On March 2, 2022, Concord New Energy Group announced its full-year results for 2021, and the board of Company Directors recommended a dividend of HK $0.03 per share.
In 2021, the Concord New Energy Group saw strong growth in all indicators, with major operating indicators such as newly added production capacity, equity generation, net profit, net assets and return on net assets all reaching record highs.
In 2021, the Concord New Energy Group achieved revenue of RMB 2,183 million, net profit of RMB 778 million and net assets of RMB 7,553 million, representing an increase of 9.1%, 15.6% and 16.3% respectively compared to the same period last year. The quality of assets of Concord New Energy Group further improved, with a return on net assets of 11.5% in 2021. At the same time, the cash flow was relatively strong with RMB 4,151 million of monetary funds held at the end of the year.
In 2021, the newly added installed capacity of wind power and photovoltaic of Concord New Energy Group achieved a substantial increase. Thirteen new power plants were put into operation that year, with a total installed capacity of 873.5MW. Among them, the 586MW project was started and put into production in the same year, including a single wind power project with a scale of 200MW, which fully reflects the construction capacity of Concord New Energy.
By the end of 2021, the Concord New Energy Group holds 70 grid-connected wind and photovoltaic power plants with a total installed capacity of 3,708MW and an equity installed capacity of 2,768MW. Among which, the installed equity capacity of parity projects had increased to 1,152MW, accounting for a rapid increase from 15% in 2020 to 42%, realizing the continuous optimization of asset quality and significantly improving cash flow.
In 2021, the equity generation capacity of Concord New Energy Group achieved a substantial increase, reaching 5,224.5GW·h, an increase of 10.0% compared with the same period last year. Solely-invested wind power plants saw strong growth of 20.5% year-on-year. The weighted average utilization hours of Concord New Energy Group's wind power continued to grow. And the weighted average utilization hours of its wholly owned wind power reached 2,697 hours, exceeding the national average utilization hours of wind power of 451 hours. The quality of plant operations was significantly higher than the industry average.
In 2021, the Concord New Energy Group continued to maintain the expansion capacity of project development in the field of renewable energy. 10 approved (put on record) projects were newly added, a total of 1,340 MW. In addition, focusing on the industrial chain of renewable energy, it actively explored new business development models such as energy storage, integrated energy services and carbon assets. It has obtained chemical energy storage projects in Hubei and Hunan, and started to enter the energy storage industry. In 2021, Concord New Energy Group signed a total of 15.83GW of scenic resources in 16 provinces and regions in China. It has continuously expanded its resource reserves and laid a solid foundation for long-term sustainable development.
In addition, Concord New Energy Group has always paid attention to the cultivation of core competitiveness, and has always taken the lowest KWH cost as its core development strategy. In 2021, the comprehensive cost per kilowatt hour of its power station project has continuously decreased to RMB 0.28 per kilowatt hour. Compared with the same period last year, it fell by 8.6%.
In 2021, the Concord New Energy Group continued to optimize its assets. It insisted on replacing green subsidy dependent projects and inefficient assets with parity projects. In that year, RMB 1,954 million was collected, and RMB 205 million of green electricity subsidy receivables were reduced, effectively reducing the dependence on green electricity subsidy and improving cash flow and asset quality.
At the same time, Concord New Energy Group has achieved a milestone breakthrough in the smart Operation and Maintenance service business. Based on 15 years of accumulated experience in the industry, the Concord New Energy Company provides a butler-style service with a unique owner's perspective. By the end of 2021, Concord New Energy has become the largest third-party professional service provider of new energy power stations in China with a capacity of nearly 11GW. In 2021, Concord New Energy sector revenue accounted for more than 10%, contributing RMB 245 million to Concord New Energy Group's revenue (same period in 2020: RMB 154 million), a year-on-year increase of 58.7%.
In 2021, China's carbon emissions trading market is officially opened and trading of parity SIM Securities begins. Concord New Energy Group CCER and SIM Venture Securities Exchange have realized transactions and obtained additional profits. With the proposed goal of global carbon neutrality and the expansion of China's carbon market, the demand for CCER and SIM Venture Securities Exchange will further increase, which will improve the income level of parity projects.
Looking back at the full-year operating results for 2021, Mr. Liu Shunxing, Chairman of the Board of Directors of Concord New Energy Group, said, “In the past two years, the renewable energy industry is accelerating its growth and the competition in the industry has further escalated. At the same time, the Chinese government has continuously introduced policies to encourage the development of the renewable energy industry, which has brought new development opportunities. Concord New Energy Group will adopt an active strategy to rapidly invest and construct a number of high-quality affordable projects, aiming at improving the asset quality of power plants and reducing the cost of kilowatt-hour electricity. This will promote the sustainable development of the main business and actively increase the expansion of new business.” In 2022, Concord New Energy Group will focus on the following work: Adhere to the principle of safety first, ensure the safe and stable operation of power plants; Increase the intensity of project construction and achieve a large increase in installed capacity; Continue to adjust and optimize the quality of assets; Vigorously develop services and businesses related to renewable energy; Actively expand business types related to new energy, and timely enter related fields such as energy storage, carbon assets, integrated energy services, and constantly create better returns for shareholders.