The Namecard of China’s Energy Transition
United Photovoltaics Group Limited
(00686.HK)
2016 Interim Result
1
Business Review
Industry Overview
Financial Performance
Outlook
PART
1
Business Review
3
Business Review
By 30 June 2016
Location
Number
of power
plant
Aggregate
installed capacity
(MW)
By 30 June 2015
Electricity
generation
(MWh)
Number of
power
plant
Aggregate
installed
capacity (MW)
Electricity Generation Volume（MWh）
Electricity
generation
(MWh)
600,000
Subsidiaries
60,104
500,000
Inner
Mongolia
6
Qinghai
4
Xinjiang
700,000
6
270
200
120
222,810
154,473
58,009
3
4
5
130
200
100
107,168
150,054
33,484
400,000
70,278
300,000
200,000
550,740
332,112
100,000
Gansu
1
100
47,108
1
100
39,587
Hubei
1
100
48,574
-
-
-
30 June 2015
30 June 2016
Shanxi
1
100
2,640
-
-
-
Subsidiaries
Associates
Yunnan
1
19.8
15,928
-
-
-
Guangdong
2
2.4
1,198
2
2.4
1,819
0
Aggregate Installed Capacity（MW）
1,200.0
1,000.0
Associates
83.8
800.0
Inner
Mongolia
2
60
44,220
2
60
45,060
600.0
Jiangsu
2
23.8
15,884
2
23.8
14,893
400.0
Fujian
-
-
-
2
20.8
10,325
200.0
104.6
912.2
532.4
0.0
30 June 2015
 As at 30 June 2016, there were 26 solar power plants beneficially owned by the Group and its associates with an aggregate
installed capacity of 996MW, increased 56.4% as compared to the corresponding period of 2015.
Subsidiaries
30 June 2016
Associates
4
Projects Review
Solar Power Plants Information
Capacity by Location
Inner Mongolia
Qinghai
Xinjiang
Gansu
Hubei
2016
2015
Shanxi
Yunnan
Jiangsu
Fujian
Power Generation by Location
Location of ground-mounted solar power plants
50%
Location of solar power plants of other type
40%
38%
Location
By 30 June 2016（RMB ‘000）
37%
2015
Note: No plants presence in Hubei and
Yunnan in 2015
25%
30%
Geographical Breakdown of Sales of Electricity
2016
44%
20%
By 30 June 2015（RMB ‘000）
9% 8%
10%
8%10%
8%
0%
Inner
Mongolia
182,572
91,596
Qinghai
130,954
128,251
Xinjiang
44,159
28,212
Gansu
35,659
33,835
Hubei
45,667
-
Shanxi
-
-
Yunnan
12,570
-
Guangdong
851
1,292
3%
0%
3% 4%
0%
Inner
Mongolia
Qinghai
Xinjiang
Gansu
Hubei
Yunnan
Jiangsu
 The large-scaled solar power plants owned by the Group and are mainly located
in Inner Mongolia, Qinghai, Xinjiang, Gansu, Hubei and Shanxi, which together
account for 95.4% of the total installed capacity. The other plants located in
Jiangsu, Yunnan and Guangdong are mainly distributed roof-top power plants or
combined with eco-agricultural infrastructure.
 The aggregate volume of the first half of 2016 has amounted to 610,884 MWh;
The solar power plants located in Inner Mongolia and Qinghai contributed
approximately 43.7% and 25.3% of the total electricity generation for the Period
respectively.
5
Capability of Project Development
Successful grid-connection of Top Runner Project in Shanxi
About the Top Runner Project
Our first 100MW Top Runner Project in Datong, Shanxi, the PRC has successfully achieved on-grid
connection and electricity generation in June 2016 and this marked the Group’s enhanced capability in selfdeveloped project and in integration of advanced technologies.
The Top Runner Program of photovoltaic industry was implemented by the NEA and launched in 2015, which
is designated to promote application of advanced technology in the development and operation of solar
power projects and improve the technology and quality standard of the solar industry. The investors of Top
Runner Projects are selected through tendering process pursuant to certain competition criteria, including but
not limited to the investors’ track record of operating solar power plants, investment capacity, management
capability and technology level. In furtherance of its success in Top Runner Program Phase I in 2015, the
Group is confident to win development right in more Top Runner Projects in 2016 and apply the advanced
technology and high standards in our other developments.
