On March 16, 2018, Concord New Energy Group Limited announced its annual results for the year ended on December 31, 2017.
In 2017, the Group successfully transformed itself into a renewable energy power generation company. The installed capacity of the Group’s power plants and the operating power plants recorded remarkable growth in power generation capacities. Revenue and profit from power generation business increased significantly. The Group actively takes multiple measures to reduce LCOE, and develops energy Internet business and intelligent operation and maintenance. With the core competence, the Group welcomes the arrival of the era of grid parity.
In 2017, power generation output attributable to the Group increased by 17.79% to 2,447.46 million kWh over the previous year. Power generation output attributable to the Group’s wind power amounted to 1,997.17 million kWh, an increase of 49.56% over the previous year; the Group’s wholly-owned and controlled wind farms showed significant increase of 310.85% to 783.22 million kWh in power generation compared to last year. Power generation output attributable to the Groups solar power amounted to 432.16 million kWh, under the circumstance of the sale of its Shaanxi Solar Power Plant.
Revenue from power generation business increased significantly in 2017, and the Group’s wholly-owned and controlled power plants achieved a total income of RMB 717,548,000, accounting for 69.27% of the Group's revenue.
While focusing on its core power generation business, the Group relied on its investments in the renewable energy industry to carry out energy internet business, operation and maintenance, and financial leasing services, applying emerging information technologies such as big data, internet of things, and artificial intelligence to such areas as investment, construction, operation and maintenance of its power plants, whereby achieving some results. On February 24th 2017, the Group released the industry-leading energy internet cloud platform “POWER+1.0”, which has been applied in the Group’s 19 wind farms and 16 photovoltaic power stations with a cumulative total installed capacity of 1,238 MW.
In recent years, with the implementation of a series of measures such as optimising the Group's assets structure and transforming its business model, the installed capacities of the Group’s wholly-owned and controlled power plants have been continuously on the increase, and the asset quality has improved significantly. During the year, the Group’s goodwill acquired over the years and the accumulated non-performing accounts receivables of its EPC business were written off. At this point, the Group has shaken away its historical burden and successfully completed its strategic transformation. The Group will rely on the investment income of its power plants to achieve a healthy rolling development as an investor in the renewable energy field.
Looking ahead, Mr. Liu Shunxing, the Chairman of the Board of Concord New Energy, commented, “we will strive to achieve the following: focus on the main business of power generation,consolidate the transformation results, actively invest in wind power projects, and expend the installed capacities; pursue the lowest LCOE, welcome the arrival of the era of grid parity with a positive attitude; actively develop energy Internet business and use technological means to promote the industrial revolution in the field of power plant operation; keep up with the pace of our power system reform and plan for the future. The Group aims to develop into a world-leading renewable energy company, and create benefits for shareholders.”