This week's major events in the carbon market: There are new developments in the allegations of improper reduction of holdings by Gao Ling in the Longi incident; EVE Energy and Yunda have released their 2023 performance reports; Apple will increase its investment in clean energy and water resource projects worldwide.

Title: Summary | Compiled by Xue Yuting

Editor: Snow Xiaowan

HHLR, a subsidiary of Hillhouse Capital, proactively repurchased 1.28 million shares of LONGi Green Energy stock.

On April 19th, LONGi Green Energy announced that its shareholder, HHLR Management Co., Ltd., issued a "Brief Statement of Equity Changes," indicating an increase in LONGi Green Energy shares and committing to repurchase all subject-to-registration shares within one month.

On the day of the announcement, HHLR completed its first repurchase by acquiring 1.2813 million shares through centralized bidding, raising its ownership to 5%.

HHLR stated its cooperation with the China Securities Regulatory Commission's investigation since receiving the filing notice. In line with regulatory spirit, it pledged to continue increasing its LONGi Green Energy shares using self-raised funds and repurchase all subject-to-registration shares within the next month. Any proceeds from this repurchase will be owned by the listed company.

According to market sources, as an independent dollar secondary market investment management platform under Hillhouse, HHLR has recently raised a fund of about $6 billion to increase its allocation of Chinese assets and continue investing in the A-share market. Market observers believe that Hillhouse's increased investment in A-shares not only demonstrates its commitment to ongoing investment in China but also benefits market activity, boosting investor confidence. (Source: Xinhua Finance, Huaxia Energy Network)

EVE Energy's net profit in 2023 exceeds 15% year-on-year growth.

On the evening of April 18th, domestic battery manufacturer EVE Energy Co., Ltd. released its 2023 annual report. In 2023, the company achieved operating income of 48.784 billion yuan, a year-on-year increase of 34.38%; net profit attributable to shareholders was 4.05 billion yuan, up 15.42% year-on-year; and operating net cash flow reached 8.676 billion yuan, with a year-on-year growth rate of 203.34%.

Last year, according to relevant statistics, EVE Energy's domestic market share of power batteries was 4.45%, ranking fourth domestically, an increase of two places from 2022, with a market share increase of 2.01%. The shipment volume of energy storage battery cells has ranked third globally for two consecutive years.

EVE Energy stated that in 2024, the company's focus in the field of power batteries is on improving quality, aiming to achieve the highest delivery level in the industry and increase market share. In the field of energy storage batteries, efforts will be made to further increase delivery volume this year and next year, gradually increase the proportion of pack and system deliveries starting this year. (Source: The Paper)

Yunda Holdings: Annual net profit in 2023 reaches 414 million yuan, a year-on-year decrease of 32.84%.

On April 19th, Yunda Holdings released its 2023 annual performance report. The company achieved operating income of 18.727 billion yuan, a year-on-year increase of 7.72%, with a net profit attributable to shareholders of 414 million yuan, a year-on-year decrease of 32.84%. Operating net cash flow amounted to 1.769 billion yuan, up more than 8.18 times year-on-year, and the asset-liability ratio was 84.63%, up 1.74 percentage points year-on-year.

The company's sales gross margin was 13.70%, down 4.07 percentage points year-on-year, achieving basic earnings per share of 0.60 yuan, down 40.00% year-on-year, and diluted return on net assets of 7.90%, down 4.80 percentage points year-on-year. The total research and development expenses amounted to 656 million yuan, with research and development expenses accounting for 3.50% of operating income, up 0.23 percentage points year-on-year. (Source: Interface News)

Apple to increase investment in clean energy and water resource projects globally.

On April 17th, Apple announced plans to increase investment in clean energy and water resource projects globally, aiming to achieve carbon neutrality throughout its entire value chain by 2030. Apple stated that its global operations and manufacturing supply chain already use over 18 gigawatts of clean energy, more than triple the amount in 2020. Apple will invest in new solar projects in the US and Europe.

Apple continues to work towards another goal: by 2030, compensating 100% of the freshwater consumed by the company's operations in water-stressed areas. Efforts include launching new collaborative projects to provide nearly 7 billion gallons (about 26.5 million tons) of freshwater benefits over the next 20 years through measures such as replenishing soil moisture and rivers, as well as funding access to drinking water.

Apple suppliers saved over 12 billion gallons (about 45.42 million tons) of freshwater last year. Since launching its supplier clean water program in 2013, Apple has saved a total of 76 billion gallons (about 287 million tons) of freshwater. (Source: Sina Technology)

Penetration rate of new energy passenger vehicles exceeds 50% for the first time, surpassing traditional fuel vehicles.

On April 20th, it was reported that in the first half of April, the retail penetration rate of new energy passenger vehicles in China exceeded 50% for the first time. According to data from relevant departments of the China Automobile Dealers Association, from April 1st to 14th, the retail sales of new energy passenger vehicles in China reached 260,000 units, a year-on-year increase of 32%. In the first half of April, the retail penetration rate of new energy passenger vehicles was 50.39%, surpassing traditional fuel vehicles for the first time.

