Shaoneng Co., Ltd. plans to invest nearly 60 million yuan to build a distributed photovoltaic power generation project. On March 14, the company announced its intention to continue expanding its renewable energy business. Notably, Shaoneng’s wholly-owned subsidiary, Shaoguan Ruichu New Energy Investment Co., Ltd. (hereafter referred to as “Ruichu New Energy”), is set to implement the first phase of a photovoltaic power generation project on the rooftops of its subsidiaries in April 2023. This project is divided into three phases, all of which have been successfully completed and are currently operating well.
After thorough analysis, Ruichu New Energy plans to invest in the fourth batch of the second phase of the distributed photovoltaic power generation project, with a total estimated investment of 58.995 million yuan. This project aims to establish a total installed capacity of 20.66 MW on several subsidiary rooftops located in the Shaoguan region. The project has already received the filing certificate from the Shaoguan Development and Reform Bureau and has completed the preliminary work including the feasibility study report.
In line with its commitment to sustainable development, Shaoneng Co., Ltd. has established three main business segments: clean renewable energy, ecological plant fiber products, and precision (smart) manufacturing. As of mid-2024, the company has a total installed power capacity of 1.185 million kilowatts in its clean renewable energy segment, which includes 680,000 kilowatts of hydropower and 360,000 kilowatts of biomass power generation, all located in Guangdong Province.
Furthermore, the company has announced an expected net profit attributable to shareholders of between 70 million to 103 million yuan for 2024, representing a year-on-year increase of 126.31% to 138.72%. The expected net profit after excluding non-recurring items is projected to be between 61.95 million to 94.95 million yuan, which reflects a significant growth of 122.29% to 134.17% compared to the previous year.
The reasons for this growth are attributed to several factors including increased rainfall and water inflow in regions where the company’s hydropower stations are located, improvement in the performance of its ecological paper products, and biomass power generation operations. During this reporting period, the increase in water inflow led to a significant rise in revenue and total profits from hydropower operations, with respective increases of 37.91% and 117.61%.
Shaoneng Co., Ltd. regards this investment as an opportunity to expand its renewable energy business further. Upon completion, the project will help reduce electricity costs for some of its subsidiaries, facilitating energy-saving measures while also enhancing the company’s growth potential in the renewable energy sector. The company believes that investing in the distributed photovoltaic power generation project aligns with its strategic business upgrades.
On the same evening, Shaoneng Co., Ltd. also announced that Ruichu New Energy currently has a registered capital of 50 million yuan. The company plans to increase this capital by 41.2 million yuan, raising the total registered capital to 91.2 million yuan. As of December 31, 2024, Ruichu New Energy’s debt-to-asset ratio stands at 72.05%, which is relatively high. This capital increase aims to optimize the financial structure, lower the debt ratio, and enhance financing capabilities, thereby facilitating the expansion of its photovoltaic power generation business.
