According to the Zhitong Finance App, GCL New Energy (00451) announced its 2023 results, with revenue of about 832 million yuan, gross profit of about 380 million yuan, and losses attributable to company owners of about 1,165 million yuan, a year-on-year decrease of 21.9%.

In October 2023, GCL New Energy announced that it would sell the last batch of 36 photovoltaic power plant projects in China, with a total scale of about 584 megawatts, to Suzhou Industrial Park Xinkunneng Clean Energy Co., Ltd., successfully laying the most solid foundation for the next “asset-light, high-profit” sustainable development transformation. Through this transaction, GCL New Energy will receive net cash proceeds of approximately RMB 1.6 billion and will use the cash proceeds to repay its debts and support investments in natural gas, liquefied natural gas, and operations and management services segments.

In fact, the new “asset-light” development model generally has the characteristics of low capital investment, fast turnover, and high level of capital return. Implementing the new “asset-light” development path will enable GCL New Energy to respond more flexibly to market changes, reduce capital pressure, increase cash flow, reduce operating risks, and improve risk resilience, and further concentrate resources on the “photovoltaic+natural gas” dual business strategy, making the future core development direction more clear and clear.

Although GCL New Energy has been pressured by the development of “heavy assets”, as the company continues to seek new changes, and continues to repair, update, and absorb experience in the development ideas of the original photovoltaic power generation business, GCL New Energy has properly handled all platform debts, including US dollar bonds, to drastically reduce the total debt of RMB 4.689 billion in 2022 to RMB 552 million during the year. The debt ratio of total debt to total assets dropped significantly to 23.2% during the year, effectively guaranteeing the safety of cash flow. Further improve the financial situation and lay the most solid foundation for future “transformation” and “high-quality” sustainable development.