Being the Namecard of China s Energy Transition United Photovoltaics Group Limited 联合光伏集团有限公司 (00686.HK)

Transcription

1 Being the Namecard of China s Energy Transition United Photovoltaics Group Limited 联合光伏集团有限公司 (00686.HK) 1

2 Investment Highlights The Top Runner In China s Market The only Hong Kong-listed company granted the Top Runner Project Leading the Market Standards Rigorous standards for solar power plant acquisition The cumulative installed capacity reached over 1GW Voluntarily release power generation results on a quarterly basis Smart Plant operation and maintenance Remote and centralized plant management through Global Smart PV Cloud Management Center from Huawei Mobile App inex helps real-time monitor on plant performance Accelerating Industry Collaboration Established Photovoltaic Green Ecological Collaborative Organization (PGO) Value ecological industry development, advocate win-win cooperation Widely Recognized by Capital Market Favored by a numbers of well-known investment institutions Included in the Hang Seng Composite Index, Hang Sang Global Composite Index and the Global Small Cap China Index by MSCI 2

3 Content Company Introduction Market Introduction Appendices 3

4 PART 1 Company Introduction 4

5 United PV at a glance A leading company in China s solar industry Shareholders Background China Merchants New Energy, together with the parties acting in concert, owns around 24% of United PV as the largest shareholder Other shareholders include Fosun International, China Orient Asset Management and Zhongli Talesun Shareholder structure Solar power plant acquisition Grid-connected plant acquisition Acquisition of plants under construction Business Model Projects Briefing Solar power plant development Jointly development with local governments Authorized development with trusted partners Solar power plant operation and maintenance Global Smart PV Cloud Management Center from Huawei Unmanned aerial vehicle from DJI The cumulative capacity reached over 1GW Solar power plants spread over Eastern, Northwest, Southern and Northern China Increase in cumulative capacity and sales of electricity cumulative capacity sales of electricity A constituent stock The Hang Seng Composite Index, Hang Sang Global Composite Index The Global Small Cap China Index by MSCI 5

6 Business model A resources-integrated business model, a pure downstream player Project partners Cooperation mode Returns 1. Project cooperation 2. Finance cooperation Acquisition Grid connected Minimum IRR of 8% Valid PPAs Development Jointly development with local governments Authorized development with trusted partners Authorized development with trusted partners + EPC Authorized development with trusted partners/exit strategy Long Term Reasonable cost Grid companies 3. Due diligence service Third party due diligence Stable tariff income Social and environmental benefits to community 4. Smart operation and maintenance system Global Smart PV Cloud Management Center 6

7 Plants distribution Cumulative capacity reached over 1.1GW Xinjiang Hami 40MW Inner Mongolia Togtoh 40MW Inner Mongolia Chahar 50MW Shanxi Top Runner 100MW Xinjiang Turpan 40MW Inner Mongolia Urad 40MW Jiangsu Eco-agricultural 23.8MW Gansu Jiayuguan 100MW Qinghai Inner Mongolia Shangdu 50MW Hubei Suizhou 100MW Gonghe 200MW Xinjiang Minfeng 20MW Shenzhen Roof-top 4.4MW Plants distribution and power generation As of May 2016, the cumulative capacity of United PV reached over 1.13GW; The large-scaled ground solar power plants owned by United PV were located in Qinghai Province, Inner Mongolia, Gansu Province, Xinjiang, Hubei Province and Shanxi Province, which together accounted for approximately 95% of the total installed capacity; while the remaining 5% were mainly roof-top solar power plants, were located in Guangdong Province, Yunnan Province and Jiangsu Province. The annual power generation of 2015 recorded appr. 860,000 MWh, solar power plants located in Inner Mongolia and Qinghai Province contributed approximately 40% and 36% of the total electricity generation volume for the Year respectively. 7

