(22 March 2022 - Hong Kong) CGN New Energy Holdings Co., Ltd. (“CGN New Energy” or the “Company”, Stock Code: 1811) is pleased to announce the annual results of the Company and its subsidiaries (collectively, the “Group”) for the year ended 31 December 2021.

In 2021, the revenue of the Group amounted to US$1,694.7 million, representing an increase of 47.4% compared with US$1,149.9 million of last year. The revenue derived from wind and solar projects in the PRC amounted to US$639.7 million, representing an increase of 72.6% as compared with US$370.7 million of last year. Such increase was mainly attributable to the increase in power generation and the newly commissioned installed capacity. The revenue derived from Korea amounted to US$840.1 million, representing an increase of 40.9% as compared with US$596.3 million of last year. Such increase in revenue was mainly attributable to the higher weighted average tariff of Yulchon I &II Power Projects as a result of the higher gas price in Korea.

In 2021, the operating profit of the Group amounted to US$419.9 million, representing an increase of US$132.4 million or 46.1% compared with US$287.5 million of last year. The increase in operating profit was mainly caused by the increase in power generation of existing wind and solar projects and the contribution from newly commissioned wind and solar projects.

The Board recommended the payment of a final dividend for the year ended 31 December 2021 of 0.86 US cents per share (equivalent to 6.72 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 2021, the operations in the PRC and Korea accounted for 74.2% and 25.8% of the Group’s attributable installed capacity of 8,404.6 MW, respectively. Clean and renewable energy projects (namely, wind, solar, gas-fired, hydro, fuel cell and biomass projects) accounted for 81.4% of the Group’s attributable installed capacity; and conventional energy projects (namely, coal-fired, oil-fired and cogen projects) accounted for 18.6% of the Group’s attributable installed capacity.

In 2021, the newly added consolidated installed capacity of the Group was 1,159.3 MW. In particular, the newly added consolidated installed capacity of wind power was 1,002.0 MW, the newly added consolidated installed capacity of solar power was 47.8 MW and the newly added consolidated installed capacity of biomass power was 109.5 MW. As at 31 December 2021, the attributable installed capacity of the Group reached 8,404.6 MW, representing a year-on-year increase of 11.3%. In particular, the attributable installed capacity of wind power amounted to 3,849.4 MW, representing a year-on-year increase of 30.0%; whereas the attributable installed capacity of solar power amounted to 1,136.8 MW, representing a year-on-year increase of 4.4%. The wind power and solar power accounted for 59.3% of the Group’s attributable installed capacity.

Throughout 2021, the Group focused on lean operation and maintenance and operational quality improvement, and further promoted special rectification of production safety, equipment health management, and information empowerment to provide strong protection for stable power supply. As of 31 December, 2021, the electricity generated by the Group’s consolidated power generation projects amounted to 18,162.0 GWh, representing an increase of 31.4% from 13,825.2 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 existing wind and solar projects. The electricity generated by wind power projects and solar power projects reached 7,624.3 GWh and 1,590.1 GWh, representing growth rates of 71.2% and 16.7%, respectively.

Prospects

In 2022, while high-quality development will remain as the Group’s top priority, the Group will focus on exploring and cultivating incremental business, taking multiple measures and making continuous enhancement, cultivating its existing assets. The Group will also keep on strengthening and enhancing its traditional business to ensure that it maintains a leading role in the industry: First, the Group will strive to strengthening the construction of ideological style under the high quality management of and guidance from the CPC party, with an aim to create a good enterprise culture that fosters practical work, entrepreneurship and accountability at all levels. Second, the Group will boost development through reformation and seek breakthroughs with innovation by furthering the Group’s reformation and technological innovation, so as to fuel up the Group’s high-quality development. Third, the Group will focus on winning the battle of project commissioning, implementing strict control over project progress, quality and cost. Fourth, the Group will focus on winning the battle of market development, and actively explore new modes of development of traditional parity and bidding projects, large base projects and extended business. Fifth, the Group will focus on winning the battle of lean management, seeking breakthroughs and benefits in lean operations and maintenance, power marketing, and cost-saving and revenue-generating. The Group will steadily maintain its strategic determination to vigorously develop new energy and grasp the opportunities in the wind power and photovoltaic sectors for the contribution to the realization of the “dual-carbon” strategic goal.