• Consolidated revenue amounted to HK$1,236,020,000, representing an increase of 120% over that of FY2009 (nine months results)
• Profit attributable to equity holders was HK$427,223,000, representing an increase of 135% over that of FY2009 (nine months results)
• Cash on hand and cash equivalents were HK$732,544,000
• Net asset value was approximately HK$3,913,495,000, an increase of 20% as compared to that at 31 December 2009
• Aggregate wind power generation capacity in operation surged to 1GW and wind power generated in 2010 tripled to 1.1 billion kilowatt-hours
During the year, the Group’s consolidated income from its wind power businesses amounted to HK$1,236,020,000 (FY2009: HK$562,597,000), representing an increase of 120% compared to FY2009. Profit attributable to equity holders was HK$427,223,000, representing an increase of 135% over that of FY2009 (FY2009: HK$181,236,000). Its basic earnings per share arising from continuing operation were 5.85 HK cents (FY2009: 2.66 HK cents) and its fully diluted earnings per share were 5.78 HK cents (FY2009: 2.59 HK cents). At the end of 2010, the Group's net assets amounted to HK$3,913,495,000 (31 December 2009: HK$3,267,843,000), its cash and cash equivalents were HK$732,544,000 (31 December 2009: HK$1,109,561,000).
Mr. Liu Shunxing, Chairman and CEO of China WindPower, said, “Due in part to the Chinese Government’s ongoing support and favorable policy for the development of renewable clean energy, the Group has grown rapidly in 2010. During the year, the Group has sourced financing from the world top’s financial institutions, including International Finance Corporation (“IFC”) and Asian Development Bank (“ADB”). The Group’s total newly commissioned capacity added in 2010 was higher than the total capacity at the end of 2009. The power generation attributable to our equity interests in these plants tripled over that generated in FY2009. Besides, China WindPower has added its wind power resources in southern China significantly, which have better grid connection access and higher power consumption capability. The Group has also started gathering resources and recruiting experienced technical personnel for future solar power development.”
Wind Power Plant Investments and Operations
In 2010, the Group enlarged its investment in wind power projects, and commissioned the construction of 11 wind power plants (total capacity of 795MW), of which 9 wind power plants (total capacity of 597MW) have been completed and commenced operation. Up to the end of 2010, the group has 21 wind power plants in operation, and after selling two established wind power plants during the year, China WindPower still has 19 wind power plants in operation, with an aggregate capacity of 1,064MW and an attributable capacity of 608MW. The Group’s wind power plants generated electricity output of 1,125.88 million kWh in total, the output attributable to the Group’s equity interests in these plants was 510.83 million kWh, representing an increase of 297% over FY2009.
The Group secured over 7,000MW of exclusive wind power development rights with the local governments, including 4,000MW in China’s southern provinces. It is estimated that the Group’s total wind resources exceeded 15GW. In addition, the Group obtained 13 project approvals from National/Provincial Development and Reform Commission (NDRC/PDRC), with a total of 900MW grid connection and grid connection proposal approvals.
Furthermore, the Group began to gather solar power development projects, acquire relevant technology, and recruit experienced personnel, so as to prepare for investment in solar power projects. It signed 648MW of solar development agreements in Gansu, Inner Mongolia, Liaoning, Jilin, etc. and currently undergoing solar tests and feasibility studies.
As for the Clean Development Mechanism (“CDM”) registration, a total of 11 projects have been approved by the NDRC throughout the year. In addition, 5 CDM projects were successfully registered with the United Nations Executive Board (EB), in which 1 project was registered as the Gold Standard CDM project, and the emission reduction amount of 2 projects has been certified and issued by the EB. During 2010, China WindPower has successfully registered with the United Nations EB for 7 CDM projects.
Wind Power Services Business
The Group’s consultancy and design units received the ISO9001 quality management systems certificate, and provided a total of 340 reports - including wind resource assessment, development planning, project resource allocation, turbines selection, feasibility study, micro-site selection and construction drawing design. In 2010, this segment recorded revenue of HK$ 73,169,000 (FY2009: HK$ 49,561,000).
The number of projects undertaken by the Group’s engineering and construction unit increased significantly in 2010. China WindPower undertook 19 wind power projects, 7 of which were independent third party projects. This business segment contributed revenue of HK$ 517,313,000 (FY2009: HK$ 227,968,000) to the Group.
As for the wind power tower tube equipment manufacturing unit, the Group established a new wind power equipment manufacturing production base in Jilin, China. The new production base, capable to manufacture more than 400 tower tubes for up to 3.0MW wind turbines, made the Group’s tower tube manufacturing facilities the biggest in northeastern China. A total of 498 tower tubes were sold, and generated revenue of HK$ 591,428,000 (FY2009: HK$270,071,000).
In 2010, the operation and maintenance unit formed a three tier management structure, including Beijing headquarter, regional bases in wind power abundant areas, and wind power plants. At the same time, the wind power plant operation and maintenance unit was awarded the certification of ISO9000, ISO14001 and ISO18001. During the year, the operation and maintenance unit had undertaken on service contracts for a total of 25 wind power plants, and recorded revenue of HK$ 54,110,000 (FY2009: HK$14,997,000) for the segment.
Looking forward, Mr. Liu Shunxing said, “In view of the Chinese Government’s promotion of and support to clean energy industry, the scale of the Group’s wind power plants construction will be further expanded. The investment of wind power plants, as well as the scale of services businesses such as wind power projects design, consultation, construction, operation and maintenance, and tower manufacturing will continue to grow significantly. According to the latest planning information of the National Energy Administration, it is estimated that China’s wind power installed capacity would hit 150GW and that of solar energy 20GW by 2020. Over the next five or ten years, China’s clean energy industries are expected to continue their rapid development.”
“After five years of rapid development, the Group has grown to become a sizeable enterprise with a vertical integrated operation. We now possess some advantages in key resources such as wind resources as well as human resources. While further strengthening our onshore wind power business in China, we will actively seize investment opportunities in off-shore wind power generation and solar power generation, and seek clean energy development and EPCM service projects outside China. In the coming year, while generating returns for shareholders, we will continue to shoulder greater responsibility in improving the earth's environment and in maintaining the sustainable development of the economy.”