Event: the company issued the 2021 annual results announcement. In 2021, the company achieved operating income of US $1.69 billion, an increase of 47.4% over the same period last year, a net profit of US $180 million, an increase of 14.0% over the same period last year, and basic earnings per share of US $0.043. The proposed final dividend is 0.86 cents per share, with a dividend ratio of 20%.
Wind power and South Korean projects contributed to high revenue growth, and net profit growth was slightly lower than market expectations. In 2021, the company's revenue increased by 47.4% year-on-year to US $1.69 billion, mainly due to (1) benefiting from the increase in installed capacity and power generation of domestic wind power projects, its revenue increased significantly by 87.9% to US $500 million. (2) Project revenue in South Korea increased by 40.9 per cent to US $840 million, benefiting from the increase in weighted average electricity prices and electricity generation.
In 2021, the company's net profit increased by 14.0% to $180 million, and the increase in net profit was lower than market expectations, mainly due to (1) the decline in gross profit of South Korean gas plants, resulting in a decline in net profit by 27.0% to $24 million. (2) domestic coal-fired, cogeneration and gas projects significantly reduced their profits by $67 million due to the sharp rise in coal prices in the second half of 2021. (3) there was an one-time gain of US $18 million on the sale of Jinqiao JV in the same period last year; (4) an expected credit loss of US $20 million was recognized in respect of trade receivables and contract assets during the period.
Wind power has high operating efficiency and has become the largest contributor to net profit. (1) in 2021, the average annual utilization hours of domestic wind power, solar energy, coal-fired, cogeneration, hydropower and Korean gas projects are 2383, 1440, 4729, 5037, 3923 and 4621 hours respectively, compared with the previous year. Compared with the national average utilization of decimals, domestic wind power, solar energy and coal-fired projects are + 151, + 159 and + 143 hours respectively. In 2021, the operating efficiency of the company's domestic wind power projects is relatively high, and the average utilization hours have increased significantly, reflecting the overall trend of the company's wind power resources.
(2) in terms of projects, the company's main revenue and profits in 2021 come from four major parts: South Korean projects, domestic coal-fired cogeneration and gas projects, wind power projects and solar energy projects. its revenue share is 49.6%, 8.36%, 29.5% and 8.3% respectively. In 2021, the company's revenue from wind power increased by 87.9% to US $500 million over the same period last year, and its revenue share increased by 6.4%. Net profit from wind power rose 113.7% year-on-year to $210 million, and the vast majority of the company's net profit in 2021 was contributed by the company's wind power projects.
The growth of wind power installation is in line with expectations. As of December 31, 2021, the total installed capacity of the company's rights and interests has reached 8.4GW, an increase of 11.3% over the same period last year, and the growth of installed capacity is in line with expectations. Among them, the installed capacity of wind power rights and interests increased by 888.3MW (+ 30.0%) over the same period last year (+ 30.0%); the installed capacity of solar energy rights and interests increased by 48.2MW (+ 4.4%) compared with the same period last year; the installed capacity of biomass power generation increased by 105.9MW from scratch; and the installed capacity of coal power and hydropower decreased by 148.8MW and 43.2MW respectively. By the end of 2021, the company's total equity installed capacity of wind power and solar projects accounted for 59.3%, an increase of 5.7% over the previous year, while the proportion of equity installed capacity of domestic and Korean projects was 74.2% and 25.8%, respectively. The proportion of equity installed capacity of clean and renewable energy projects (i.e. wind power, solar energy, gas, hydropower, fuel cell and biomass projects) and traditional energy projects (i.e. coal, fuel and cogeneration projects) is 81.4% and 18.6%, respectively.
As of June 30, 2021, the installed capacity of CNNC New Energy Holdings has exceeded 35GW, of which the installed capacity of domestic new energy transportation holding companies is about 24.4GW, and that of overseas new energy transportation holding companies is about 11.6GW. During the 14th five-year Plan period, it is expected that the new operation capacity of new energy will remain above 3GW every year, and by the end of the 14th five-year Plan, the installed scale of new energy in China will reach 40GW. The abundant new energy project resources of major shareholders will provide a strong growth driving force for the future development of CGN new energy.
Risk hint
The installation of new energy sources such as wind power and solar energy is not as expected.