On May 20, 2021, Beijing Energy International Holdings Co., Ltd held the 2020 annual performance briefing in Beijing in virtual form. The briefing was attended by the company’s Chairman of the Board of Directors Zhang Ping, President Zhu Jun, Vice Presidents Liu Dongsheng and Huang Hui, about 30 institutional analysts, investors, and media.
At the meeting, the senior management team introduced the changes in the company’s development and operation after the Beijing Energy became a parent company in 2020, its performance and operation in 2020, the industry status, and the company’s “14th Five-Year Plan” and development and operation measures in 2021. In 2020, Beijing Energy International registered total assets of 26.008 billion yuan, revenues of 2.149 billion yuan, and total profits of 344 million yuan. These data reflects the opportunities of the times and the internal momentum of the company, and also signals an impending new pattern of the energy industry.
The “14th Five-Year Plan” period is a critical period and window for peaking the emissions of carbon dioxide. During the period, China will build a clean, low-carbon, safe and efficient energy system, cap the total amount of fossil energy, focus on improving energy utilization efficiency, use renewable energy to replace fossil fuels, and deepen the electric power system reform to put in place a new system focusing on new energy. It poses a big test to the ability and sense of responsibility of Beijing Energy International. In the past year, striving to achieve the goal of becoming “a first-class international clean energy ecological investment operator”, Beijing Energy International has been reshaping its strategic development plan and advancing its system and mechanism reforms. After a series of improvement efforts and adjustments, the company’s business development has been back on the right track with improved internal governance, and sound production and operation. Over the past year, the company has turned losses into profits, entering a new stage of high-quality development in an all-round way.
Driven by both domestic and overseas market in line with the country’s dual circulation
Currently China is in a period of important opportunities for the development of clean energy industry. Focusing on China’s goals of “emission peak and carbon neutrality” and speeding up the establishment of a new electric power system centering on new energy, Beijing Energy International seized the opportunity to greatly increase the scale of domestic business and steadily push forward overseas business, as it has been driven by both domestic and overseas business.
Regarding domestic business, relying on the national plan to build clean energy base, Beijing Energy International has been speeding up the development of integrated wind and solar storage base projects in the Northwest, Northeast, Inner Mongolia, and Southwest of the country, accelerating the preliminary work of hydropower projects in relevant basins of Tibet, and realizing its scale advantage; it has been expanding new energy projects in the surrounding areas of existing power stations to have synergy in development; it has established strategic partnerships with PowerChina Jiangxi Electric Power Construction, CRRC Zhuzhou Institute, CSSC, LonGi Clean Energy, Sineng, Jinko Power, TBEA, etc., to forge the strengths in industrial chain integration. After more than a year of market expansion and resource reserve, Beijing Energy International has secured more than 3 million kilowatts of intended projects mergers and acquisitions and more than 10 million kilowatts of resource reserves for self-developed projects, laying a solid foundation for the company’s sustainable and sound development.
Regarding overseas business, Beijing Energy International cooperates with new energy companies with rich experience in the international market, taking a deep root in the Australian market and exploring new energy markets in Europe and countries along the “Belt and Road”. In 2020, the company negotiated overseas projects that exceeded 2 million kilowatts, and was accelerating the multi-regional deployment of business in overseas clean energy industry. At present, in the Australian market, the Volla 300,000-kilowatt photovoltaic project has obtained local investment approval and completed the equity delivery. In addition, the company continues to push forward photovoltaic and wind power projects in Vietnam, Bangladesh, Spain, and Italy. According to its overseas strategic development plan, it is expected to achieve the strategic goal of 3 million kilowatts in overseas installed capacity by 2025.
