Technology
ZENVIA Reports Q1 2024 Results
Published
4 months agoon
By
Normalized EBITDA of BRL 23.5 million
Strict cost control led G&A as % of revenues to 14.7% in Q1 24 from 17.6% in Q1 23
SÃO PAULO, July 15, 2024 /PRNewswire/ — Zenvia Inc. (NASDAQ: ZENV), the leading cloud-based CX solution in Latin America empowering companies to craft personal, engaging and fluid experiences throughout the customer journey, today reported its operational and financial metrics for the first quarter of 2024.
Cassio Bobsin, Founder & CEO of ZENVIA, said: “The highlight of this first quarter of 2024 was the soft launch of Zenvia Customer Cloud for select clients. This platform represents the future of our CX SaaS solutions and fulfills the plan outlined three years ago, in our IPO. Zenvia Customer Cloud is a unified multichannel solution that empowers B2C companies to sell more and serve better with full automation, integration and communication across the customer journey. With this solution fully deployed, we will be ready to unlock solid and profitable growth while gaining actionable insights about our customers with AI-enabled automation, boosting productivity for the whole journey.”
Shay Chor, CFO & IRO of ZENVIA, said: “Our first quarter 2024 results came in line with our expectations, with a combination of revenue growth and strict expense control that resulted in an EBITDA of BRL 23.5 million, allowing us to reaffirm our BRL 120 million to BRL 140 million guidance for 2024. Following our recent capital raise and debt refinance, which brought us closer to achieving an optimal capital structure to support our strategic objectives while maximizing shareholder value, we are now planning to finalize integrations, deliver growth and keep deleveraging the business. We appreciate your continued trust and support as we move ahead, committed to building a profitable and exciting future for Zenvia.”
Key Financial Metrics (BRL MM and %)
Q1 2024
Q1 2023
YoY
Total Active Customers(1)
13,257
13,292
-0.3 %
Revenues
212.6
179.0
18.8 %
Gross Profit
80.9
78.9
2.4 %
Gross Margin
38.0 %
44.1 %
-6.1p.p.
Non-GAAP Adjusted Gross Profit(2)
93.6
92.5
1.3 %
Non-GAAP Adjusted Gross Margin(3)
44.0 %
51.6 %
-7.6p.p.
Operating Loss (EBIT)
-9.4
-12.3
-23.9 %
Adjusted EBITDA(4)
13.4
7.8
71.6 %
Normalized EBITDA(5)
23.5
7.8
200.2 %
Loss for the Period
(55.9)
(16.8)
n.m.
Cash Balance
71.5
159.0
-55.0 %
Net cash flow from (used in) operating activities
(12.9)
99.6
n.m.
(1)
We define an Active Customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an Inactive Customer.
(2)
For a reconciliation of our Non-GAAP Gross Profit to Gross Profit, see Selected Financial Data section below.
(3)
We calculate Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by revenue.
(4)
For a reconciliation of our Adjusted EBITDA to Loss for the Period, see Selected Financial Data section below.
(5)
For a reconciliation of our Normalized EBITDA to Loss for the Period, see Selected Financial Data section below.
Highlights Q1 2024
Revenues totaled BRL 212.6 million, up 18.8% when compared to BRL 179.0 million in Q1 2023 as a result of both SaaS (+12% YoY) and CPaaS (+23%) expansion. CPaaS expanded SMS volumes mainly with large enterprises, while SaaS saw growth from both SMBs and large enterprises, with a stronger participation from the latter.Non-GAAP Adjusted Gross Profit of BRL 93.6 million was up 1.3% YoY while Non-GAAP Adjusted Gross Margin was down 7.6 percentage points to the expected level of 44.0% YoY as highlighted in our guidance for 2024. This decrease is due to:(i) Higher mix of CPaaS in the period, mainly from large enterprises with lower margins; and(ii) Lower SaaS margins, which also grew in large enterprises with lower margins, combined with an increase in infrastructure costs related to the final phase of integration of acquired companies.Total number of active customers remained unchanged at 13.3k, being 7.1k from SaaS and 6.5k from CPaaS.Normalized EBITDA was positive BRL 23.5 million in the quarter, up 200.2% from Q1 2023, benefited by higher revenues and expense control.On March 11, 2024, we soft launched Zenvia Customer Cloud for select clients. The platform will be rolled out to the whole client base throughout the year. Zenvia Customer Cloud is a unified, multichannel solution that centralizes and stores customer data, facilitating management, communication, and relationship building with end consumers, enabling companies to manage and provide personalized, engaging, and seamless experiences across the customer journey.
