Zheneng Jinjiang Environment Holding Co., Ltd. · SGX:BWM
Zheneng Jinjiang Environment — H1 2022 Earnings Presentation
32 slides from Zheneng Jinjiang Environment's earnings presentation, Aug 12, 2022
Slide 1: 2Q2022 & 1H2022 Results Corporate Presentation
12 August 2022 2Q2022 & 1H2022 Results Corporate Presentation 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. 1H2022 Financial Highlights 3. 2Q2022/1H2022 Operational Highlights 4. Growth Strategy 3
Slide 4: Company Overview
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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 25 WTE facilities* & 1 Organic Waste Treatment facility & OVERSEAS 8 Resource Recycling projects Treatment in Operation Capacity: Treatment Presence in India & Indonesia In 13 provinces autonomous regions and centrally- 41,160 administered municipalities
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 and ranked 206th on the list of Top 500 Chinese Companies in 2021 • Strong capabilities across the entire energy production value chain, with resour
Slide 9: Strong Shareholding Structure
Strong Shareholding Structure Strong Shareholder Background Provides Firm Support For Company’s Development (1) Zhejiang Provincial Energy 100.00% Ms Dou Baibing(5) Zheneng Capital Holdings Co., Ltd. Group Co., Ltd 27.0441% 26.3282% 60.00% 40.00% Ms Wei Xuefeng(5) Zhejiang Energy International Co.,
Slide 10: Strong Management Team
Strong Management Team Key Management Team Members Have More Than 20 Years Of Industry Experience As at 30 June 2022 • 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: 1H2022 Financial Overview
1H2022 Financial Overview 11
Slide 12: 1H2022 Key Financial Overview
1H2022 Key Financial Overview 1H2022 revenue increased 14.0% year-on-year to RMB1,839.3 million Key recurring income from core revenue contributor Waste-to-Energy Business recorded 12.9% growth year-on-year to RMB1,515.9 million PATMI decreased 51.8% to RMB 93.5 million mainly due to appreciation of
Slide 13: Results Overview
Results Overview RMB million 1H2022 1H2021 Change (%) Revenue 1,839.3 1,613.3 14.0 Including: 1,515.9 1,342.7 12.9 WTE Business Revenue Gross Profit 515.0 500.4 2.9 Profit Before Tax 173.2 274.4 (36.9) Profit after tax 101.1 202.0 (50.0) Profit after tax attributable 93.5 193.9 (51.8) to owners of t
Slide 14: Revenue Overview
Revenue Overview WTE Business Is The Main Revenue Contributor (RMB million) WTE BOT Construction* Project technical and management service, equipment selection and sale and EMC business *Includes BOT construction income and financial income under service concession agreements CAGR 10.58% 4,060 3,877
Slide 15: Revenue Breakdown by Business Segment
Revenue Breakdown by Business Segment WTE BOT Construction (RMB million) (RMB million) CAGR: 12.8% CAGR: 7.2% 12.9% 2,864 2,209 2,443 99.1% 1,353 1,768 1,808 1,343 1,516 645 735 556 429 315 158 FY2017 FY2018 FY2019 FY2020 FY2021 1H2021 1H2022 FY2017 FY2018 FY2019 FY2020 FY2021 1H2021 1H2022 Steady g
Slide 16: Gross Profit & Gross Profit Margin
Gross Profit & Gross Profit Margin CAGR: 0.43% Segmental Gross Profit 1H2022 1H2021 Change (RMB million) WTE 450.8 426.0 5.8% BOT Construction* 61.4 41.6 47.5% 38.1 34.4 EMC Business 2.8 32.7 (91.4%) 31.0 28.9 28.0 25.9 24.5 Segmental Gross Profit Margin 1H2022 1H2021 2.9% WTE 29.7% 31.7% BOT Constr
Slide 17: Capital Structure
Capital Structure Total Assets & Net Assets (RMB million) Total Assets Net Assets 20,381 20,893 17,767 16,609 14,594 5,603 5,815 6,103 6,545 6,645 31 December 2018 31 December 2019 31 December 2020 31 December 2021 30 June 2022 Interest-bearing Debt/Total Assets EBITDA and Interest expense EBITDA/In
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: 2Q2022/1H2022 Operational Highlights
2Q2022/1H2022 Operational Highlights 19
Slide 20: 1H2022 Operational Analysis
1H2022 Operational Analysis Electricity Generated (‘000 KWh) On-Grid Electricity Supplied (‘000 KWh) 1,705,601 1,692,628 1,281,977 1,299,544 0.8% 1.4% 1H2021 1H2022 1H2021 1H2022 Steam Supplied (‘000 tonnes) Waste Treated (‘000 tonnes) 1,655 5,655 1,477 5,478 12.1% 3.2% 1H2021 1H2022 1H2021 1H2022 A
Slide 21: Extensive Portfolio in the PRC with Growing Overseas Footprint
Extensive Portfolio in the PRC with Growing Overseas Footprint As at 30 June 2022 Zheneng Jinjiang Environment Total Capacity 63,020 tonnes/day China Projects* India Projects No. of Project Category Capacity No. of Projects Project Category Capacity projects 1 In the Preparatory 1,500 tonnes/day 34
Slide 22: China – Our Extensive Footprint
China – Our Extensive Footprint Installed Capacity In Operation Under Construction or Expansion Under Preparation (tonnes/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, 5
Slide 23: 2Q2022/1H2022 Operational Updates
2Q2022/1H2022 Operational Updates The Group’s operating companies have maintained normal operations and its project construction has proceeded on schedule in an orderly manner in 1H2022 • The boiler of the expansion project of Hohhot Jiasheng WTE Facility in Inner Mongolia, in which the Group has a
Slide 24: 2Q2022/1H2022 Operational Updates
2Q2022/1H2022 Operational Updates • The Group’s total waste treatment capacity is expected to increase by 3,145 tonnes/day and 125MW installed capacity upon completion of the aforesaid projects. Besides, the Group has 15 WTE projects, 3 kitchen waste projects and 1 Resource Recycling project in the
Slide 25: COVID-19 Impact on the Group’s Operations
COVID-19 Impact on the Group’s Operations q In 2Q2022, there were a series of localised COVID-19 outbreaks in several areas of China. In the face of severe challenges of epidemic prevention and control, the Group has adhered to pandemic prevention and control rules, made active deployments according
Slide 26: Growth Strategy
Growth Strategy MBER LIRR ZHENENG JINJIANG ENVIRONMENT 26
Slide 27: In the future, we will …
In the future, we will … 1. Maintain leading market position 2. Continuously improve technical capabilities • Adopting new technologies to increase • Expanding waste treatment capacity of existing waste power generation capacity by tonnes facilities and pursue capacity increment • Enhancing operatin
Slide 28: 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 29: 2. Continuously Improve Technical Capabilities
2. Continuously Improve Technical Capabilities • The medium-temperature ultra-high voltage technology is adopted to construct the Reconstruction and Expansion Project of Wuhan Jinjiang WTE Facility to enhance the power generation capacity • Improve operational efficiency and reduce emissions at our
Slide 30: 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 resource recycling • Currently, there are 8 facilities • In
Slide 31: 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 32: Thank You
V4 vise sei ERR ZHENENG JINJIANG ENVIRONMENT
Zheneng Jinjiang Environment Holding Company — H1 2022 Earnings Presentation on 6ix