BJEI Has Shown Strong Development Momentum With the Record-high Performance in 2022
HONG KONG,April 27,2023 --In today's world,it is a general trend for clean energy to replace traditional energy. A growing number of countries are beginning to increase their investment in the clean energy industry,ushering in a golden age of development. In 2022,National Development and Reform Commission ("NDRC") and National Energy Administration issued the "14th Five-Year Plan for Modern Energy System",aiming to speed up the construction of a modern energy system and building of a powerful country in terms of energy,fully ensure national energy security,help achieve the goal of carbon peak and carbon neutrality in order to bolster high-quality economic and social development.
Thanks to the tailwind of favorable policies,a number of domestic energy enterprises have expediated the deployment of clean energy business by seizing the historical development opportunities. As a pioneer in the industry,Beijing Energy International Holdings Co.,Ltd. (stock code 00686.HK) (hereinafter referred to as "BJEI" or "the Company") has seized the green opportunities of low-carbon transformation,actively translated the strategy of building a strong energy country into practical actions and injected new vitality into China's clean energy market.
In 2022,BJEI firmly shouldered its responsibilities in delivering on common development with remarkable achievements and wrote a new chapter of high-quality and rapid development. According to its recently released 2022 Annual Report,the revenue in 2022 reached approximately RMB4,115 million,representing an increase of 45.66% compared with the same period of last year. The total profit hit approximatelyRMB616 million,a year-on-year increase of 26.23% excluding non-recurring profit and loss. The total asset reached approximatelyRMB60,328 million,representing an increase of 30.70% year-on-year.
These amazing figures show the extraordinary development speed of BJEI,but also witness the unremitting efforts and great dedication of all staff members. As a participant,promoter,contributor and trailblazer in the clean energy industry,BJEI has firmly forged ahead and anchored its goals in delivering practical results. In 2022,BJEI took "in-depth reform,innovative development,lean management and improved quality and efficiency" as the main guideline,and upheld "building a clean energy industrialecosystem featuring green and multi-complementarity development and smart collaboration and providing full life cycle services for global energy users through value creation" as the mission. With its concerted efforts,it managed to overcome various difficulties internally and externally and achieved over a total of 12 gigawatts installed capacity,including the controlling installed capacity and the equity installed capacity. Now it is standing at the forefront of energy transformation and development with unprecedented pioneering spirit.
Constantly optimise the industrial deployment,strengthen the main business and core competitiveness
As a new round of energy revolution is emerging around the world,green and low-carbon energy has become the hallmark of energy development. In this connection,innovation plays an increasingly prominent role in underpinning energy development. In this context,BJEI has seized the trend in the booming era of industrial development,grasped the historic opportunities by focusing on the Company's "14th Five-Year Plan" and optimised the top-level design,adhered to the guideline of self-development. It has defined the development route of "bases,synergies and internationalism" and formed the development pattern of "dual-circle,one-centre and one-focus". Despite various difficulties and challenges in 2022,BJEI maintained a strong momentum of high-quality and rapid development. By the end of 2022,the grid-connected operating installed capacity had reached approximately 5.83 gigawatts,a year-on-year increase of 39%.
Domestic market
Construct the "north-circle" base project in Northeast China,North China and Northwest China,and strengthen the development of large-scale energy base projects,with over 20GW of follow-up projects. The approval of its 2.38GW wind power project in Tongliao,Inner Mongolia marks an unprecedented breakthrough in the self-development of energy base projects of the Company. The 400MW of the Heilongjiang 1GW wind power project has been approved. The 1GW wind power project in Xing'an League of Inner Mongolia,the 3GW green ammonia project in Wulanchabu League and the 2.6GW wind energy storage demonstration project in Baotou City were under smooth application,and the 3GW wind energy storage integration project in Mulei of Xinjiang is being promoted in an orderly manner.
Build the "south-circle" of GW-level project clusters in the coastal in Southeast China,fully capitalise on the advantages of power load absorption in the regions,accelerate the development of GW-level clustering projects to foster synergy. The scale of applied projects exceeded 4GW in Cangzhou of Hebei Province,Weihai,Qingdao and Weifang of Shandong Province,Taizhou and Suqian of Jiangsu Province,Huizhou of Guangdong Province,Laibin,Baise,Hechi and Nanning of Guangxi,Kunming,Chuxiong,Lijiang,Yuxi and Baoshan of Yunnan Province,Wenchang and Changjiang of Hainan Province. In particular,in Baoshan of Yunnan Province,nearly 1 gigawatt of hydropower resources was obtained through injecting the capital into Baoshan EnergyDevelopment Joint Stock Company Limited,and the development rights of 1.6 gigawatts of potential new energy projects were secured under this project.
