The Group has been actively developing clean energy and emerging energy industries, so as to press on with its strategic green transformation in full force. During the year under review, we acquired a substantial number of project companies that are principally engaged in clean energy power generation from SPIC and its subsidiaries (the “Clean Energy Acquisitions”), and the acquisitions were completed on 30 September 2023. Upon the completion, the installed capacity of and profit contribution from the Group’s clean energy segments both increased significantly. As of 31 December 2023, the above companies have a total installed capacity of 9,137.8MW in operation, including wind power of 3,743.1MW, photovoltaic power of 5,299.7MW and environmental power of 95MW, respectively. These companies contributed a total net profit of approximately RMB236,679,000 after being consolidated into the financial statements of the Group in October 2023.
Businesses such as wind power and photovoltaic power projects continued to be the profit drivers of the Group. Meanwhile, benefitted from the relatively stable coal prices and a series of cost reduction and efficiency enhancement measures adopted by the Group, the thermal power segment achieved a turnaround from loss to profit with a substantial growth in profit as compared to the previous year. The energy storage business also expanded continuously, and the revenue of energy storage saw a significant upsurge year-on-year.
For the year ended 31 December 2023, the profit attributable to equity holders of the Group amounted to RMB3,084,469,000 (2022: RMB2,648,051,000). Profit attributable to ordinary shareholders of the Company amounted to RMB2,660,322,000 (2022: RMB2,480,840,000). Basic earnings per share was approximately RMB0.22 (2022: RMB0.22). As at 31 December 2023, net assets per share (excluding non-controlling interests and other equity instruments) was approximately RMB3.11.
During the year under review, the development and performance of the Group’s principal businesses were as follows:
Installed Capacity
As at 31 December 2023, the consolidated installed capacity of the Group’s power plants was 45,018.8MW, representing a year-on-year increase of 13,419.6MW. Among which, 9,137.8MW were derived from the aforementioned Clean Energy Acquisitions.
The Group has been making proactive efforts to develop clean energy. In particular, the consolidated installed capacity of clean energy including hydropower, wind power, photovoltaic power, natural gas power and environmental power was 33,938.8MW in total, accounting for approximately 75.39% of the total consolidated installed capacity of the Group, and representing a significant increase of approximately 10.45 percentage points as compared with the previous year.
The details of consolidated installed capacity of the Group as at 31 December 2023 are set out as follows.
The Group’s power generating units that commenced commercial operation and those that were acquired during the year are presented by type as follows:
Innovation of Energy Technology
In order to strengthen and enhance our first-mover advantages in the new energy market, the Group accelerated the development by incorporating its innovative technologies and stepped up its investment in technological research and development with a view to promoting our development in the emerging energy industries. Upon the successful implementation of various transformation and innovation plans, we have effectively enhanced our level of digitalization and intelligence. Besides, with a strong emphasis on innovating key techniques, recruiting and nurturing key personnel, we have also accelerated the incubation of our strategic emerging industries, thereby initiating a new phase of innovation-driven development.
Intelligent Energy Storage
During the year under review, Xinyuan Smart Storage, a subsidiary of the Company, successfully launched its selfdeveloped intelligent operation platform for generally centralized control of energy storage. This platform marked the first 100MWlevel energy storage and power station on the power grid side to be connected to the cloud platform through the internet. Additionally, it introduced the industry’s first intelligent battery cluster control system, which effectively improved the speed of protection for battery clusters and expanded the usable capacity. All of these advancements have further underscored its innovation achievement in energy storage technology. Moreover, Xinyuan Smart Storage received multiple energy storage-related awards at various energy storage exhibitions and seminars, including the “2023 Best System Integration Solution Provider” and the “2023 Most Influential Enterprise in the Energy Storage Industry” awards in the PRC. These recognitions fully showcased Xinyuan Smart Storage’s exceptional performance in aspects such as innovation, energy storage digitalization, intelligent operation and maintenance, and the delivery of safe and efficient energy storage system products and services.
Colored Photovoltaic
Xinyuan Jinwu, a subsidiary of the Company, is an innovative high-tech company specializing in colorization of photovoltaic modules and comprehensive utilization of obsolete photovoltaic modules, which has supplemented the industrial chain of photovoltaic modules from decommissioning to the final dismantling stage by recycling obsolete photovoltaic modules and thus prolonging their useful lives. Currently, its principal production base in Beijing is fully running with automated production process and intelligent operation. Benefitting from technical advantages like high light transmittance, excellent color adhesion and the absence of hot spot effect, the colorized obsolete photovoltaic modules have found extensive use in diverse demonstration scenarios including building clusters, transportation and public service facilities, thus driving the rapid growth of colored photovoltaic. The first full color auto-powered photovoltaic signage system and street light lighting system have been deployed in road settings in Tongzhou District and Fangshan District, Beijing, for demonstration purpose. These systems are anticipated to see broad implementation across provinces and cities nationwide and thereby catalyzing the swift advancement of colored photovoltaic.