Subsequent Events
By the end of April 2024, Zenvia raised R$ 40 million in additional funding with local Brazilian banks, following the liabilities management announced in February.On May 2, 2024, Zenvia announced the hiring of Mr. Gilsinei (Gil) Hansen for the newly-created role of Chief Revenue Officer (CRO), reporting to Cassio Bobsin. The new role was created to consolidate the current segments into one single Business area which will be responsible for the entire customer journey. The new area will be organized by customer profile/segment instead of by solution/product, with a focus on strengthening the Company’s integrated offering, improving experiences for all customers, and driving profitable growth. Mr. Hansen will also oversee two important growth initiatives: the rollout of Zenvia Customer Cloud and the Company’s international expansion.On June 20, 2024, Zenvia launched its Generative AI Chatbot. A game-changing solution that revolutionizes chatbot development, making it as simple and intuitive as a personal interaction and accessible to businesses of all sizes looking to improve and automate customer service. Key highlights include easy customization and efficient integration with multiple communication channels, ensuring a superior solution for all customer needs.
SaaS Business
SaaS Key Operational & Financial Metrics (BRL MM and %)
Q1 2024
Q1 2023
YoY
Revenues
76.8
68.6
12.0 %
Gross Profit
30.6
32.9
-7.1 %
Gross Margin
39.8 %
48.0 %
-8.2p.p.
Non-GAAP Adjusted Gross Profit (1)
43.4
46.4
-6.6 %
Non-GAAP Adjusted Gross Margin(2)
56.4 %
67.7 %
-11.3p.p.
Total Active Customers(3)
7,139
6,446
10.8 %
(1)
For a reconciliation of the Non-GAAP Adjusted Gross Profit of our SaaS business segment to Gross Profit of our SaaS business segment, see Selected Financial Data section below.
(2)
We calculate Non-GAAP Adjusted Gross Margin of our SaaS business segment as Non-GAAP Gross Profit of our SaaS business segment divided by revenue of our SaaS business segment.
(3)
We define an Active Customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an Inactive Customer.
In Q1 2024, our SaaS business Revenue went up 12.1% YoY to BRL 76.8 million, compared to BRL 68.6 million in Q1 2023. The client base increased by 11%. SaaS saw growth from both SMBs and large enterprises, with a stronger participation from the latter.
As a result, Q1 2024 Non-GAAP Adjusted Gross Profit was down 6.6% YoY to BRL 43.4 million from BRL 46.4 million. The increase in revenues mainly from large enterprises that carry lower margins, coupled with an increase in infrastructure costs related to the final phase of integration of the acquired companies, and our expansion plans, resulted in lower Non-GAAP Adjusted Gross Margin from SaaS, down 11.3 percentage points YoY to 56.4%, reaching our expected target margin for SaaS for the period.
CPaaS Business
CPaaS Key Operational & Financial Metrics (BRL MM and %)
Q1 2024
Q1 2023
YoY
Revenues
135.8
110.5
23.0 %
Non-GAAP Adjusted Gross Profit (1)
50.3
46.0
9.3 %
Non-GAAP Adjusted Gross Margin(2)
37.0 %
41.7 %
-4.7p.p.
Total Active Customers(3)
6,458
7,358
-12.2 %
(1)
For a reconciliation of the Non-GAAP Adjusted Gross Profit of our CPaaS business segment to Gross Profit of our CPaaS business segment, see Selected Financial Data section below.
(2)
We calculate Non-GAAP Adjusted Gross Margin of our CPaaS business segment as Non-GAAP Gross Profit of our CPaaS business segment divided by revenue of our CPaaS business segment.
(3)
We define an active customer as an account (based on a corporate taxpayer registration number) at the end of any period that was the source of any amount of revenue for us in the preceding three months. We classify a customer from which we generated no revenue in the preceding three months as an inactive customer.
