In recent years, with the continuous innovation of technology, renewable energy has been widely applied, leading to a continual decrease in the cost of electricity generation. This trend has resulted in the growing prominence of clean energy in the global energy mix, making it the theme of world energy development. In China, the development of green and low-carbon energy has witnessed unprecedented growth. In June 2022, the National Development and Reform Commission (NDRC) in collaboration with eight other authorities jointly issued the “14th Five-Year Plan for Renewable Energy Development“, which explicitly stated that accelerating the development of renewable energy and implementing actions to replace traditional energy with renewables are significant means for promoting energy revolution and building a clean, low-carbon, safe, and efficient energy system. As this is imperative for achieving national energy security and building ecological civilization and sustainable development in the country. Furthermore, it is also a significant driver in building a community with a shared future for mankind and fulfilling China’s commitment to the Nationally Determined Contributions (NDCs) on climate change. At the same time, green and low-carbon energy is not only indispensable for building ecological civilization and achieving the dual carbon goals, but also essential for adapting to the trend of consumer upgrading, promoting structural reform on the supply side, and cultivating new economic drivers.
As an innovative and pioneering clean energy investment operator, Beijing Energy International Holding Co., Ltd (Stock Code: 00686.HK, hereinafter referred to as “BJEI” or “the Company”) recently disclosed its 2023 Annual Results Announcement. According to the announcement, the Company achieved operating income of RMB5.568 billion in 2023, a year-on-year increase of 35%; total profit amounted to RMB654 million, representing a 5% increase year-on-year; total assets reached RMB90.036 billion, up by 49% year-on-year. Several key performance indicators showed remarkable performance, fully demonstrating the fruitful achievements of its high-quality development and a new chapter in its clean energy business.
In 2023, as the critical year for implementing the “14th Five-Year Plan”, it proved to be pivotal for the high-quality development of BJEI. It centered its efforts around the positioning of “Year of Breakthroughs”, with the main guideline of “seeking progress amidst stability, optimizing layouts, refining management, and tackling difficulties for efficiency”. With concerted efforts and strong determination, significant achievements were made across various fronts, maintaining a robust momentum of rapid and high-quality development. By the end of 2023, the total installed capacity of operating installed capacity and equity installed capacity of the Company exceeded 18 MkW, with grid-connected operational capacity reaching 9 MkW, positioning it at the forefront of the industry in terms of development speed, laying a solid groundwork for a new chapter of development.
Create stronger synergy at home and abroad, seek multiple breakthroughs through collaboration
In April 2023, the National Energy Administration(NEA) issued the “Guiding Opinions on Energy for 2023“, emphasizing the deepening of the transformation towards green and low-carbon energy, consolidating the advantages of wind power and photovoltaic, continuously expanding the supply of clean and low-carbon energy, actively promoting the low-carbon and clean transformation of energy consumption in production and daily life, and strengthening the strong momentum of green and low-carbon transformation by coordinating efforts from both the supply and demand sides. The Company has responded actively to the policy, forged ahead with firm determination and perseverance while ensuring its steady development.
Domestically, the development strategy of “dual-circle, one-center and one-focus” steadily progressed. Materialization of projects under the “North Circle” gained speed. The feasibility study report and project proposal for transmission line project of “Jilin’s Electricity to Beijing” were reviewed and approved by the Power Department of NEA, and were incorporated into the Midterm Adjustment Plan of the national “14th Five-Year Plan”. The transmission line project of the “Inner Mongolia’s Electricity to Beijing“, from the sandy land in Hunshandake Desert to the Beijing-Tianjin-Hebei Region, has been clearly identified by the State Council as a key project. The projects in Heilongjiang have progressed smoothly, with the Suihua 1.45 GW wind power base project obtaining a construction quota of 500 MW, of which 200 MW has been grid-connected and operational. The Harbin 2 GW wind power base project in Heilongjiang has obtained a construction quota of 400 MW and has been approved. The Company’s first new energy base project, the Tongliao 2.43 GW wind power base project, is progressing steadily and is expected to be grid-connected by the end of April, achieving a historic breakthrough. The “South Circle” focused on building cluster projects to create multi-energy complementary bases with hydro power, wind power, solar power and energy storage. The Company obtained 952.44 MW of hydropower assets through capital injection and controlling shares in Baoshan Energy Development, marking a “zero” breakthrough in hydropower projects. Meanwhile, it actively explored and expanded projects with high absorption rates and profitability in Jiangsu, Zhejiang, Shanghai, the Pearl River Delta, and Yunnan, etc, laying a solid foundation for its high-quality and sustainable development. Apart from the mentioned projects, the Company’s controlled installed capacity of new energy in Beijing exceeded 150 MW, ranking at the forefront of the city, effectively facilitating the green and low-carbon energy transformation of the capital city.
