CN GREEN ELECTRICITY(SZ:000537) Zheng Quan Zhi Xing·2025-06-26 16:29Core Viewpoint - China Lianhe Credit Rating Co., Ltd. has upgraded the long-term credit rating of Tianjin Zhonglv Electric Investment Co., Ltd. to AAA, with a stable outlook, reflecting the company's strong operational performance and support from its parent company, China Green Development Investment Group [1][3][6]. Company Overview - Tianjin Zhonglv Electric Investment Co., Ltd. operates as a platform for wind and solar energy development under China Green Development Investment Group, which provides substantial support [3][6]. - As of the end of 2024, the company's installed capacity reached 18.45 million kW, a significant increase of 1283.50 thousand kW year-on-year, with wind power concentrated in Qinghai, Gansu, and Inner Mongolia, and solar power primarily in Xinjiang and Qinghai [3][6][13]. Financial Performance - The company reported a total revenue of 38.40 billion yuan in 2024, representing a year-on-year growth of 4.05%, while total profit increased by 14.57% to 13.38 billion yuan [3][6][19]. - The gross profit margin for the renewable energy business was 54.51%, indicating a high level of profitability [6][19]. - The company's total assets grew by 26.99% year-on-year to 89.37 billion yuan by the end of 2024, driven by rapid expansion and ongoing projects [19][20]. Debt and Capital Structure - The company's debt increased significantly, with total liabilities rising by 153.87 billion yuan year-on-year, leading to a debt-to-asset ratio of 72.27% and a total debt capitalization ratio of 70.38% by the end of 2024 [6][19][20]. - The company completed a targeted issuance of shares in May 2024, raising 1.8 billion yuan, which enhanced its capital strength and supported its debt repayment capacity [5][6]. Operational Challenges - The company faces challenges related to power consumption and grid infrastructure, particularly in Xinjiang, where the electricity grid's development lags behind more economically developed regions [6][19]. - As of the end of 2024, accounts receivable amounted to 6.251 billion yuan, a 14.56% increase from the previous year, indicating potential liquidity issues due to delayed subsidy payments [8][19]. Industry Context - The clean energy sector in China is experiencing rapid growth, with investments in clean energy surpassing those in traditional coal-fired power for the first time [12][19]. - The overall power supply in China is expected to remain tight, particularly during peak demand periods, necessitating a focus on maintaining stable electricity supply while transitioning to cleaner energy sources [12][19].