China Longyuan Power Group (916) H1 2024 earnings summary

Executive summary

• Operating revenue for H1 2024 was RMB18,883 million, down 4.9% year-over-year; net profit attributable to equity holders was RMB4,020 million, down 21.6% year-over-year.

• Wind power segment saw a 9.4% revenue decline and 18.9% drop in operating profit, while PV power revenue nearly doubled, and coal power revenue was stable.

• Group installed capacity reached 37,880.4 MW, with 2,286.73 MW of new projects launched in H1 2024.

• Decrease in profit mainly due to lower wind resources, reduced wind power utilization hours, and lower average on-grid tariffs.

• Photovoltaic segment saw significant growth in installed capacity and power generation, offsetting some declines in wind and coal power.

Financial highlights

• Operating profit: RMB7,145 million (down 17.1% YoY); net finance expenses: RMB1,620 million (up 3.3% YoY).

• Basic EPS: RMB0.4767 (down from RMB0.6001 YoY); net profit margin: 24.9% (down from 29.4%).

• Net assets per share: RMB8.69 as of June 30, 2024.

• Capital expenditures: RMB12,038 million (up 29.6% YoY), mainly for wind and PV projects.

• No interim dividend was declared for H1 2024.

Outlook and guidance

• Focus on expanding new energy projects, digital transformation, and innovation-driven growth.

• Plans to accelerate development of large-scale wind and photovoltaic bases, enhance asset management, and expand international presence.

• Emphasis on cost control, efficiency, and technological innovation in H2 2024.