Xinyi Energy's Revenue Increased 33.4% to HK$2,296.6 Million
Final Dividend of 10 HK cents per Share Distributing 100% of Distributable Income
Accelerates Acquisitions Pace Amid Challenging Environment
Total Installed Capacity increased 36% Sustained 100% Dividend Payout Ratio
(28 February 2022, Hong Kong) – Xinyi Energy Holdings Limited ("Xinyi Energy" or the "Group";stock code: 03868), a leading non-State-owned solar farm owner and operator in the PRC has today announced its audited consolidated annual results for the year ended 31 December 2021 ("FY2021" or the "Year").
During the Year, the Group's consolidated revenue increased by 33.4% to HK$2,296.6 million (FY2020: HK$1,722.1 million) and the profit for the year attributable to equity holders of the Company increased by 33.7% to HK$1,232.3 million (FY2020: HK$922.0 million). The increase was mainly attributable to the full operation of the solar farm projects with an aggregated capacity of 670 MW acquired by the Group in 2020 and the first half of 2021. The Group acquired eight solar farm projects (the "2021 Portfolio") with an aggregated approved capacity of 660 MW during the year ended 31 December 2021. The acquisition of 50% solar farm projects in the 2021 Portfolio (in a total of 330 MW) was completed in December; therefore, those projects have limited revenue contribution in 2021. The full performance of the 2021 Portfolio will be reflected in the results performance of the Group from 2022 onwards. As at 31 December 2021, the Group owned 28 utility-scale solar farm projects, with a total aggregated approved capacity of 2,494 MW.
Gross profit of the Group recorded an increase of 34.7% to HK$1,679.4 million (FY2020: HK$1,246.7 million), due to incremental contributions from revenues of the solar power electricity generation and service fee income from the provision of the solar farm operation and management services businesses. During the Year, basic earnings per share attributable to the equity holders of the Company were 17.33 HK cents (FY2020: 13.44 HK cents).
The Group's financial position maintained healthy with the cash and cash equivalents of HK$1,104.9 million and the net debt gearing ratio of 30.1% as at 31 December 2021. The Group intends to distribute 100% of the distributable income in FY2021. The distributable income in FY2021 was HK$1,242.7million, representing an increase of 23.3% compared to FY2020, with the proposed final dividend of 10 HK cents per share.
The Asia-Pacific's energy demand still recorded positive growth in 2021, even with the economic slowdown brought by the COVID-19 pandemic. Compared to 2020, the year of 2021 showed a strong recovery in the industrial and commercial demand for power in the PRC.
According to data published by the National Energy Administration (the "NEA"), in 2021, the total renewable power generation for the year increased by 11.9% as compared to 2020 while solar power electricity generation recorded an increase of 25.1% from 2020. Furthermore, the total renewable power generation accounted for 29.8% of the social electricity consumption of the year, representing an increase from 2020. It shows that de-carbonisation has become a global trend, and the PRC will continue to lead in overall renewable capacity expansion globally. It is believed that it will bring more opportunities for the Group's future acquisition.
The Group has responded actively to policy updates and industrial reforms. Following the acquisition of five solar farm projects in a total of 340 MW in 2020, the Group acquired eight solar farm projects with an aggregate capacity of 660 MW from its parent company Xinyi Solar Holdings Limited ("Xinyi Solar")and independent third parties during 2021. Among all, only three out of thirteen solar farm projects adopted the FiT regime and the remaining are all subject to the grid-parity regime. With the growth of acquisition scale and the increase of the proportion of grid-parity projects, the Group's revenue generated from the solar power electricity generation business has increased significantly. In the meantime, the cash flow of the Group has gradually improved year by year.
In 2022, the Group will continue to look for acquisition opportunities of solar farm projects from Xinyi Solar and independent third parties to promote the steady growth of revenue. The Group expects to complete the acquisition of no less than 1 GW of solar farm projects in 2022. Upon completion of the acquisitions, as planned, the total approved capacity of solar farm projects owned and managed by the Group will exceed 3.8 GW, representing a year-on-year increase of approximately 40%.
Mr. Lee Shing Put,B.B.S., Chairman and Executive Director of Xinyi Energy concluded, "De-carbonisation has become a global trend, and there is significant room for the development of renewable energy, such as solar and wind energy sectors, in the PRC. To achieve the target of global de-carbonisation, it is expected that the growth of renewable capacity will be accelerated in the forthcoming years. As a pure renewable energy operator, the Group will continue to source renewable energy assets with a focus on solar farm projects to support the goals of carbon neutrality. The Group expects to complete the acquisition of approximately 1 GW of solar farm projects in 2022, the majority of which are grid-parity projects, which is believed to provide better stability and visibility for the future cash flow to the Group that benefits its operation. The Group will closely monitor the market development and continue to actively search for high-quality solar farm projects with expected returns in domestic or overseas regions. Xinyi Energy will continue to enrich its solar farm project portfolio and drive its business development, thereby achieving its goal of generating substantial returns for shareholders."