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CGN New Energy Holdings Co., Ltd. Announces 2020 Annual Results

On 24 March 2021, 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 2020.

In 2020, the revenue of the Group amounted to approximately US$1,149.9 million, representing a decrease of 9.9% compared with approximately US$1,276.3 million of last year. Revenue derived from Korea amounted to US$596.3 million, representing a decrease of 20.7% as compared with US$752.2 million of last year. The decrease in revenue was mainly attributable to the lower weighted average tariff of Yulchon I &II Power Projects as a result of the lower gas price in Korea.

In 2020, the operating profit, which is equal to revenue minus operating expenses, of the Group amounted to approximately US$287.5 million, representing an increase of approximately US$55.9 million or 24.1% compared with approximately US$231.6 million of last year. The increase in operating profit was mainly caused by the contribution from newly commissioned wind and solar projects.

In May 2020, the Group disposed of its entire equity interest in Jinqiao JV, representing 60% of the total equity interest in the Jinqiao JV, through a public tender process of Shanghai United Assets and Equity Exchange (上海聯合產權交易所). The Group recognized a one-off gain on disposal of US$18.1 million.

The Board recommended a final dividend for the year ended 31 December 2020 of 1.59 US cents per Share (equivalent to 12.42 HK cents per Share). Payout ratio of the proposed dividend is 42% (equivalent to 25% of profit for the year attributable to equity shareholders of the Company for the two financial years of 2019 and 2020 as dividends, since no dividend was paid out for the year ended 31 December 2019).
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The Group’s portfolio of assets comprises wind, solar, gas-fired, coal-fired, oil-fired, hydro, cogen and fuel cell projects, which are operating in the PRC and Korea power markets. The Group’s business in the PRC covers 18 provinces, two autonomous regions and a municipality with wide geographical coverage and diversified business scope.

As at 31 December 2020, the attributable installed capacity of the Group reached 7,550.6 MW, representing an increase of 1,264.6 MW or 20.1% from last year, among which, attributable installed capacity of wind power was 2,961.1 MW, representing a year-on-year increase of 1,077.3 MW or 57.2%, while that of solar power amounted to 1,088.6 MW with a year-on-year increase of 214.3 MW or 24.5%. As at 31 December 2020, the consolidated installed capacity of the Group’s power plants reached 6,908.0 MW.

As of 31 December 2020, the operations in the PRC and Korea accounted for approximately 72.8% and 27.2% of the Company’s attributable installed capacity of 7,550.6 MW, respectively. Clean and renewable energy projects (namely, wind, solar, gas-fired, hydro and fuel cell projects) accounted for 77.4% of Company’s attributable installed capacity; and conventional energy projects (namely, coal-fired, oil-fired and cogen projects) accounted for 22.6% of Company’s attributable installed capacity.

In 2020, the Company strengthened the operation of a prevention guidance mechanism dedicated for the COVID-19 outbreak, and effectively launched to realize a stably controlled situation of “zero internal infection and zero internal spread”. As influenced by both of the “installation spree” and the epidemic, the Company exerted every effort to overcome the difficulties including short supply along the industry chain and rising construction costs. The Company continued to improve the construction process and strengthen synergetic cooperation with upstream and downstream companies. While ensuring that safety was well under control, the Company achieved a new record high in the new installed capacity.

Leveraging informatization, the Company continued to carry out specific equipment modification activities to improve the utilization rate of the equipment, which largely guaranteed the completion of the annual electricity generation target plan. As of 31 December 2020, the electricity generated by the Group’s consolidated power generation projects amounted to 13,825.2 GWh, representing an increase of 2.1% from 13,541.0 GWh as compared with that of last year. The increase in electricity generated was mainly due to increased power generation from newly commissioned installed capacity of wind and solar power. The electricity generated by wind power projects and solar power projects reached 4,452.4 GWh and 1,362.4 GWh, representing growth rates of 46.4% and 64.4%, respectively.


In 2021, the Company will continue to enhance its core competitiveness, and promote the synergy effect in scale, quality, efficiency and effectiveness, such that quality and sustainable development can be achieved. First, the Company is endeavored to carry out and consolidate sound lean management, while maintaining the core competitive advantage of lower cost of electricity. Second, the Company will innovate the technology and improve the layout in the industry with the hope that a new business development pattern driven by diversified source of growth can be developed. Third, the Company will deepen its reform in all aspect and further enhance the Company’s corporate governance and management mechanism in order to revitalize the Company and unleash its potential.

The Company is determined to its strategies of propelling its development in the new energy business with a hope to secure any opportunities in the wind power industry and photovoltaic power industry, contributing its efforts towards the goals of peaking carbon dioxide emissions by 2030 and carbon neutrality by 2060.