Hunan Development Group Co., Ltd.

In 2024, it is a crucial year for the implementation of the goals and tasks set out in the 14th Five-Year Plan. Over the past year, the company has consistently been guided by Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era, focusing on the goal of "enhancing core competitiveness and promoting high-quality development." Adhering to the general tone of steady progress, we have vigorously optimized our corporate governance structure and fully implemented our development strategy and key annual tasks. During the reporting period, the company achieved operating revenue of 336,788,900 yuan, a year-on-year increase of 15.15%; net profit attributable to shareholders of the listed company was 67,802,000 yuan, up 37.07% year-on-year. As of the end of 2024, the total assets of the company were 3,441,060,700 yuan, total liabilities were 269,554,300 yuan, with a debt-to-asset ratio of 7.83%, indicating a sound financial condition. (1) Clean energy 1. Hydropower generation According to statistics from the company's water system, the total water inflow to Zhuzhou Hydropower Station increased by 83.67% compared to the same period last year, while the total water inflow to Mangdian Company increased by 118.24%, and the total water inflow to Niaorenao Company increased by 115.13%. At Zhuzhou Hydropower Station on the main stream of the Xiang River in Zhuzhou County, the power generation utilization hours of the generating units were 5,236 hours, far exceeding the provincial average. During the reporting period, Zhuzhou Hydropower Station cumulatively generated 78,535.00 million kWh of electricity, achieving an online power output of 77,275.88 million kWh, an increase of 15.54% year-on-year; Mangdian Company cumulatively generated 28,214.64 million kWh of electricity, achieving an online power output of 27,879.31 million kWh, an increase of 57.74% year-on-year; Niaorenao Company cumulatively generated 3,903.41 million kWh of electricity, achieving an online power output of 3,846.91 million kWh, an increase of 61.69% year-on-year.As of December 31,2024, Zhuzhou Hydropower had been operating safely for 7,100 days, Bird Nest Company for 5,990 days, and Mangdian Company for 8,858 days. During the reporting period, the company continued to focus on the energy industry. Hunan Development Kongzhou Island Company invested in the construction of Zhuzhou Aviation and Power Hub (Kongzhou Hydropower Station) expansion project, which planned to add a bulb turbine unit with an installed capacity of 35MW. The project approval, project engineering, equipment and installation bidding work have been completed. 2. Photovoltaic power generation While adhering to the main business of hydropower, the company focuses on the "double carbon" goals and continues to optimize its business layout, actively promoting the photovoltaic power generation business. The company's Nanzhou Industrial Park rooftop distributed photovoltaic project completed a power generation of 377.09 million KWH during the reporting period, achieving an on-grid power generation of 371.95 million KWH. To coordinate the development of new energy projects, in line with the company's strategic plan to "strengthen and optimize core energy business," during the reporting period, the company invested in establishing two wholly-owned subsidiaries: Hunan Development New Energy and Hunan Development Xiaochu New Energy. Among these, the 3.55MW distributed photovoltaic project at Louxing Industrial Development Zone, invested by Hunan Development New Energy, is scheduled to achieve full capacity grid connection by March 2025. The 2.08MW distributed photovoltaic project at Xiangxi Northwest Auto City in Changde and the 6MW distributed photovoltaic project at Guozisulu in Zhuzhou Economic Development Zone have both commenced construction. The 80MW tea-light complementary photovoltaic project at Zhuoda Jingu Entrepreneurship Park in Xiangyin County is currently undergoing relevant filing procedures. Additionally, the 80 MW tea-light complementary photovoltaic project at Bailian Town, Hengdong County, invested by Hunan Development Xiaochu New Energy, has been approved by the board of directors. Furthermore, in 2023, the company signed an "Exclusive Intention Cooperation Agreement" with various partners, securing a certain photovoltaic project in Qinghai through an advance payment of intention funds, which achieved full capacity grid connection by the end of 2024. Currently, the company is accelerating investment evaluation and strictly supervising defect elimination, rectification, and project completion. In the future, the company will further deepen the strategy of leading by point, strengthen the path from small to large, optimize the rolling promotion mechanism, build a three-level project echelon of "short-term implementation, medium-term reserve and long-term planning", continue to deeply cultivate distributed and centralized photovoltaic development inside and outside the province, and inject strong momentum into green and low-carbon development. (2) Natural resources During the reporting period, the external environment facing the sand and gravel industry underwent significant changes. On the supply side, large-scale sand and gravel mines along the Yangtze River and other areas gradually came into operation, with some mining areas increasing their efforts in natural sand extraction. Northern natural mountain sand and river sand were transported by sea to the Yangtze River Delta. On the demand side, the real estate and infrastructure construction sectors were in a phase of investment growth rate adjustment, with some regional markets showing trends of optimized project construction cycles, leading to lower sand and gravel demand. During the reporting period, Hunan Development Yiyuan and its subsidiary, Hunan Qionghu Building Materials Sales, sold a total of 108.54 million tons of products including river sand, river pebbles, and manufactured sand. Among these, the manufactured sand processing plant invested and constructed by Hunan Qionghu Building Materials has completed its construction tasks and passed the project completion inspection, and is currently operating according to plan.