On September 17, 2021, Beijing Energy International held the 2021 interim results briefing in Beijing through video link. Zhang Ping, Chairman of the Board of Directors, Zhu Jun, President, Liu Dongsheng, Vice President, and Huang Hui, Vice President of the company attended the meeting, and nearly 30 investors’ representatives and institutional analysts also joined the event.
At the meeting, the senior management team introduced the company’s interim results in 2021, operation and production and future development. In 1H 2021, the company has reshaped its strategic development plan, promoted the reform of system and mechanism, fully expanded its market and bolstered its development momentum. The operating profit exceeded expectations, entering a new stage of high-quality and rapid development in an all-round way. The data showed that the total assets in 1H 2021 were 35.649 billion yuan, an increase of 36.6% over the beginning of the year. Revenue was 1.31 billion yuan, up 22.3% y-o-y. The total profit was 409 million yuan, up 209.8% y-o-y.
With the country striving to achieve the goal of “carbon peak and carbon neutrality”, transformation of energy structure has become essential, and the new power system based on new energy is the top priority of development. While the industry has attracted much attention, enterprises are also facing throat-cutting competition during this new round of energy revolution. How to lead in the race is a challenge that every enterprise needs to face seriously. The answer given by us is to develop a clear and active strategic roadmap, optimize governance structure and delegation of management power, continuously improve management system, strengthen resource reserves by integrating reserve bases together domestic and international expansion, optimize asset management, expand financing channels, and strengthen competitive advantages in resource development, construction, operation and capital.
Domestic and overseas business performance exceeded expectations
With a year of business restructuring, the company is steadily moving forward with high quality and high-speed development. This is a new historical journey to embark on reaching carbon peak and carbon neutrality goals and promote the overall planning of the “Five in One”. In order to achieve high-quality and rapid development, the company has focused on resource acquisition in 1H 2021. Synergy has been fostered between reserve bases and regional expansion. Industrial structure has been improved through new energy, regional expansion and overseas business.
In 1H 2021, the company actively explored new energy business in Xinjiang, Inner Mongolia, Shaanxi, Shandong, Hebei, Sichuan, Hubei, Ningxia and Shanghai. By the end of June this year, its power project reserve exceeded 20GW. In terms of overseas business, it has also been deeply engaged in Australia, focusing on developing countries along the “the Belt and Road Initiative” such as Vietnam, and European new energy markets such as Spain and Italy. By the end of June, the installed capacity from these projects was around 1GW.
The company focuses on “big cities, large parks and large enterprises”, targeting on Beijing-Tianjin-Hebei, Yangtze River Delta, Greater Bay Area and other regions, actively exploring projects such as distributed energy, energy storage and intelligent microgrid. Science and technology has played a key role in developing energy business. The company won the bid for 10MW PV storage and charging demonstration project of the Institute of High Energy, Chinese Academy of Sciences, and Jiaxing 17MWp BIPV PV power generation project was to be readily launched. The installed capacity of key PV storage and charging projects exceeded 300MW.
The robust roll-out of domestic and overseas business has pushed the company’s installed capacity to grow steadily. In 1H 2021, it promoted equity transfer of secured projects to increase installed capacity which stood at 2825.4MW. It is estimated that by the end of 2021, the installed capacity from projects in operation, together with the equity installed capacity, will reach 10GW.
Thanks to the increase in installed capacity, the company’s power generation performance fared better than expected. According to the interim report, in 1H 2021, it generated 1.745 billion kWh of electricity, with a y-o-y increase of about 25.7%.
Improve quality and efficiency, optimize assets and consolidate the foundation of high-quality development
The “14th Five-Year Plan” period is the key window frame to peak CO2 emissions, and it is also the era of energy reform. The company believes that it is necessary to build a clean, low-carbon, safe and efficient energy system, improve utilization efficiency, strengthen the competitiveness and build a new development system with new energy as the major pillar. Therefore, it has always been committed to sustainable development, optimizing operation system, improved management system, reduced costs and increased efficiency, consolidated assets and optimized capital, which laid a solid foundation for rapid development with high quality.
Tap the potential and improve cost control. In 1H 2021, it continued to slash procurement costs, with a cost saving rate of 9.11%; In addition, it optimized the structure of production operation and maintenance personnel and saves labor costs by using the strength of regional operation and management, and its per capita installed capacity of operation and maintenance management was about 10 MW, which was more than double the industry average.
In terms of capital operation, it strengthened cooperation with banks to expand financing channels, and optimized debt structure and reduced financial costs for high-quality development. In addition, it has made progress in diversified financing. In 1H 2021, the market-oriented equity finance business of RMB 3 billion was successfully launched in cooperation with ICBC Investment, an equity investment institution under ICBC, and the convertible bonds of USD 50 million were successfully issued overseas. In 2H 2021, it will actively explore innovative financing of various types and forms to further enrich financing channels and boost business development.
Reasonably plan and accumulate momentum to create long-term value
Guided by the policies of carbon peak and carbon neutrality, clean energy sector enjoys a prospect of continuous development for 30 years. Given this development opportunity, the company focuses on the strategic positioning of “focusing on the main business, domestic and international expansion”, stressing high quality and efficiency, reform and innovation, taking value creation as the foundation, aiming at improving shareholders’ benefits, establishing an open and efficient international market-oriented concept, seizing development opportunities, upscaling main business of clean energy and enriching the industrial structure. Accelerate comprehensive energy business, strengthen the guidance of science and technology, promote transformation and application of scientific and technological achievements, strengthen the maintenance of market value, build a win-win relationship with investors, strive to maximize the company’s value and shareholders’ interests, and accumulate momentum for greater long-term value.
Specifically, it will explore and build four major business segments, including large-scale new energy investment segment such as wind power and photovoltaics, which mainly focus on the power generation; user-oriented comprehensive energy investment segment; focusing on energy digitalization and intelligence, it will build a light asset service segment concentrating on electricity market transactions, carbon assets and carbon transactions, design consultation and intelligent operation and maintenance, and provide complete technical support for the heavy asset segment; aiming at the whole clean energy industry chain, it will focus on the investment incubation of strategic emerging businesses such as building photovoltaic integration, energy storage and hydrogen energy, and build a green industry equity investment segment.
With a far-sighted perspective, the company is committed to strategic transformation, and strives to achieve green and high-quality development, by basing itself on the broad prospects of clean energy market and leveraging its advantages with new development concepts. It is determined to forge ahead to reach the carbon peak and carbon neutrality goals and make new achievements along this new journey!
Following the presentation in the briefing, the senior management team of the company took the questions that the market was more concerned about, and with that, the briefing on the 2021 interim results of was successfully concluded.
