Core Viewpoint - The company is pursuing a strategic listing in Singapore to enhance its long-term competitiveness without diluting existing shares, aiming to improve stock liquidity and reach a broader international investor base [1] Group 1: Industry Challenges - The company’s installed capacity is projected to grow from 2,768 MW in 2021 to 4,615 MW in 2024, with a compound annual growth rate (CAGR) of 18.58%, while revenue is expected to increase from 2.196 billion to 2.752 billion yuan, reflecting a CAGR of 7.8% [3] - The net profit has not expanded at the same rate, only increasing from 818 million to 876 million yuan, highlighting a structural imbalance in the industry [3][4] - By 2024, China's renewable energy capacity is expected to reach 1.45 billion kW, surpassing thermal power for the first time, with wind and solar accounting for over 80% of new installations [4] Group 2: Company Strategies - The company is focusing on operational efficiency by reducing financing costs, achieving an average financing cost of 3.43% and a comprehensive cost of 3.98% in 2024, both at historical lows [6] - The company plans to classify assets and liabilities of certain subsidiaries as held for sale, involving an amount of 2.778 billion yuan, to alleviate debt pressure and improve financial leverage [8] - The company has completed green electricity transactions of 811 million kWh in 2024 and sold 6.41 million green certificates, indicating a focus on enhancing asset quality and future revenue certainty [9] Group 3: International Expansion - The company has secured 1,399 MW of wind and solar projects globally in 2024, with 679 MW from international markets, and has also acquired 308 MW/616 MWh of international energy storage projects [10] Group 4: Conclusion - The company maintains a dividend payout ratio of over 30%, signaling confidence in its stable cash flow and commitment to shareholder interests amid industry fluctuations [11] - The company's approach serves as a model for global renewable energy firms, demonstrating how to navigate domestic challenges through international capital access and strategic asset management [12]

Operational Performance - The company achieved a total installed capacity of 4,615 MW and generated 8.65 billion kWh of electricity in 2024, both representing historical highs for the group[12]. - The company secured new wind and solar projects totaling 1,399 MW in 2024, with 720 MW located in China and 679 MW in other countries[11]. - The company obtained new international energy storage investment projects amounting to 308 MW/616 MWh, while also reserving a number of high-quality international project resources[11]. - The company's total revenue from continuing operations for 2024 reached RMB 2,752,054 thousand, a 6.3% increase compared to RMB 2,588,646 thousand in 2023[22]. - The net profit attributable to equity holders was RMB 805,133 thousand, a decrease of 16.5% from RMB 963,774 thousand in the previous year[22]. - The total installed capacity of the company reached 4,615 MW by the end of 2024, representing a 14.0% increase from 4,050 MW in 2023[27]. - The equity generation volume increased by 10.5% year-on-year, with wind power generation up by 10.2% and solar power generation up by 12.8%[31]. - Total revenue from power plants reached RMB 2,515,951 thousand, an increase of 11.35% compared to 2023, while net profit rose by 4.69% to RMB 797,814 thousand[33]. Financial Performance - The company's management expenses, total asset liability ratio, comprehensive financing costs, and comprehensive electricity generation costs all decreased year-on-year[11]. - The average financing cost for new withdrawals has decreased to 3.43%, while the overall financing cost has dropped to 3.98%, both at historical lows[29]. - The company's net asset value reached RMB 8,906,306 thousand by December 31, 2024, up from RMB 8,435,414 thousand in 2023[22]. - The group's cash holdings are approximately RMB 2,229,188 thousand as of December 31, 2024, down from RMB 3,902,924 thousand in 2023[47]. - The group maintains an asset-liability ratio of 72.28% as of December 31, 2024, a slight decrease from 72.99% in 2023[47]. - The group has signed contracts for capital expenditures amounting to RMB 2,680,010 thousand as of December 31, 2024[50]. Strategic Initiatives - The company plans to accelerate its global layout and expand its international development space by promoting a "secondary listing" in Singapore[11]. - The company aims to enhance its management capabilities and strengthen its core competitiveness by focusing on project development, construction, production, and marketing[13]. - The company is committed to achieving its strategic goals and aims to deliver better results in 2025, benefiting shareholders and society[13]. - The company will actively track and analyze market changes, optimizing assets to match strategic goals and market demands[60]. - The company aims to enhance operational awareness and crisis management, focusing on cost reduction and efficiency improvement through detailed analysis of costs and expenses[61]. - The company is dedicated to enhancing its management capabilities through refined and specialized management practices[61]. Market Trends and Investments - The