(21 March 2023 - Hong Kong) CGN New Energy Holdings Co., Ltd. (“CGN New Energy” or the “Company”, Stock Code: 1811) announces the annual results of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2022.

2022 Annual Results Highlights：

Ø Revenue for the year ended 31 December 2022 amounted to US$2,430.1 million, representing an increase of 36.9% compared with last year.

Ø Profit for the year ended 31 December 2022 amounted to US$214.4 million, representing a decrease of 17.9% compared with last year.

Ø Profit attributable to equity shareholders of the Company for the year ended 31 December 2022 amounted to US$195.1 million, representing a decrease of 20.1% compared with last year.

Ø If one-off adjustments are taken out, which mainly include (1) 2021 profit impact of retrospective restatements of US$59.4 million, and (2) post-tax impairment losses recognized in respect of property, plant and equipment of US$61.8 million in 2022, the profit of the Group for the year ended 31 December 2022 would have increased by 34.0% from the comparative figures previously reported for the year ended 31 December 2021.

The increase in profit was mainly attributable to (1) increase in fuel margin of Korea projects; and (2) contribution from increase in power generation from wind projects; partially offset by (3) increase in coal price that led to losses in associates.

Ø Earnings per share for the year ended 31 December 2022 amounted to 4.55 US cents.

Ø The Board recommended the payment of a final dividend for the year ended 31 December 2022 of 0.91 US cents per Share (equivalent to 7.09 HK cents per Share). The payout ratio of the proposed dividend is 20%.

As a result of retrospective restatements due to amendments to IAS 16, the profit of the Group for the year ended 31 December 2021 increased by US$59.4 million from the comparative figures previously reported for the year ended 31 December 2021. If one-off adjustments are taken out, which mainly include (1) 2021 profit impact of such retrospective restatements of US$59.4 million, and (2) post-tax impairment losses recognized in respect of property, plant and equipment of US$61.8 million in 2022, the profit and earnings per share of the Group for the year ended 31 December 2022 would have increased by 34.0% and 35.9% respectively from the comparative figures previously reported for the year ended 31 December 2021.

In 2022, the revenue of the Group amounted to US$2,430.1 million, representing an increase of 36.9% compared with last year. The revenue derived from wind projects in the PRC amounted to US$692.8 million, representing an increase of 21.7% compared with US$569.2 million of last year. Such increase was mainly attributable to the increase in power generation and the newly commissioned installed capacity from the wind projects. The revenue derived from Korea amounted to US$1,377.4 million, representing an increase of 62.2% compared with US$849.3 million of last year. Such increase in revenue 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 2022, the operating profit of the Group amounted to US$589.7 million, representing an increase of 22.9% compared with last year. The increase in operating profit was mainly caused by the increase in power generation from wind projects and the increase in fuel margin of Korea projects.

The Board recommended the payment of a final dividend for the year ended 31 December 2022 of 0.91 US cents per Share (equivalent to 7.09 HK cents per Share). The payout ratio of the proposed dividend is 20%.

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 operation in the PRC and Korea power markets. The Group’s business in the PRC covers 19 provinces, two autonomous regions and a municipality with a wide geographical coverage and diversified business scope.

As of 31 December 2022, the operations in the PRC and Korea accounted for approximately 75.9% and 24.1% of the Group’s attributable installed capacity of 8,986.5 MW, respectively. Clean and renewable energy projects (namely, wind, solar, gas-fired, hydro, fuel cell and biomass projects) accounted for 82.6% of the Group’s attributable installed capacity; and conventional energy projects (namely, coal-fired, oil-fired and cogen projects) accounted for 17.4% of the Group’s attributable installed capacity.

As at 31 December 2022, the attributable installed capacity of the Group reached 8,986.5 MW, representing a year-on-year increase of 6.9%, in particular, the newly added attributable installed capacity of wind power and solar power amounted to 619.7 MW in total. The attributable installed capacity of wind power amounted to 4,419.1 MW, representing a year-on-year increase of 569.7 MW or 14.8%; whereas the attributable installed capacity of solar power amounted to 1,186.8 MW, representing a year-on-year increase of 50.0 MW or 4.4%. The wind power and solar power accounted for 62.4% of the Group’s attributable installed capacity. As at 31 December 2022, the consolidated installed capacity of the power plants reached 8,234.5 MW.

As of 31 December 2022, the electricity generated by the Group’s consolidated power generation projects amounted to 19,189.7 GWh, representing an increase of 5.7% from 18,162.0 GWh as compared with that of last year. The increase in power generation was mainly due to the contribution from newly commissioned wind and solar projects and from the increase in power generation of the existing wind and solar projects. The electricity generated by PRC wind projects and PRC solar projects reached 9,370.8 GWh and 1,692.4 GWh respectively, representing growth rates of 22.9% and 6.4%, respectively.

Prospects

2023 is the beginning year to implement the spirit of the 20th National Congress of the CPC and a crucial year under the “14th Five-Year Plan” to inherit the past and usher in the future, but the external environment remains severe and complicated. The Group will implement the work style of “Stringency, Prudence, Meticulosity and Pragmatism” thoroughly while insisting on integrity and innovation in forging ahead with determination. Also, the Group will consolidate the development foundation for traditional businesses intensively and accelerate the establishment of a new development pattern, spare all efforts in fostering new advantages in development and strive to achieve various tasks and goals of production and operation as well as reform and development, so as to facilitate the construction of first-class renewable energy enterprise through high-quality development.