(23 August 2022 - Hong Kong) CGN New Energy Holdings Co., Ltd. (“CGN New Energy” or the “Company”, Stock Code: 1811) announces the unaudited consolidated interim results of the Company and its subsidiaries (collectively, the “Group”) for the six months ended 30 June 2022.
2022 Interim Results Highlights
Revenue for the six months ended 30 June 2022 amounted to US$1,133.7 million, representing an increase of 35.5% from US$837.0 million for the six months ended 30 June 2021.
Profit before taxation for the six months ended 30 June 2022 amounted to US$226.6 million, representing an increase of 3.2% from US$219.6 million for the six months ended 30 June 2021.
Profit attributable to equity shareholders of the Company for the six months ended 30 June 2022 amounted to US$177.9 million, representing a decrease of 4.1% from US$185.4 million for the six months ended 30 June 2021.
As a result of retrospective restatements due to amendments to IAS 16, the revenue of the Group, the profit of the Group and the profit attributable to equity shareholders of the Company for the six months ended 30 June 2021 increased by US$40.4 million, US$23.1 million and US$23.1 million, respectively, from the comparative figures previously reported for the six months ended 30 June 2021.
If the effect of such retrospective restatements is not taken into account, the revenue of the Group for the six months ended 30 June 2022 would have increased by 42.3% and the profit of the Group, the profit attributable to equity shareholders of the Company and earnings per share for the six months ended 30 June 2022 would have increased by 10.8%, 9.6% and 9.6%, respectively, from the comparative figures previously reported for the six months ended 30 June 2021.
The change in profit for the six months ended 30 June 2022 was mainly attributable to the combined impact of (1) contribution from increase in power generation from wind projects; (2) increase in coal price resulting in the share of losses of associates; and (3) contribution of profit from Korea projects.
Earnings per share for the six months ended 30 June 2022 amounted to 4.15 US cents, representing a decrease of 4.1% as compared to the same period of last year.
In the first half of 2022, the revenue of the Group amounted to US$1,133.7 million, representing an increase of 35.5% compared with US$837.0 million for the first half of 2021. The revenue derived from wind and solar projects in the PRC amounted to US$436.8 million, representing an increase of 28.9% compared with US$338.9 million for the first half of 2021, which was mainly attributable to the newly commissioned installed capacity and the increase in power generation from wind and solar projects. The revenue derived from Korea projects amounted to US$591.4 million, representing an increase of 49.1% compared with US$396.6 million for the first half of 2021, which was mainly attributable to the substantial increase in electricity tariff and the contribution from the 109.5 MW Daesan biomass project which commenced commercial operation in April 2021.
In the first half of 2022, the operating profit of the Group, which is equal to revenue minus operating expenses, amounted to US$329.6 million, representing an increase of 19.1% as compared to the same period of last year. The increase in operating profit was mainly caused by the increase in power generation from wind projects and the contribution of profit from Korea projects.
Business Review
The Group’s portfolio of assets comprises wind, solar, gas-fired, coal-fired, oil-fired, hydro, cogen, fuel cell and biomass projects, which are in the PRC and Korea power markets. The Group’s business in the PRC covers 19 provinces, two autonomous regions and a municipality with wide geographical coverage and diversified business scope.
As of 30 June 2022, the Group’s attributable installed capacity reached 8,515.6 MW, representing an increase of 792.6 MW or 10.3% from the same period of last year, of which the wind power and solar power accounted for 59.9% of the Group’s attributable installed capacity. The attributable installed capacity of wind power amounted to 3,960.4 MW, representing an increase of 825.4 MW or 26.3% from the same period of last year; whereas the attributable installed capacity of solar power amounted to 1,136.8 MW, representing an increase of 10.4 MW or 0.9% from the same period of last year. As of 30 June 2022, the consolidated installed capacity of the Group’s power plants reached 7,856.3 MW. It is expected that the growth of new operating capacity in 2022 will remain steady.
As of 30 June 2022, the operations in the PRC and Korea accounted for approximately 74.6% and 25.4% of the Group’s attributable installed capacity of 8,515.6 MW respectively. Clean and renewable energy projects (namely wind, solar, gas-fired, hydro, fuel cell and biomass projects) accounted for 81.7% of the Group’s attributable installed capacity; and conventional energy projects (namely coal-fired, oil-fired and cogen projects) accounted for 18.3% of the Group’s attributable installed capacity.
For the six months ended 30 June 2022, the electricity generated by the Group’s consolidated power generation projects amounted to 9,517.0 GWh, representing an increase of 3.1% as compared to the same period of last year. The increase in power generation was mainly due to the contribution from newly commissioned wind and solar projects. The electricity generated by PRC wind projects and PRC solar projects reached 4,800.1 GWh and 841.8 GWh, representing growth rates of 26.4% and 4.8%, respectively.
Prospects
In the second half of 2022, the Company will continue to prioritize high-quality development and focus on exploring and fostering business growth, so as to intensively cultivate existing assets by various measures. Furthermore, the Company will endeavour to eliminate the risks encountered during its development through enhanced management, establishment of core capabilities as well as reforms and innovation, so as to improve and enhance traditional wind power and solar energy businesses and ensure that the Company will maintain its leading position in the industry.