Over the past two decades, the development of new energy vehicles in China has been remarkable. It took ten years from 2005 to 2015 for the penetration rate of new energy vehicles in China to exceed 1%. Although the penetration rate of new energy vehicles reached 5% from 2016 to 2019, fuel vehicles still dominated the market. 2020 was a turning point, with China setting a target for the penetration rate of new energy vehicles to exceed 50% by 2035. Subsequently, the penetration rate of new energy vehicles in China experienced an explosive growth, surpassing 14% in 2021, 27% in 2022, and 33% in 2023. (Source: CCTV News)

Tesla to implement a global workforce reduction of 10%.

On April 15th, Elon Musk sent an email to all employees indicating that Tesla would soon implement a 10% reduction in its global workforce.

Elon Musk stated that with the rapid growth of the company and the rapid expansion of factories around the world, some positions and job functions in certain areas have become redundant. In preparing for the next growth phase, reducing costs and increasing productivity is a top priority, and layoffs will enable Tesla to maintain a lean, innovative, and ambitious approach as it enters the next phase of growth.

In recent years, Tesla's hiring pace has slowed down. Data shows that in 2022, Tesla added 29,000 new employees, while in 2023, this number decreased to 12,000. Currently, Tesla has a global workforce of 140,000 people.

In the first quarter of 2024, Tesla's global delivery volume was 386,800 vehicles, significantly lower than the previously predicted 430,000 vehicles, with a year-on-year decline of 8.3% and a quarter-on-quarter decline of as much as 20.1%. This is also the first quarter-on-quarter decline in Tesla's delivery volume since 2020. (Phoenix Network)

CATL Deepens Cooperation with Volvo on Battery Closed-loop Management

According to 36Kr, on April 16, Volvo Cars and CATL signed a strategic cooperation memorandum aimed at deepening their cooperation in sustainable development.

According to the agreement, Volvo Cars will recycle retired and waste batteries, handing them over to downstream suppliers certified by Volvo Cars for recycling and processing to extract metals such as nickel, cobalt, and lithium. CATL will then use these recycled materials to produce new batteries, which will be used in the production of new Volvo Cars.

The two parties will also jointly establish an efficient, collaborative, and transparent management mechanism to ensure that the entire recycling and production process meets the quality requirements of both parties and complies with the legal requirements of various regions worldwide.

Sichuan Explores Hydrogen-powered Vehicles to Travel Toll-free on Highways

On April 16, the Sichuan Provincial Government held a meeting to further promote the development and application of the entire green hydrogen industry chain. It revealed a signal: Sichuan will support the hydrogen energy industry with extraordinary and maximum efforts, guided by applications, leveraging resource advantages, breaking through bottlenecks, and promoting high-quality development of the entire green hydrogen industry chain.

The relevant person in charge of the Sichuan Provincial Department of Transportation stated that the next step will actively explore policy space, increase guidance efforts, explore toll-free highways for hydrogen-powered vehicles, encourage municipal governments to lift restrictions on hydrogen-powered trucks in urban areas, and encourage cities with conditions to promote the overall renewal of hydrogen energy equipment.

Regarding the high cost of hydrogen use and the lack of infrastructure such as hydrogen refueling stations, the relevant person in charge of the Sichuan Development and Reform Commission stated that Sichuan will explore off-grid electrolysis for hydrogen production, and will coordinate the planning and construction of hydrogen refueling stations and charging infrastructure. Subsidies will be provided for hydrogen refueling stations in accordance with charging infrastructure. (First Financial)

Seven Ministries, Including the Ministry of Natural Resources, Jointly Issue Documents to Further Strengthen the Construction of Green Mines

On April 16, the Ministry of Natural Resources, the Ministry of Ecology and Environment, the Ministry of Finance, the State Administration for Market Regulation, and other seven departments jointly issued the "Notice on Further Strengthening the Construction of Green Mines," requiring comprehensive promotion of green mine construction and accelerated green and low-carbon transformation and development of the mining industry.

It is specified to formulate "Requirements for Dynamic Management of Green Mine Directory," promote the establishment of a dynamic management mechanism with "in and out" for the green mine directory, and clarify various situations for removal from the directory. Existing green mines will be subject to on-site inspections of not less than 10% of the proportion annually in accordance with the "double random, one public" requirement. Green mine construction will be incorporated into the government performance evaluation system and the evaluation index system for the departure audit of leading cadres' natural resource assets.

Mine enterprises are encouraged to adopt advanced and applicable technologies, strengthen the upgrading and transformation of green and low-carbon technology and equipment, use information technology to promote intelligent and green development. The direction of incentive support policies for green mines is put forward, requiring localities to actively implement tax preferential policies and encourage innovative support policies. The responsibilities of relevant departments such as natural resources and ecology and environment are clarified, communication and coordination mechanisms are improved, division of labor and cooperation are promoted, and daily supervision of green mines is strengthened jointly. (Workers' Daily)

The United States Establishes Special Working Group on Climate and Trade to Address Commercial and Manufacturing Emissions Issues

On April 17, John Podesta, a senior advisor to the White House, stated that the United States will establish a new trade special working group aimed at reducing global carbon emissions from commerce and manufacturing. The new special working group will focus on addressing carbon leakage, dumping, and emissions related to upstream manufacturing and production. Podesta will replace John Kerry as the U.S. Special Presidential Envoy for Climate.

It is reported that the special working group will also ensure that carbon emission data can be used to implement U.S. climate and trade policies, including measures to promote high standards for common measurement and lifecycle emissions. The group will also deepen dialogue with allies and partners from around the world, including the UK, Australia, the EU, and others. (Sina Finance)