Yangtze River Business Daily News ● Yangtze River Business Daily reporter Xu Yang
Chuanneng Power(000155. SZ) focuses on its main business, vigorously develops the new energy power generation sector, and promotes clean energy production.
Recently, Sichuan Energy Power has issued 4 foreign investment announcements in a row, with a total investment of about 10 billion yuan. Specifically, it includes the investment and construction of the Xinglong Wind Power Project in Tongjiang County, the capital increase and investment in the construction of the Shamanaito Phase II and Sijiji Phase II wind farm projects, the capital increase and investment in the construction of the second phase of the wind farm project, the second phase of Xiaojie and the third phase of the Litang Wind Farm Project, and the capital increase and investment in the construction of the Litang Gaocheng photovoltaic project.
It is understood that Sichuan Energy Power entered the territory of Sichuan Energy Investment through bankruptcy reorganization in 2016, and its main business was changed from the original chemical fertilizer to new energy power, and then cut into the lithium battery industry. In recent years, Sichuan Power has continued to accelerate the development of its main business, and the company's business scale has been significantly improved and its profitability has been effectively enhanced.
From 2016 to 2023, Sichuan Power's gross profit margin increased from 3.17% to 57.41%, rising for 7 consecutive years; Gross margin further improved to 70.31% in the first quarter of 2024. As of the end of the first quarter of 2024, the company's assets reached 23.41 billion yuan, an increase of 17.468 billion yuan from the end of 2016.
Invest 10 billion yuan to expand the installed capacity of new energy
Sichuan Energy Power plans to invest heavily in foreign countries to promote the development of the new energy industry.
On the evening of June 27, Sichuan Energy Power issued a number of announcements that it plans to invest in the construction of 3 wind power projects and 1 photovoltaic project, with a total planned installed capacity of 1.7708 million kilowatts, and a total total investment of no more than 9.96 billion yuan.
Specifically, Sichuan Energy Investment Wind Power Tongjiang Company, a subsidiary of Sichuan Energy Power Holding Company, plans to invest in the construction of Xinglong Wind Power Project in Tongjiang County, with an installed capacity of 270,000 kilowatts and a total investment of no more than 1.449 billion yuan, Meigu Company, a holding subsidiary, plans to invest in the construction of Shamanaito Phase II and Sijiji Phase II wind farms, with an installed capacity of 280,000 kW and a total investment of no more than 1.962 billion yuan, and Huidong Company, a holding subsidiary, will invest in the construction of the second phase of the wind farm project, the second phase of Xiaojie and the third phase of the Liutang wind farm. The installed capacity of the project is 420,800 kilowatts, with a total investment of no more than 2.605 billion yuan, and the holding subsidiary Ganxi New Energy plans to invest in the construction of the Gaocheng photovoltaic project in Litang 3# plot, with an installed capacity of 800,000 kilowatts and a total investment of no more than 3.941 billion yuan.
At the same time, Sichuan Energy Power will also increase its capital by about 197 million yuan, 230 million yuan and 290 million yuan to Meigu Company, Huidong Company and Ganxi New Energy respectively according to the shareholding ratio. This capital increase is mainly to provide financial guarantee for the construction of the project.
After the completion of the project, it will help to rapidly increase the installed capacity of the company's new energy power generation, create new profit growth points, and further enhance the company's core competitiveness.
As a listed company under Sichuan Energy Investment Group Co., Ltd., in recent years, Sichuan Energy Power has focused on the main business of new energy, focusing on the coordinated development of new energy power generation business and upstream lithium material business, and its business involves wind photovoltaic power generation, garbage power generation, lithium mining and dressing, lithium salt production and other fields.
In 2023, Sichuan Energy Power's wind and photovoltaic power generation revenue will reach 1.561 billion yuan, accounting for 47.11% of the company's operating income, a year-on-year increase of 14.4%, and the gross profit margin will reach 73.86%, which is much higher than the gross profit margin of environmental sanitation services, lithium batteries and other business segments.
As of the end of the first quarter of 2024, in terms of new energy power generation, the company has put into operation about 1.22 million kilowatts of grid-connected wind power and photovoltaic new energy power generation, and 72,000 kilowatts of new energy power generation capacity under construction. The investment and construction of the project has exceeded this scale.
After the reorganization, the cumulative financing exceeded 5.7 billion
It is understood that Sichuan Power Co., Ltd., formerly known as "Sichuan Chemical Co., Ltd.", formerly known as Sichuan Chemical Plant, was engaged in the production of nitrogen fertilizer using natural gas as raw material in the early days of its establishment, and was listed on the main board of the Shenzhen Stock Exchange in September 2000. With the changes in the supply and demand situation of the fertilizer industry and natural gas, the company has experienced an operating crisis and a debt crisis that has become increasingly serious, and the company has implemented judicial reorganization in 2016. After the reorganization, Sichuan Energy Investment Group became the controlling shareholder of the company, and with the help of the controlling shareholder's industry and background advantages in the field of new energy, the company realized the transformation of its business into a new energy industry.
In recent years, the performance of Sichuan Energy Power has increased year by year. From 2020 to 2023, the company's net profit attributable to shareholders of the parent company (hereinafter referred to as "net profit") was 266 million yuan, 348 million yuan, 710 million yuan and 797 million yuan respectively, an increase of 24.01%, 30.51%, 104.12% and 12.35% year-on-year respectively.
In the first quarter of 2024, Sichuan Energy Power achieved operating income, net profit, and non-net profit of 1.003 billion yuan, 416 million yuan, and 411 million yuan respectively, an increase of 7.85%, 50.45%, and 49.66% year-on-year respectively.
It is worth mentioning that the comprehensive gross profit margin of Sichuan Energy Power continued to increase. From 2016 to 2023, the company's gross profit margin increased from 3.17% to 57.41%, rising for 7 consecutive years, an overall increase of 54.24 percentage points, and in the first quarter of 2024, the company's gross profit margin increased to 70.31%, an increase of 1.25 percentage points year-on-year, and the gross profit margin level also hit a new high in the same period in the past years.
Up to now, the main revenue and profit of Sichuan Energy Power comes from the power generation sector, accounting for about 70%. At the same time, the company has a deep layout of the lithium battery industry chain, with lithium battery business revenue accounting for 24.37% in 2023, and is currently steadily promoting the construction of the 1.05 million tons/year spodumene project in Lijiagou, and the construction of the 30,000 tons/year lithium salt project is being carried out by the holding subsidiary Dea Lithium.
In recent years, Sichuan Energy Power has frequently carried out capital operations to help the large-scale development of the company's new energy and lithium battery business. After the reorganization, the company raised 618 million yuan, 618 million yuan, 2.265 billion yuan and 2.265 billion yuan in December 2021, January 2022, April 2024 and June 2024 respectively, with a cumulative financing of more than 5.7 billion yuan, mainly used for asset acquisition and investment and construction projects.
In 2020, the asset scale of Sichuan Energy Power exceeded 10 billion yuan, reaching 15.817 billion yuan, increasing to 21.771 billion yuan by the end of 2023, and 23.41 billion yuan by the end of the first quarter of 2024, an increase of 17.468 billion yuan from 5.942 billion yuan at the end of 2016. As of the end of the first quarter of 2024, the asset-liability ratio of Sichuan Energy Power was 54.91%, which was at a good level.