Zheneng Jinjiang Environment Holding Co., Ltd. · SGX:BWM
Zheneng Jinjiang Environment — H1 2021 Earnings Presentation
34 slides from Zheneng Jinjiang Environment's earnings presentation, August 2021
Slide 1: 1H2021 Results Corporate Presentation
1H2021 Results Corporate Presentation August 2021 1
Slide 2: Important Notice
Important Notice This document has been prepared by Zheneng Jinjiang Environment Holding Company Limited ( “Zheneng Jinjiang Environment" or the "Company"), solely as presentation materials to be used by the Company’s management. It may contain projections and forward-looking statements that reflect
Slide 3: Contents
Contents 1. Company Overview 2. 1H2021 Financial Highlights 3. 1H2021 Operational Highlights 4. Growth Strategy 3
Slide 4: Company Overview
Company Overview 4
Slide 5: About Zheneng Jinjiang Environment
About Zheneng Jinjiang Environment • First mover and leader in PRC’s Waste-To-Energy (WTE) industry, as well as one of the first WTE operators in the PRC • Established PRC’s first WTE plant using Circulating Fluidised Bed (CFB) incineration technology in 1998 and built a track record spanning over 2
Slide 6: Extensive Network in China and Overseas
Extensive Network in China and Overseas CHINA 23 WTE facilities* & 1 Organic Waste Treatment facility & OVERSEAS 7 Resource Recycling projects Treatment in Operation Capacity: Presence in India, Brazil & Indonesia In 13 provinces autonomous regions and centrally- 38,560 tons/day administered municip
Slide 7: Important Milestones
Important Milestones Established In 1998, with leading Waste-to-Energy (WTE) treatment capacity in the PRC 2017 1999 21 August 2019 15 July 2020 2004 • First foray into India; secured 3 PRC government Zhejiang Provincial Energy Zheneng Jinjiang WTE projects approved The IFC, a Group Co., Ltd complet
Slide 8: About Zhejiang Provincial Energy Group Co., Ltd (Zheneng Group)
About Zhejiang Provincial Energy Group Co., Ltd (Zheneng Group) • State-owned provincial energy enterprise involved mainly in energy-related businesses • Strong capabilities across the entire energy production value chain, with resources and strong financial expertise • Manages more than 300 compani
Slide 9: Strong Shareholding Structure
Strong Shareholding Structure Strong Shareholder Background Provides Firm Support For Company’s Development (1) Zhejiang Provincial Energy 100.00% Group Co., Ltd Zheneng Capital Holdings Co., Ltd. 63.29% 60.00% 40.00% Mr Dou Zhenggang Zhejiang Energy International Co., Ltd. Hangzhou Jinjiang Group D
Slide 10: Strong Management Team
Strong Management Team Key Management Team Members Have More Than 20 Years Of Industry Experience As at 30 June 2021 • Responsible for overall strategic planning and management • More than 20 years of corporate leadership and senior management experience in the energy industry • Served as the Genera
Slide 11: 1H2021 Financial Overview
1H2021 Financial Overview 11
Slide 12: 1H2021 Key Financial Overview
1H2021 Key Financial Overview 1H2021 revenue increased 10.8% year-on-year to approximately RMB1,613.3 million Key recurring income from core revenue contributor Waste-to-Energy Business recorded 17.9% growth to RMB1,342.7 million. 1H2021 gross profit increased 4.2% to RMB500.4 million PATMI grew 91.
Slide 13: Results Overview
Results Overview RMB million 1H2021 1H2020 Change (%) Revenue 1,613.3 1,455.5 10.8 Including: 1,342.7 1,139.0 17.9 WTE Business Revenue Gross Profit 500.4 480.3 4.2 Profit Before Tax 274.4 155.9 75.9 Profit after tax 2.0 1.0 84.6 Profit after tax attributable 193.9 101.0 91.8 to owners of the Compan
Slide 14: Revenue Overview
Revenue Overview WTE Business Is The Main Revenue Contributor (RMB million) WTE BOT Construction EMC and project technical and management service CAGR 9.76% 3,877 315 3,031 3,084 212 2,632 2,715 578 1,353 429 283 391 10.8% 645 1,936 728 556 273 1,455 1,613 322 112 115 158 2,443 202 2,209 1,768 1,808
Slide 15: Revenue Breakdown by Business Segment
Revenue Breakdown by Business Segment WTE BOT Construction (RMB million) (RMB million) CAGR: 12.8% CAGR: 5.7% 17.9% 2,443 2,209 1,768 1,808 1,353 1,621 1,341 1,139 1,343 728 21.7% 556 645 325 429 202 158 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 1H2020 1H2021 FY2015 FY2016 FY2017 FY2018 FY2019 FY202
Slide 16: Gross Profit & Gross Profit Margin
Gross Profit & Gross Profit Margin CAGR: 2.5% Segmental Gross Profit 1H2021 1H2020 Change (RMB million) 40.7 WTE 426.0 394.4 8.0% 39.9 38.1 BOT Construction* 41.6 45.7 -9.0% 34.4 33.0 31.0 28.9 EMC Business 32.7 40.2 -18.7% 24.5 4.2% Segmental Gross Profit Margin 1H2021 1H2020 WTE 31.7% 34.6% BOT Co
Slide 17: Capital Structure
Capital Structure Total Assets & Net Assets 19,297 (RMB million) Total Assets Net Assets 16,609 17,767 14,594 5,603 5,815 6,103 6,293 31 December 2018 31 December 2019 31 December 2020 30 June 2021 Interest-bearing Debt/Total Assets EBITDA and Interest expense EBITDA/Interest 1338.0 1277.0 1218.0 10
Slide 18: Prudent Capital Management
