GCL-ET 2021 Annual Report

On the evening of April 14, GCL-ET released its 2021 annual report, with stable and positive performance. In 2021, the company achieved an operating income of RMB11.314 billion, a total profit of RMB1.518 billion, and a net profit attributable to shareholders of RMB1.004 billion, with an increase of 21.8% over the same period of the previous year. The compound growth rate for 3 consecutive years from 2019 to 2021 is up to 44.6%.

RMB2.00 for every 10 shares, a proposed dividend of RMB325 million, and a 4-year profit commitment completion rate of 131.04%

The annual report shows that for the year of 2021 the company proposes to distribute a cash dividend of RMB 2.00 (tax included) for every 10 shares to all shareholders based on the latest total share capital of 1.623 billion shares, with a total cash dividend of RMB 325 million. This is the second consecutive year that the company has paid cash dividends since its restructuring and listing. Compared with the first dividend distribution, the distribution amount per 10 shares in this plan increased by 33%, and the overall dividend distribution increased by 60%.

According to the company's performance commitment during the major asset restructuring in 2019, GCL Smart Energy, the target company of the restructuring and listing, should deduct net profits not attributable to parent company from 2018 to 2021 of not less than RMB195 million, RMB371 million, RMB581 million and RMB598 million respectively. From 2018 to 2021, the company has achieved all profit commitments for 4 consecutive years, the overall profit realization rate has reached 131.04%, and the cumulative over-fulfillment amount has reached RMB542 million.

Clean energy business grows steadily, and installed capacity accounts for over 91%, leading the industry

In 2021, affected by multiple international and domestic factors, fuel costs soared, and the coal power, coal-fired thermal power, and gas turbine power generation industries were generally under pressure. GCL-ET has maintained steady development by expanding profit sources through multiple channels to hedge against the decrease of income caused by fuel cost growth.

"On the one hand, the company continues to develop users to increase the sales of steam, and further strengthens the development of wind power. Many wind power projects that we invested in and acquired have been put into operation, forming a new profit source." Said Fei Zhi, GCL-ET President, "In addition, the company's waste treatment volume increases by 56.36% year-on-year, becoming another driving factor for the growth."

The annual report shows that during the reporting period, the company completed the settlement of 16.1691 million tons of steam volume, with a year-on-year increase of 4.87%; the completed waste disposal volume was 2.1234 million tons, with a year-on-year increase of 56.36%. By the end of 2021, the total installed capacity of GCL-ET was 3777.44MW, and the proportion of clean energy installed capacity had reached 91.21%, of which wind power was 832.3MW, with a year-on-year increase of 58.7%, driving the performance growth.

In 2021, the company's market-oriented transaction service power reached 17.26 billion KWh, with a year-on-year increase of 8%; the cumulative production capacity of power distribution projects was 1091MVA, with a year-on-year increase of 11.55%; the user-side management capacity exceeded 13.5 million KVA, with a year-on-year increase of 3.85%. The company also made breakthroughs in carbon asset finance, green electricity trading and other fields.

Mobile energy enters the blue ocean, R&D investment increases by 1.5 times, and multi-party funds provide support

In 2021, relying on the industrial layout and scientific and technological strength in the energy industry, GCL-ET responded to the national "dual carbon" policy, quickly deployed the mobile energy business through the synergistic advantages of clean energy, energy storage and energy supplementation ecology, and cooperated with CICC Capital to jointly set up the industry's first RMB10 billion industrial fund with the theme of "carbon neutrality".

Since then, the company has quickly integrated automobile production, battery manufacturing, travel platforms, logistics companies and other industries and government resources, joined hands with leading companies in various industries such as Geely, Foton, Sany, Dongfeng, Huolala, Ningde Times, and Metro, to focuse on the four application scenarios of taxis, online car-hailing, heavy trucks and light trucks, and put into operation the first batch of passenger car battery-swap stations and commercial vehicle battery-swap stations successfully. It has also developed four core technologies of multi-energy integration, non-contact intelligent magnetic induction locking technology, shared battery technology and intelligent EMS/BMS/SMU, and built the industry's first Paas and SaaS integrated digital battery swap cloud platform.

"With the vehicle as the center, the battery as the energy carrier, and the port as the infrastructure, we will create an ecological closed loop of green electricity, port stations, vehicles, batteries, and energy storage, integrate transportation resources, and strive to provide a convenient, economical, and green integration for electric travel”, said Fei Zhi, “Model innovation and technological iteration are the keys to winning the mobile energy track. In 2021, GCL-ET’s scientific research staff will increase by nearly 4.5 times year-on-year, and R&D investment will increase by more than 1.5 times year-on-year. The data will continue to grow. Up to now, the company has participated in a total of 34 national, industry and group standards, gradually establishing a leading position in the industry.”

Fei Zhi also revealed that the company's self-developed core battery swap products will soon be launched in batches and put into operation, with the advantages of high compatibility, intelligent non-destructive upgrades, and instant efficiency, and will cover more mainstream vehicle models by then. In addition, the company will create a new model of multi-energy complementary zero-carbon power port, and upgrade the battery swap station to a "super home port", with diversified functions such as energy supply, micro-grid energy storage, and high-end experience.

In March this year, GCL-ET successively announced that it had completed a private placement raising capital of RMB3.765 billion. The first phase of the CICC GCL Carbon Neutral Ten-billion Industrial Investment Fund was officially launched, which will not exceed RMB4.5 billion and will make the company's capital structure more optimized. The enhanced strength provides strong financial support for accelerating the deployment of mobile energy business. In April, the CICC GCL Carbon Neutrality Project settled in Zhuji, and will focus on the investment layout in the carbon neutral field including the GCL (Zhuji) Mobile Energy Project and other mobile energy ecological industries. This fully reflects the unanimous optimism of capital for the battery swap track under the intensive support of policies, as well as the recognition of the company's strategic layout and development prospects.