global renewable energy investment reached $728 billion in 2024, marking an approximate 8% year-on-year increase, setting a new record for investment scale[14]. - The average cost of battery energy storage systems decreased by 40% in 2024, driving significant growth in new energy storage projects[20]. - The global market share of TOPCon technology in photovoltaic components rose to 60%, solidifying its position as the mainstream technology[19]. - The company anticipates a continued clear trend in global energy transition and expects a further loosening of financing conditions in major international economies[12]. Environmental and Social Responsibility - The group achieved a CO2 emission reduction target of 6,255 thousand tons for 2024, with a cumulative reduction of 61,715 thousand tons[45]. - The company completed green electricity transactions of 811 million kWh and sold 6.41 million green certificates, both showing year-on-year growth[34]. - The company received an AA rating from MSCI ESG and was recognized as one of the top 10% of Chinese companies in S&P Global ESG ratings[12]. Corporate Governance - The board consists of 13 members, including 7 executive directors, 1 non-executive director, and 5 independent non-executive directors[152]. - The company has established four committees, including the nomination committee, remuneration committee, audit committee, and ESG committee, to ensure effective governance[161]. - The independent non-executive directors have confirmed their independence according to the relevant listing rules[154]. - The board reviewed the corporate governance practices and confirmed compliance with the relevant corporate governance code[149]. - The company has implemented a share incentive plan for directors and eligible employees as part of its compensation policy[143]. Shareholder Information - The proposed final dividend for the year ending December 31, 2024, is HKD 0.035 per ordinary share, amounting to approximately HKD 279,371,000 based on the number of shares issued[95]. - The company repurchased a total of 138,480,000 ordinary shares at a total cost of HKD 74,495,000 during the fiscal year ending December 31, 2024[90]. - The total number of reward shares available for grant under the share incentive plan is 148,161,748, which represents approximately 0.04% of the weighted average number of shares issued during the year[100]. - The total number of unvested shares held by the trustee under the share incentive plan as of December 31, 2024, is 17,250,000[102]. - The company has no provisions in its articles of association regarding preemptive rights for existing shareholders when issuing new shares[92]. Risk Management - The company has implemented a comprehensive risk management framework that includes risk identification, assessment, response, and monitoring[194]. - The audit committee is responsible for overseeing the design and implementation of the risk management and internal control systems[195]. - The board reviewed the effectiveness of the risk management and internal control systems throughout the year[195]. - The company has established various risk management and internal control policies to ensure compliance with financial, operational, and regulatory monitoring[194].

Investment Rating - The investment rating for the company is maintained, with a target price of 6 HKD [7]. Core Insights - The company reported a revenue growth of 6.3% year-on-year to 2.75 billion RMB for 2024, while net profit decreased by 16.5% to 805 million RMB due to a reduction in the sale of completed power stations [2][4]. - The company plans to prepare for a secondary listing on the Singapore Exchange to enhance overseas business development and broaden potential financing channels [3][4]. - The company emphasizes shareholder returns with a dividend payout ratio of 32% and a dividend yield of 7% [2][4]. Summary by Sections Financial Performance - The company’s revenue for 2024 reached 2.75 billion RMB, reflecting a 6.3% increase compared to the previous year [2]. - The net profit for 2024 was 805 million RMB, down 16.5% year-on-year, attributed to a significant decrease in the sale of completed power stations [2][4]. - The company maintained a dividend of 0.035 HKD per share, consistent with the previous year, resulting in a dividend yield of 7% [2][4]. Operational Highlights - The company’s installed capacity for renewable energy generation is expected to reach 1 GW in 2025, with a total installed capacity of 4.6 GW by the end of 2024, an increase of 565 MW year-on-year [2]. - The company faced challenges in its power generation business, with utilization hours for wind and solar projects declining by over 10% [3]. - Despite these challenges, the company’s equity power generation increased by 25% year-on-year to 7,515 GWh, and revenue from power generation rose by 11.4% to 2.52 billion RMB [3]. Strategic Initiatives - The company is preparing for a secondary listing on the Singapore Exchange to expand its financing options and investor base, which is expected to support its future growth [3][4]. - The company is focused on increasing its market share in overseas renewable energy projects, which is anticipated to contribute positively to its growth trajectory [4].

