On May 15, the 2023 annual results briefing of Tianjin China Green Power Investment Co., Ltd. (hereinafter referred to as "China Green Power"), a company listed on the Shenzhen Stock Exchange, was held at China Securities Journal and China Securities Network. In 2023, the company's operating income will be about 3.691 billion yuan, a year-on-year increase of 7.6%; net profit attributable to shareholders of listed companies was 920 million yuan, a year-on-year increase of 45.14%.
According to public information, China Green Power is the investment, development, construction and operation platform of the green energy industry of China Green Development Investment Group Co., Ltd., and its business scope includes onshore wind power, offshore wind power, photovoltaic power generation, solar thermal power generation, energy storage, etc.
China Green Power Qinghai Multi-energy Complementary CSP Project Image source: Courtesy of the company
Sun Peigang, Director and General Manager of China Green Power, said: "Up to now, the company's projects under construction are progressing in an orderly manner as planned. In particular, the Xinjiang 13 million kilowatt base project, which is the company's "number one project" in 2024, is expected to be put into operation in three phases. At the same time, the company has also steadily promoted the construction progress of projects under construction in Qinghai, Gansu, Hebei and other regions, and successively achieved grid connection within the year, so as to ensure that the installed capacity in operation will exceed 20 million kilowatts by the end of 2024. ”
Roadshow guests
Director and General Manager Sun Peigang
Assistant General Manager Kan Zhinan
Yi Chengru, assistant to the general manager and representative of securities affairs
Professional teacher Liu Weidong
Head of Finance Department Zhao Xiaojing
frequently asked questions
Q: Is the construction of the project under construction going smoothly? What is the current progress and next steps?
Sun Peigang, Director and General Manager: Up to now, the company's projects under construction are progressing in an orderly manner as planned. In particular, the Xinjiang 13 million kilowatt base project, which is the company's "number one project" in 2024, is expected to be put into operation in three phases. Among them, we will strive to add 6 million kilowatts to production before May 31, about 2 million kilowatts to be put into operation by September 30, and more than 4 million kilowatts to be put into operation before December 31.
At the same time, the company has also steadily promoted the construction progress of projects under construction in Qinghai, Gansu, Hebei and other regions, and successively achieved grid connection within the year, so as to ensure that the installed capacity in operation will exceed 20 million kilowatts by the end of 2024.
Q: Why is the new grid-connected projects at the end of last year not reflected in the profit side in the first quarter of 2024, and when is it expected to be reflected in the future?
Zhao Xiaojing, head of the finance department: The company's performance in the first quarter of 2024 did not meet expectations mainly because: the new installed capacity has not reached the full output period, and the company's new installed capacity of 1.32 million kilowatts in 2023 is mainly concentrated at the end of 2023, coupled with factors such as operation and commissioning, regional power rationing, etc., the profit contribution to the first quarter of 2024 is insufficient; The year-on-year deterioration of wind and solar resources led to a decrease in power generation and on-grid electricity in the first quarter of 2024 compared with the same period last year, and a simultaneous decline in operating income. Due to the start of construction of projects such as the Xinjiang base in the second half of 2023, the company carried out a large amount of external financing through project loans, bond issuance, financial leasing, subsidy factoring, etc., resulting in a year-on-year increase in financial expenses and reducing the efficiency in the first quarter of 2024; In the first quarter of 2024, the company made a provision for credit impairment loss of about 18 million yuan, an increase of 225% over the same period of the previous year, affecting the current profit. Subsequently, with the full development of the company's new installed capacity and the gradual highlighting of the scale effect, the company's power generation and revenue and profit will be significantly improved.
Q: What are the company's current financing costs? What are the reasons for the significant increase in financial expenses in 2024? What is the follow-up issuance plan for corporate bonds?
Zhao Xiaojing, head of the finance department: As of the end of April, the company's comprehensive financing cost was 2.55%, of which the loan cost of new projects was about 2.55%-2.84%.
In order to ensure the construction of new projects such as the Xinjiang base in 2023, the company's financing amount has increased (in 2023, the company will raise a total of 2.6 billion yuan through financial leveraged financing methods such as financial leasing and accounts receivable factoring, and issue corporate bonds to raise 2 billion yuan), resulting in an increase in interest expenses.
At present, the company still has a quota of 3 billion yuan for the use of corporate bonds, and due to the validity period of the registration approval of the China Securities Regulatory Commission on corporate bonds for 2 years, the company still has greater autonomy in issuance, and will take into account the follow-up capital needs and market conditions to complete the issuance at the right time.
Q: After the completion of this fixed increase, are there any new goals for the "14th Five-Year Plan" and future installation planning?
Yi Chengru, assistant to the general manager and representative of securities affairs: After the completion of the private placement, the company will increase the net amount of actual funds raised by about 1.782 billion yuan, and the total share capital will increase from 1.863 billion shares to 2.067 billion shares. In 2022, after the company completed the transformation of its main business, it put forward the development goal of the "14th Five-Year Plan", and strived to achieve an installed capacity of 30 million kilowatts by the end of the "14th Five-Year Plan". In recent years, the company has continued to accelerate the acquisition of new energy index projects and the start of project construction, and as of the end of the first quarter of 2024, the scale of the company's projects in operation, under construction and planned has exceeded 23 million kilowatts. With the completion of the company's "Double 2000" goal in 2024, the company's installed capacity of construction and operation is expected to reach 30 million kilowatts by the end of 2024, completing the previously set "14th Five-Year Plan" goal ahead of schedule. Considering the industry competition situation, the company's future development strategy and the expectations of the majority of shareholders, the company is expected to put forward higher development goals on the basis of the "14th Five-Year Plan" in 2025, which will be released after the company's overall planning and implementation of relevant decision-making procedures.
Q: Looking forward to 2024 and 2025, which are also the last two years of the company's "14th Five-Year Plan" and "30 million kW plan", what is the plan for the installed capacity scale and grid connection rhythm on a quarterly basis? From the perspective of performance contribution, at what point in time will the volume be increased?
Sun Peigang, Director and General Manager: 2024 is the sprint year for the company to realize the "14th Five-Year Plan", and 2025 is the final year of the company's "14th Five-Year Plan". In order to gain a foothold in the new energy industry, these two years have been crucial for the company. Among them, the company's 2024 goal has been very clear, that is, two "2000" - 20 million kilowatts of new acquisition indicators during the year, and 20 million kilowatts of installed capacity in operation by the end of the year. The specific installation rhythm mainly revolves around the first batch of 13 million base projects in Xinjiang, which are divided into three nodes: 531, 930 and 1231.
Reviewer: Xiong Yonghong Editor: Zhang Jing Proofreader: Yu Hongbo Producer: Li Ruoyu
Issued by: Sun Hong
