CNE TECH Announces 2021 Annual Results

SASITHORN

HONG KONG, Mar 29, 2022 – (ACN Newswire via SEAPRWire.com) – China Nuclear Energy Technology Corporation Limited (“China Nuclear Energy Technology”, together with its subsidiaries, “the Group”; stock code: 0611.HK) is pleased to announce its audited consolidated results for the year ended 31 December 2021 (the “Year”).

During the Year, China Nuclear Energy Technology continuously accelerated the progress of project development and construction. The steady growth in project reserves led to the stable growth of installed capacity in power generation and profit therefrom. The revenue of the Group increased by approximately 20.1% to approximately HK$2.61 billion (2020: HK$2.17 billion), mainly driven by the increase of revenue generated from the power generation segment. Profit attributable to owners of the Company surged by approximately 57.3% to approximately HK$89.78 million (2020: HK$57.06 million) when compared to last year. The net profit margin also increased to 4.1% (2020: 3.2%). The basic earnings per share was HK6.84 cents (2020: HK4.35 cents), representing year-on-year increase of approximately 57.2%.

The management of the Group revealed that the global economy continued to be affected by the COVID-19 pandemic during the Year, yet, with the safe production environment provided by the effort from the Government, coupled with strengthened organizational leadership and strategic project management, the production and operation of the Group has steadily improved, and even surpassed pre-pandemic level. Under the goal of global carbon reduction, the demand for renewable energy in key sectors has increased, namely electricity, heating, industry and transportation. As the country keeps promoting to hit carbon emission peak before 2030 and achieve carbon neutrality by 2060, the Group adhered to the policy of “grounding our efforts in the new development stage, applying the new development philosophy, creating a new pattern of development and pursuing high-quality development”, optimising the industrial planning and actively seizing market opportunities.”

Business Review
EPC and Consultancy and General Construction
During the Year, EPC and consultancy and general construction segment remained the Group’s core business. Revenue from the segment was recognised based on stage of completion of the projects. Segmental sales to external customers increased by approximately 13.3% to approximately HK$2.12 billion (2020: HK$1.87 billion) due to the increase in project completion rate recognised.

The Group continued to actively diversify its EPC and consultancy and general construction segment to other renewable energy segments such as wind power and other segments, and new business portfolios. The construction and engineering company acquired in 2018, by virtue of its numerous building and installation construction qualifications and specialization in conducting governmental housing projects and municipal engineering projects, also contributed significantly to this business segment in 2021 by generating revenue of approximately HK$814.13 million (2020: HK$685.64 million), representing an increase of approximately 18.7% as compared to same period of last year.

The Group stuck to the traditional EPC business, while moderately diversifying development and steadily promoting the production and operation of the business. During the Year, all projects were completed on schedule with high quality. In addition, the Group has conducted continuous follow-up on 5G business and is currently in contact with Yunnan Communications Administration. It has completed the market access procedure and entered into a cooperation agreement with Kunming Telecom to strive for orders and investment rights of base stations from the three major operators. In 2021, the Group was granted 8 patents. It completed technology investment planning and launched 5 new technology research and development projects.

Power Generation Business
The Group owned and operated solar photovoltaic power stations and rooftop distributed solar photovoltaic power generation facilities in Jiangsu, Hebei, Guangdong, Anhui, Liaoning and Yunnan Provinces, with a filed total scale of 274 MW, representing an increase of 55 MW (26.2%) as compared to the same period last year. In 2021, the Group completed 589 million kilowatt-hour power generation output, representing an increase of 326 million kilowatt-hour (124.0%) as compared to the same period last year, which contributed steady power generation income to the Group.

In 2021, segmental revenue recorded a year-on-year growth of approximately 102.3%, contributing approximately HK$428.84 million (2020: HK$212.03 million). The increase in segmental revenue was mainly due to the contribution of the full-year operation of the Group’s wind power station in Suining County, Jiangsu Province during the Year. Currently, the Group is tracking the research, development and investigation on energy storage projects in Shandong and Shanxi, developing and investigating solar thermal and new energy bases in Gansu, Ningxia, Qinghai and other northwestern regions, and studying the technology applications of upstream new energy hydrogen production and downstream hydrogen fuel cell by investigating well-known electrolyzer manufacturers in the industry, as well as the expansion of hydrogen energy applications.

Financing Business
The Group focused on the development of external non-related projects during the Year. In terms of financing and leasing, the Group’s business team focused on the new energy industry, new infrastructure and healthcare and other fields to conduct market analysis, strengthening the Group’s capabilities to conduct professional and market-oriented business development. In respect of factoring business, the Group focused on the development of reverse factoring and supply chain fintech for core enterprises such as state-owned central enterprises. In 2021, the Group has transacted with more than 15 qualified suppliers of our internal subsidiaries.

Outlook
Following successive promulgation of the 14th Five-Year Plan for the new energy industry by the national and local governments, bringing a rapid development growth to new energy industry. The Group is committed to developing new energy business, with wind power and photovoltaic investment, construction and operation as its main business, energy storage and solar thermal as its important segments, and hydrogen production from new energy as expander, in a bid to become a comprehensive energy service provider for photovoltaic, wind power, solar thermal, energy storage, and hydrogen energy, and make an important contribution to the clean energy development. Meanwhile, the Group endeavors to explore additional profit growth points in the fields of 5G communication tower base station, central heating, housing construction and municipal administration to maintain a sustainable and balanced development. Recognizing the huge market size of photovoltaic, the Group will seize the market opportunities by strengthening the preliminary service and consulting for internal investment projects in terms of achieving effective complementarity of resource advantages in bidding, construction, service, etc., so as to establish a long-term cooperative and win-win relationship.

In addition, the Group will continue to make great efforts to develop new energy power generation industries, including photovoltaic, wind power, energy storage, charging, solar thermal, biomass/waste power generation and other national strategic energy industries. On the premise of strictly controlling risks, the Group will ensure a stable growth of asset within a reasonable range. With the increase of business, online operation and multi-stage circulation will be realized through the supply chain financial system platform in due course.

The Group has entered into share subscription agreement with Yahgee International (Hong Kong) Co., Limited, a direct wholly-owned subsidiary of Shenzhen New Nanshan Holdings Limited (“Nanshan Holdings”) on 14 November 2021. The total consideration involved was approximately HK$475.00 million, intended to apply for the development and operation of new energy power stations and general working capital of the Group. The indirect shareholder of Nanshan Holdings is China Merchant Port Holdings Company Limited. The Group believes that the introduction of strategic investor with state-owned background will effectively enhance the market competitiveness of the Group in the new energy industry.

The management believes that the Group will continuously improve its governance structure and internal control to enhance its core competitiveness. The Group will also continue to introduce strategic investors to raise funds for business development, improve the capital structure and rapidly expand its scale. The Group will strive to create synergies and realize the sharing of strategic resources, thereby improving its business performance and maximising returns to its shareholders.

About China Nuclear Energy Technology Corporation Limited
China Nuclear Energy Technology Corporation Limited (0611.HK) is principally engaged in new energy operations, including (i) the engineering, procurement and construction (the “EPC”) and consultancy segment; (ii) the power generation segment; (iii) the financing segment; and (iv) the other segments which comprise the Group’s corporate management, investment and treasury services. The Group has acquired numerous patents and has been among the top EPC rankings of Chinese photovoltaic brands for six consecutive years.

For more details, please visit http://www.cnetcl.com.

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