Green Power Transportation
Qiyuanxin Power, an associate of the Company, dedicated itself to offering comprehensive battery-swap solutions for heavy-duty trucks. During the year under review, Qiyuanxin Power continued to actively expand its network of battery-swap stations for heavy-duty trucks, aiming to cover the primary transportation routes nationwide. Presently, the battery-swap stations of Qiyuanxin Power have emerged as the most widely used batteryswap brand for heavy-duty trucks, while its battery-swap stations are compatible with the broadest spectrum of heavyduty truck models available in the market. Furthermore, it has successfully developed the first “battery-swap station for unmanned heavy-duty trucks” in Xinjiang, and constructed the first intelligent green mine model project in Southern Xinjiang. Meanwhile, focusing on the innovative areas of motive batterypowered transportation, new energy vessels and echelon utilization of motive batteries, it actively applied for a number of national key research and development programs and projects in 2023, so as to constantly enhance the Group’s influence in the emerging energy industries with technological innovation and application demonstration as the primary focus.
During the year under review, Qiyuanxin Power successfully concluded its Series B equity financing of RMB1.5 billion, showcasing the capital market’s acknowledgement of its innovative business model. Moving ahead, Qiyuanxin Power will persist in consolidating its resources across upstream and downstream sectors of the industrial chain to advance the nationwide ecological layout of its battery-swap operations and maintain its leading position within the industry.
Status of Key Projects
The year 2023 is the year of strategic transformation and advancement for the Group to achieve the new objectives outlined in the second phase of the national “14th Five-Year” Plan. The Group’s new energy power generation segments maintained rapid growth, with the status of key projects as follows:
Wuqiangxi Hydropower Plant Expansion Project
In Huaihua City, Hunan Province, the Wuqiangxi Hydropower Plant Expansion Project of the Group was completed and commenced operation successfully in December 2023, increasing Wuqiangxi Hydropower Plant’s installed capacity from 1,200MW to 1,700MW and hence further reinforcing the Group’s position as a backbone hydropower plant for peak shaving and frequency modulation of the Central China Power Grid. Upon the commencement of operation of the Wuqiangxi Hydropower Plant Expansion Project, the Group’s consolidated installed capacity for hydropower has increased from 5,451.1MW to 5,951.1MW.
Integrated Multi-energy Complementary Project
In Macheng City, Hubei Province, the Group’s Multi-energy Complementary Million-kW New Energy Base Project was successfully connected to the power grid. Under the new landscape of power reform, the Group is now actively exploring new models for synergistic operation of “Thermal Power + Green Power”, striving to maximize both its investment income and returns.
Offshore Photovoltaic Projects
As offshore photovoltaic power emerges as the “new blue ocean” in the realm of development of the new energy industries, the Group is actively engaged in technological research and development for offshore photovoltaic power generation. During the year under review, we received approval for Phase I of the Shandong Peninsula South No. 5 600MW Project. The Haiyang HG34 and Wendeng HG32 Offshore Photovoltaic Demonstration Projects have effectively commenced off-grid power generation and a press conference was successfully held in September 2023 to showcase the project outcomes of the first batch of fixed offshore photovoltaic power demonstration projects with near-shore pile foundation in Shandong Province. The off- grid power generation has laid a strong foundation for propelling the extensive development and commercialization of offshore photovoltaic power.
“Photovoltaic+” Power Generation Projects
Located in Hou Town, Shouguang City, Weifang, Shandong Province, the Fishery and Photovoltaic Complementary Photovoltaic Power Generation Project with an installed capacity of 100MW is the first project to achieve full capacity power grid connection of the Lubei Saline-Alkali Tidal Flat Land 10 million kW-level Integrated Wind- Photovoltaic-and-Energy Storage Base, and has been put into commercial operation during the year under review. In addition, the Yanggu Agriculture and Photovoltaic Complementary 65MW Power Generation Project in Yanggu County, Liaocheng City, Shandong Province, being a key provincial-level project, was successfully connected to the power grid during the year under review and embodied the photovoltaic-agriculture circulation model of “power generation above and planting below the photovoltaic panels”. Looking forward, the Group will promote the development and construction in Lubei region in full swing and continue to develop an array of “photovoltaic+” projects, such as “salt production and photovoltaic complementary project”, “fishery and photovoltaic complementary project” and “agriculture and photovoltaic complementary project”, according to the local conditions of Shandong Province. By integrating solar salt extraction, forestry and aquaculture with photovoltaic power generation, the Group will be able to enhance the productivity of the site areas and facilitate the integrated development of new energy and rural revitalization, thereby realizing base-oriented, large-scale and digitalized development of its new energy projects.