8 Projects pipeline Rich projects pipeline enables future development of the company Pipeline of 2016 Location Capacity (MW) Projects to be acquired Tariff (RMB/KWh) Hebei 20 Yunnan 76 Hubei 100 Henan 120 Qinghai 40 Inner Mongolia ~1.2 Shandong 30 Anhui 40 Projects to be acquired Shaanxi 50 Tibet 20 Projects to be developed Total 666 Projects to be developed Shanxi 400 In 2016,United PV intended to expand company scale primarily through engaging in acquisitions, complementing with self-development. The projects to be acquired spread over Hubei, Inner Mongolia, Yunnan Henan ~0.98 and Qinghai, with a total capacity of over 600MW; Xinjiang 100 Projects to be developed are mainly located in Shanxi and Henan, with a total capacity of 600MW. Total 600 8

9 Overseas expansion Overseas pipeline distribution National cooperation Sino-France Solar Demonstration Park Total Capacity:2GW Phase 1:200MW + 200MW Location:inner Mpngolia & Zhangjiakou Sino-US Solar Demonstration Park Total capacity:2gw Phase1:200MW + 200MW Location:Hainan & Zhangjiakou Sino-Abu Dhabi Solar Demonstration Park United PV has maintained close cooperation with various international financial institutions and has gained strong support in projects and financing, which grant the company with an overseas pipeline of 2GW. Meanwhile, we actively participated in inter-state projects. Total capacity:2gw Phase 1:200MW 9

10 A leading company in China s solar industry The cumulative capacity and annual power generation of different companies in 2015 The ROE of of different companies in 2015 Ranked 3 rd by the end of 2015 Unit: MW Ranked 2 nd by the end of 2015 As of 2015, in terms of installed capacity and annual power generation volume, United PV ranked 3 rd place among Hong Kong-listed companies which are mainly engaged in solar industry. Unit: MWh In light of ROE, United PV ranked 2 nd place. The rigorous acquisition standards and sound risk control management ensure the outstanding operating performance and power generation volume of solar power plants under United PV. 10

11 Well-recognized by the capital market Powerful financing strength Convertible bonds Projects financing Finance lease In 2015, United PV issued various convertible bonds with an aggregate amount of nearly RMB 2 billion. Staring from 2015, United PV received a total proceeds of over RMB 4 billion from bank loans. Starting from 2015, United PV received a total proceeds of nearly RMB 3 billion from finance lease. Becoming a constituent stock In August 2015, United PV was selected as a constituent of the five major indexes by Hang Seng Indexes Company Limited: Hang Seng Composite Index Series (Hang Seng Composite Index, Hang Seng Composite Index Industrials, Hang Seng Composite MidCap & SmallCap Index and Hang Seng Composite SmallCap Index) and Hang Seng Global Composite Index effective since 14 September In November2015, United PV was selected as a constituent of the Global Small Cap China Index by Morgan Stanley Capital International ( MSCI ). 11

12 Financial stability Main results of 2014 and 2015 Total asset and net asset Unit: million RMB A YoY increase of 66% Unit: million RMB 12, A YoY increase of 73% 7,168 A YoY increase of 43% 480 1,484 2, Total asset Net asset In 2015, the net profit of United PV increased 43%, amounted to RMB373 million (Year 2014: RMB260 million); EBITDA raised 73% to RMB480 million as compared with the same period in year of 2014; sales of electricity accrued 66% to RMB631 million YoY. Net profit EBITDA Sales of electricity Meanwhile, the total asset recorded an increase of 81.22%

13 Smart and efficient plants operation and maintenance Global Smart PV Cloud Management Center Smart O&M UAV Centralized O&M, achieving remote management Initiative O&M,optimizing plant PR Efficient O&M, string-level monitor, catching issue quickly Smart analysis Smart operation and maintenance analysis system Smart management phone terminal String-based PR analysis on loss and power generation Big data analysis on dimension of portrait/landscape/time Plant-level monitoring and production management system Solar power plants Full digitalization Data collection from generation side to operation side on a string basis Operating information recording on all equipment Information recording for 25 years PV strings and line loss pre-fabricated substation Inverter loss and line loss Grid-connection loss Input power from inverter Output power from inverter Output power from prefabricated substation On-grid power Optimizing management level achieving all-round management in production, human resources, assets and information enhanced the operation and maintenance efficiency increasing the total power generation volume and decreasing operation and maintenance costs 13

