Profit Before Taxation Increased by 85.51%
Expanded Consolidated Installed Capacity
Achieved Balanced Development of Various Types of Clean Energy Power Generation
Beijing Jingneng Clean Energy Co., Limited (“Jingneng Clean Energy” or the “Company” and, together with its subsidiaries, the “Group”, HKEx stock code: 579), the largest gas-fired power provider in Beijing and a leading wind power operator in China, yesterday announced its annual results for the year ended 31 December 2011 (“the year”).
Jingneng Clean Energy has experienced rapid development in 2011. During the year, the Group achieved and exceeded various operating goals, representing a major leap forward compared with 2010. Revenue for the year ended 31 December 2011 was RMB3,905.0 million, increased by 7.20% as compared with the previous year. Profit before taxation was RMB1,070.5 million, increased by 85.51% as compared with the previous year. Profit and total comprehensive income attributable to equity owners of the Company amounted to RMB803.5 million, an increase of 64.33% as compared with the same period in 2010 and achieved the target profit attributable to equity holders of the Company for 2011 estimated prior to listing. The consolidated installed capacity of the Group’s projects under construction amounted to 1,288.4 MW and the consolidated installed capacity approved by the State and provincial development and reform commissions amounted to 1,175.5 MW, which marked the Group’s success in achieving the goal set out for the first stage of the Group’s Multiplied Capacity Plan. For the year ended 31 December 2011, basic and diluted earnings per share were RMB15.98 cents. To reward the shareholders, according to the prospectus, 20% of the net profit attributable to equity owners of the Company after deducting the statutory surplus reserve during the quarter of listing will be distributed as dividends. The board of directors recommended the payment of a final dividend of RMB0.874 per share for the year.
| Financial Highlights | |||
| 2011 (RMB ‘000) |
2010 (RMB ‘000) |
Change | |
| Revenue | 3,905,030 | 3,642,818 | +7.20% |
| Profit before taxation | 1,070,544 | 577,083 | +85.51% |
| Profit and total comprehensive income for the year | 894,985 | 520,803 | +71.85% |
| Profit and total comprehensive income for the year attributable to equity owners of the Company | 803,455 | 488,919 | +64.33% |
| Basic and diluted earnings per share (RMB cents) | 15.98 | 10.23 | +56.21% |
| Proposed final dividend per share (RMB cents) | 0.874 | – | – |
In 2011, the National Energy Bureau and the Beijing Municipal Commission of Development and Reform (the “BJPC”) issued the “Energy Development Plan of Beijing for the Twelfth Five-year Period” which specified the goal of accelerating the adjustment of energy structure and to realize the leap forward for the development of natural gas usage. The plan provides that by 2015, clean energy application in Beijing shall reach over 80% and the aggregate natural gas consumption shall be doubled; the annual consumption for natural gas shall increase from 7.5 billion m3 in 2010 to 18 billion m3 by 2015. Moreover, Beijing took the lead to monitor PM2.5 (particulate matter with a diameter of 2.5 millimeters in the atmosphere) and control its emission source. The BJPC’s introduction of “coal-free” within the 5th ring road in Beijing will advance the scheduled date for commencement of operation of the projects under construction held by the Group and enhance the effectiveness in capital utilization. Meanwhile, the approval progress for the development of the Group’s projects which are at preliminary stage will also speed up and it is expected to benefit the Group significantly.
For the year ended 31 December 2011, the Group’s total revenue increased by 7.20% from RMB3,642.8 million in 2010 to RMB3,905.0 million in 2011 due to increased sales of power as a result of increased sales of electricity from the gas-fired power and heat energy generation segment and increased production capacity of the wind power segment in 2011. Revenue from gas-fired power and heat energy generation segment increased by 5.72% from RMB2,553.8 million in 2010 to RMB2,699.7 million in 2011, due to increased sales of electricity and heat energy from this segment. Revenue from wind power segment increased by 13.96% from RMB1,032.5 million in 2010 to RMB1,176.7 million in 2011, due to an increase of 8.18% in net sales of electricity as the Group expanded the holding installed capacity in this segment with the number of wind farms in operation increased from 16 in 2010 to 22 in 2011.
