Concord New Energy Group (182) H2 2023 earnings summary

Executive summary

• 2023 continuing-operation revenue was RMB2,588.65m, up 7.8% YoY; profit attributable to owners was RMB963.77m, up 10.5%.

• Attributable installed capacity reached 4,050MW and attributable generation rose 17.2% to 7,824GWh.

• Project reserves under or ready for construction totaled 2.928GW at year-end, supporting plans for continued capacity growth.

Financial highlights

• Continuing-operation gross profit was RMB1,405.63m versus RMB1,459.69m in 2022; cost of sales and services increased to RMB1,183.02m from RMB940.58m.

• Profit for the year was RMB988.75m, including RMB894.81m from continuing operations and RMB93.94m from discontinued operations; attributable profit was RMB963.77m.

• Fully diluted EPS was 11.39 cents, up 15.5% YoY; the five-year CAGR in profit attributable to owners was 12.4%.

• Total assets increased 15.0% to RMB31,236.37m; net assets rose 4.2% to RMB8,435.41m, while cash and cash equivalents fell 3.6% to RMB3,902.92m.

Outlook and guidance

• Year-end construction reserves were 2.928GW, including 2.216GW of wind and 712MW of solar PV; listed reserves acquired during 2023 totaled 2,099MW.

• The 2023 outlook cited total annual construction capacity of 2,299MW and attributable installed capacity of 4,050MW.

• Focus areas include accelerating project construction, improving market-based power revenue, developing carbon-asset opportunities, advancing storage and hydrogen, and expanding internationally.

• The lowest-LCOE strategy targets project selection, design and technology optimization, regional operating controls, and improved plant reliability and output.