In today's China, the cultivation and development of new quality productive forces are in full swing. Green development is the foundation of high-quality development, and new quality productive forces are inherently green productive forces. Actively developing clean energy is crucial to the overall economic and social development. In the exploration of responding to global climate change, strengthening the construction of ecological civilization, and promoting the green and low-carbon transformation of the economy and society, China's clean energy industry continues to move forward, with the scale of development and utilization ranking among the top in the world. Exploring the path of high-quality development of clean energy and building a green and low-carbon circular economy is of great significance to actively and steadily advancing carbon peak and carbon neutrality, and to building a beautiful China.
With favorable winds, it is the right time to set sail and forge ahead. Recently, Jingneng International (00686.HK) disclosed the performance announcement for the first half of 2024. The announcement shows that the company's total assets in the first half of 2024 reached 101.802 billion yuan, a 13% increase from the beginning of the year; the total installed capacity reached 10.045 million kilowatts, a 17% increase from the beginning of the year; the "double thousand" stage goal was achieved; the operating income was 3.272 billion yuan, a 27% increase year-on-year; the total profit was 434 million yuan, a 27% increase year-on-year; it became the first platform in Jingneng Group with assets over 100 billion yuan, and its comprehensive strength has reached a new level.
Strategizing with foresight, taking the lead in planning the overall situation.
Only the innovative can advance, only the adaptable can be strong, and only the wise can win. In 2020, Jingneng International was restructured, and the new leadership team, with their wisdom and practical innovation, achieved a turnaround from loss to profit in just one year. Over the past four years, the company has kept pace with the trend of the times, keenly observed industry dynamics, and with keen insight and forward-looking thinking, has continuously achieved strategic innovation, maintaining a high-quality development trend.
He who understands the trend is wise, and he who masters the trend wins. In 2024, to achieve the corporate vision of "the most respected international clean energy ecological investment operator," the company reshaped its strategic development plan, promoted the reform of systems and mechanisms, and explored the strategic development path of "double loop lines, one center, one focus," forming a new pattern of coordinated development of six major business segments centered on "energy + smart calculation," including wind and solar, hydropower, integrated energy, gas turbines, green hydrogen, and smart calculation.
Improving quality with "new", promoting development with diversified business formats.
Jingneng International aims to improve asset quality and economic benefits, focusing on "cost reduction and efficiency enhancement," with "focusing on the main business, diversified drive, lean management, and innovation and efficiency creation" as the main line of work, promoting the coordinated layout of the six major business segments, and achieving breakthrough progress in several key tasks.
In terms of project development, both the double loop line base projects have received significant benefits. The "Northeast Songliao Clean Energy Base Power Transmission to North China Project" has been included in the plan, and the energy bureaus of Heilongjiang and Jilin provinces have clearly expressed their support for Jingneng International to lead the green electricity project from the Northeast base into Beijing; the East China base project has continuously made breakthroughs, with the East China branch obtaining 5.1GW of new energy rights in the Yangtze River Delta region; the Southwest branch has obtained a 1GW wind power project construction indicator in Panzhou City, Guizhou Province, achieving a major breakthrough in Jingneng International's layout of the new energy industry in Guizhou Province.
In terms of diversified business development, energy storage, gas turbines, green hydrogen, and smart calculation have bloomed in many places, establishing differentiated competitive advantages. A new chapter of coordinated development of "energy + smart calculation" has been opened, creating an important base for the innovative development of Beijing's digital economy, and the digital industry platform has gradually matured. The energy storage battery module independently designed and developed by the comprehensive energy company has completed the new national standard product certification, marking that Jingneng International has the capability for independent research and development and system integration of energy storage products, which can meet the storage requirements in the development process of projects in various regions; the Chongqing Dazu 2*500MW-level gas turbine power station project has been included in the "14th Five-Year Power Development Plan of Chongqing City," and has the conditions to carry out preliminary work; a consensus on cooperation has been reached with the government of Xuanhua District, Zhangjiakou City, and Hebei Steel Xuan Steel, to accelerate the implementation of the "green electricity hydrogen production, green hydrogen metallurgy" project, and jointly create a leading domestic and world-class national demonstration project.
In terms of overseas business expansion, the company has become the largest Chinese-owned new energy enterprise in Australia, gradually creating a new profit growth pole. The acquisition of a local electricity sales company in Australia is being promoted, which will open up market expectations for the Australian company to become a top electricity company, striving to achieve the securitization of overseas assets; broadening the global vision, striving to start the Canadian photovoltaic project next year, using this as a fulcrum to cultivate a new growth pole outside Australia, and finding new support points for the company to expand into overseas markets.Enhancing Quality with "Trust": Optimizing Corporate Capital Structure
In 2023, the company achieved an "A" credit rating from Fitch Ratings International and a "BBB+" credit rating from S&P Global Ratings in their tracking assessments. In 2024, it obtained a domestic credit rating of "AAA" from United Credit Ratings and was awarded an "Evergreen 2" rating by Fitch, with a principal score of "78" for Environmental, Social, and Governance (ESG) ratings, marking the highest publicly disclosed ESG score in China by Fitch. These strong credit credentials have helped the company gain dual recognition from the capital market and financial regulatory authorities. The high-quality ESG rating also fully demonstrates the company's confidence and determination to support the high-quality development of the country's green and low-carbon energy. Initial progress has been made in attracting strategic investors, with investment intentions reached with several companies. The company has issued a total of 5 billion yuan in panda perpetual bonds in the interbank market and is advancing the issuance of an additional 5 billion yuan in perpetual bonds, aiming to issue them in phases by the end of 2024. The defect rectification work at Baoshan Energy Hydropower Station is nearing completion, and the company is accelerating the expansion of hydropower REITs, further exploring high-quality wind and photovoltaic power station projects, preparing for the next round of expansion, and continuously increasing the degree of asset securitization. The company fully utilizes its good reputation and development expectations in the industry, deeply engages with a number of influential and strong domestic and international entities with a results-oriented approach, actively follows up with other potential investors, and continuously improves the rationality of the company's shareholder composition, truly reducing the cost of the company's equity capital.
Forging Development Intellectual Support with "Integration": Enhancing Quality
Capable individuals travel far, and those who integrate go wide. The company continues to advance systemic and institutional reforms, targeting its multi-sector business layout by attracting top-notch talent from various niche markets. It continuously optimizes talent distribution, insists on systematically promoting "positive empowerment"; unleashes talent vitality by aiming for "injecting momentum" with tangible results; and focuses on talent development to ensure that everyone's talents are fully utilized to "leverage efficiency".
The company inherits and renews its corporate culture, further organizing and refining the excellent cultural genes of Jingneng International. Based on the present and facing the future, it has formed a corporate culture centered around "integration culture", with growth integration, self-driven responsibility, honesty and clarity, striving for progress, pursuit of excellence, and open innovation as its fulcrums. The company leads development with culture, unites strength with culture, and creates an internal driving force for sustainable enterprise development, promoting high-quality enterprise growth and making beautiful energy within reach.
The rugged past has become history, and the brilliant present is extending. Jingneng International emphasizes that "in the second half of 2024, the company will continue to adhere to its entrepreneurial spirit, embrace change, continue to strive, persist in high-quality development without wavering, and strive to maximize company value and shareholder interests."
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