Investment Rating - The investment rating for the company is maintained, with a target price of 6 HKD [7]. Core Insights - The company reported a revenue growth of 6.3% year-on-year to 2.75 billion RMB for 2024, while net profit decreased by 16.5% to 805 million RMB due to a reduction in the sale of completed power stations [2][4]. - The company plans to prepare for a secondary listing on the Singapore Exchange to enhance overseas business development and broaden potential financing channels [3][4]. - The company emphasizes shareholder returns with a dividend payout ratio of 32% and a dividend yield of 7% [2][4]. Summary by Sections Financial Performance - The company’s revenue for 2024 reached 2.75 billion RMB, reflecting a 6.3% increase compared to the previous year [2]. - The net profit for 2024 was 805 million RMB, down 16.5% year-on-year, attributed to a significant decrease in the sale of completed power stations [2][4]. - The company maintained a dividend of 0.035 HKD per share, consistent with the previous year, resulting in a dividend yield of 7% [2][4]. Operational Highlights - The company’s installed capacity for renewable energy generation is expected to reach 1 GW in 2025, with a total installed capacity of 4.6 GW by the end of 2024, an increase of 565 MW year-on-year [2]. - The company faced challenges in its power generation business, including a decline in utilization hours for wind and solar projects, with wind power curtailment rates at 9.5% and solar at 18.5% [3]. - Despite these challenges, the company’s equity power generation increased by 25% year-on-year to 7,515 GWh, and revenue from equity power generation rose by 11.4% to 2.52 billion RMB [3]. Strategic Initiatives - The company is preparing for a secondary listing on the Singapore Exchange, aiming to expand its financing options and investor base while enhancing its overseas project acquisition efforts [3][4]. - The company’s capital expenditure for 2024 is projected at 4 billion RMB, with ongoing projects totaling 1,996 MW [2].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 0.78, indicating a potential upside of 58% from the current price of HKD 0.495 [6][12]. Core Views - The company's revenue for 2024 is projected to be RMB 2.752 billion, reflecting a year-on-year growth of 6.31%, while net profit is expected to decline by 16.46% to RMB 805 million due to factors such as falling electricity prices and power restrictions [3][9]. - The company has a robust project reserve, planning to add 1GW of new capacity in 2025 with a capital expenditure of RMB 4 billion. As of the end of 2024, the company has accumulated over 10.75GW of wind and solar resources in China [4][10]. - The company is actively repurchasing shares to stabilize dividends, with a projected dividend payout ratio of 30%-33% and a dynamic PE ratio of approximately 3.8 times, indicating undervaluation [5][11]. Summary by Sections Financial Performance - In 2024, the company is expected to achieve a revenue of RMB 27.52 billion, a 6.31% increase from the previous year, while net profit is forecasted to decrease to RMB 8.05 billion, a decline of 16.46% [3][9]. - The basic earnings per share for 2024 is projected at RMB 0.1006, with a proposed final dividend of HKD 0.035 per share, increasing the payout ratio from 27% in 2023 to 32% [3][9]. Project Development - The company secured 1,399MW of new wind and solar projects globally in 2024, with 720MW in China and 679MW in other countries. The total wind and solar resource reserve in China exceeds 10.75GW [4][10]. - The company plans to commission 1GW of new capacity in 2025, with 50% expected to come online in the first half of the year, primarily from projects delayed from the previous year [4][10]. Valuation and Share Buyback - The company repurchased 8.97 million shares at a price between HKD 0.470 and HKD 0.480, totaling HKD 4.2596 million. The buyback is expected to be more aggressive in 2025 compared to 2024 [5][11]. - The company is currently trading at a dynamic PE of about 3.8 times and a PB of approximately 0.4 times, with a dividend yield of around 8.08%, indicating a high margin of safety [5][11].