Integrated Photovoltaic Sand Control and Husbandry Promotion Demonstration Project
Located in Dalad Banner, Ordos City, Inner Mongolia Autonomous Region, the Integrated Sand Control, Husbandry Promotion and Photovoltaic Power Generation Demonstration Project with an installed capacity of 100MW is a city-level key demonstration project and has been put into commercial operation during the year under review. The project has significant environmental, economic and social benefits, and realize the integrated development of photovoltaic power generation, husbandry industry, agricultural industry and tourism in the region by planting the suitable psammophytes.
Integrated Intelligent Wind-and-Energy Storage Wind Power Project
Following the construction of CP Chaoyang 500MW Photovoltaic Power Grid Parity Demonstration Project, the Integrated Intelligent Wind-and-Energy Storage Wind Power Project with an installed capacity of 250MW in Chaoyang County, Chaoyang City, Liaoning Province is another major energy project of the Group under planning and to be constructed in Chaoyang City, Liaoning Province. As of the end of 2023, certain generating units of the project have commenced commercial operation, signifying groundbreaking progress of the Group in the development of integrated intelligent wind power project within Liaoning Province.
Overseas Wind Power Project
In 2023, Wu Ling Power, a subsidiary of the Company, made investment in and developed the first centralized wind power project in Bangladesh known as the Cox’s Bazar 66MW Wind Power Project. The project has been successfully connected to the power grid for power generation, and is projected to supply over 145 million kWh of green electricity annually, meeting the power needs of 100,000 households. This initiative is crucial in increasing the proportion of renewable energy in Bangladesh, promoting the adoption of new energy, and advancing energy conservation and emission reduction efforts. Being the first centralized wind power project in Bangladesh, the project reflected a pioneering milestone that showcased the latest achievements of the collaboration between China and Bangladesh in the new energy sector. It also represented a groundbreaking advancement in centralized wind power projects in Bangladesh and had been reported by the local media in Bangladesh as “a model for Sino-Bangladesh energy cooperation”. Additionally, the project has received a number of honors, including the recognition as an Outstanding Case of the 10th Anniversary of the “Belt and Road Initiative” by the SASAC and Xinhua News Agency, and being named one of the Top 10 Overseas Moments of Central Enterprises in 2023 by the News Center of the SASAC.
Photovoltaic Grid Parity Project
In 2023, the Xinrong Phase II 600MW Grid Parity Photovoltaic Power Generation Project of Datong China Power Photovoltaic Power Company Limited* (大同中電光伏發電有限公司), a subsidiary of the Company, commenced full capacity commercial operation. This project marked a new milestone of the Group in establishing its advantages in green energy industry cluster. Adopting a forestryand-photovoltaic complementary model, the project utilized unused land in the low-lying mining areas of Datong City to establish a photovoltaic power base. It facilitated the rejuvenation of Datong City, formerly known as the “city of coal”, through the energy revolution in Shanxi Province, with green industries at the forefront of this revitalization.
Husbandry and Photovoltaic Complementary Photovoltaic Power Generation Project
In 2023, the SPIC Shenyuan Weichang Yudaokou 300MW Husbandry and Photovoltaic Complementary Photovoltaic Power Generation Project of Chengde Shenyuan Solar Power Generation Company Limited* (承德神源太陽能發電有限公司), a subsidiary of the Company, has commenced commercial operation. Situated in Weichang County, Chengde City, Hebei Province, the project was equipped with an ancillary electrochemical energy storage system with a capacity of 45MW/90MWh. The project served as a large-scale grid parity husbandry and photovoltaic complementary photovoltaic power generation demonstration project, and was selected as a key development project in Hebei Province.
Projects under Construction
As at 31 December 2023, the consolidated installed capacity of the projects under construction was 6,975.7MW, all of which were clean energy projects and consisted of various large-scale wind power and photovoltaic power generation projects in Anhui Province, Guangdong Province, Guangxi Zhuang Autonomous Region and Shanxi Province.