Technology Highlights
This project adopted high efficient monocrystalline silicon modules, string inverters and multiple MPPT
tracking system to optimize the performance of solar power plant. Wireless telecommunication technologies
such as PLC and 4G LTE have been applied on the site to secure the hardware data analysis and avoid
dataloss risk which is common in cables. Another outstanding feature of this project is the real-time and
centralized monitoring of operation as enabled by the Global Smart PV Cloud Management Center, which
connects our solar power plants within the portfolio of the Group. According to the electricity generation data,
this is our “top runner” project as it recorded a highest daily generation volume of 633,600KWh and is one of
the best performing solar power plants among the Top Runner Program Phase I.
Adjustable fixed brackets: the brackets could
be adjusted on a half-year basis depends on
the local light condition
Huawei string inverters
Other reference
Conversion rate of high-efficient
monocrystalline silicon module ：17%-17.3%
Construction Period: 4 months
Owner: United PV
Efficiency of inversion：99%
Developer: United PV
Number of Modules: 303,030
Avg. Homes Served/ Year: 86,000
Date of Grid-Connection: 24th June, 2016
EPC: Power Construction
Corporation of China
On-site whether observer：real-time site
whether condition observation
Part of the Top Runner project in Datong
6
PART
2
Financial Performance
7
Financial Highlight
Main Results of 1H 2015 and 1H 2016
Profit Attributable to Shareholders
Earnings per Share
Unit: thousand RMB
Unit: thousand RMB
a YOY increase of 60%
Unit: cent RMB
452,432
242,914
a YOY increase of 77%
248,951
5.60
1H 2016
1H 2015
5.22
376,386
a YOY increase of 1%
283,186
254,353 257,538
212,358
1H 2015
1H 2016
Gearing Ratio
1H 2015
Net Profit
EBIDTA
1H2015
1H 2016
Sales of Electricity
1H2016
79.05%
79.08%
8
PART
3
Industry Overview
9
Industry Overview
160
30
FiT cut effective in 2016 June 30
140
23
Comments on Future Development
25
22
120
FiT cut effective in 2013-end
China’s cumulative solar capacity has grown at a
GAGR of 89% over the last decade reaching
43GW by end-2015. 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 13th FYP target of 150GW.
The IRR may have further growth , thanks to the
continuous decline in the costs of solar materials.
26
18
100
20
18
15
80
15
150
11
60
126
10
104
83
40
61
4
20
0
10
1
1
2010
Unit: GW
2
28
3
7
2011
2012
5
43
17
0
2013
2014
2015
Cumulative Capacity
2016
2017
2018
2019
2020
New Installation
UHV Lines Construction
According to State Grid, during the 13th “five-year
plan”, the HV transmission lines will be constructed
in 3 batches. The whole project will be completed in
2020.
10
China Solar Market Update
2015 National Renewable Energy Power Development Monitoring and Evaluation
350
1200
Market Analysis
1
2015 National Renewable Energy Power Development Monitoring and Evaluation
Report states that by the end of 2015, the total installed capacity of renewable
energy power was 480 GW, among which the hydropower reached to 300 GW,
wind power was 129 GW, solar power got 43.18 GW and Biomass Power
amounted to 10.31 GW. The power generation volume of the four types of power
was 1098.5 billion KWh, 186.3 billion KWh, 39.2 billion KWh and 52.7 billion KWh,
occupying 19.6%, 3.3%, 0.7% and 0.9% of the total volume respectively.
2
According to the National Bureau of Statistics, the overall electricity generation
volume of 1H 2016 reached to 2759.5 billion KWh, representing a YOY increase of
1%, among which the power generation volume of thermal power was 2057.9
billion KWh, decreased 3.1% compared with the same period of last year; the
volume of Hydropower, nuclear power and wind power marked a YOY increase of
13.4%, 24.9%, 13.9% to 481.1 billion KWh, 96.4 billion KWh and 106.5 billion KWh
respectively. There was a significant growth in solar power generation that
the volume soared 28.1% to 17.5 billion KWh in the first half of 2016.