Internationally, BJEI, with bases in Australia and Vietnam, actively expanded into the RCEP countries’ clean energy markets, intensifying efforts to develop more projects into its pipeline in Southeast Asia, New Zealand, and Europe, etc. The Company’s overseas construction and operating installed capacity reached 990 MW, with a development reserve capacity exceeding 7 GW.
Upholding the principle of dedication and innovation, the Company has marched in step with the times and trends, delivering impressive results. By the end of 2023, it had secured 3.945 MkW of new energy quota for independently developed projects, with a cumulative total of 9.754 MkW. The newly added grid-connected installed capacity reached 9.153 MkW (including joint ventures), representing a 57% year-on-year increase, while power generation rose to 13.781 billion kilowatt-hours, marking a 90% year-on-year increase.
With an ambitious strategic blueprint, the Company has diversified its layout for coordinated development
Rooted in the concept of green development, it has incessantly enriched the layout of clean energy business, fostering a new landscape of high-quality development in various green energy sectors, such as wind power, photovoltaic, hydropower, hydrogen, and integrated energy. Aligning with the direction of the national artificial intelligence industry development, it seizes the opportunity of the new round of energy structure adjustment and information technology transformation, to expedite the construction of the Beijing AI Public Computing Platform, effectively expanding the clean energy industry chain, and gradually forming a new pattern of synergistic development featuring “energy +computing power” as the main business and six major business segments including “wind power, solar power, hydropower, integrated energy, gas turbines, green hydrogen, and computing power”.
In the hydropower business, the Company relies on Baoshan Energy Development to expand and optimize its operations. It closely monitors the latest policies, focuses on the development of the Chayu River Basin, promotes the development of clean energy bases in southeastern Xizang, and actively tracks the dynamics of hydropower in the Nu River Basin. It vigorously strives for the ownership in developing Yansangshu Hydropower Station and the Guangpo Hydropower Station in Longling County, Yunnan Province, and solidly promotes relevant preparatory work.
It greatly accelerates integrated energy business, and projects such as energy storage and charging piles, and enhances smart operation and maintenance capabilities. Concentrating efforts on completing a batch of high-quality integrated energy projects, it constantly enhances its own brand impact. It is accelerating the materialization of production and finance integration projects, such as “photovoltaics + high-end manufacturing”, “tech-empowered agriculture + smart energy”, and “photovoltaics + smart agriculture”. Part of the agricultural photovoltaic greenhouses of the low-carbon green industry integration project in Daxingzhuang Town, Pinggu District, Beijing, has been launched into operation; the main construction of the green and low-carbon integrated energy project, Dayun No.1, in Tongzhou District, Beijing, has kicked off. In energy storage business, the shared energy storage project in Tianyang, Baise City, Guangxi, has been successfully put into operation; the construction of the shared energy storage project in Rongcheng, Weihai City, Shandong, is progressing satisfactorily, with an incremental equity installed capacity of 820 MW/1640 MWh for shared energy storage projects.
In the green hydrogen business, a strategic cooperation agreement was signed between Saudi Electricity Company(SEC) and the Duolun County Government regarding the phase-I of the 500 MW project of hydrogen and ammonia production with wind and solar power in Duolun, Inner Mongolia; an agreement of intent was signed for green hydrogen supply regarding the 500 MW project of hydrogen production with wind power in Xuan Steel, Hebei.
In the digital computing power business, the Company is making every effort to build the Beijing Artificial Intelligence Public Computing Platform (Shangzhuang), and has completed the online operation of 500P computing power, and opening a new chapter in synergistically integrating energy with computing power for the innovative development of Beijing’s digital economy. Additionally, it has been planning and deploying digital computing power business, promoting mergers and acquisitions of large-scale data centers in Beijing, and studying the restructuring and public listing of digital industry assets, which will substantially improve Beijing’s AI ecosystem and empower the transformation and upgrading of the real economy.
In the gas turbine business, the first large-scale integrated smart energy project in a park, the Guangdong Yangxi 2×120 MW combined heat and power (CHP) with natural gas project in Yangjiang, has kicked off; the Company is actively exploring integrated energy projects such as CHP with natural gas in Jiangmen of Guangdong, and Chongqing. Among them, the Chongqing Rongchang 6×120 MW CHP with natural gas project has been included in Chongqing’s “14th Five-Year Plan for Power Development”.
Deeper cultivation for greater milestones. The Company continues to accelerate the line-up of strategic emerging business segments for nurturing growth drivers and thriving business in the six major segments. By the end of 2023, its grid-connected operating installed capacity had increased from 1.89 GW to 9 GW (with an average annual growth rate of 68%, far exceeding the average growth rate of the renewable energy industry), and the total assets had increased from RMB26 billion at the end of 2021 to RMB90.036 billion (with an average annual growth rate of 33%). The cumulative contribution of profit totaled RMB3.2 billion, maintaining a strong momentum of high-quality development.
