Turnover Increased 52% YOY to HK$344,772,000
Net Profit Jumped 99% YOY to HK$106,946,000
The Group stepped up effort in developing the wind power business during the review period. Building on its vertically-integrated business model, the Group achieved fast growth in areas including wind power resources, wind power plants investment, project design and consultancy, engineering and construction of wind power projects, wind power tower and equipment manufacturing and operation and maintenance of power plants.
In addition, most of the financial figures have fulfilled great growth:
• Turnover increased 52% from the corresponding period last year to HK$344,772,000
• Net profit increased 99%from the corresponding period last year to HK$106,946,000
• Cash on hand was HK$923,661,000, an increase of 24% from HK$745,061,000 at the end of March 2009
• Consolidated net asset value was HK$3,188,605,000
• During the review period, the Group had 3 wind power plants (total capacity of 148.5MW) commenced operation and 9 plants (total capacity of 596MW) in construction. Preparation for another 4 plants (total capacity 198MW) was also underway.
• Total wind power resources of the Group reached 9,260MW at the end of the review period
For the Six Months Ended 30 September 2009, our group mainly made below extraordinary progresses:
Wind Power Resources
The Group continued to actively procure quality wind resources. During the period under review, the Group signed new agreements with local governments for the exclusive development right of 2,000MW, comprising 500MW in Fuxin, Liaoning Province and 1,500MW in Baicheng, Jilin Province. Reflecting its first-mover advantages and agile strategies, the Group has built up its reserve of quality wind resources for the sustainable growth of its wind power business. In aggregate the Group had accumulated wind resources of 9,260MW as at the end of the review period.
Wind Power Plants
As at the end of the period, the Group had invested in the construction of 16 wind power plants with a total installed capacity of 914MW, of which 531MW was attributable to the Group. Seven of those 16 wind power plants, which had a total installed capacity of 318MW, were on-grid, and the other 9 with a total capacity 596MW were under construction. Apart from those 16 plants, another 4 with a total capacity of 198MW were in preparation for construction. During the period under review, the Group generated on-grid electricity of 141,586,000kWh, representing growth of 118% from the corresponding period last year.
The Group had selected buyers through open tenders and signed with them Certified Emission Reduction ("CER") sales agreements for 12 wind power projects. Applications for Clean Development Mechanism ("CDM") registration for the plants are in progress. Among the projects, the Changtu Wind Power Project reported an aggregate CDM revenue of RMB15,362,000. The Erlianhaote Wind Power Project secured registration with the United Nations. Five other projects obtained approval from National Development and Reform Commission ('NDRC'), passed independent audits and are currently being reviewed by the United Nations CDM Executive Board.
Wind Power Consultancy and Design
During the period, the Group's Consultancy & Design Unit obtained the professional qualification for providing engineering design and consultancy services in the new energy industry. A fully fledged professional wind power consultancy and design unit has been built. The unit was entrusted with with 26 wind resource assessment reports and 12 feasibility study reports. It also provided engineering design service to several wind power projects, and offered a large number of optimization solutions and micro site selection solutions to wind power plants. These services have helped enhance overall efficiency of the projects.
Wind Power Engineering and Construction Service
Wind power engineering and construction service is another core business of the Group. Since it obtained Class 2 Electrical Engineering and Construction Contractor Qualification, the Engineering Construction Unit under the Group has been actively securing more wind power plant construction projects. During the period, it offered professional engineering and construction services to wind power projects. Moreover, the manpower of this unit was enhanced, enabling the unit to take on construction service contracts for 12 wind power projects simultaneously. For the period, the unit generated revenue of HK$157,853,000, representing an increase of 127% from the last corresponding period.
Wind Power Tower Tube Equipment Manufacturing
The Group runs the largest wind power tower tube manufacturing unit in northeastern China. During the period, the Tower Tube Manufacturing Unit supplied 158 wind tower tubes and had revenue of HK$153,351,000, representing an increase of 11% from the last corresponding period.
Wind Power Plant Operation and Maintenance Service
During the period under review, the Operation and Maintenance Unit had taken on service contracts for 10 wind power plants. The unit made revenue of HK$7,542,000, representing an increase of 100% from last corresponding period.
The Group started setting up a maintenance base with swift replacement services in Fuxin. The base will also provide ancillary facilities for major domestic wind turbine equipment manufacturers and support their wind turbines assembling in those regions. The base is expected to commence operation in early 2010.
Looking forward, the Group believes wind power is the most economically viable among all clean and renewable energy sources. China has abundant wind resources of more than 1,000GW, but the country has, to date, deployed less than 2% of those resources and generating less than 0.5% of the total electricity output by wind power. These figures clearly present enormous potential for the wind power industry to develop in the country.
As technologies for producing wind power generation equipment continue to mature and competition intensifies, the Group expects the efficiency and reliability of wind power equipment to continuously improve and the prices of wind power equipment to fall. These factors will translate to reduced costs and higher returns on wind power project investment.
Furthermore, the Group has decided to change the financial year end date of the Group to 31 December. Its results for the nine months ended at 31 December 2009 will be announced by 30 April 2010.