Company and Industry Summary Company Overview - The company is involved in the renewable energy sector, specifically focusing on wind and solar power generation. The management team includes Chairman Liu Shunqing, CEO Niu Wenhui, and Finance Director Liu Ningyu, who presented the 2024 performance report during the earnings call [1]. Key Financial Highlights - Total assets increased from RMB 31.24 billion at the end of 2023 to RMB 32.13 billion in 2024, a year-on-year growth of 2.9% [2]. - Net assets rose by 5.6% to RMB 8.906 billion [2]. - The company's revenue from power generation increased by 11.4% year-on-year, reaching RMB 1.433 billion, while total revenue from other businesses decreased by 28.3% to RMB 236 million [3]. - Earnings per share (EPS) fell to RMB 1.005, a decline of 11.8% compared to the previous year [3]. Operational Performance - The company maintained a steady growth in power generation, with a 10.5% increase in equity power generation volume [4]. - The installed capacity of wind and solar power plants reached 4,615 MW, with wind power accounting for approximately 81% and solar power for 19% [4]. - New projects added in 2024 included 566 MW, with 266 MW from wind and 300 MW from solar [4]. Market and Industry Dynamics - The renewable energy sector is experiencing a shift due to ongoing policy reforms in the electricity market, with a focus on market-driven pricing mechanisms [10][11]. - The average utilization hours for the company's wind and solar plants were reported to be higher than the national averages, indicating strong operational performance [7]. - The average comprehensive electricity price for wind power decreased by RMB 0.0055 per kWh, while solar power saw a decline of RMB 0.0638 per kWh [8]. Strategic Adjustments - The company is adapting its development strategy in response to changing market conditions, focusing on optimizing asset quality rather than merely increasing capacity [20]. - A total of 1,399 MW of new wind and solar investment projects were secured globally, with 720 MW in China and 679 MW in other countries [5]. - The company is also enhancing its operational efficiency by reducing management costs by 15%, from RMB 404 million to RMB 344 million [10]. Challenges and Risks - The decline in net profit is attributed to reduced asset transfer income and increased operational costs due to market conditions [17]. - The company faces challenges from regional resource limitations and fluctuating electricity prices, which could impact profitability [5][8]. Future Outlook - The company plans to maintain a capital expenditure of approximately RMB 4 billion in 2025, focusing on project development and operational efficiency [25]. - Management emphasized the importance of quality over quantity in project development, indicating a shift in strategic priorities [20]. Additional Insights - The company has maintained a strong ESG rating, reflecting its commitment to sustainable practices and corporate governance [15]. - The management team is optimistic about the long-term prospects of the renewable energy sector, despite current market fluctuations [23]. This summary encapsulates the key points from the earnings call, highlighting the company's financial performance, operational metrics, market dynamics, strategic adjustments, challenges, and future outlook.

