Securities code: Zhejiang Provincial New Energy Investment Group Co.Ltd(600032) securities abbreviation: Zhejiang Provincial New Energy Investment Group Co.Ltd(600032) Announcement No.: 2022026 Zhejiang Provincial New Energy Investment Group Co.Ltd(600032)
Announcement on 2021 profit distribution plan
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
Distribution ratio per share: cash dividend of RMB 0.045 per share (tax included).
The profit distribution is based on the total share capital registered on the equity distribution registration date, and the specific date will be specified in the equity distribution implementation announcement.
If the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to maintain the total distribution unchanged, adjust the distribution proportion per share accordingly, and make a separate announcement on the specific adjustment.
The cash dividend of this year accounted for 20.57% of the net profit attributable to the shareholders of the listed company in 2021, less than 30%, mainly because the company is in the stage of rapid development. Considering the characteristics of the industry, business model and project investment capital demand of the company, the retained undistributed profits will be mainly used to solve the capital problems faced in the development process and promote the sustainable and healthy development of the company, Conducive to the long-term interests of shareholders.
1、 Main contents of profit distribution plan
According to the audit confirmation of Zhitong Certified Public Accountants (special general partnership), the parent company of Zhejiang Provincial New Energy Investment Group Co.Ltd(600032) (hereinafter referred to as “the company”) realized a net profit of 17329027727 yuan in 2021, a net profit of 69649196198 yuan in the consolidated statements and a net profit attributable to the shareholders of the parent company of 45495878004 yuan. As of December 31, 2021, the profit available for distribution of the parent company was 79071519033 yuan.
At the 34th meeting of the first board of directors held on April 19, 2022, the company deliberated and adopted the proposal on the company’s profit distribution plan for 2021. In order to actively repay investors, combined with the actual situation of the company, the board of directors has decided that the company’s profit distribution plan for 2021 is as follows:
The company plans to distribute a cash dividend of 0.45 yuan (including tax) to all shareholders for every 10 shares based on the total share capital registered on the date of equity distribution. As of April 19, 2022, the total share capital of the company is 208000000 shares. Based on this calculation, the total cash dividend to be distributed is 93 Shanghai Pudong Development Bank Co.Ltd(600000) yuan (including tax), accounting for 20.57% of the net profit attributable to shareholders of Listed Companies in the consolidated statements of the company in that year.
If the total share capital of the company changes from the date of disclosure of this announcement to the date of equity distribution and equity registration due to the conversion of convertible bonds into shares / share repurchase / share incentive grant share repurchase and cancellation / major asset restructuring share repurchase and cancellation, the company plans to maintain the total distribution unchanged and adjust the distribution proportion per share accordingly. In case of subsequent changes in the total share capital, the specific adjustment will be announced separately.
The profit distribution plan needs to be submitted to the general meeting of shareholders for deliberation.
2、 Description of cash dividend ratio less than 30% in this year
During the reporting period, the accumulated undistributed profit of the parent company was 79071519033 yuan. The net profit attributable to the shareholders of the parent company in the consolidated statement of 2021 was 45495878004 yuan, and the total cash dividend to be distributed by the company was 93 Shanghai Pudong Development Bank Co.Ltd(600000) yuan, accounting for less than 30% of the net profit attributable to the shareholders of the parent company in this year. The specific reasons are as follows:
(I) industry situation and characteristics of the company
As a state-controlled comprehensive energy enterprise specializing in hydropower (including Pumped Storage Power Station), water affairs, wind power, Cecep Solar Energy Co.Ltd(000591) power generation, hydrogen energy and other renewable energy investment, development, operation and management, the company actively responds to the national strategic call. Under the background of “double carbon” goal and building a “new power system”, new energy power generation will gradually become the main body of power supply, and new energy plays a more important role in the national energy strategy. Implementing renewable energy substitution action and building a new power system with new energy as the main body is an inevitable choice to build a clean, low-carbon, safe and efficient energy system.
(II) development status and business model of the company
At present, the company is in the stage of rapid development. By seizing the “window period” of renewable energy development and opening up project cooperation and development channels, the company has realized the transformation from a single hydropower industry to a “scenery and water” multi industry coordinated development. The new energy business is distributed in key regions of the country.
(III) profitability and capital demand of the company
In 2021, the company realized an operating revenue of 290953379525 yuan, an increase of 23.99% year-on-year; The net profit attributable to listed shareholders was 45495878004 yuan, a year-on-year increase of 60.35%. With the new wind power projects put into operation for power generation and the income generated from the asset acquisition of hydropower projects, the company’s performance has increased significantly. However, due to the continuous expansion of the company’s business scale, the investment capital demand of new energy projects continues to increase, and the renewable energy price subsidy of stock projects lags behind, the company’s capital demand will increase significantly in the future.
(IV) reasons for the low level of cash dividends of the company
At present, the company is in the stage of rapid development, with the continuous expansion of business scale and the increasing demand for investment funds for new energy projects. At the same time, due to the lag in the settlement of national renewable energy tariff subsidies, the company needs to retain a certain amount of funds to meet the daily operation. Therefore, considering the characteristics of the company’s industry, business model and project investment capital demand, in order to better take into account the long-term interests of shareholders and balance the return of shareholders and the sustainable development of the company, the company has formulated the above profit distribution plan in accordance with the articles of association.
(V) the exact purpose of retained undistributed profits and the estimated income of the company
The company will resolutely implement the “3060” carbon peak and carbon neutralization task objectives, steadily improve the quality and take advantage of the trend. The retained undistributed profits of the company will be mainly used for the development and construction of new projects and daily operation of the company. The company will spare no effort to promote project development, improve the quality and efficiency of operation and management, and create long-term and stable returns for the company’s shareholders.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
On April 19, 2022, the 34th meeting of the first board of directors of the company deliberated and adopted the proposal on the company’s profit distribution plan for 2021 by 9 votes in favor, 0 against and 0 abstention. The proposal still needs to be submitted to the company’s 2021 annual general meeting for deliberation.
(II) opinions of independent directors
The independent directors of the company believe that the profit distribution plan for 2021 fully considers various factors such as the company’s profitability and capital demand, is conducive to the subsequent development of the company, does not harm the interests of minority shareholders, and complies with relevant laws, regulations, articles of association and other provisions.
We agree with the voting results of the 34th meeting of the first board of directors of the company and agree to submit them to the general meeting of shareholders for deliberation.
(III) opinions of the board of supervisors
On April 19, 2022, the 31st meeting of the first board of supervisors of the company deliberated and adopted the proposal on the company’s profit distribution plan for 2021 by 3 votes in favor, 0 against and 0 abstention. The board of supervisors believes that the company’s profit distribution plan for 2021 complies with relevant laws, regulations and the articles of association, and the decision-making procedures are legal and compliant. The distribution plan comprehensively considers the current operation situation and future development plan of the company, and there is no situation that damages the interests of the company and shareholders, especially small and medium-sized shareholders.
4、 Relevant risk tips
The profit distribution plan fully considers the industry characteristics, business model and project investment capital demand of the company, and will not have a significant impact on the company’s operating cash flow, normal operation and long-term development.
The profit distribution plan for 2021 can only be implemented after being submitted to the 2021 annual general meeting of shareholders for deliberation and approval. It is hereby announced.
Zhejiang Provincial New Energy Investment Group Co.Ltd(600032) board of directors April 19, 2022