Centre on the green andlow-carbon transformation of the capital,focusing on "Green Power into Beijing",BJEI has sped up the deployment of large-scale green clean energy bases around Beijing. The 10GW project in Xilingol League of Inner Mongolia and the 5GW project in Jilin Province under the "Green Power into Beijing" project have been affirmed and supported by the local governments. The Company has successfully completed the registration of Phase-I (60 MW) of Mujiayu 100MW photovoltaic project in the mining areas of Miyun District of Beijing. It is expatiating the 100MW wind power project in Dongshaoqu of Miyun District to fully serve the green development of the capital.
Overseas market
BJEI has been steadily promoting overseas business,actively expanding its branding in international market,focusing on clean energy markets in RCEP countries such as Australia and Vietnam,and establishing a key regional layout of clean energy. The construction of Australia Wollar 346MW Solar Power Project kicked off. The completion of asset transactions of Australia Moorabool 312MW Wind Power Project has been accelerated. The acquisition of Vietnam Cuu An 46.2MW Wind Power Project was completed,and the Vietnam Song An 46.2MW Wind Power Project and Ben Tre 100MW Wind Power Project were expedited. By the end of 2022,the Company's overseasreserve capacity reached 1.6GW.
Diversified business layout has significantly blossomed in an all-round way
Since the restructuring in 2020,the Company's business landscape has steadily expanded with three years' efforts,gradually switching from pure photovoltaic power generation to clean energy,including wind power and hydropower,hydrogen energy,energy storage and integrated energy businesses. Its business segments are highly diversified with key highlights. The installed capacity of wind power in operation exceeded 1GW. The installed capacity in operating of hydropower was close to 1GW. Jiaxing Phase-I BIPV project was successfully put into production. The first integrated smart energy project of combined cooling heating and power (CCHP) in a large industrial park - the Phase-I Yangxi natural gas cogeneration project in Yangjiang,Guangdong was formally approved. Three shared energy storage projects in Weihai of Shandong,Baise of Guangxi,had been registered with the NDRC,and the shared energy storage projects in Zhejiang and Guangdong are being robustly facilitated. The application of the largest domestic project -- Duolun project of wind and solar energy storage and hydrogen-produced green ammonia production with a capacity of 600,000 tons was recently completed. The agreement on industrial integration with eight townships in five districtsinBeijing was signed,and a new business model of industrial integration focusing on "agricultural technology + ecological tourism + smartenergy" for "rural revitalisation" will be implemented soon.
Continuously improve its efficiency and make remarkable achievements in cost-effectiveness
As a Chinese saying goes that "a thousand-mile journey begins with a small step,and a big river or sea is formed with water from small streams",similarly,the journey of clean energy development can never be achieved overnight,which surely involves sustained efforts along the way. In 2022,in the context of the complicated and severe economic situation at home and abroad and the rising downward pressure on the economy,BJEI tackled the challenges head on,with great solidarity and tremendous efforts in tapping the development potential and improving cost control. It took a range of measures to enrich the sources of business income,actively responded and continuously boosted the electricity sales and marketing capability.
In 2022,cost control capability of BJEI continued to improve. Through the special campaign on cost reduction,the cost-income ratio hit 84.04%,which was 2.86% lower than the expected figure. The operation and maintenance cost of the stock projects decreased by 3.15% year-on-year. It continuously optimized the operation and maintenance mode,with the per capita management installed capacity of operation and maintenance standing at 12MW. Additionally,BJEI continued to optimize the debt structure and reduce the financial cost,laying a groundwork for the successful completion of the annual profit target.
While strictly controlling the cost,BJEI has further built up its strength and adopted differentiated policies and measures in various power plants,constantly strived for efficiently and effectively generating more electricity with perseverance. In 2022,BJEI's accumulated power generation hit approximately 7.141 billion kWh,an increase of 84.85% year-on-year. The accumulated power transaction registered at 3.572 billion kWh,accounting for 50%. The transacted electricity power price of the stock projects increased by RMB80.2/MWh in the same caliber year-on-year,up RMB127 million. The first deal of "Green Powerinto Beijing" involved 13 million kWh,with a premium of RMB48/MWh for green power.