Our CPaaS business reported Net Revenues of BRL 135.8 million in Q1 2024, up 23.0% YoY, while Non-GAAP Gross Profit increased 9.3% YoY to BRL 50.3 million from BRL 46.0 million. Non-GAAP Gross Margin reached 37.0% to our expected target margins, compared to 41.7% mainly due to the higher concentration of large enterprises in the revenue mix. We were able to maintain the SMS volumes recovered from certain large clients in H2 2023.
Consolidated Financial Results
Revenue
Consolidated revenues in Q1 2024 totaled BRL 212.6 million, up 18.8% YoY, mainly reflecting the 23.0% increase in CPaaS and 12.0% in SaaS.
Profitability
Our Non-GAAP Adjusted Gross Profit increased 1.3% YoY in Q1 2024 to BRL 93.6 million, mainly reflecting the 9.3% increase in CPaaS Non-GAAP Adjusted Gross Profit, which has lower margins than SaaS, and which was offset by the decrease in SaaS Non-GAAP Adjusted Gross Profit. Non-GAAP Adjusted Gross Margin went down by 7.6 p.p. to 44.0% in Q1 2024 from 51.6% in Q1 2023, reflecting the higher CPaaS participation in the revenue mix, from 61.7% in Q1 2023 to 63.9% in Q1 2024 and the lower margins in SaaS, as it expanded more with large enterprise customers. The 44.0% margin level is within our guidance range for 2024.
Adjusted EBITDA in Q1 2024 was positive BRL 13.4 million, compared to BRL 7.8 million in Q1 2023. The 71.6% increase is mainly due to higher revenues and stricter expense control. Additionally, our Adjusted EBITDA included earn-out expenses of R$10.1 million, related to the last renegotiations of earn-out payments, without cash impact for Q1 2024. Our Normalized EBITDA, which excludes the earn-out expenses impact, totaled R$23.5 million, up 200.2% YoY.
Reiterating FY 2024 Guidance
FY 2024 Guidance
Revenue
BRL$930 – $970 million
Y/Y Growth
15% – 20%
Non-GAAP Adjusted Gross Margin
42% – 45%
Normalized EBITDA
BRL$120 – $140 million
Conference Call
In the following week, the Company will upload the presentation and pre-recorded remarks to its investor relations website. The IR team will be available for any questions.
Additional information regarding Zenvia can be found at https://investors.zenvia.com.
Contacts
Investor Relations
Caio Figueiredo
Fernando Schneider
Media Relations – FG-IR
Fabiane Goldstein – (954) 625-4793 – fabi@fg-ir.com
About ZENVIA
Zenvia (NASDAQ: ZENV) is a technology company dedicated to creating a new world of experiences. It focuses on enabling companies to create personalized, engaging and fluid experiences across the entire customer journey, all through its unified, multi-channel customer cloud solution. Boasting two decades of industry expertise, over 13,000 customers and operations throughout Latin America, Zenvia enables businesses of all segments to amplify brand presence, escalate sales, and elevate customer support, generating operational efficiency, productivity and results, all in one place. To learn more and get the latest updates, visit our website and follow our social media profiles on LinkedIn, Instagram, TikTok and YouTube.
Forward-Looking Statements
The preliminary fourth quarter and full year operating results set forth above are based solely on currently available information, which is subject to change. These preliminary operating results constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections, as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Zenvia’s control. Zenvia’s actual results could differ materially from those stated or implied in forward-looking statements due to several factors, including but not limited to: our ability to innovate and respond to technological advances, changing market needs and customer demands, our ability to successfully acquire new businesses as customers, acquire customers in new industry verticals and appropriately manage international expansion, substantial and increasing competition in our market, compliance with applicable regulatory and legislative developments and regulations, the dependence of our business on our relationship with certain service providers, among other factors.
SELECTED FINANCIAL DATA
The following selected financial information are preliminary, unaudited and are based on management’s initial review of operations for the first quarter of 2024.
