SMM News: Sichuan Energy Power (000155.SZ) achieved revenue of 1.339 billion yuan in the first three quarters, an increase of 2.57% over the same period last year, and a net profit of 190 million yuan, down 15.16% from the same period last year. From the perspective of the third quarter, the total profit was 59.1853 million yuan, an increase of 62% over the same period last year, and the net profit increased by 1.17 times over the same period last year, but there was still a loss of 2.184 million yuan after deducting non-net profit.
"the third quarter is mainly affected by the seasonal impact of wind power, light wind season, plus asset impairment." The person in charge of Sichuan Energy Power told the Financial Associated Press. According to the financial report, the company recorded an impairment loss of 10.3955 million yuan in the first three quarters, mainly due to the decline in related inventory prices.
Judging from the historical data, Sichuan Energy Power has lost money in the third quarter of the past three years, but the extent of the loss has narrowed year by year. Q3 lost 103 million yuan in 2018 and 17.733 million yuan in 2019, and the loss of Q3 decreased by 87.68 percent this year. As for the reasons for narrowing losses, the relevant person in charge of the company said that as the proportion of new energy business has increased year by year, the anti-risk ability has been enhanced.
Sichuan Energy Power is currently mainly engaged in new energy power generation (wind power and photovoltaic power generation) and new energy integrated services (chemical products, power equipment and mechanical and electrical materials procurement and sales, etc.). In the first half of the year, the two businesses contributed 48.96% and 51.04% of revenue, respectively, with the power business with higher gross margins accounting for 13.55 percentage points of revenue compared with 2019. According to the 2019 report, the gross profit margin of the company's electricity and trade operations is 72.34% and 2.28% respectively.
"after two years of development, the company's source of profits has become more and more prominent in the main business of new energy power generation." A relevant person of the company told the Financial Associated Press that in the first half of the year, the company determined a three-year development outline, further clarified that it persisted in highlighting the main business of new energy, and took the "electric power + energy storage" business as the main layout direction.
According to the 2020 semi-annual report of Sichuan Energy Power, by the end of June, Sichuan Energy Wind Power, a holding subsidiary, had a total installed capacity of 501200 kilowatts, of which wind power and photovoltaic power were 479000 kilowatts and 22200 kilowatts respectively. Another wind power project with installed capacity of 318000 kilowatts is under construction. In addition, there are more than 1 million kilowatts of reserve wind power resources.
100000 of the first phase of the Huidong block under construction has been connected to the grid at the end of September, and the remaining 218000 are going all out to promote the construction of the project. In September, the company also announced an investment in the construction of a 125000-kilowatt Tongtang wind farm, which is expected to start construction in November this year and strive to put into production by the end of 2021. The relevant person in charge of the company told the Financial Associated Press.
"the company will adhere to the 'going out' strategy, continue to increase the intensity of development, and has signed a" project development agreement "with the Yumen Municipal Government of Gansu Province. In the future, as wind power projects under construction are put into production, profits can maintain steady growth in the future. " Chuan Neng Power said when it was surveyed by investors.
On June 8, Chuaneng Power threw out a major asset restructuring plan to issue shares to the controlling shareholder and its related parties to buy its 51% stake in Sichuan Everbright and 100% stake in Zigong Neng to lay out the waste incineration power generation business. at the same time, it is proposed to acquire 51% stake in Dingsheng Lithium Industry and 62.75% stake in Lithium Industry to develop lithium power industry. At present, major asset restructuring and lithium asset acquisitions are in an orderly process.