New Development Projects
Currently, the total installed capacity of new projects of the Group at a preliminary development stage (including projects with applications submitted to the PRC government for approval) is approximately 16,296.5MW, most of which are clean energy projects, and are primarily located in areas with development potential, such as Shandong Province, Guangxi Zhuang Autonomous Region, Hunan Province and Shanxi Province. Such projects include the Shandong Lubei Saline-Alkali Tidal Flat Land 2,480MW Integrated “Wind-Photovoltaic-Energy Storage-and-Transmission” Base Project, the Guizhou Pu’an 1,000MW Integrated Wind-Photovoltaic-Thermal Power-and-Energy Storage Project, the Hunan Yiyang Datong Lake District 660MW Base Project, the Hunan Huaihua Base Phase II 613.4MW Project, the CP Smart Energy Kashgar Region Makit County Industrial Park Low-carbon Transformation 500MW Photovoltaic Project and other projects.
Power Generation and Electricity Sales
In 2023, the details of power generation and electricity sold by the Group are set out as follows:
In 2023, the total electricity sold by the Group amounted to 103,239,505MWh, representing a decrease of 4.56% as compared with the previous year. The changes in electricity sold by each power segment as compared with the previous year are as follows:
The details of electricity sold by the Group’s main associates and joint ventures are set out as follows:
Heat Sales
The Group continued to carry out in-depth exploration of potential sites for heat supply in various regions. Driven by the commencement of commercial operation of one of the heat and electricity co-generation projects developed by the Group in the second half of 2022, there was a year-on-year increase in the Group’s overall heat sold. In 2023, the total heat sold by the subsidiaries of the Group was 17,337,161GJ, representing an increase of 486,115GJ or 2.88% as compared with the previous year. The Group’s main associates and joint ventures recorded total heat sold of 19,255,213GJ, representing an increase of 4,951,061GJ or 34.61% as compared with the previous year. The heat sales of the Group were recognized as other gains and losses in the consolidated income statement. During the year under review, profits on sales of heat, trading of coal, coal by-products, spare parts and others amounted to RMB140,561,000 (2022:RMB63,744,000), representing an increase of 120.51% over the previous year.
Market-Power Transactions
The Group has actively participated in the market-oriented reform of the national power industry and enhanced the research on electricity market policies and regulations, particularly in aspects such as the trading of spot electricity, green certificate/green energy and carbon emission allowances. Keeping abreast of the reform, the Group maximized market power sales and market share through increased participation in market-power transactions. Subsidiaries in various provinces have also established their power sales centers to attract more target customers by offering quality services.
In 2023, all the power production quota of large-scale coal-fired power generating units of the Group were obtained from the market, therefore the proportion of market-power sales has reached 100% (2022: 100%), and the average market on-grid tariff was at a premium of approximately 20.22% (2022: 20.11%) as compared with the average benchmark on-grid tariff officially approved by the Chinese Government.
Average On-Grid Tariff
In 2023, the Group’s average on-grid tariffs of each power segment as compared with the previous year were as follows:
Average Utilization Hours of Power Generating Units
In 2023, the average utilization hours of power generating units of each power segment of the Group as compared with the previous year were as follows:
Energy Storage Business
For 2023, the revenue from the energy storage business amounted to RMB2,548,183,000, representing a year-on-year increase of RMB1,651,923,000. The net profit amounted to RMB37,177,000, representing an increase of RMB2,957,000 or 8.64% as compared with the previous year. The revenue from energy storage business witnessed significant growth year-on-year due to the continuous expansion of the business. However, the growth of net profit was constrained by intense market competition and falling market prices. The energy storage business primarily includes sales of energy storage equipment, provision of subcontracting services for the development and assembly of power stations integrated with energy storage, energy storage capacity leasing services, and charging services of energy storage power stations. During the year under review, the Group continued to optimize its business structure and further implemented its intensive procurement model to reduce material costs and improve profitability. Additionally, the Group continued to make in-depth explorations in scientific research innovation and cross-industries partnership to further optimize its energy storage products and improve the operation and maintenance management services, so as to achieve product differentiation and enhance our competitiveness in the market. As an emerging energy industry, the Group’s energy storage business is still at a ramp-up stage. In light of the favorable government policies and the rapid development of the energy storage market, the outlook for the energy storage business appears promising.
During the year under review, the Group diversified its energy storage project development and continued to extend its reach into overseas markets. Presently, it has projects in 33 cities in China and in countries such as Mexico, Chile and others abroad. Recognizing the tremendous opportunities in the international market, the Group plans to expedite the establishment of an overseas sales team and actively broaden its sales channels in the future, making all-out effort to advance further the development of the overseas energy storage market. With the continuous business expansion, it is anticipated that the contribution of the energy storage segment to the Group will continue to increase in the future.
