [196]. - The company is focused on developing and operating centralized wind and photovoltaic power generation, with no involvement in pollutant emissions [196]. - The company’s commitment to environmental protection is reflected in its operations, which do not involve significant pollutant discharge [196].