Prudent Capital Management Our Capital Management Policy Annual Adoption of a Spacing out of Reduce liquidity repayment and 30:70 equity-to- flexible financing CAPEX based pressure by rolling over of a debt ratio Continue to policy and aims on the Group’s extending large proportion maintained for lo
Slide 19: Strong Financial Support from Zheneng Group and Banks
Strong Financial Support from Zheneng Group and Banks ü Secured a RMB540 million loan facility from Zhejiang Provincial Energy Group Finance Co., Ltd. (“Zheneng Finance”), a subsidiary of the single largest shareholder of the Company, as well as working capital loans of more than RMB400 million from
Slide 20: 1H2021 Operational Highlights
1H2021 Operational Highlights 20
Slide 21: COVID-19 Updates
COVID-19 Updates Impact on Business ü The rebound of COVID-19 outbreak in China recently has brought uncertainties to the continued economic recovery q As of 1H2021, the Company saw full resumption of operation and production in most areas which are no longer materially ü However, local authorities
Slide 22: Operational Analysis
Operational Analysis Electricity Generated (‘000 KWh) On-Grid Electricity Supplied (‘000 KWh) 1,705,601 1,281,977 1,410,479 1,039,024 20.9% 23.4% 1H2020 1H2021 1H2020 1H2021 Steam Supplied (‘000 tonnes) Waste Treated (‘000 tonnes) 1,477 5,478 24.1% 5,050 8.5% 1,190 As at 30 June 2021 1H2020 1H2021 1
Slide 23: Extensive Portfolio in the PRC with Growing Overseas Footprint
Extensive Portfolio in the PRC with Growing Overseas Footprint Zheneng Jinjiang Environment As at 30 June 2021 Total Capacity 63,251 tons/day China Projects India Projects No. of Project Category Capacity No. of Projects Project Category Capacity projects 2 In the Preparatory 2,106 tons/day 31 Opera
Slide 24: China – Our Extensive Footprint
China – Our Extensive Footprint Installed Capacity In Operation Under Preparation Under Construction or Expansion (tons/day) Heilongjiang Hebei Inner Mongolia Suihua Green Energy BOO, 800 Tangshan Jiasheng BOO, 1000 Hohhot New Energy BOO, 1,000 Qitaihe Green Energy BOO, 1,000 Leting Jinhuan BOO, 500
Slide 25: 1H2021 Operational Updates
1H2021 Operational Updates In 1H2021, the Group’s project construction proceeded in an orderly manner in accordance with the set plan Key updates below: ü The Leting Jinhuan New Energy WTE Facility (BOO) and the Shijiazhuang Wuji Resource Recycling Project (BOO) in Hebei Province were put into trial
Slide 26: 1H2021 Operational Updates
1H2021 Operational Updates New Projects under Construction New Projects under Preparation Expansion of Hohhot WTE Facility in Upgrading of Tianjin Sunrise WTE Facility Inner Mongolia • BOO Tianjin • To build two 600 tons/day grate furnaces and one 18MW Increase generating unit. The original three ci
Slide 27: Securing Subsidies and Gaining Further Government Recognition
Securing Subsidies and Gaining Further Government Recognition ü The expansion of Yinchuan Zhongke WTE Facility in Ningxia Hui Autonomous Region, Qitaihe Green Energy WTE Facility and Suihua Green Energy WTE Facility in Heilongjiang Province were included in the National Renewable Energy Subsidy List
Slide 28: Growth Strategy
Growth Strategy MBE SB LER ZHENENG JINJIANG ENVIRONMENT 28
Slide 29: In the future, we will …
In the future, we will … 1. Maintain leading market position 2. Continuously improve technical capabilities • Localisation of advanced pre-treatment • Expanding waste treatment capacity of existing technologies from Europe, in synergy with facilities and pursue capacity increment our own • Seeking o
Slide 30: 1. Maintain Leading Market Position
1. Maintain Leading Market Position 3 Main Strategy Pillars For Capacity Expansion And Growth Increase the capacity Enter new regions, Acquire projects with of waste treatment in new projects growth potential existing facilities, and pursue capacity • Management restructuring increment • Operational
Slide 31: 2. Continuously Improve Technical Capabilities
2. Continuously Improve Technical Capabilities • Localised advanced European pre-treatment technology, coupled with own Research & Development and completed the promotion and application at Zibo Green New Energy WTE Facility in Shandong Province (in operation) and Shijiazhuang Jiasheng WTE Facility
Slide 32: 3. Diversify Within the WTE Value Chain
3. Diversify Within the WTE Value Chain Expand the scope of WTE business to the relevant areas Potential diversification areas for WTE 1. Turning waste into resources 2. Sludge Treatment 3. Animal Carcass Treatment • Currently, there are 10 waste recycling • Currently, there are 8 facilities • Inves
Slide 33: 4. Expand Internationally
4. Expand Internationally • Seeking project opportunities from the ‘Belt and Road Initiative’ • Improve brand image and international reputation to be a world-class WTE management company • Riding on the “Belt and Road Initiative”, to strive to internationalise its WTE business and establish demonst
Slide 34: Thank You
Thank You Jf iin mL EE ZHENENG JINJIANG ENVIRONMENT
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