- Net Profit Increases 61% to HK$55.7 Million
- Wind farms perform well given strong wind resources and lower curtailment
Results Highlights:
HONG KONG, Aug. 24, 2018 /PRNewswire/ -- China Renewable Energy Investment Limited ("CRE" or the "Company", and with its subsidiaries, collectively, the "Group") (HKEx: 987) announced on 23 August 2018 its interim results for the year ended 30 June 2018.
In first half 2018, the Group recorded turnover of HK$85.5 million as compared to HK$66.6 million for the same period in 2017, an increase of 28%. Revenues improved as wind resources were good and curtailment was lower. In addition, the Group received contributions from its new distributed solar project in Zhejiang province. With strong control of operations costs, gross profit increased 46% to HK$38.3 million. Good wind conditions also helped CRE's associate wind farms, with net profit from associates rising to HK$49.7 million compared to last year's HK$33.6 million. The Group's interim net profit after tax attributable to the equity holders increased 61% to HK$55.7 million (2017: a net profit after tax attributable to the equity holders of HK$34.6 million). Basic earnings per share was HK2.32 cents as compared to the previous year of HK1.47 cents per share. Given the strong performance and the expectation of improved earnings, the Group has recommended a 33% increase in the interim dividend to HK0.4 cents per share.
Mr. Eric Oei, Chief Executive Officer of China Renewable Energy Investment Limited, said, "We are pleased with the interim period's performance given good wind conditions and lower curtailment. We anticipate that curtailment will continue declining and anticipate continued growth given our 74 MW Songxian wind farm is expected to be commissioned in the second half of the year, increasing the Group's net wind capacity by 21%. The region experiences little curtailment, so the new wind farm is expected to contribute significantly to the Group's future earnings."
About China Renewable Energy Investment Limited (stock code: 987)
CRE is one of the leading external investors and operators in the renewable energy business in China. Currently, CRE has seven wind farms and one distributed solar project with a gross capacity of 664MW under operation. Two 30MW wind farms in Mudanjiang of Heilongjiang Province (with respective shareholdings of 86% and 86.6%); two 49.5MW wind farms in Siziwang Qi of Inner Mongolia Autonomous Region (with shareholding of 100%); a 200MW and 100.5MW wind farms in Danjinghe and Lunaobao of Hebei Province (with respective shareholding of 40% and 30%); and a 201MW wind farm in Changma of Gansu Province (with shareholding of 40%). For our minority projects, CRE is partnering with China Energy Conservation and Environmental Protection Group, one of the largest and strongest state-owned renewable energy companies in China. The Group also has a 4 MWp distributed solar project in the Nanxun district of Huzhou City in Zhejiang Province.