Diversified financing means and innovative breakthroughs in capital operation
In 2023, the Company relentlessly pooled its efforts in equity financing through means such as improving credit system, broadening financing channels, and enhancing financial management. Now, the ability to underpin its development continues to grow, with astounding highlights in multiple areas.
In March 2023, China Lianhe Credit Rating Co., Ltd. assigned it with a first-time “AAA” long-term issuer credit rating, marking another milestone after it was assigned by Fitch Ratings with a ‘A’ and Standard & Poor’s Global Ratings with a ‘BBB+’ in December 2022. These achievements showcased the effective and high-quality rapid development of the Company, elevating its capital operation capability to a new level.
It continues to expand domestic and international financing channels, optimizing its capital and debt structure by issuing various financial products, to turbocharge its business development. In March 2023, China’s first photovoltaic public offering REIT was successfully listed on the Shanghai Stock Exchange (SSE), raising equity funds of RMB1.438 billion; a RMB5 billion Panda perpetual bond (or Panda bond) was successfully registered with National Association of Financial Market Institutional Investors (NAFMII), with three issuances totaling RMB3.5 billion of perpetual medium-term notes; a RMB3 billion quota for interbank REITs was obtained; renewable energy subsidy payment ABCP and ABS were successfully issued, raising RMB1.7 billion; a RMB5 billion quota for green ABS on supply chain was successfully registered with the SSE; and the Company completed an incremental financing of RMB48 billion for the year, including RMB34.3 billion in domestic incremental financing and the equivalent of RMB13.7 billion in overseas incremental financing. A $500 million overseas green syndicated loan was secured, significantly enhancing its independent overseas financing capabilities.
The Company is unremittingly solidifying its financing capabilities by promoting equity financing at the project level, collaborating with companies such as Temasek and Sembcorp from Singapore, Ping An Trust, and Saudi Electricity Company (SEC) on project-level equity cooperation. It also works to promote equity financing such as industrial funds and private REITs, optimizing its capital structure steadily.
Solid and effective management enhances its resilience
In 2023, the overall economic downturn significantly affected energy demand across various industries domestically, intensifying competition in the domestic new energy market. It became imperative to focus on the quality of underlying assets and pursue a path of high-quality development to better adapt to industry trends. The Company faced challenges head-on and took proactive measures to enhance its sustainable development capabilities by strengthening cost control, deepening management improvements, and reinforcing electricity marketing.
By the end of 2023, the Company optimized its operation and maintenance mode, improved personnel structure, and achieved 16MW installed capacity managed per capita in O&M. It deepened tender procurement management, actively implemented transparent procurement practices, promoted the “four optimizations” of procurement management, increased centralized procurement, and actively coordinated to slash the standard fees for tender agent services, saving costs of RMB49 million annually.
While controlling costs, it studied electricity trading policies, implemented differentiated strategies by province, and meticulously rolled out electricity marketing tailored to specific circumstances. The cumulative traded electricity volume of domestic projects reached 6.299 billion kWh in 2023, with a year-on-year increase in the trading price of RMB22.62 per MWh, resulting in an additional revenue of RMB142 million.
It actively engaged in green electricity trading, and all stations meeting admission requirements entered the “white list”. It completed 55 green electricity transactions during the year, with a traded electricity volume of 212 million kWh. With an environmental premium of RMB60.6 per MWh, this increased revenue by RMB12.86 million, facilitating its journey towards high-quality development.
Regarding talent mechanisms, the Company established a professional manager system and implemented market-oriented mechanism throughout the entire company, from organizational structure to talent recruitment, cultivation, salary and incentive policies. With a system with distinctive characteristics, it is successfully cultivating an outstanding team that is ready to take and overcome any challenges. As a result, the cohesion and competitiveness of the team continues to grow stronger year by year.
Shouldering the responsibility as its mission, the Company is creating the future with concrete action. The year 2024 marks the 75th anniversary of the founding of the People’s Republic of China, a crucial year for implementing the “14th Five-Year Plan” and a year of striving for high-quality development for the Company. At this new historical juncture, the Company is poised to sketch out a new blueprint and embark on a new journey of high-quality development.
The Company highly values the spirit of entrepreneurship, flexibly adjusts its development pace, and makes asset quality and economic efficiency its core tasks. Driven by cost reduction and efficiency improvement, with “focus on the main business, diversified drivers, lean management, and innovation for effectiveness” as the main line of work, adhering to the development strategy of “dual-circle, one-center and one-focus”, the Company is firmly and vigorously realizing the coordinated layout of the six major business segments. It is taking multiple measures to enhance asset quality and management level, increase innovation efforts in various dimensions such as institutional mechanisms, Party building, technology, and management, and form a new quality productive force for its development. Having seized the advantageous position for development, the Company strives to attain a new height of high-quality development, contributes to the building of a clean, low-carbon, safe, and efficient energy system, effectively meets the needs for clean energy in social and economic development and people’s aspirations for a better life, undertakes its corporate social responsibility actively, and makes positive contributions to achieving the dual carbon goals.
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