高端制造
HSE & Quality
Chairman's Statement
Extracted from Annual Report 2023
Dear Fellow Shareholders,
On behalf of the Board of Directors (the "Board"), I am
delighted to present our annual report for the financial year
ended 31 December 2023 ("FY2023").
Sunpower achieved substantial growth in FY2023
The operational landscape improved in FY2023 following
the various challenges of the 3-year pandemic faced by the
Group. Domestic consumption improved in industries where
the GI business has industrial steam customers, such as basic
consumer goods (namely food and clothing1, and textiles2) and
hospitality3. Further, the feedstock market witnessed relative
stability in pricing4 as the balance of supply and demand
gradually improved5.
Despite the mixed macro-environment still fraught with
potential complications, the GI business demonstrated not
only resilience but also made progress. Sunpower leveraged
on its proven GI Business Model and continued to apply
refined management practices to the GI projects to achieve an
encouraging performance with substantial growth in FY2023.
By the close of FY2023, the Group had a sizeable portfolio of
11 operational GI projects with Shanxi Xinjiang Project newly
put into commercial operation. It also achieved key milestones
in the continued development of certain projects, as Yongxing
Plant's general solid waste JV plant is in trial operation, and
Jining Project has put part of its Phase 2 pipelines into use.
Further, the completed addition of natural gas boilers by
Lianshui Project and the ongoing addition of biomass boilers
by Quanjiao Project cater to our customers' growing demand
for clean industrial steam while providing more high quality
industrial services.
With its encouraging performance and strong execution during
the year, FY2023 marked a breakthrough for Sunpower. Total
steam sales surpassed 10 million tons and GI recurring revenue
exceeded RMB 3 billion for the first time, a positive trajectory
for the company.
Profitability of GI business remained strong and grew faster than the growth in steam sales volume and revenue
In FY2023, GI recurring EBITDA6 rose 58.0% to
RMB944.8 million and GI recurring PATMI7 rose 114.9% to
RMB340.0 million. The profitability of the GI business
surpassed the growth rates of both steam sales volume and
revenue.
This encouraging financial performance also extended to GI
operating cash flow, which rose 45.0% to RMB527.9 million.
The solid results are attributed to a comprehensive set of
factors such as resilient demand for clean industrial steam in
the projects' coverage areas, the effective ramping up of the
GI projects, the emergence of beneficial economies of scale, a
well-implemented price adjustment mechanism, and strategic
technological upgrades and refined management practices in
many aspects.
Looking ahead, Sunpower remains strategically focused on
the continuous ramping up of existing GI projects to unlock
potential opportunities for future growth. Its growth strategy
is anchored in its adaptable business model and structural
growth drivers, including the relocation of enterprises to
industrial parks served by the GI projects, organic customer
growth and ramp-up, the long-term structural expansion of
industrial parks that either have strong economic viability in
economically developed areas or have industry clusters of
excellence, and the ongoing closures of small dirty boilers.
Meanwhile, the Company will continue to evaluate pipelines
for quality projects with potential.
CB maturity date has been extended to April 2025, amongst other amendments
In FY2023, the Group has reached a consensus with its
Convertible Bond ("CB") holders to extend the maturity date
of the CBs by two years to April 20258. In a Special General
Meeting on 28 July 2023, shareholders approved the extension
of the CB maturity date amongst other amendments.
The redemption of the CBs is now at the top of the Group's
agenda. Sunpower is currently focusing on strategising and
exploring options to raise the required funds for redemption.
These options include but are not limited to seeking new
investors, raising additional equity or debt funding, carrying
out a strategic review of the Group's existing operations and
financials, and monetising certain GI projects. The Group
believes that the GI portfolio comprises valuable assets that
are of interesting potential to investors.
Appreciation
On behalf of the Board, I would like to thank our shareholders,
customers, and business partners for your continued trust and
support.
The Group remains focused on the improvement of shareholder
value. Sunpower Group is on track to realise its growth
potential with the focus on unlocking more potential value from
its valuable assets for its shareholders in the future.
Guo Hong Xin
Non-Executive Chairman
2 http://www.ce.cn/cysc/newmain/yc/jsxw/202401/30/t20240130_38885708.shtml
3 https://www.eeo.com.cn/2024/0202/634457.shtml
4 http://dsmv5.com/jijin/17829.html
5 https://baijiahao.baidu.com/s?id=1786053309250088261
6 For the definition of GI recurring EBITDA, please refer to the GI Financial Highlights page of the 2023 Annual Report.
7 For the definition of GI recurring PATMI, please refer to the GI Financial Highlights page of the 2023 Annual Report.
8 The maturity date of CBs has been extended to the later of (i) 3 April 2025; or (ii) if so elected by the Bondholders, the date that is the 15th Business Day after the date on which the Company's audited financial statements for 2024 are issued. For detailed information, please refer to the Circular to Shareholders in relation to the Proposed Amendments to the Convertible Bond Purchase Agreement and CB Terms and Conditions dated 11 July 2023.