CGN New Energy Holdings (1811) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was US$1,951.3 million, down 11.0% year-over-year, mainly due to lower power generation and tariffs in Korea and decreased wind generation in the PRC.

• Profit attributable to equity shareholders was US$248.0 million, a 7.3% decrease year-over-year, primarily due to higher impairment and disposal losses on property, plant, and equipment.

• Excluding one-off impairment and disposal losses, profit attributable to equity shareholders would have increased by 4.5% year-over-year.

• Final dividend proposed at 1.445 US cents per share, totaling US$62.0 million, representing a 25% payout ratio.

Financial highlights

• Operating profit was US$528.3 million, down 4.4% year-over-year.

• Operating expenses decreased 13.3% to US$1,423.0 million, mainly due to lower gas costs in Korea.

• Other income rose to US$42.6 million, driven by compensation from Korea's fuel cell project.

• Other losses increased to US$56.7 million, mainly from impairment and disposal losses related to wind and solar projects.

• Finance costs fell 14.8% to US$181.2 million due to lower average interest rates.

• Net debt/equity ratio increased to 3.49 from 3.30, reflecting higher bank borrowings.

• Cash and cash equivalents decreased to US$158.4 million from US$287.5 million, mainly due to increased investing activities.

Outlook and guidance

• Focus on high-quality project development, innovation, and risk management to support steady growth in 2025.

• Expectation of stable growth in new operating capacity and continued emphasis on safety, quality, and compliance.