14 Efficient corporate governance Releasing power generation data on a regular basis Corporate governance framework Mobile App inex Board of directors Audit Committee External auditor CEO Senior management Risk Control Committee Other committees Announcement on quarterly power generation Quarterly power generation volume External due diligence institution Day to day operations A QoQ increase of 178% 288, , , ,790 96, Q Q Q Q Q power generation volume(mwh) United PV enhancing efficient corporate governance by establishing a completed corporate governance framework. Among which, the Risk Control Committee is to review significant investment, to assess the internal control system and to conduct risk assessment on the material operation, compliance issues and financial matters of the Company. Besides, United PV recruited professional third parties to assist out corporate governance. PWC plays as the Company s external auditor to audit our consolidated financial statements; TÜV, the world-famous organization that works to validate the safety of products, conducts the due diligence on plants to be acquired. United PV is the only company among the Hong Kong-listed companies mainly engaged in solar industry to voluntarily announces its quarterly power generation data on HKex; furthermore, we issued the world-wide first mobile App for solar power plants monitoring. 14

15 Accelerating Industry collaboration Establishment of PGO Cooperation achievements Urad back banner 40MW In August, 2013, United PV initiated the establishment of Photovoltaic Green-Ecosystem Organization (PGO), a cooperation platform aiming to promote the health and sustainable development of China s PV industry, and make an all-round cooperation for solar power plant projects. Capacity: 40MW Project type: ground-mounted Annual power generation: 59,733,104 KWh Annual reduction of CO2 emission: 20,011tons Grid-connection date: Collaborative model Chahar right banner 50MW Capacity: 50MW Project development Project financing EPC Projects dealing Project operation Project type: Annual power generation: ground-mounted 74,489,009 KWh Land resources Domestic and overseas Project reconnaissance & design Share transfer Smart O&M system Annual reduction of CO2 emission: 24,954tons Grid-connection date: financing Grid condition platform Construction & installation Transaction completion Horqin Left Back Banner 40MW Capacity: 40MW Project permits Grid testing & connection Project type: Annual power generation: ground-mounted 58,531,347 KWh Annual reduction of CO2 emission: 19,608ons Grid-connection date:

16 Market Introduction PART 2 16

17 Global market Sustainable growth in global PV industry Forecasts of global solar installations Global solar installations will enjoy sustainable growth A GAGR of 14% for global solar installations during 2015~2020 China, the US, Japan and the EU will be the main drivers of solar demand over the next five years, while other countries with low solar penetration will ramp up their own solar installations. Solar power still has large potential after several rounds of explosive growth In 2016, the solar installation will present a YoY increase of 20% The global forecasts 62GW in solar installations (+20% YoY); The primary drivers will be China (for rush installations in response to FiT cuts), the US, the EU and Japan. India is expected to be the next growth engine based on its aggressive target to achieve 100GW of cumulative solar capacity by In 2017, the estimate global PV demand will be 64GW The extension of the US ITC policy could lead to more sustainable growth in the US solar demand. More emerging markets may announce new supporting policies after the historic Paris Agreement on global climate change. 17

18 China market China ranked 1 st place with the largest installations and enjoyed a large growth potential in the future China solar installations will enjoy sustainable growth Comments on future development FiT cut effective in 2016 June China s cumulative solar capacity has grown at a GAGR of 89% over the last decade to reach 43GW by end this was mainly driven by lucrative subsidies. The capacity is expected to continue its robust growth, with a GAGR of 24% over 2016~20 to hit its 13 th FYP target of 150GW. The IRR may have further upside, thanks to the continuous decline in the costs of solar materials FiT cut effective in 2013-end For 2016, the rush installations are expected in 1H2016 in response to the FiT cut, especially when the delayed solar subsidies will likely be paid soon. It is similar toe the case in as of 1H2015, there was 59.5GW of solar capacity that has secured approvals but not yet started operation, which should provide abundant resources for rush installations in 1H In 2017, the annual solar installations are expected to return to 17GW, but more installations will be in the distributed generation side, as DG s business model and microgrids will become more economical. Afterwards, the solar installation will gradually increase to 25GW in 2020 in order to achieve China s draft 2020 target of 150GW for cum. solar capacity China s cumulative solar capacity ranked 1 st in Unit: GW 19 9 Unit: GW 累计装机 新增装机 China Germany Japan Other EU countries US Other countries Italy UK 18