INCOME STATEMENT
Q1
2024
2023
Variation
(non-audited)
(restated)
(in thousands of R$)
( %)
Revenue
212,636
179,047
18.8 %
Cost of services
(131,779)
(100,098)
31.6 %
Gross profit
80,857
78,949
2.4 %
Selling and marketing expenses
(27,359)
(27,442)
-0.3 %
General and Administrative expenses
(31,270)
(31,447)
-0.6 %
Research and development expenses
(14,796)
(14,004)
5.7 %
Allowance for expected credit losses
(5,431)
(18,269)
-70.3 %
Other income and expenses, net
(11,353)
(83)
n.m.
Operating loss
(9,352)
(12,296)
-23.9 %
Financial expenses
(65,487)
(18,724)
249.7 %
Finance income
5,283
2,625
101.3 %
Financial expenses, net
(60,204)
(16,099)
274.0 %
Loss before taxes
(69,556)
(28,395)
145.0 %
Deferred income tax and social contribution
16,083
11,846
35.8 %
Current income tax and social contribution
(2,420)
(218)
1010.1 %
Loss for the period
(55,893)
(16,767)
233.4 %
Loss for the period attributable to Owners of the Company
(56,011)
(16,839)
232.6 %
Non-controlling interests
118
72
63.9 %
BALANCE SHEET
31-Dec-23
31-Mar-24
(audited)
(non-audited)
Assets
Current assets
250,331
294,438
Cash and cash equivalents
63,742
71,525
Trade and other receivables
148,784
171,905
Tax assets
28,058
34,983
Prepayments
5,571
9,063
Other assets
4,176
6,962
Non-current assets
1,461,233
1,469,158
Restricted Cash
6,403
6,578
Tax assets
–
12
Prepayments
1,109
865
Financial Investment
–
–
Property, plant and equipment
14,413
14,518
Intangible assets and goodwill
1,347,327
1,339,121
Deferred Tax Assets
91,971
108,054
Other Assets
10
10
Total assets
1,711,564
1,763,596
31-Dec-23
31-Mar-24
(audited)
(non-audited)
Liabilities
Current liabilities
607,374
585,153
Loans, borrowings and Debentures
36,191
33,696
Derivative financial instruments
Trade and other payables
353,998
367,851
Liabilities from acquisitions
134,466
96,963
Tax liabilities
18,846
16,779
Employee benefits
50,085
59,257
Lease liabilities
2,056
2,314
Deferred revenue
11,547
8,156
Taxes to be paid in installments
185
137
Non-current liabilities
215,243
340,923
Liabilities from acquisitions
160,237
193,919
Trade and other payables
–
–
Loans, borrowings and Debentures
51,605
59,844
Lease liabilities
752
2,004
Provisions for tax, labor and civil risks
1,721
1,412
Taxes to be paid in installments
313
302
Employee Benefits
615
1,036
Derivative financial instruments
–
82,406
Equity
888,947
837,520
Capital
957,525
1,007,522
Reserves
247,464
199,627
Translation reserve
3,129
5,419
Accumulated losses
-319,591
-375,602
Other components of equity
283
283
Non-controlling interests
137
271
Total equity and liabilities
1,711,564
1,763,596
Q1
2024
(non-audited)
2023
(restated)
(in thousands of R$)
Net cash from (used in) operating activities
-12,865
99,560
Net cash used in investing activities
-12,429
-2,703
Net cash from (used in) financing activities
33,334
-38,366
Exchange rate change on cash and cash equivalents
-257
288
Net (decrease) increase in cash and cash equivalents
7,783
58,779
Interest
December 31, 2023
(audited)
March
31, 2024
(non-audited)
(in thousands of R$)
Working capital
100% CDI+2.51% to 6.55%
69,667
76,161
Debentures
18.16 %
18,129
17,379
Total
87,796
93,540
Special Note Regarding Non-GAAP Financial Measures
This press release presents certain Non-GAAP financial measures, which are not recognized under IFRS, specifically Non-GAAP Adjusted Gross Profit, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Profit for our SaaS business segment, Non-GAAP Adjusted Gross Profit for our CPaaS business segment, Non-GAAP Adjusted Gross Margin for our SaaS business segment, Non-GAAP Adjusted Gross Margin for our CPaaS business segment, Adjusted EBITDA and Normalized EBITDA. A Non-GAAP financial measure is generally defined as one that purports to measure financial performance but excludes or includes amounts that would not be so adjusted in the most comparable GAAP measure. Non-GAAP financial measures do not have standardized meanings and may not be directly comparable to similarly-titled measures adopted by other companies. These Non-GAAP financial measures are used by our management for decision-making purposes and to assess our financial and operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. We also believe that the disclosure of our Non-GAAP Adjusted Gross Profit, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Profit for our SaaS business segment, Non-GAAP Adjusted Gross Profit for our CPaaS business segment, Non-GAAP Adjusted Gross Margin for our SaaS business segment, Non-GAAP Adjusted Gross Margin for our CPaaS business segment, Adjusted EBITDA and Normalized EBITDA. Flow provides useful supplemental information to investors and financial analysts and other interested parties in their review of our operating performance. Potential investors should not rely on information not recognized under IFRS as a substitute for the IFRS measures of earnings, cash flows or profit (loss) in making an investment decision.
