CRE Announces 2021 Interim Results
Net Profit Increased 132% to HK$85.3 Million
Excellent Wind Conditions and Full Operation of Songxian Wind Farm Contribute to Strong Growth
Results Highlights:
- Profit attributable to equity holders increases 132% to HK$85.3 million (2020: HK$36.8 million).
- Earnings per share at HK3.40 cents per share (2020: HK1.47 cents per share).
- CRE's wind farm utilization hours increased 22% year on year to 1,190 hours.
- Net asset value per share of HK80.0 cents per share.
- Dividends per share increased by 25% to HK0.5 cents per share.
HONG KONG, Aug. 19, 2021 /PRNewswire/ — China Renewable Energy Investment Limited ("CRE" or the "Company", and with its subsidiaries, collectively, the "Group") (HKEx: 987) announced today its 2021 interim results.
During the 2021 interim period, the Group's recorded turnover increased 38.1% to HK$133.7 million (HK$96.8 million for the same period in 2020). Interim gross profit increased 80.7% to HK$64.6 million (HK$35.7 million in 2020). The Group's Associate companies performed well, contributing profits of HK$53.6 million, an increase of 59.8% compared to 2020. With careful control over costs, the Group recorded a net profit after tax attributable to the equity holders of HK$85.3 million for 2021, an increase of 132% compared to the 2020 interim net profit of HK$36.8 million. Earnings per share was HK3.40 cents as compared to the previous year of HK1.47 cents per share. Given the strong performance, the Company has decided to increase dividends per share by 25% to HK0.5 cents per share.
Mr. Eric Oei, Chief Executive Officer of CRE, said, "We are very pleased with CRE's performance during this interim period. With the full operation of the 74 MW Songxian wind farm in Henan, the Company's 2021 results reflect the strong capacity growth built over the last decade. Net capacity has increased from 30 MW in 2009 to 427 MW in 2021, an increase of 13.2x." The Group currently has eight wind farms with a total gross capacity of 738 MW (net capacity of 427MW).
The wind conditions in the areas that the Company operates in Gansu, Hebei, Heilongjiang, Henan and Inner Mongolia provinces improved considerably during the interim period. In addition, the Company has continued to improve the operations of its existing wind farms, reducing costs and curtailment. As a result of the increased capacity with Songxian, higher wind speeds during the period, and the improvement in operations, total power despatch of the Company's wind farms in the first half of 2021 reached 873.2 GWh or 1,190 utilization hours, a strong increase of 22% compared to the 717.9 GWh or 978 utilization hours in the 2020 interim period.
The outlook for wind power in China remains promising over the long term as the industry is one of the major sectors that the Chinese government has prioritized for development. CRE will benefit from the government's goal for carbon emissions to peak no later than 2030 and for carbon neutrality by 2060. Moreover, over the short term, China's economic recovery is leading to strong demand for clean energy.
About China Renewable Energy Investment Limited (stock code: 987)
CRE is one of the leading external investors and operators in the renewable energy business in China. Currently, CRE has eight wind farms with a gross capacity of 738MW (net capacity of 427MW) under operation. Two 30MW wind farms in Mudanjiang of Heilongjiang Province (with respective shareholdings of 86% and 86.6%); two 49.5MW wind farms in Siziwang Qi of Inner Mongolia Autonomous Region (with shareholding of 100%); a 200MW and 100MW wind farms in Danjinghe and Lunaobao of Hebei Province (with respective shareholding of 40% and 30%); a 201MW wind farm in Changma of Gansu Province (with shareholding of 40%); a 74MW wind farm in Songxian of Henan Province (with shareholding of 100%); and a 4 Mega-Watt-peak distributed solar project in Nanxun district of Huzhou in Zhejiang Province (with shareholding of 100%). For our minority projects, CRE is partnering with China Energy Conservation and Environmental Protection Group, one of the largest and strongest state-owned renewable energy companies in China.
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