CGN New Energy Announced its 2017 Annual Results
( 2018-03-23 )

On 22 March 2018, CGN New Energy Holdings Co., Ltd. (“CGN New Energy”, Stock Code 1811.HK) held its Annual Results Announcement Meeting in Hong Kong, releasing the annual results of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2017. Chairman Mr. Chen Sui, President and Executive Director Mr. Li Yilun, Chief Accountant Mr. Liu Chao and Assistant President, Company Secretary and the General Manager of Investor Relations Department Mr. Lee Kin presented at the meeting.

According to the press meeting, as of December 31, 2017, the revenue of the Group for the year ended 31 December 2017 amounted to approximately US$1,108.6 million, representing an increase of 3.2% compared with approximately US$1,074.4 million of last year. The increase in revenue was mainly attributable to the improvement of dispatch volume in wind projects at Gansu Province with lower grid curtailment. This is accompanied by higher steam sales of the Company’s cogen projects and higher management fee income. The profit for the year for wind and solar sectors increased by 146.5% and 51.8% to US$31.3 million and US$12.9 million respectively.

Significant increase in net electricity generation

The Group’s operations are located mainly in the PRC and Korean power markets with wide geographical coverage and diversified business scope, including wind, solar, gas-fired, coal-fired, oil-fired, hydro, cogen and fuel cell projects as well as a steam project.

In 2017, the net electricity generated from the consolidated power generation projects of the Group reached 10,858.3 GWh. The net electricity generated by wind power projects and solar power projects reached 1,976.3 GWh and 295.2 GWh, representing growth rates of 19.5% and 15.0% respectively. In 2017, the total steam sold by the Group amounted to 3,202,000 tons, representing an increase of 7.1% as compared with that of last year.

Prospects for asset injection can be expected

The Company also released two important announcements to the market: a Possible Disposal of shares in South Korea; a Possible Acquisition of 51% of the registered capital in CGN Wind Power Co., Ltd. who owns a constructed and under-construction installed capacity of over 10,000MW more than doubling the Group.

At present, the CGN Power Group owns an aggregate operational installed capacity of 15,000MW in the non-nuclear clean energy sector in the PRC, with total assets of over 130 billion yuan. In other words, if the asset injection is materialized, the installed capacity of clean energy of the Group is expected to account for more than 80% of the total installed capacity of the Group. At the same time, the business scope will be further diversified and the installed capacity and operation scale of the Company is expected to significantly increase and expand, which will further strengthen the competitiveness of the Company, especially regarding the development, construction, production, operation, maintenance etc.

Achieving high quality development

Facing the future macro-economic environment, development trend in the power industry, the Group will continue to seize the opportunities brought by policies and the industry, actively implement strategic adjustment, make unremitting efforts to explore clean and renewable energy market, shift its focus to the non-nuclear clean energy sector in the PRC, push forward the optimization and expansion of businesses and continuously acquire clean and renewable power generation projects from CGN. The Company will further increase and expand its installed capacity and operation scale, refine its power generation portfolio, strengthen core competitiveness, try to achieve high-level development in terms of quality and effectiveness, expand our installed capacity and consolidate and enhance our position in the industry.

For projects in operation, the Group is dedicated to the technological advancement of units in operation and strengthen the technological base, aiming at improving production efficiency effectively. More efforts will be put into electricity marketing, and the Group will strategically raise the profitability of the enterprise. In addition, the Group will put emphasis on talent nurturing and internal corporate governance while promoting our brand image on an ongoing basis. The Group will continue to improve the comprehensive competitiveness and profitability of the Company and reward our shareholders with outstanding performance.

 

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