Concord New Energy Announces 2023 Interim Results Steady Growth in All Business Sectors Remarkable Achievements in The Scale of Development

News Updates 01 Aug,2023

On 1 August, 2023, Concord New Energy Group announces 2023 interim results, maintaining a good trend in various business development and achieving steady performance growth. In the first half of 2023, the Group’s revenue and net profit achieved RMB1,490 million and RMB496 million, representing a year-on-year increase of 11.3% and 12.0% respectively. Meanwhile, the Group had net assets of RMB8,293 million and net assets per share was RMB0.94 at the end of the period.

During the first half of 2023, the Group successfully acquired 347.5 MW of wind power projects and 136 MW of Solar power projects in China (Approved as provincial annual construction plans). Additionally, Concord obtained construction approvals/registrations for 5 wind power projects and 2 solar power projects, with a combined capacity of 706 MW. The newly signed wind power resources and solar power resources are 1,620MW and 1,150MW respectively. Moreover, the Group has implemented international market expansion in multiple countries, and actively been acquiring resources for renewal energy project to steady expand the international market.

As of end of June, 2023, the Group held 77 wind and solar power plants in business operation with a total installed capacity of 3,640 MW, representing a year-on-year increase of 26.6%. Among them, the installed capacity of grid parity projects has reached 2,213 MW, accounting for 60.8% of the total attributable installed capacity. In addition, the scale of projects under construction kept high in the first half of 2023, with a total capacity of 2,194 MW from 23 ongoing and preparatory power plant projects.

The increase in attributable installed capacity led to continued significant growth in the attributable power generation of the Group, reaching 4,151GW·h and representing a year-on-year increase of 25.2%. The operation quality of power plant is significantly higher than the industry average. The weighted average utilization hours of the wind power plants and solar power plants reached 1,353 hours and 731 hours respectively, which were 9.4% and 11.1% higher than the average level of China.

Benefiting from the continuous increase in the capacity of high-quality grid parity projects, the asset quality of the Group’s existing power plants has continued to improve. The Group’s subsidiary-owned power plants generated a total revenues and net profit from power generation of RMB1,196 million and 489 million, representing year-on-year increases of 14.5% and 11.9%, respectively. At the same time, the trading volume of green electricity was reached 475 million kWh, resulting in an increase in green electricity trading revenue of over RMB 12 million. The worth of newly signed green certificate sales contracts were approximately RMB 30 million, further enhancing the profitability level of the grid parity projects.

In term of fostering core competitiveness, the Group has always taken "Pursuing the lowest LCOE" as its core development strategy, and has continued to reduce the cost of electricity through various initiatives. The consolidated kWh cost of power station projects dropped significantly by 7.8% compared to the same period last year, reaching RMB 0.2149/kWh. In addition, in the first half of 2023, the financing rate for newly signed projects reached a historic low, and the US dollar debt was repaid ahead of schedule, resulting in improved asset efficiency.

Looking ahead, Mr. Liu Shunxing, Executive Director and Chairman of Concord New Energy*, commented, "In the first half of 2023, the Group achieved outstanding results in project development, and the power generation business achieved steady growth. The overall development of the company is in a good trend, and the company's performance has maintained a good growth momentum. Looking forward, with the continuous promotion of technological innovation to reduce the investment cost of renewable energy, the overall trend of renewable energy will continue to flourish. We will actively seize the time opportunity, plan for development, and demonstrate new achievements in building new development. Let us work together to continue writing a brilliant chapter, and always remain committed to creating maximum returns for our shareholders."