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CGN New Energy announces 2017 annual results


CGN New Energy Holdings Co (CGN New Energy) announced its annual results for 2017, and those of its subsidiaries, at a press conference in Hong Kong on March 22.

Chairman of CGN New Energy Chen Sui, President and Executive Director Li Yilun, Chief Accountant Liu Chao and Li Jian, general manager of the Investor Relations Department attended the meeting.

According to the press conference, as of Dec 31, 2017, the company's revenue amounted to approximately $1.11 billion, representing an increase of 3.2 percent compared with the $1.07 billion of the previous year. The increase was mainly due to the rising power generation generated by wind power projects in Northwest China's Gansu province. This was accompanied by higher steam sales of the company’s cogeneration projects and higher management fee income.

Profit from the wind and solar sectors in 2017 increased respectively by 146.5 percent and 51.8 percent to $31.3 million and $12.9 million.

Significant increase in net power generation

Currently, CGN New Energy’s business covers wind power, solar energy, gas-fired power, coal-fired power, oil-fired power, hydropower, cogeneration and fuel cell power generation projects, as well as steam projects, mainly present in the power markets of China and South Korea.

In 2017 the net power generation of all power generation projects reached 10.86 billion kWh. The net electricity generated by wind power projects and solar power projects reached 1.98 billion kWh and 295.2 million kWh respectively, an increase of 19.5 percent and 15 percent year-on-year. In 2017, the total steam sold by the company amounted to 3,202 kilotons, an increase of 7.1 percent over the previous year.

Prospects for further expansion

The company also released two important announcements. One, it plans to spin off power stations assets in South Korea and two, it plans to acquire 51 percent of the registered capital of CGN Wind Power Co, a company that owns a constructed and under-construction installed capacity of over 10 GW, more than twice as much as that of CGN New Energy.

At present, the company's total in-service installed capacity from new energy domestically reaches 15 GW with total assets worth over 130 billion yuan ($20.65 billion). In other words, CGN New Energy’s installed capacity of clean energy will make up more than 80 percent of its total installed capacity when the company completes final investment injection.

Meanwhile, it will further diversify its business scope and increase installed capacity and operation scale, which is expected to boost its competitiveness in development, construction, production, operation and maintenance.

High-quality development

Facing the future macro-economic environment and development trends in the power industry, CGN New Energy will continue to seize opportunities, make active strategic adjustments, deepen the clean and renewable energy market and shift its focus to the non-nuclear clean energy field in China.

It will push forward the optimization and expansion of businesses and continuously acquire clean and renewable power generation projects from its parent company -- China General Nuclear Power Corporation (CGN).

The company will further increase its installed capacity, expand its operation scale, refine its power generation portfolio and strengthen its core competitiveness to achieve high-level development in terms of quality and effectiveness and enhance its position in the industry.

For the projects that have been put into operation, CGN New Energy will actively carry out technical transformation of production units, further consolidate its technical foundation and effectively increase equipment efficiency. It will put more efforts in marketing and enhance its profitability.

In addition, the company will further focus on personnel cultivation and internal corporate governance. It pledges to continuously improve brand image and enhance comprehensive competitiveness and profitability to reward shareholders with outstanding performance.