On April 29, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) ( Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) , SH) held the 2021 annual performance presentation meeting. According to the performance briefing, in the face of the severe and complex international situation and the continuous spread of covid-19 epidemic and other challenges, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) business performance has made steady progress and its main business has blossomed in an all-round way. In the whole year, 780283 billion yuan of new contracts were signed, an increase of 15.91% year-on-year; The total operating revenue was 448.98 billion yuan, an increase of 11.70% year-on-year; The net profit attributable to the parent company was 8.632 billion yuan, a year-on-year increase of 8.07%.
At the meeting, Ding Yanzhang, chairman of Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) board, said that with the accelerated construction of China’s new development pattern, the accelerated promotion of national strategy and the accelerated implementation of major projects, especially the accelerated transformation of clean and low-carbon energy under the goal of “carbon peaking and carbon neutralization” and the accelerated construction of new power system with new energy as the main body, the development of the company is still in an important period of strategic opportunities, new opportunities and challenges.
In 2022, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) plans to achieve an operating revenue of 505 billion yuan and plans to sign new contracts of 860 billion yuan.
looking back on 2021: steady progress in operating performance and full flowering of main business
In terms of business, engineering contracting and survey and design business is still the core business of Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) most competitive. In 2021, the operating revenue reached 372988 billion yuan, a year-on-year increase of 12.22%, accounting for 83.56% of the main business revenue. According to Ding Yanzhang, the business segment covers three major fields: energy and power, water resources and environment, and infrastructure, all of which have made new breakthroughs in 2021.
Among them, the newly signed contract amount in the field of energy and power is 240 billion yuan, with a year-on-year increase of 28.6%, which is the largest increase in the above three fields, which is related to the rapid development of new energy and pumped storage market. This year, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) give play to the traditional advantages of planning and design, seize the development resources of new energy and pumped storage, and actively obtain the construction tasks of new energy and pumped storage. The newly signed contract amount of wind power business was 86.52 billion yuan, a year-on-year increase of 29.8%; The newly signed contract amount of photovoltaic power generation business was 37.98 billion yuan, a year-on-year increase of 84.2%; The newly signed pumped storage power station business contract amount was 20.24 billion yuan, a year-on-year increase of 342.90%.
Power investment and operation business is another important business of Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) which is closely connected with engineering contracting and survey and design business and an extension of its industrial chain.
In 2021, with the implementation of the goal of “carbon peaking and carbon neutralization” and “building a new power system with new energy as the main body”, the national power installed structure will continue the trend of green and low-carbon development. Ding Yanzhang said, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) as an important initiator, promoter and implementer of China’s wind power and photovoltaic power generation business, is accelerating the power investment and operation business with wind power, Cecep Solar Energy Co.Ltd(000591) photovoltaic power generation, hydropower and other clean energy as the core, and strive to promote the continuous development of business structure to green and low-carbon.
By the end of 2021, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) holding had a grid connected installed capacity of 173785 million KW, including 6.4824 million kw of hydropower, an increase of 1.2% year-on-year; The installed capacity of wind power was 6.2845 million KW, a year-on-year increase of 18.9% Cecep Solar Energy Co.Ltd(000591) photovoltaic power generation installed capacity of 1451600 kW, with a year-on-year increase of 12.4%; The installed capacity of thermal power was 3.16 million KW, with zero year-on-year growth. Clean energy accounted for 81.82%.
In terms of performance, the power investment and operation business achieved an operating revenue of 20.341 billion yuan in 2021, with a year-on-year increase of 7.88%, accounting for 4.56% of the main business revenue. Among them, the new energy business achieved an operating revenue of 7.334 billion yuan, a year-on-year increase of 17.23%, and the gross profit margin was 58.14%, a year-on-year increase of 1.47 percentage points. The overall operating efficiency has been significantly improved.
It is worth mentioning that Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) continued to expand the overseas market, and the scale of overseas income stopped falling but increased. By the end of 2021, it had executed 2086 project contracts in 111 overseas countries and regions, with a contract amount of RMB 611839 million. The annual overseas business income was 67.544 billion yuan, a year-on-year increase of 0.01%, accounting for 15.13% of the main business income.
Under the steady and rapid growth trend, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) has further improved its market position. In 2021, the power construction group with Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) as its core asset ranked 107th in the Fortune Global 500, up 50 places from last year. According to the global business ranking, power construction group ranks first among ENR’s top 150 global engineering design companies and fifth among ENR’s top 250 global engineering contractors in 2021.
outlook 2022: seize the opportunity of green development and plan to sign 860 billion new contracts
Looking forward to the future situation, green development is one of the important themes. In particular, under the goal of “carbon peak and carbon neutralization”, the transformation of energy to clean and low-carbon has accelerated, and the construction of a new power system with new energy as the main body is accelerating, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) is still in an important period of strategic opportunities.
Ding Yanzhang said that Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) as the leader of global clean and low-carbon energy construction, it will accelerate the investment and development process of new energy and pumped storage projects. “The first is the construction of large-scale wind power photovoltaic bases focusing on the desert Gobi desert, the second is the construction of integrated renewable energy development bases in major river basins across the country, the third is the construction of offshore wind power bases, and the fourth is the construction of medium and long-term development planning projects for pumped storage. At the same time, the construction of new power systems and the incremental market brought about by the reform of power grid industry should be studied and judged in advance, and the distribution, smart grid, microgrid and comprehensive energy services should be arranged in time 。 Actively study the layout of emerging businesses such as energy storage and geothermal, and follow up the hydrogen energy, carbon sink and carbon trading markets. “
On the other hand, green sand and gravel are in the critical period of beach layout. The national “14th five year plan” and the long-term goal of 2035 put forward higher requirements for environmental protection, and gravel aggregate is an indispensable basic building material for infrastructure construction. Green gravel industry has become a high-quality solution that takes into account environmental protection and economic development.
Ding Yanzhang said that Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) will actively seize this valuable market opportunity, seize high-quality resources, adhere to the principles of legal compliance and green environmental protection, strengthen and optimize the green gravel building materials business, and realize the coordinated development of economic and ecological benefits of resource development.
By the end of 2021, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) has acquired 6 sand and gravel resources projects, with reserves of 3.043 billion tons and an annual output of 134.5 million tons. Among them, one green gravel project has been put into operation, which is Chizhou Changjiu limestone mine project, with a design annual capacity of 60 million tons. It is implemented in two phases. The first phase has an annual output of 30 million tons and the second phase is expected to be put into operation in 2022.
In addition, there is still broad market space in the fields of water resources and environmental construction and infrastructure construction. In the face of major strategic opportunities such as ecological protection, Rural Revitalization and “two new and one heavy”, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) can fully participate with its business advantages, play a leading and supporting role and play a brand characteristic.
According to Ding Yanzhang, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) plans to achieve an operating revenue of 505 billion yuan in 2022, of which 430 billion yuan is from Chinese business, accounting for 85.1%; The international business revenue was 75 billion yuan, accounting for 14.9%. It is planned to sign 860 billion yuan of new contracts, of which 688.5 billion yuan is planned for Chinese business, accounting for 80.1%; The newly signed contracts for international business are planned to be 171.5 billion yuan, accounting for 19.9%. In terms of investment plan, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) it is estimated that the total amount will reach 130.75 billion yuan, including 52.213 billion yuan for energy and power sector and 48.332 billion yuan for new energy projects.
Ding Yanzhang said that in order to ensure the implementation of the above work objectives and tasks, Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) 2022 will accelerate the adjustment, transformation and upgrading, spare no effort to grab high-quality orders, steadily carry out international operations, and improve the management level and high-quality development.