With the expansion in the scale of installed capacity, the Group remained focused on improving safety production, achieving detailed cost control, optimizing the operation management of projects that have commenced production, paying attention to tariff reporting and price premium collection; leveraging on various favorable policies, striving to lower finance costs and increasing the efforts on the Clean Development Mechanism (the “CDM”) development with an aim to increase the Company’s profitability. Currently, the Group has a specialized team for the development of CDM projects. The total number of CDM projects approved by NDRC for the year ended 31 December 2011 amounted to 29; 8 new CDM projects have been successfully registered with the CDM Executive Board, and the installed capacity of the newly registered projects was 594 MW.
Jingneng Clean Energy’s business development is supported by the state and government’s policy. The Taiyanggong Gas-fired Power Project and Jingfeng Gas-fired Power Project under the Group received strong policy support from NDRC. Grid tariff increased twice during the year on 10 April 2011 and 1 December 2011, with a total increase in grid tariff amounted to RMB45 per MWh, which served as the main safeguard to the results of the Company’s continued operations. During the year, the Group obtained approval from the BJPC for the development of the Comprehensive Pilot Project of the Jingneng Badaling Solar Power Plant. Being the first megawatt scale large ground photovoltaic power station in Beijing, the approved total installed capacity for the new photovoltaic power station was 31.08 MW. The Group also obtained approval to develop the Ningxia Taiyangshan Wind and Solar Power Complementary Project in 2011, in which the approved photovoltaic power generation capacity was 10MW.
In December 2011, the Beijing municipal government announced the reorganization of the Group’s two shareholders, Beijing Energy Investment Holding Co., Ltd (“BEIH”) and Beijing District Heating (Group) Co, Ltd (“BDHG”), and the state-owned assets of BDHG shall be transferred to BEIH at nil consideration and BEIH shall perform the duties as a contributor. The reorganization represents a major strategic move of integrating the industry chain of energy supply in Beijing, extends the control of resources by BEIH (the Company’s controlling shareholder) and further enhances its leading position in the energy industry in Beijing, providing the Company with a strong resource assurance for market exploration and the implementation of projects in Beijing.
Looking forward, Mr. Lu Haijun, Chairman of Jingneng Clean Energy said, “In 2012, Jingneng Clean Energy will maintain efficient production and stable operation, keep production indicators in top standing. The estimated power generation and heat supply is expected to reach 9.47 million MWh and 5.17 million GJ separately throughout the year. We are committed to building quality projects with the main focus on developing gas-fired power projects, steadily advancing on wind power projects, hydropower projects, and solar power projects, keeping close track on the technological development of other renewable sources of power such as tidal, solar thermal and geothermal energy, to finally reach a new stage of balanced development of clean energy power generation from ‘gas, wind, hydro and solar’ powers. Under the favorable macro policies, as an enterprise focusing on clean energy development, the Group will seize every material opportunity to catalyze its development, aims to achieve the standard of national premium quality projects to achieve the growth target of installed capacity.”
About Beijing Jingneng Clean Energy Co., Limited
Beijing Clean Energy is the largest gas-fired power provider in Beijing and a leading wind power operator in the PRC, with a diversified clean energy portfolio including gas-fired power and heat energy, wind power, small to medium hydropower and other clean energy projects. Beijing Clean Energy was the largest gas-fired power provider in Beijing in terms of its consolidated installed capacity which accounted for approximately 61% of the total gas-fired power installed capacity in Beijing as at December 31, 2011, according to Beijing Electric Power Industry Association. Beijing Clean Energy was also the eighth largest wind power operator in the PRC in terms of consolidated connected capacity as at December 31, 2011, according to HydroChina Corporation.
