On August 30, Longyuan Power held 2021 interim results teleconference in Beijing. Tang Jian, executive director and general manager of Longyuan Power, attended the meeting and introduced the company's business performance in the first half of 2021. Chief accountant Yang Wenjing and deputy general manager Gong Yufei of the company attended the meeting.
In the first half of 2021, Longyuan Power hit a consolidated operating income of RMB 17.877 billion, a year-on-year increase of 25.7%; the profit before tax registered 6.375 billion yuan, a year-on-year increase of 38.8%; the net profit attributable to equity holders recorded RMB 4.54 billion, a year-on-year increase of 36.3%; earnings per share hit RMB 0.55.
As of the end of June 2021, Longyuan Power holdings hit an installed capacity of 24,907 MW, including 22,429 MW for wind power, 1,875 MW for thermal power and 603 MW for other renewable energy.
During the reporting period, Longyuan Power strengthened its safety production and construction and implemented digital and accurate governance. The company paid close attention to the implementation of key work, improved the digital transformation, and accelerated the integration of IT application with industrialization; comprehensively promoted the construction of fault-free wind farm and improved the stability of equipment operation; carried out the optimization of regional transportation inspection separation mode to realize the special work of special personnel; continued to promote the construction of "quality, environment and occupational safety" and "three standards in one" system, and optimized the safety production management process. In the first half of the year, the company completed a total power generation of 33.106 billion KWH, including 27.407 billion KWH of wind power, an increase of 20.35% year-on-year. The average utilization hours of wind power hit 1,297 hours, an increase of 110 hours year-on-year; the thermal power holdings generated 5.259 billion KWH, with a year-on-year increase of 32.64%. The average utilization hours of thermal power units registered 2,805 hours, with a year-on-year increase of 690 hours.
Longyuan Power also kept in step of the policy guidance at the same time and timely obtained high-quality resources at home and abroad. The company firmly adhered to the core development ideas and paths of the 14th Five- Year Plan period to accelerate the efficient and rapid development of PV industry; consolidated the overall leading position of wind power; built a clean and efficient multi energy complementary base; actively explored the grid parity of offshore wind power; expanded emerging technologies such as energy storage and hydrogen energy. By ways of independent development, cooperative development and project M&A, the company also instantly accessed to high-quality resources and promoted the implementation of high-quality projects. At the same time, it also deepened and innovated cooperation with brother units, and expanded resource reserves by taking advantage of the whole industrial chain advantages of national energy group in coal, electric power, transportation and chemical industry across the country. In the first half of the year, the company signed new development agreements of 23,000 MW, far exceeding the level in the same period last year, which are located in areas with good resources. The newly approved (filed) capacity reached 3,200 MW, five times that of the same period last year, including 545 MW of wind power and 2,655 MW of PV power. 1,860 MW came from the bidding projects, including 680 MW of wind power and 1,180 MW of PV power.
In terms of project construction and marketing management, Longyuan Power strictly implemented environmental protection and water conservation, attached importance to the safety management of outsourcing personnel, promoted the standardization of safe and civilized construction, steadily boosted the projects as planned, and laid an important foundation for completing the production task of the whole year on time. The company maintained a low level of power ration by continuously strengthening the control of power rationing, formulating power rationing management measures, innovating the annual and monthly assessment methods of marketing, and sorting out the delivery channels and other measures in various regions. It accurately grasped the power market policies and trading rules in various regions by strengthening policy research, and deeply carried out market trading in accordance with the principle of "benefit first". In the first half of the year, the average on grid electricity price of all power generation businesses of the company registered 467 yuan/MWH (excluding VAT), an increase of 2 yuan/MWH year-on-year; the average on grid price of wind power recorded 487 yuan/MWH (excluding VAT), with a year-on-year increase of 3 yuan/MWH; the average on grid electricity price of thermal power marked 339 yuan/ MWH (excluding VAT), an increase of 8 yuan/MWH year-on-year.
Longyuan Power has broadened financing channels and reduced capital costs to maintain industry leadership. In the first half of the year, the company seized the opportunity window and carried out the replacement optimization of stock interest bearing liabilities to save financial expenses. At the same time, the capital plan coordination mechanism based on vertical management of headquarters was utilized to continuously improve the efficiency of capital use and maximize the time value of capital. At the financing level, the company focused on the two major capital markets at home and abroad, further widened financing channels, improved capital flow efficiency, successfully issued 16 ultra-short-term financing bonds, and maintained the industry advantage in capital cost. Longyuan actively revitalized the stock assets through open market financial instruments, successfully issued the first phase of asset securitization products with additional subsidies for renewable energy electricity price of RMB 1.03 billion, innovated and carried out renewable energy property right trust, and completed the listing business of subsidies of RMB 2.233 billion.
In terms of science and technology, Longyuan Power has improved its independent innovation ability, and carried out scientific and technological research as planned. It has also actively explored new development mode of the industry and prepared the scientific and technological innovation development plan for the 14th Five-Year Plan period. All scientific research and technology projects have been carried out as planned, and important progress has been made in the floating integrated cage culture demonstration project - the key scientific and technological breakthrough plan of the national energy group. In the first half of the year, the company applied for 2 new invention patents, 2 newly authorized invention patents and 21 utility model patents. Longyuan has published more than 20 papers in various scientific and technological journals and written 20 technical reports. 9 industry standards edited by the company and 4 group standards of China Society of Electronical Engineering (CSEE) have been approved and published. In addition. The company has also made new breakthroughs in standard application and project approval. Three industry standard project proposals were successfully approved by the National Energy Administration, and two national energy group enterprise standards were officially approved by the group.
In terms of overseas development, Longyuan Power project against pandemic has been newly put into operation in Ukraine, and the overseas business is running well. The Ukrainian Yuzhny Wind Power Project was connected to the grid and put into operation, and the construction of the wind power project in southern Ukraine is carried out in an orderly manner. The company also actively tapped the market potential of Central and Eastern Europe, Southeast Asia, Africa and Latin America, explored key projects, and strived to achieve regional rolling development and breakthrough in key markets. At the same time, the company also strengthened overseas asset management to effectively prevent and control pandemic and production risks and ensured the smooth operation of various projects. The cumulative generating capacity of Longyuan-Canada Devlin Wind Power Project hit 144.77 GWH, outperforming the half a year’s plan, with 1,461 utilization hours and 2,403 days of cumulative safe production; the accumulated power generation of De Aar Wind Power Project in South Africa hit 346.70 GWH, outperforming the half a year’s plan, with 1,418 utilization hours and 1,339 days of safety production.
Longyuan Power made it clear at the interim results conference that it would closely focus on the annual work objectives and the development tasks of the 14th Five-Year Plan, grasp the new development stage, implement the new development concept, and do a good job on planning a new chapter of Longyuan Power development according to the goal orientation of the world's leading new energy listed company. In the second half of the year, the company will open up a new situation of development by bringing more efforts to its mission; build a new enterprise mechanism by strengthening reform and innovation; ensure the new security situation by sticking to the bottom line and red line; realize new improvement of benefits by highlighting income increase and efficiency creation; and promote a new situation in Party building by consolidating the Party's leadership.