The following table shows the reconciliation for our consolidated Non-GAAP Gross Profit and consolidated Non-GAAP Gross Margin:
Q1
Consolidated
2024
(non-audited)
2023
(restated)
(in thousands of R$)
Gross profit
80,857
78,949
(+) Amortization of intangible assets acquired from business combinations
12,785
13,511
Non-GAAP Gross Profit(1)
93,642
92,460
Revenue
212,636
179,047
Gross Margin(2)
38.0 %
44.1 %
Non-GAAP Gross Margin(3)
44.0 %
51.6 %
(1)
We calculate Non-GAAP Adjusted Gross Profit as gross profit plus amortization of intangible assets acquired from business combinations.
(2)
We calculate gross margin as gross profit divided by revenue.
(3)
We calculate Non-GAAP Adjusted Gross Margin as Non-GAAP Adjusted Gross Profit divided by revenue.
The following tables shows the reconciliation for the Non-GAAP Gross Profit and Non-GAAP Gross Margin for our SaaS and CPaaS business segments:
Q1
SaaS Segment
2024
(non-audited)
2023
(restated)
(in thousands of R$)
Gross profit
30,569
32,916
(+) Amortization of intangible assets acquired from business combinations
12,785
13,511
Non-GAAP Gross Profit(1)
43,354
46,427
Revenue
76,820
68,582
Gross Margin(2)
39.8 %
48.0 %
Non-GAAP Gross Margin(3)
56.4 %
67.7 %
(1)
We calculate Non-GAAP Adjusted Gross Profit for our SaaS business segment as gross profit for our SaaS business segment plus amortization of intangible assets acquired from business combinations for our SaaS business segment.
(2)
We calculate gross margin for our SaaS business segment as gross profit for our Saas business segment divided by revenue of our SaaS business segment.
(3)
We calculate Non-GAAP Adjusted Gross Margin for SaaS business segment as Non-GAAP Adjusted Gross Profit for our SaaS business segment divided by revenue for our SaaS business segment.
Q1
CPaaS Segment
2024
(non-audited)
2023
(restated)
(in thousands of R$)
Gross profit
50,300
46,033
(+) Amortization of intangible assets acquired from business combinations
0
0
Non-GAAP Gross Profit(1)
50,300
46,033
Revenue
135,816
110,462
Gross Margin(2)
37.0 %
41.7 %
Non-GAAP Gross Margin(3)
37.0 %
41.7 %
(1)
We calculate Non-GAAP Adjusted Gross Profit for our CPaaS business segment as gross profit for our CPaaS business segment plus amortization of intangible assets acquired from business combinations for our CPaaS business segment.
(2)
We calculate gross margin for our CPaaS business segment as gross profit for our CPaaS business segment divided by revenue of our CPaaS business segment.
(3)
We calculate Non-GAAP Adjusted Gross Margin for CPaaS business segment as Non-GAAP Adjusted Gross Profit for our CPaaS business segment divided by revenue for our CPaaS business segment.
