On August 1, 2022, Concord New Energy Group (Hereinafter referred to as “the Group”) announces its interim results with steady growth in various indicators. The attributable installed capacity, revenue and net profit all reached historic high. In the first half year of 2022, the revenue and net profit increase by 37.6% and 9.6% YoY to RMB1,339 million and RMB443 million respectively. Meanwhile, the Group had strong cash flow with cash and bank balances of approximately RMB4,354 million during the Period.
As of the end of June, the Group held equity interests in 73 grid-connected wind power and PV power plants with an attributable installed capacity of 2,875MW, of which the installed capacity of grid parity projects accounted for 43.8%, reaching 1,260MW, which will help to achieve continuous optimization of asset quality and significantly improve the cash flow of power plants. In addition, the scale of the projects under commencement and construction has increased significantly in the first half of 2022, of which 20 projects have been successively commenced or about to commence, with the total installed capacity of power plants under construction of 1,908MW.
In terms of power production, the attributable power generation of the Group achieved a significant growth of 3,315.1GW·h, representing an increase of 24.5% as compared with the same period of previous year. The quality of the power plants kept improving and the average utilization hours of wind power plants continued to increase. The weighted average utilization hours of subsidiary-owned wind power plants reached 1,490 hours, 336 hours higher than the average in China. The operational quality of power plants is significantly ahead of the industry average.
In the first half of 2022, the Group also made remarkable achievements in the expansion of renewable energy project reserves, so as to lay a solid foundation for long-term sustainable development. The Group obtained 800MW wind power quota in China. Besides, 6 projects were newly approved (recorded), totaling 1,101MW. Meanwhile, the Group actively explored energy storage projects in multiple provinces and signed a total of 720MW/1,440MWh of energy storage projects.
In the first half of 2022, the Group continued to optimize assets and signed the share transfer agreement of 144MW attributable capacity. By adhering to replace the subsidized projects and inefficient assets with the grid parity projects, the Group's cash flow and asset quality continuously improved. In terms of project financing scale and cost, the Group has also achieved better performance. The financing amount for newly contracted projects hit a record high with the interest rate reaching a record low, which effectively improved asset efficiency. In terms of fostering core competitive advantages, the Group always took the lowest Levelised Cost of Electricity（“LCOE”）as its core development strategy. In the first half year of 2022, the comprehensive LCOE of power plant projects continued to drop to RMB 0.23/kW·h, representing a significant decrease of 11.2% compared to the same period last year.
The intelligent O&M sector of the Group achieved the enhancement in both service capacity and revenue during the Period. The service capacity exceeds 12GW, with revenue increased by 25.7% YoY to RMB116 million. Concord O&M has provided full scenarios and full chain of the operation and O&M management services for a variety of clean renewable energy, including technological transformation, spare parts supply and maintenance, intelligent operation platforms, data-analyzing and services, etc. The digitalized system is deeply integrated with the service scenarios to form a complete technical support and management loop.
Looking ahead, Mr. Liu Shunxing, Executive Director and Chairman of Concord New Energy, commented: “Countries around the world now attach great importance to their energy security triggered by the conflict between Russia and Ukraine, which has accelerated the development of global renewable energy. Coupled with the guidance of the “dual-carbon” target, renewable energy has entered a golden investment period, which brings new development opportunities for the business of the Group. Look forward to the future, facing the new situation of renewable energy industry, the Group will seize the opportunities in the industry and leverage on its professional advantages, focusing on its main business of power generation and co-developing with the service business. The Group will focus on the following tasks in the second half of 2022: accelerating project construction to achieve a rapid growth in attributable installed capacity; vigorously develop renewable energy projects and actively explore energy storage and new businesses; vigorously develop the service business and strengthen the synergistic development of all sectors; make extra efforts to ensure safe production and steady increase of power plant profits and continuous optimization of existing asset and constant improvement of asset efficiency, to commit creating greater returns for shareholders.”