(30 August 2017, Hong Kong) GCL New Energy Holdings Limited (“GCL New Energy” or the “Group”，Stock Code: 451.HK) is pleased to announce its unaudited consolidated a results for the six months ended 30 June 2017.
Significant Growth in the Solar Energy Business
GCL New Energy achieved remarkable growth in its solar energy business with profitability improved significantly. During the six months ended 30 June 2017, revenue generated from the solar energy business and profits attributable to shareholders surged by 95% and 188% to RMB1.8 billion and RMB 481 million respectively.
The number of the Group’s solar power plants increased to 133 from 68 in the same period of last year, has significantly increased by 96%. Total installed capacity reached approximately 5,079MW, with a significant year-on-year increase of 86%, ranking second in the world.
The proportion of in-house developed power plants to the newly added installed capacity increased to approximately 93%. The Company’s installed capacity in zone 1 only accounted for 17% of the total installed capacity, while installed capacity and power generation in regions heavily affected by solar power curtailment only accounted for 7% and 7% of the Company’s total installed capacity and total power generation, respectively.
Solar Energy Business Sustained Growth
Fully capitalized on scale economy through tendering, effective integration of supply chain system and bulk purchase. As a result, the average cost per watt for the solar power plants reduced by RMB13% from approx. RMB7.2 in the first half of 2016 to approx. RMB6.3 in the first half of 2017
Regional operation and maintenance centres put into operation in Ningxia and Shanxi in the first half of 2017, covering an area within 200 km and simultaneously monitoring the operation of 6 or more solar power plants. The Group is planning to additionally establish at least 5 regional centres in 2017, so as to strengthen the centralized operation and management of solar power plants and effectively reduce the operation and maintenance costs per watt to RMB0.05-0.055 in 2017.
Borrowing with longer than 3 years term accounted for approx. 91% of the total new borrowings. In terms of financing costs control, traditional financing channels were furthered expanded to enhance bargaining power in securing better financing terms, thus lowering financing cost and the financing cost for new projects in the first half of 2017 was approx. 6.0%.
Acquired approx. 250MW of Poverty-Alleviation projects, ranking first nationwide. All poverty-alleviation projects were grid connected in the first half of 2017
Obtained approx. 360MW projects of Frontrunner Program, ranking third in the country. All projects of Frontrunner Program are expected to complete grid connection in the second half of 2017.
Holds distributed solar energy projects in Japan and two large ground-mounted solar power plants in the US, of which the project with a capacity of approx. 83MW in North Carolina got grid-connected at end of May and the one with a capacity of approx. 50MW in Oregon is scheduled for completion in 2018.
Asset light transformation
As at 30 June 2017, the Company maintained its total liabilities to total assets ratio at 85%. In order to lower such ratio, the Company has started transforming into asset light model and providing management services in 2017.
Built-Transfer-Operating Model : The Suzhou GCL New Energy entered into a co-operation framework agreement with Fuyang New Energy in May 2017 for providing engineering, procurement and construction for certain photovoltaic power station project companies of approximately 200 MW installed capacity, as well as providing operation and maintenance services after completion of those project companies.
Joint Venture Model : Suzhou GCL New Energy entered into share transfer agreements with Zhongmin GCL New Energy in June 2017, in relation to transferring the equity interests of 130MW power plants. Zhongmin GCL is a company with 32% equity interests held by Suzhou GCL and 68% equity interests held by Zhongmin New Energy, respectively. The Company introduced strategic partner through transfer of equity interests of power plant, and achieved the strategic transformation of asset light operation.
Asset light transformation will effectively speed up the Company’s capital cycle, ease cash flow pressure and further reduce the gearing ratio.