Continuously improve capital operation to ensure long-term and healthy development momentum
Anchoring in the pathway of high-quality development and improving capital operation is one of the key means of the Company. To achieve these goals,BJEI accurately analyzed the situation,actively responded to various situations,and proactively made a difference,demonstrating its spirit of innovation and courage to forge ahead. In 2022,in order to ensure the healthy and sustainable development,BJEI relentlessly innovated equity financing channels,actively explored various financing products to fully guarantee its development momentum. At the level of listed company,it vigorously facilitated the issuance of shares and China's first photovoltaic public offering REITs which was successfully listed and traded on 29 March 2023,raising nearly RMB1.5 billion of equity fund,and the enlargement of fundraising was being simultaneously prepared. It successfully issued the first batch of 1-billion ABCP for renewable energy subsidiesto revitalize the existing accounts receivable. It carried out equity cooperation with ABC Financial Asset Investment Co.,Ltd. by using its domestic platform companies and introduced equity investment capital by RMB1 billion. It continued to promote perpetual bonds,industrial funds,quasi-REITs in equity financing. At the project level,it established strategic cooperation with large international and domestic companies such as Singapore's Sembcorp,accelerated the establishment of joint venture project companies and joint project expansion,to replenish equity capital at multiple levels and create a win-win situation.
It was assigned with an "A" long-term foreign currencyissuer credit rating by Fitch Ratings,a long-term issuer credit rating of "BBB+" by Standard & Poor's Global Ratings and an "AAA" long-term corporatecredit rating from Lianhe Credit Rating,all of which are with a stable outlook. Thesefully reflect the high recognition and affirmation by authoritative rating agencies at home and abroad of the Company's comprehensive strength in economic profitability,development prospects,management capacity and risk management,not only conducive to enhancing its corporate image and impact,but also winning the favor of more investors. With improved financing capacity at home and abroad,it will be favorable for expanding the BJEI's financing channels,reducing financing costs and innovating financing business and contributing to the sustainable and high-quality development.
Moving forward,BJEI will stay committed to strengthening the capital operation ability,pivoting away from the practices of traditional power generation operators,to transform towards an upgraded equity investment and asset-light strategy,and transition from industry-oriented to finance-oriented,to foster a differentiated competitive edge with its own characteristics.
Unswervingly deepen the reform and make new progress in unleashing the vitality
In the clean energy market,only the innovators can make progress,grow stronger and win the race. Innovation is the primary powerhouse for development,which has always been engraved in the development process of BJEI. While focusing on development,it has deepened reform and prioritized management,achieved tangible results in the annual overall management improvement,as can be seen in improved internal governance and business management,and more solid foundation of operation and development. It innovatively built a matrix operation and management system and rolled out organizational development in three functional directions,namely,"the Front,Middle,and Back Offices",on the basis of its "dual platform" mode of management and assets. It set up a new financing management center to underpin the financing management function. A new digital information center was set up to explore viable ways to impel the company's digital transformation. The management mode of delegation of power has been consolidated to improve operational efficiency. It has dedicatedly advocated market-oriented recruitment and employment ways,properly established a two-way evaluation mechanism for the flow of talented personnel,explored and introduced high-caliber talented professionals in various forms,and provided adequate pool of talent for the development of the Company. It has strengthened the relevance between performance evaluation,promotion and demotion,salary increase and decrease and the elimination mechanism. It will continue to ramp up differentiated incentives,optimize the special rewarding management system,and effectively unleash the operational vitality.
The tide of the new energy era is surging strongly and swiftly,presenting both opportunities and challenges. The new year is a crucial year for the implementation of its 14th Five-Year Plan,and it is also a threshold year for the Company to overcome the challenges and open a new chapter in development. Despite the setbacks along the arduous journey,the Company is firmly determined to pull through and make meaningful advances. With heavy responsibilities on its shoulders,it also understands well the loftiness of its mission. Along the great journey of accelerating the implementation of clean energy substitution and continuously expanding clean supply,the Company is strongly convicted,deeply committed to working harder and forging ahead with courage,and it will adopt a global vision in its business planning and deployment,properly seize development opportunities,and achieve new breakthroughs in investment and development at a higher level. It will enhance the management of project construction,and reap more fruits in project construction with more practical measures,continue to improve comprehensive management and basic management with higher standards,innovate financing management,strengthen safe production,business benchmarking and asset management,deepen reform and innovation,maintain a high-quality and rapid development momentum,striving to build itself into a first-class international clean energy ecological investment operator.
