Concord New Energy unveiled its 2022 annual operating performance, with notable progress in development and construction. The growth of installed capacity looks promising.
News Updates 10 Apr,2023
On February 28, 2023, Concord New Energy Group announced its annual earnings for 2022, showcasing sustained development and robust growth across all business segments. In 2022, the company achieved a revenue of RMB 2,679 million and a net profit of RMB 870 million, representing year-on-year increase of 22.0% and 10.7% respectively. Furthermore, the net asset value for the year reached RMB 8,090 million, with a net asset value per share of RMB 0.91 within 2022. The Company’s Board of Directors recommended a dividend payout of HK $ 0.035 per share.
In 2022, Concord New Energy Group added 10 newly operational power plants, totally 1,111 MW in installed capacity, including 9 wind power plants and 1 photovoltaic power plant, contributing to a significant growth in attributable installed capacity. As of December 31, 2022, the Group held 3,588 MW of installed capacity of grid-connected wind power and photovoltaic power plants, representing an increase of 29.6%ye ar-on-year. Additionally, the Group has vigorously accelerated its construction pace, reaching a new high in in the scale of construction projects, with a total installed capacity of power plants under construction of 2,126 MW.
Powered by the increase of newly operational projects, the equity generation capacity of CNE Group grew robustly to 6,673 GWh, up 27.7% compared with the same period last year. The average utilization hours of wind power and photovoltaic power plants kept growing, and the weighted average utilization hours of holding wind power plants and photovoltaic power plants reached 2,921 hours and 1,532 hours respectively, 31.5% and 14.6% above the Chinese average, the operational quality of power plants being far higher than the industry average.
In 2022, Concord New Energy Group made prominent achievements in project development and a breakthrough in its large-scale project development. Within China, we obtained annual targets of 1,355 MW in wind power development and construction, added 4,000 MW of state-approved projects (these projects need further implementation of annual construction targets) and 1,556 MW of approved (filed) projects, providing a strong guarantee for the rapid growth of installed capacity. At the same time, we actively expanded our project resources, signing 3,505 MW of new wind power resources and 4,000 MW of new photovoltaic resources, to promote our sustainable development.
CNE Group continued to optimize its asset quality, selling 189 MW of installed capacity of subsidized projects. The installed capacity of non-subsidized projects has reached 2,161 MW, accounting for 60.2%, further increasing the share of non-subsidized projects and continually improving cash flow.
CNE Group’s core development strategy has always been pursuing the lowest cost of a kilowatt-hour electricity and it has taken multiple methods to reduce the cost. The comprehensive cost of a kilowatt-hour electricity for power station projects dropped significantly by 10.4% compared with the same period last year, reaching RMB 0.2529/kWh.
In 2022, CNE Group continued its work in environmental protection, compliance and social responsibility, rated A by Morgan Stanley's MSCIESG. This honor reflects our continuous improvement in sustainable development and creation of more social and economic values by practicing what we preach in the areas of green protection, social responsibility and corporate governance in 2022.
By enhancing the whole process management of green certificate registration and selling, the issuance of green certificates for unsubsidized projects in 2022 rose by 64% year-on-year and the selling revenue was over 25 million RMB, further increasing the level of revenue from parity projects.
The Smart O&M segment of CNE Group earned 279 million RMB in 2022, representing a year-on-year growth of 14.0%. At the same time, the O&M delivery ability has been further improved, with delivery units covering all provinces in China. The company’s service advantage of "people + territory" has become more solid, and the scalable business has realized the sharing of service resources. This segment is an important layout of CNE for the operation of stock assets. With more than 16 years of management experience in full life-cycle asset of our own power plants, this segment has had unique advantages in technology and management, and it has been actively cultivating future-oriented smart O&M technologies.
Mr. Liu Shunxing, Board Chairman of the Group, said, "In 2022, all staff of the Group are brave enough to strive and compete, so as to keep achieving good results. With your effort in 2022, the Group's development foundation has become more firm. Looking ahead, we are in an era of great development of renewable energy, marked by rapid growth in installed capacity, and our Group has also started a new phase of this great journey. We will conscientiously implement the new development strategy, grasp the opportunities of the times, concentrate on planning development with hard work and forge ahead. Finally, on behalf of the Board of Directors, I would like to extend our heartfelt gratitude to our shareholders, investors and friendly people from all walks of life for their long-term trust and support!"