19 China market Strong government support remains the key theme Reasons behind the strong support Features of recent policies Financing related policies Strong government support remains the key theme Achieving nation s goals in carbon reduction; Diversifying the nation s energy mix with clean energy technology; Saving and promoting China s solar manufacturing industry, which is suffering from the Anti-dumping and Countervailing duties measures of US and EU. Systematization in industry policies Enhancement in policy synchronization and effectiveness Shifting to mechanization from policy-driven Opinions of the State Council about promotion of healthy development of PV industry: 20-year fixed FiT period for ground-mounted solar power plants Notice about VAT policy for PV power: 50% VAT refund for solar power generation Notice from People's Bank of China [2015] No. 39: the solar power plants development and operation are included into the Supporting list for green financial bonds Notice about reducing the on-grid price for coal-fired power generation and general commercial and industrial electricity consumption: surcharge for renewable energy raised to RMB 0.19/KWh Curtailment related policies Other industry driven policies The Minimum Renewable Utilization Policy: power grid company should prioritize the procurement of renewable energy with minimum utilization hours. Notice about establishing pilot projects for nearby consumption for renewable energy: renewable energy consumption in local power net;direct dealing for renewable energy; renewable energy enjoys priority in power generation Management rules to guarantee sale of renewable energy generation on the grid: central government set guidance to all provinces to ensure the maximum curtailment targets for non-hydro renewable energy in 2016 (no more than 5%) Consumption and generation targets for renewables:the load for non-hydro renewable energy of all coal-firing IPPs ahold reach no less than 15% in 2020 Broadening the solar industry market: pro-poor solar power plants develop ment; Industry development standardization:initiating the Top Runner prog ram starting from 2015; prohibiting dealing on "permits Simplification on subsidy application process:all projects enjoying the sub sidies are included into the information management platform of NEA 19

20 China market 1Q2016 solar industry at a glance Information on 1Q newly added capacity and power consumption newly added installations solar power generation (million KWh) Q1 2015Q2 2015Q3 2015Q4 2016Q1 118 Newly added capacity Yunnan Shandong Xinjiang Shaanxi Anhui Increase in both newly added capacity and power consumption The new installation of 1Q reached 7.13GW. Ground-mounted installations increased to 6.16GW, while DG installations increased to 970MW. The cumulative installations as of 2016Q1-end reached 50.31GW, recorded a YoY increase of 52%; On-grid power recorded 11.8 billion KWh, representing a QoQ increase of 48%. More diversified regions in Q1 The installations were located mainly in the northern region and Jiangsu. In Q1, The top five provinces in terms of new installations were Yunnan (940MW), Shandong (880MW), Xinjiang (710MW), Shaanxi (600MW) and Anhui (580MW). This is a good sign, in our view, as it will help ease grid-curtailment pressure in the medium term. Locations of China s operational UHV lines On 16 th April 2016, the Yunnan- Northwest HVDC started constructing. Hereto, the 12 HV transmission lines are all under construction, one line out of which has been completed. 20

21 Appendices PART 3 21

22 Top Runner project in Shanxi Pilot solar power plant in Shenzhen Plant type: ground-mounted solar power plant Capacity: 100MW Construction completion time: 2 nd quarter of 2016 Annual power generation volume: 140,000MWh Annual reduction of CO2 emission: 121tons Power buyer: State Grid Plant type: roof-top solar power plant Capacity: 2.4MW Construction completion time: Annual power generation volume: 10MWh Annual reduction of CO2 emission: 10tons Power buyer: China Merchants Bonded Logistics 100MW project in Hubei Eco-agricultural project in Jiangsu Plant type: ground-mounted solar power plant Capacity: 100MW Construction completion time: Annual power generation volume: 120,000MWh Annual reduction of CO2 emission: 105.1tons Power buyer: State Grid Plant type: Eco-agricultural project Capacity: 23.8MW Construction completion time: Annual power generation volume: 28,481MWh Annual reduction of CO2 emission: 23.8tons Power buyer: State Grid 22

23 THANKS FOR YOUR ATTENTION 23