1098.5
300
300
1000
250
800
200
600
150
129
Wind Power
400
Nuclear Power
100
186.3
50
10.31
52.7
0
0
Hydropower
Unit：GW
Wind Power
Solar Power
Instaled Capacity
Solar Power
200
43.18
39.2
Hydropower
Biomass Power
Thermal Power
Unit：billion KWh
11
Policy Support
The Implementation Plan for Photovoltaic Power
Generation Construction in 2016
In 2016, the country decide to add a new national scale of 18.1 million
kilowatts on photovoltaic power station , of which ordinary photovoltaic power
plant projects is 12.6 million kilowatts with the size of 5.5 million kilowatts on
photovoltaic top-runner technology base.
Notice on Full Amount and Protective
Guaranteed Purchase of Wind & Solar
Power Generation
01
The Tentative Measures for Prioritized
Generation of Power by Renewable
Energy Peak-load Units
Improve peaking adjustment capacity of power system by
effectively relieving abandoning water, wind, light, so as to
improve renewable energy consumption and develop pilot
scheme; setting some units renewable energy adjustment during
peak season by such method enterprise volunteers and agreed
ways by both the grid and power generation enterprises across the
nation for consumption of renewable energy; also renewable
energy sources should insist local implementation as priority,
encouraging inter-provincial implementation, taking actions that
suit local circumstances and market-oriented direction.
02
06
.
03
05
.
The Notice on the Reduction of On-grid
Tariffs for Coal-fired Power Generation and
Electricity Prices for General Industrial and
Commercial Use
National price of coal-fired electricity per kilowatt-hour was
decreased by about RMB3 cents (including tax), and established
additional fee of renewable energy tariff was increased to RMB1.9
cents per kilowatt-hour.
The State requires that all provinces acquired and
guaranteed minimum annual utilization hours of power
generation and arrange plans to ensure that electricity
within the standard above can be generated at the
highest priority to all provinces . Provinces with the plan
of power generation in 2016 should be adjusted in
accordance with the standard above in a timely manner.
Wherein the number of acquisition of PV guaranteed
minimum annual utilization hours is 1300-1500 hours.
04
Notice on Continuing PV VAT Policy
The solar power products produced and sold by taxpayer
from 1 Jan 2016 to 31 Dec 2016 will enjoy a 50%
Immediate Refund of VAT.
Energy Development Strategic Action Plan（2014-2020）
Emphasize that developing low-carbon clean energy is the main direction of adjusting the energy
structure. Optimize the energy structure and substantially increase the proportion of PV and other
renewable energy generation. By 2020, non-fossil fuels will account for 15% in one-time
consumption in energy.
12
PART
4
Outlook
13
Further Developing Solar Power Plant Business
We will set out the strategic planning in a forward-looking manner so as to orderly
implement strategies, facilitate the storage of resources and reinforce the potential for
future development of the Company. In addition, we will proactively promote the
construction of “Panda Solar Power Plant” in order to better establish our own brand.
Outlook
Improving the Smart Management Level of Solar Power Plant
By leveraging on cutting edge technology, we will further enhance the operation and
maintenance efficiency of the solar power plant, increase the total power generation volume
and decrease operation and maintenance cost.
The Namecard of
China’s Energy
Transition
Exploring Offshore Market
We will actively develop offshore markets, and enhance the cooperation with overseas
leading enterprises and quality institutions based on the Company’s relatively advanced
management and operation model as the core support and integrating with our domestic
project acquisition and development experience, so as to acquire overseas quality solar
power plants and therefore enrich our project pipeline.
Broadening Extensive Financing Channels
We will further broaden financing channels, reduce finance cost by making good use of the capital
operation platform of the listed company.
THANKS FOR YOUR ATTENTION
E-mail: [email protected]
Wechat public account: unitedpvgroup
Wechat public account QR code:
15