The year 2022 marked a milestone in the history of the CPC and our country. The 20th National Congress of the Communist Party of China (CPC), a nationally and internationally notable event, depicted the grand blueprint for building a modern socialist country in an all-round way and promoting the great rejuvenation of the Chinese nation. It also indicated the direction we will be heading towards and offered fundamental guidance for our future initiatives. The year was also of significance in the development history of the Company. The Company made the utmost effort in respect of development, risk prevention, safety and stability, thus creating the healthy and positive development conditions, a harmonious and stable in-house environment, as well as a clean and upbeat political ecology, and delivering prominent results featuring “acting amid difficulties, accomplishing goals with continued efforts and progressing while ensuring stability”.
I. VALUABLE AND OUTSTANDING RESULTS AMID HARSH CONDITIONS
Over the past year, we pulled together to overcome difficulties and successfully improved various comprehensive indicators. As at the end of 2022, the Company recorded the consolidated total assets of RMB77.409 billion, operating revenue of RMB18.561 billion, total profit of RMB3.295 billion, net profit of RMB2.819 billion and net profit attributable to shareholders of the parent company of RMB2.294 billion. The wind and photovoltaic power generation business of the Group recorded the power generation of 14.198 billion kWh, representing an increase of 4.13% as compared with the previous year, and the sales volume of electricity of 13.871 billion kWh, representing an increase of 4.27% year on year. Its natural gas business recorded a total transmission volume of 4.501 billion cubic meters, representing an increase of 8.27% as compared with the previous year, and a sales volume of gas of 3.885 billion cubic meters, representing an increase of 2.01% as compared with the previous year.
Last year, we further enhanced our corporate governance through joint efforts. The Company was listed in a number of rankings in the “Wind ESG Best Practice Rating of Listed Companies 2022”, and was rated the highest tier Grade A (Excellent) in the 2021-2022 information disclosure evaluation by the Shanghai Stock Exchange. It was also awarded the “Best Practice Case of Office of Board of Directors of Public Companies 2022” (2022年度上市公司董辦最佳實踐案例) by China Association for Public Companies, and won the Fifth New Fortune Best Investor Relations Hong Kong-listed Company (A+H shares) award. Such awards and recognitions demonstrated the Company’s good development in standardized governance.
Last year, we made concerted efforts to gain a growing momentum. The newly approved (registered) capacity of wind and photovoltaic power was 1.09 million kW, including 0.77 million kW of wind power and 0.32 million kW of photovoltaic power. In the 2022 annual declaration of new energy indicators organized by Hebei Province, the total declared capacity of onshore wind and photovoltaic power of the Company was 2.06 million kW. We also continued to expand high-quality terminal urban gas projects, and completed the acquisition of the projects including Gaocheng Jiecheng （藁城捷誠）, Shijiazhuang Xinao Urban Gas （石家莊新奧城市燃氣）, as part of our efforts to speed up deployment in the downstream urban gas markets.
Last year, we worked together and made satisfactory progress in projects. Our Fengning Waigoumen Wind and photostatic Power Complementation Phase I Project and Hunan Passage Phase II were connected to the grid for power generation; the “Jingshihan” Dual Track Project （“京石邯” 復線項目） was put into trial operation. The Centra Hebei Pipeline Network Phase IV Project (冀中管網四期工程), Qinhuangdao-Fengnan Gas Pipeline Project (秦皇島-豐南沿海輸氣管道工程), and the South Baoding Connection Line Project of Sinopec ErdosAnping-Cangzhou Gas Pipeline and Beijing-Handan Pipeline (鄂安滄與京邯線保定南部聯絡線項目) were on track smoothly. The Tangshan LNG Project Phase I Project （唐山 LNG 項目一階段工程）, the outbound pipeline (Caofeidian-Baodi Section) and the outbound pipeline (Baodi-Yongqing Section) projects were substantially completed.
Last year, we worked together to overcome difficulties and delivered remarkable performance in innovation management. “Key Technologies and Application Demonstration of Large-scale Coupled Hydrogen Production from Renewable Energy Sources” (大規模可再生能源耦合制氫關鍵技術及應用示範), a Key Research and Development Program of Hebei Province, passed the second annual evaluation. The national-level innovation platform “National Energy Hydrogen and Renewable Energy Collaborative Technology Research and Development Center” has passed the preliminary examination by the National Energy Administration, ranking first in terms of comprehensive ratings, and is subject to the review process. The project of “Key Technology of Wind Turbine Generator/Field Cluster Frequency Modulation Control and its Large-scale Application” won the first prize in Science and Technology Progress Award organized by China Electrotechnical Institute and the second prize in Science and Technology Progress Award of Hebei Province.
II. A LONG JOURNEY WITH A GLORIOUS MISSION
Currently, both the domestic and overseas landscapes and industry competition is complex and changing.
From the perspective of the international landscape, the great change of the world not seen in a century is evolving acceleratedly. Under this background, the world economic growth has slowed down. In particular, the ongoing Russia-Ukraine conflict had a material impact on the energy security of China, and increased the energy costs. Due to the combined effects of unexpected domestic and foreign factors, Chinese economy is also under great downward pressure.
From the perspective of industry development, despite the constantly improving technology and the profound changes to the business model of the new energy industry, we still see a variety of problems, including heavy reliance on policies, mismatch between the construction of power transmission passages and development speed of new energy projects, unbalanced development of onshore, offshore projects and the projects across the photovoltaic industry, supporting facilities and change of land use policies of new energy projects etc. The market-oriented reform of the natural gas industry has entered a new stage, but while promoting the reform, the optimization of the market price mechanism and the systematization of pipeline transmission and storage need to be further accelerated, and the distinct complexity and the potential safety hazards of local pipeline network need to be resolved.
However, there must be opportunities amid crisis, and spring will come after the cold winter. As a pioneer in the clean energy industry, we are now well positioned to make breakthroughs in building on existing progress. To achieve the excellence, strength and expansion in all aspects and fields of the development of Suntien, we must embed the national strategy of “double carbon” goal into our business, seize the opportunity of the reform of the national oil and gas pipeline network, and vigorous development of new energy, striving to play a leading role in building Hebei into a leading province in terms of new energy through multi-energy complementary integration, large base, as well as centralized and distributed energy development modes and others.
III. TAKING ON THE GREAT AND ARDUOUS MISSION AND DELIVERING BEST RESULT AFTER HARD WORK
Looking forward, firstly, we should mainly act in line with the major decisions and deployments made at the 20th National Congress of the CPC, while ensuring the delivery of the expected investment earnings of our projects, and striving to accelerate the Tangshan LNG project, the offshore wind power projects, key pipeline projects and big passage and big base projects to explore the downstream natural gas markets continuously; secondly, we should continuously improve the efficiency of talent recruitment, training and use, optimize and improve the Company’s talent fostering mechanism of the innovation platforms, and accelerate the building of “digital Suntien” centered on digital and intelligent management; thirdly, we should fully leverage on the concept of “double carbon” and the allocation demands of financial institutions for green financial products, to strive to reduce the debt-to-asset ratio and financial costs; fourthly, we should continue to track and solve early warning risk points, and improve the Company’s capabilities in risk prevention and dealing with emergencies.
We will maintain our passion and motivation, boost our morale, and make unswerving and concerted efforts to draw the largest “concentric circle” for the strategy of establishing the leading position of Hebei province in respect of new energy under China’s modernization campaign.
Shijiazhuang, 23 March 2023