In addition, the company is actively exploring new business directions. Embracing the opportunity of the digitalization of the energy industry, it is accelerating the preparation of professional intelligent energy companies centering on the integrated energy and electric energy trading business. It vigorously promotes integrated energy services and energy Internet businesses centering on big data, explores energy storage, charging piles, BIPV (Building-integrated of photovoltaics), virtual power plants, smart mini-grid technologies, etc., and deploys the business in the demand side energy market of Beijing-Tianjin-Hebei, Yangtze River Delta and Greater Bay Area. An intelligent clean energy industrial chain cultivated and constructed by the company is taking shape, featuring intelligent and digital management, production, transmission and use of multiple energies, and matching and predicting the energy demands of users. The company has won the bid for the 10 MW rooftop distributed photovoltaic project of the Institute of High Energy Physics, Chinese Academy of Sciences in Huairou, Beijing, and the 17 MW BIPV project of Zhejiang factory of LonGi. It has launched distributed energy projects in Jiangsu, Tianjin, Zhejiang, Anhui and Guangdong, with more than 30 of reserved energy and a total installed capacity of 300,000 kilowatts.
Stabilize capital structure and realize value creation
In the new energy era, we should actively change our conventional way of thinking to continuously adapt to the rapid development of the industry. Likewise, a new way of thinking requires a new capital structure so as to improve operational efficiency and realize value creation.
2020 marked a new beginning for Beijing Energy International. Its predecessor was “Panda Green Energy”, whose largest shareholder was China Merchants Group, an enterprise directly under the State-owned Assets Supervision and Administration Commission of the State Council. In February 2020, Beijing Energy under the State-owned Assets Supervision and Administration Commission of People’s Government of Beijing Municipality, became a shareholder of “Panda Green Energy” and later changed its name into “Beijing Energy International”. As of the end of 2020, Beijing Energy holds 32% of the shares of Beijing Energy International as the largest shareholder; China Merchants Group and its persons acting in concert hold approximately 16.67% of the shares as the second largest shareholder; Qingdao City Construction Investment and China Huarong Asset Management each holds approximately 13.59% as tied the third largest shareholders.
As we all know, power generation is a capital-intensive business. Empowered by Beijing Energy, Beijing Energy International has greatly improved its financing capabilities. In 2020, leveraging Beijing Energy’s credit advantages, Beijing Energy International established and deepened cooperative relations with dozens of large domestic and overseas financial institutions. It actively explores and uses diversified financing tools, extensively expands financing channels, innovates financing methods, leverages market funds, and supports the rapid development of its main business. As of the end of 2020, Beijing Energy International’s asset-liability ratio was 78.3%, down by 7.4 percentage points from 2019, seeing the continued improvement of its financial status.
In less than one year, Beijing Energy International completed the optimization of its governance structure. With the goals of improving quality and efficiency, reducing costs and increasing revenues, it completely turned around, which not only demonstrates the leadership’s ability in handling management and mobilizing resources in the short term, but also reflects their determination to innovate and make pioneering efforts.
Embracing new challenges and opportunities
2021 is the first year of the “14th Five-Year Plan” period and the year of the rapid development of the new energy industry under the goal of “emission peak and carbon neutrality”. China’s energy development will focus on clean and low-carbon energy, which means that clean energy substitution, mainly solar energy and wind energy, will usher in a period of rapid development.
In this context, Beijing Energy International, as a company mainly engaged in solar power stations, is also embracing new opportunities so that it will follow the trend and develop the main business of clean energy; it will promote energy technology innovation and build a smart energy system; under the background of market-based energy development, it will expand the energy service business; it will make the deployment in the international energy industry amid the convenience of international development of the energy business.
In order to fully grasp the opportunities, the company has formed a development concept of “mainly conducting independent development, and supported by cooperative development and mergers and acquisitions” in the energy business. In terms of specific strategies, the company continues to be driven by both domestic and overseas business, while increasing investment in technology, and exploring new business growth areas in the direction of smart energy.
In 2021, the ecological conservation is booming. On the great journey of developing clean energy, the company goes forward in a steady way towards a promising future.
Subsequently, the company’s senior management team answered questions the market cared about, before the 2020 performance briefing of Beijing Energy International was successfully concluded.