Investment Rating - The report maintains a stable dividend policy and indicates a potential undervaluation of the company with a dynamic PE of approximately 4.3 times and a PB of 0.4 times, alongside a dividend yield of about 7.56% [5] Core Insights - The company reported a revenue of RMB 2.752 billion for the year ending December 31, 2024, representing a year-on-year growth of 6.31%. However, the net profit attributable to shareholders decreased by 16.46% to RMB 805 million, with basic earnings per share at RMB 0.1006. The proposed final dividend is HKD 0.035 per ordinary share, and the net asset value per share increased by 11.31% to RMB 1.09 [1] - The company plans to add 1GW of new capacity in 2025, supported by a robust project reserve of over 10.75GW in China, which includes approximately 6.5GW of wind power and 4.25GW of solar power. The company has secured 1,399MW of new wind and solar projects globally in 2024 [3] - The proposed secondary listing in Singapore aims to broaden the shareholder base and enhance future financing channels, thereby improving overall liquidity of the company's securities [4] Summary by Sections - **2024 Annual Performance**: Revenue reached RMB 2.752 billion, a 6.31% increase year-on-year, while net profit fell to RMB 805 million, a 16.46% decrease. Basic earnings per share were RMB 0.1006, with a proposed final dividend of HKD 0.035 [1] - **Project Development**: The company has a strong project pipeline with plans to commission 1GW in 2025. It has acquired 1,399MW of new projects in 2024, with a total project reserve exceeding 10.75GW in China [3] - **Financing Strategy**: The secondary listing in Singapore is expected to enhance the company's financing capabilities and shareholder base, improving liquidity [4] - **Valuation Metrics**: The company is considered undervalued with a dynamic PE of 4.3 times, a PB of 0.4 times, and a dividend yield of 7.56%, indicating potential for price appreciation [5]

Investment Rating - The report maintains a stable dividend policy and highlights the company's solid project reserves, indicating a positive outlook for future performance [1][3]. Core Viewpoints - The company reported a revenue of RMB 2.752 billion for the year ending December 31, 2024, representing a year-on-year growth of 6.31%. However, the net profit attributable to shareholders decreased by 16.46% to RMB 805 million, with a basic earnings per share of RMB 0.1006 and a proposed final dividend of HKD 0.035 per share [1]. - The company plans to add 1GW of new capacity in 2025, supported by a robust project reserve of over 10.75GW in China, which includes approximately 6.5GW of wind and 4.25GW of solar resources [3]. - The proposed secondary listing in Singapore aims to broaden the shareholder base and enhance future financing channels, which is expected to improve overall liquidity of the company's securities [4]. - The company intends to maintain a dividend payout ratio of around 30% and is currently undervalued, with a dynamic PE of approximately 4.3 times and a PB of 0.4 times, alongside a dividend yield of about 7.56% [5]. Summary by Sections - **2024 Annual Performance**: Revenue of RMB 2.752 billion, net profit of RMB 805 million, basic EPS of RMB 0.1006, and proposed final dividend of HKD 0.035 [1]. - **Project Development**: New wind and solar projects totaling 1,399MW acquired in 2024, with 2GW under construction and a plan to commission 1GW in 2025 [3]. - **Secondary Listing**: The company plans to submit an application for a secondary listing in Singapore by March 31, 2025, without issuing new shares [2][4]. - **Valuation Metrics**: Dynamic PE of 4.3, PB of 0.4, and a dividend yield of 7.56%, indicating undervaluation [5].

Group 1 - The company, Xiehe New Energy, announced a share buyback of 8.97 million shares at a price range of HKD 0.470 to HKD 0.480 per share, totaling HKD 4.2596 million [1] - On the day of the buyback, the stock closed at HKD 0.475, reflecting a decline of 1.04%, with a total trading volume of HKD 7.7696 million [1]

