In the year under review, the Group posted a 446% year-on-year increase in revenue from HK$59,483,000 to HK$324,936,000, in which wind power business accounted for 67%. The favorable results were mainly attributable to the successful acquisition of a wind power group on 1 August 2007, and the business has developed rapidly in a short period of time. Profit attributable to equity shareholders in FY2008 jumped 198% to HK$100,064,000 (2007: HK$33,598,000) and basic earnings per share were 2.90 HK cents (2007: 2.67 HK cents).
As a results of rapid growth during the year under review, the wind power business recorded a revenue of HK$216,375,000.
Investment in wind power plants
During the year under review, the provision’s turnover is mainly attributed by Chang Tu Wind Power Plant, which started power generation in January 2007. For further expansion of the business, since mid-August 2007, the Group has invested in and started construction of wind power plants in Taipusiqi and Erlianhaote in Inner Mongolia, and Zhenlai in Jilin and commercial operation is expected to commence in March 2008.
Wind power engineering, procurement and construction service (“EPC”)
The Group has reserved wind power resources with a total generation capacity of approximately 6,000MW in Northern, Northeastern and Northwestern China via exclusive development agreements with local governments.
The Group completed construction of three wind power projects during the financial year. The average construction period was seven months. On the wind power technical consultation and services provision, the Group participated in seven wind power projects in the financial year. In respect of maintenance service provision, the wind power maintenance company of the Group is currently providing maintenance services for four wind power plants and is exploring cooperation opportunities with certain international well-known professional wind power maintenance companies to expand its profit growth. The Group has established a professional procurement centre to oversee the purchase of equipment and raw materials and has purchased critical equipment and materials for six of its wind power plants in December 2007. This lowered procurement costs and will ensure smooth construction progress of its wind power plants under tight raw materials supply nowadays.
During this financial year, the Group manufactured 95 wind tower tubes for three wind power plants. The Group’s associated company in Zheng Zhou has completed design gearboxes for a 750KW and a 1,500KW wind turbine and now has been undergoing manufacturing of prototype which are expected to turn into new profit growth for the Group. In addition, the Group set up an electricity engineering design company, providing high add-value services such as feasibility studies, technical consultancy, engineering map design and micro-site selection. The company gives strong technical support to the four wind power projects of the Group and will actively develop the wind power service market.
Future Investment and Outlook
Looking ahead, the Group will continue to grasp opportunity to develop wind power resources by further expanding investment in wind power plants. The Group currently has wind resources with power electricity generation capacity of approximately 6,000MW. This total includes a 200MW wind power project in Jiquan, Gansu province awarded by the National Development and Reform Commission. In 2008, the Group plans to build via joint ventures six to eight wind power plants, each with an installed capacity of 49.5MW each. By then, the Group’s joint venture wind power plants will have an annual capacity of approximately 940,000,000Kwh, and CO2 emission will be down by about 940,000 tons a year.
To further the expansion of the Group’s EPC provision, the Group is also negotiating with certain international well-known professional wind power maintenance companies to expand its profit growth.