On 24 August 2021, 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 (the “Group”) for the six months ended 30 June 2021.

In the first half of 2021, the revenue of the Group amounted to US$796.6 million, representing an increase of 34.3% compared with US$593.1 million of the first half of 2020.

Revenue derived from wind and solar projects in the PRC amounted to US$307.9 million, representing an increase of 71.9% as compared with US$179.1 million of the first half of 2020, which was mainly attributable to the newly commissioned installed capacity and the increase in power generation from existing projects. Revenue derived from Korea amounted to US$387.2 million, representing an increase of 18.8% as compared with US$325.8 million of the first half of 2020. The increase in revenue was mainly attributable to the higher power generation of Yulchon I &II Power Projects and commencement of commercial operation of the 109.5 MW Daesan biomass project.

In the first half of 2021, the operating profit of the Group, which is equal to revenue minus operating expenses, amounted to US$253.3 million, representing an increase of US$96.4 million or 61.4% compared with US$156.9 million of the first half of 2020. The increase in operating profit was mainly caused by the increased revenue from both the newly commissioned and existing wind and solar 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 18 provinces, two autonomous regions and a municipality with wide geographical coverage and diversified business scope.

As at 30 June 2021, the Group’s attributable installed capacity reached 7,723.0 MW, representing an increase of 1,273.1 MW or 19.7% from the same period of last year, of which the wind power and solar power accounted for 55.2% of the Group’s attributable installed capacity. The attributable installed capacity of wind power amounted to 3,135.0 MW, representing an increase of 1,131.6 MW or 56.5% from the same period of last year; whereas the attributable installed capacity of solar power amounted to 1,126.4 MW, representing an increase of 207.8 MW or 22.6% from the same period of last year. As at 30 June 2021, the consolidated installed capacity of the Group’s power plants reached 6,975.1 MW.

As of 30 June 2021, the operations in the PRC and Korea accounted for approximately 72.0% and 28.0% of the Group’s attributable installed capacity of 7,723.0 MW respectively. Clean and renewable energy projects (namely wind, solar, gas-fired, hydro, fuel cell and biomass projects) accounted for 79.8% of the Group’s attributable installed capacity; and conventional energy projects (namely coal-fired, oil-fired and cogen projects) accounted for 20.2% of the Group’s attributable installed capacity.

In 2021, the proposed development targets of “carbon peak and carbon neutrality” further clarify the development direction of energy reform and green transformation of energy. The Company will continue to strengthen market development by consistently enhancing external cooperation with strategic partners to strive for breakthroughs and improving internal synergy. It is expected that the growth of new operating capacity in 2021 will be steady.

In the first half of 2021, the Company continued to promote lean production management and strengthen equipment management. For the six months ended 30 June 2021, the electricity generated by the Group’s consolidated power generation projects amounted to 9,233.5 GWh, representing an increase of 34.6% from 6,859.6 GWh for the six months ended 30 June 2020. 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 wind power projects and solar power projects reached 3,798.1 GWh and 803.1 GWh, representing growth rates of 70.2% and 24.5%, respectively.

The Company attaches great importance to scientific and technological innovation. The Company focused on the digital and intelligent operation and maintenance work as well as innovation breakthroughs for core technologies in the first half of 2021, so as to bring new momentum to the Company’s high-quality development. In the first half of 2021, the Company received the “Excellence Award for Informationization of China Energy Enterprise”（中國能源企業信息化卓越成就獎）from China Information Industry Association.

In the first half of 2021, the Company has proactively fulfilled its social responsibility by carrying out various types of consolation, educational assistance and science promotion activities. Profoundly adhering to the green development principle of “lucid waters and lush mountains are invaluable assets”, the Company has vigorously promoted the development of green and clean energy projects in order to contribute its own strength to drive economic and social development into a new level.

Prospects

Facing the 14th Five-Year Plan and in the medium to long run, the Company continues to promote three strategic projects, namely lean management, innovation, and deepening of reforms, so as to achieve high-quality and sustainable development of the Company in a stable manner. First, Deeply promoting the strategic project of lean management, while maintaining the Group’s core competitive advantage of lower unit cost of production. Second, Achieving innovation-driven strategic project with a focus on scientific and technological innovation and informatization support. Third, Deepening the Group’s reform in all aspects, revitalizing the Company and unleashing its potential to fully implement the strategic project of strengthening the enterprise with talents. In addition, the Company will cultivate and develop the core competence in carrying out transactions in the markets of power trading and its derivatives in order to open up a path to reach the final users, which is expected to become a new area of profit growth of the Company.