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 2,752,054,000, representing an increase of 6.3% from RMB 2,588,646,000 in 2023[4] - Gross profit for the same period was RMB 1,515,848,000, up 7.8% from RMB 1,405,626,000 in 2023[4] - Net profit attributable to shareholders from continuing operations was RMB 805,133,000, a decrease of 8.2% compared to RMB 877,502,000 in 2023[4] - Basic earnings per share for the year was RMB 10.06, down from RMB 11.42 in 2023, reflecting a decline of 11.9%[4] - The company’s total comprehensive income for the year was RMB 852,914,000, down from RMB 985,221,000 in 2023, a decrease of 13.4%[5] - The company reported a financial cost of RMB 683,945,000 for the year ending December 31, 2024[26] - The profit before tax for the year ending December 31, 2024, was RMB 866,772,000, leading to a net profit of RMB 875,575,000 after tax credits[22] - The company reported a net loss of RMB 1,839,000 from the sale of property, plant, and equipment in 2024, compared to a gain of RMB 2,536,000 in 2023[37] Assets and Liabilities - Total assets increased to RMB 32,129,839,000 in 2024, compared to RMB 31,236,368,000 in 2023, marking a growth of 2.9%[7] - Non-current liabilities decreased to RMB 15,283,280,000 in 2024 from RMB 15,922,369,000 in 2023, a reduction of 4.0%[7] - Cash and cash equivalents decreased to RMB 1,693,834,000 in 2024 from RMB 2,445,465,000 in 2023, a decline of 30.7%[7] - Current liabilities decreased from RMB 6,878,585 thousand in 2023 to RMB 7,940,253 thousand in 2024, representing an increase of approximately 15.4%[9] - Total liabilities increased from RMB 22,800,954 thousand in 2023 to RMB 23,223,533 thousand in 2024, reflecting a growth of about 1.8%[9] - Net asset value rose from RMB 8,435,414 thousand in 2023 to RMB 8,906,306 thousand in 2024, indicating an increase of approximately 5.6%[9] - The company's equity attributable to shareholders increased from RMB 8,283,036 thousand in 2023 to RMB 8,714,950 thousand in 2024, a growth of about 5.2%[9] - The company’s other borrowings increased from RMB 895,844 thousand in 2023 to RMB 1,167,151 thousand in 2024, marking an increase of about 30.3%[9] - The company’s contract liabilities decreased from RMB 52,496 thousand in 2023 to RMB 25,029 thousand in 2024, a reduction of approximately 52.4%[9] Revenue Sources - Revenue from continuing operations for 2024 reached RMB 2,752,054,000, an increase of 6.3% compared to RMB 2,588,646,000 in 2023[36] - Revenue from electricity sales increased to RMB 2,158,040,000 in 2024, up 15.5% from RMB 1,867,969,000 in 2023[36] - Major customers contributed significantly, with Customer A generating RMB 389,489,000 and Customer B RMB 354,033,000 in 2024, both exceeding 10% of total revenue[33] - Total revenue for the group's power plants reached RMB 2,515,951,000, an increase of 11.35% from RMB 2,259,413,000 in 2023, while net profit rose by 4.69% to RMB 797,814,000[80] Operational Highlights - The company sold part of its smart operation and maintenance business for RMB 126,090,000 in November 2023, focusing on its core competencies in wind and solar power generation[18] - The company plans to sell three subsidiaries in the power generation sector for a total consideration of RMB 1,207,348,000, with expected completion in 2025[51] - The group completed green electricity transactions of 811 million kWh and sold 6.41 million green certificates, both showing year-on-year growth[81] - The group has sold off 50 MW of power plant capacity as part of its asset optimization strategy[90] Market and Industry Trends - Global renewable energy investment reached USD 728 billion in 2024, marking an 8% year-on-year increase, highlighting the sector's resilience and growth potential[60] - The average cost of battery energy storage systems decreased significantly by 40% in 2024, driving explosive growth in new energy storage projects[65] - The global market share of TOPCon technology in photovoltaic components rose to 60% in 2024, solidifying its position as the mainstream technology[64] - The number of countries with new gigawatt-scale photovoltaic component demand increased from 31 in 2023 to 37 in 2024[64] Corporate Governance and Management - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2024, ensuring compliance with corporate governance standards[116] - The company has adhered to the corporate governance code as outlined in the listing rules for the year ending December 31, 2024[113] - The company expresses gratitude to employees, shareholders, customers, and business partners for their ongoing support[117] - The company emphasizes the importance of corporate culture to enhance employee cohesion and alignment with business development strategies[108] Future Outlook and Strategy - The group aims to significantly increase new installed capacity by 2025, focusing on project construction management and cost control[103] - The group plans to enhance its power trading and marketing capabilities to improve profitability[101] - The group is committed to reducing financing costs by leveraging favorable market conditions and expanding financing channels[105] - The company plans to actively track and analyze market changes, optimizing assets to match strategic goals and market demands[106]