BECE forecasts sharply higher H1 profit

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The Chinese renewables developer partly attributed the expected profit surge to higher sales of electricity from its solar projects and wind farms throughout China. Its solar EPC services business also performed well in the first six months of the year, according to a statement to the Hong Kong stock exchange.

It recorded an unaudited consolidated net profit attributable to shareholders of roughly HK$65.8 million ($8.4 million) in the first half of 2016. Earlier this year, it posted a net profit attributable to shareholders of HK$529.2 million for the 12 months to the end of December 2016, up sharply from a profit of roughly HK$38.5 million in 2015.

BECE has made renewables development its core business since moving into the sector in 2015. It also retains a smaller cigarette packaging business, which accounted for just 5.8% of its consolidated revenue in 2016, from approximately 83% in 2015.

“It is expected that the contribution to the group attributable to the cigarette packaging business will be further reduced and insignificant,” it said this week, adding that it is considering selling off the packaging unit.

Meanwhile, the company has continued to diversify beyond PV development this year. Earlier this month, for example, it agreed to set up a CNY 720,000,000 ($107.96 million) venture to build and operate wind farms.

In July, Beijing Enterprises Photovoltaic Development — an indirect wholly owned subsidiary of the BECE group — bought a 0.31% stake in Sichuan Jinyu Automobile City for about CNY 9,065,932 ($60.5 million) through the open market of the Shenzhen stock exchange. BECE also revealed plans in July to generate electricity from unspecified solar arrays it has built at water-treatment facilities owned by Beijing Enterprises Water Group (BEWG).

And at the beginning of this year, the BECE group — which was operating 945.88 MW of solar capacity at the end of December 2016, from just 510 MW a year earlier — revealed that it had started building a massive 200 MW solar project in central China’s Anhui province.

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