Changjiang Commercial News ● Changjiang Commercial News reporter Li Shun
Benefiting from the strong demand for electricity, the profitability of Changyuan Power, an important power supply company, has increased significantly in the past two years.
On the evening of January 7, Changyuan Power disclosed the 2019 performance forecast, and the company's forecast profit was 552 million yuan-614 million yuan, a year-on-year increase of 164.51%-194.22%. The main reason is that due to factors such as the continuous increase in the power consumption of various industries in Hubei Province, and the decrease in the generation of regional hydropower in the region, the company ’s thermal power generation has increased significantly.
In fact, due to the strong demand for electricity, the company's profitability has significantly increased in the past two years. In 2018 and 2019, Changyuan Power's net profit was 209 million yuan and 495 million yuan, an increase of 271.67% and 191.77%, respectively.
At the same time, Changyuan Power also actively develops new wind power projects and biomass power generation projects. With the completion of the project, the company's profitability is expected to reach another level. At the same time, the company's debt situation has begun to improve. Long-term borrowings have decreased. On January 7, after Changyuan Power obtained the approval of the CSRC, it plans to issue no more than 500 million yuan of corporate bonds, all of which will be used to repay debts. After the debt pressure has eased, the company's financial costs will also decrease and further increase net profit.
Pre-profit more than doubled to more than 500 million
On the evening of January 7, Changyuan Power disclosed the 2019 performance forecast. The company's pre-earnings were 552 million-614 million yuan, while the net profit of the same period last year was only 209 million yuan, a year-on-year increase of 164.51%-194.22%.
The main reason for the significant increase in the year-on-year performance in 2019 over the previous year is that during the reporting period, due to factors such as the continuous increase in power consumption of various industries in Hubei Province, the reduction of regional hydropower running water, and the decrease in power generation, the company's thermal power generation Significant increase; the average price of electricity sold by the company's coal-fired power plants increased year-on-year, coal-fired prices fell year-on-year, and profitability increased.
Changyuan Power operates mainly by thermal power generation. As of the end of 2018, the company's total controllable installed capacity was 3.694 million kilowatts, of which thermal power was 3.59 million kilowatts. The company's installed capacity accounts for 4.99% of Hubei's total installed power generation capacity of 74.010 million kilowatts (including the Three Gorges 22.4 million kilowatts), and the company's thermal power installed capacity accounts for 12.45% of Hubei's total thermal power installed capacity of 28.449 million kilowatts.
With the rapid growth of power investment in recent years, the company's profitability has gradually increased. In 2018 and the first three quarters of 2019, Changyuan Power's revenue was 6.563 billion yuan and 5.506 billion yuan, an increase of 20.10% and 16.52% year-on-year. Net profit was 209 million yuan and 495 million yuan, an increase of 271.67%, 191.70%.
Among them, the 2019 Interim Report shows that Hubei has a strong supply and demand of electricity. In the first half of the year, the electricity consumption of all major industries and urban and rural residents has increased. They were 103.92 billion kWh and 61.8 billion kWh, an increase of 8.83% and 6.05% year-on-year respectively. At the same time, in the first half of the year, the unit price of integrated standard coal for furnaces was 747 yuan / ton, a year-on-year decrease of 32.42 yuan / ton.
Affected by the above macro factors, Changyuan Power's net increase in operating profit was approximately 290 million.
In the first half of the year, the major subsidiaries Hanchuan Yifa made a net profit of 167 million yuan, and Jingmen's net profit was 77 million yuan. In the first half of the year, Hanchuan completed 3.239 billion kilowatt-hours of power generation and sold 2.236 million gigajoules of heat, achieving operating income of 1.251 billion yuan and operating profit of 217 million yuan; Jingzhou Company completed 1.806 billion kilowatt-hours of electricity generation and sold 2.146 million gigajoules of heat The operating income was 729 million yuan and the operating profit was 67.455 million yuan, which were significantly improved compared with 2018.
Continue to increase investment in wind power projects
In fact, Changyuan Power also achieved good results in 2018. In 2018, Changyuan Power System generated 17.093 billion kilowatt-hours of electricity for the entire year, achieving 115.18% of its annual target; sold 9.587 million Gigajoules of heat for the year, and achieved 127.05% of its annual target. The unit utilization hours were 4,632 hours, a year-on-year increase of 735 hours.
However, Changyuan Power is not satisfied with this.In 2018, Changyuan Power invested a total of 241 million yuan for the construction of wind power, heat grid and biomass projects.At the same time, in 2019, it also plans to arrange 354 million yuan for the construction of wind power and heat grid projects. .
By 2019, Changyuan Power's investment has finally achieved fruitful results. On December 29, 2019, the Jiyangshan Wind Power (Jinshan Wind Farm) project owned by Guodian Changyuan Guangshui Wind Power Co., Ltd. (hereinafter referred to as Guangshui Wind Power), a wholly-owned subsidiary of the company, realized the generation of all units (25 wind turbines) on the grid. On December 27, 2019, the Zhongshan Phase II wind power project owned by Guangshui Wind Power achieved the first unit to be connected to the grid for power generation. As a result, the company has completed a total of four wind power projects.
Among them, the Jiyangshan Wind Power Project has an installed capacity of 50MW (megawatts) and 25 wind turbines. After the completion of the project, the average annual electricity generation capacity is expected to be about 105 million kilowatt hours. The installed capacity of the second phase of the Zhongshan Mountain Wind Power Project is 49.5MW (megawatts), and 24 wind turbines will be installed. After the completion of the project, the average annual grid-connected power will be about 91.25 million kWh.
At the same time of increasing investment, Changyuan Power is also expanding financing channels. On December 9, 2019, Changyuan Power intends to publicly issue company bonds with a total face value of not more than 1 billion yuan. The Securities Regulatory Commission has approved them. The bonds will be issued in installments. This issue of bonds is the first issuance of this bond, and the issuance scale is not more than 500 million yuan (including 500 million yuan). After the issuance of bonds is deducted from the issuance expenses, it is intended to be used to repay the company's debts.
In the first three quarters of 2017-2019, the net operating cash flow of Changyuan Power was 574 million yuan, 905 million yuan, and 1.444 billion yuan. With the enhancement of profitability and the issuance of corporate bonds, the company's debt situation may gradually improve. The current ratio and quick ratio started to rise. The financial expenses in the first three quarters were 153 million yuan, a year-on-year decrease of 7.69%, which was the first decline after two consecutive years of growth.
In 2018 and the first three quarters of 2019, Changyuan Power's revenue was 6.563 billion yuan and 5.506 billion yuan, an increase of 20.10% and 16.52% year-on-year. Net profit was 209 million yuan and 495 million yuan, an increase of 271.67%, 191.70%.