The following table shows the reconciliation for our Adjusted EBITDA and Normalized EBITDA:
Q1
2024
(non-audited)
2023
(restated)
(in thousands of R$)
Loss for the period
-55,893
-16,767
Current and Deferred Income Tax
-13,663
-11,628
Financial expenses, net
60,204
16,099
Depreciation and Amortization
22,797
20,133
Adjusted EBITDA(1)
13,445
7,837
Earn-outs
10,081
–
Non-Recurring Events
–
–
Normalized EBITDA(2)
23,526
7,837
(1)
We calculate Adjusted EBITDA as loss for the period adjusted by income tax and social contribution (current and deferred), financial expenses, net, depreciation and the goodwill impairment.
(2)
We calculate Normalized EBITDA as the Adjusted EBITDA adjusted by non-recurring events and non-cash impacts from earn-out adjustments.
View original content:https://www.prnewswire.com/news-releases/zenvia-reports-q1-2024-results-302196864.html
SOURCE Zenvia
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VADODARA, India, Nov. 15, 2024 /PRNewswire/ — Deepak Chem Tech Limited plans to invest Rs 5000 Crores in Polycarbonate Project. Deepak Chem Tech Limited (DCTL) – a wholly owned subsidiary of Deepak Nitrite Limited, has approved to undertake a project for manufacturing Polycarbonate resins, proposed to be setup at the greenfield site located at Dahej, Gujarat, to produce 165,000 Metric Tonnes. The plant is expected to be commissioned by the fourth quarter of FY 2028. For this, Deepak Chem Tech Ltd. has entered into an agreement with Trinseo to acquire its Polycarbonate assets located at Stade, Germany along with technology license. The agreement also provides access to Trinseo’s globally recognized CALIBRETM resins and trademark.
Polycarbonate is amongst the most versatile emerging polymer finding extensive applications in automotive segments including electric mobility, electronics and electrical, construction, appliances, medical devices and other sunrise sectors such as aerospace, aviation, drones etc.
Commenting on the development, Shri Deepak C Mehta, Chairman and Managing Director of Deepak Nitrite Limited said, “This is historic collaboration between DCTL and Trinseo opens strategic opportunities for both the companies to explore partnerships in downstream compounds as well as complimentary technology tie-ups to service India’s burgeoning appetite for high quality engineering polymers. The tagline ‘Made in India‘ coupled with world scale capacities and formidable brand credibility, opens a new horizon of opportunities in the Advanced Materials front.”
Trinseo is a major manufacturer of engineering polymers and compounds with reported net sales of approximately $3.7 billion in 2023. Its engineering compound portfolio finds application with global, marque brands across industries.
About Deepak Nitrite Limited:
Deepak Nitrite Limited (NSE: DEEPAKNTR, BSE: 506401), India’s fastest growing Chemical Intermediates company, has a diversified portfolio that caters to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home, and personal care segments and Petro derivates intermediates -phenolics, acetone and IPA in India, and overseas. Its products are manufactured across seven locations, which are all accredited by Responsible Care. It is certified by Ecovadis, TfS and is part of the Nicer Globe Alliance. Focusing on a Triple Bottomline principle of People, Planet, Profit, Deepak Nitrite Ltd. deploys globally benchmarked standards & systems, we are now accredited ‘Silver Rating’ by EcoVadis in 2022, for sustainability initiatives.
View original content:https://www.prnewswire.com/in/news-releases/deepak-chem-tech-limited-to-invest-rs-5000-crores-to-acquire-polycarbonate-assets-of-trinseo-at-germany-302306049.html
Technology
Global Times: Illuminate roof of ‘Beautiful China’: Solar-powered rooftops transform countryside environments, boost rural revitalization efforts
Published
42 minutes agoon
November 15, 2024By
BEIJING, Nov. 14, 2024 /PRNewswire/ — The upper part of the Chinese character “home” resembles a roof, symbolizing a home can only exist with a roof over it.
Today, an increasing number of Chinese people are creating environmentally friendly landscapes on the roofs they cherish most, showcasing a tangible “Beautiful China” through their homes.
In early winter, at the foot of the Helan Mountains, the sun still brightly shines over the vast Gobi Desert. When people enter Yuanlong village of Minning town, Northwest China’s Ningxia Hui Autonomous Region, one can find rows of newly constructed agricultural residences with red tiles and white walls lining the road. From above, the blue photovoltaic panels glimmering on each red roof create a colorful mosaic under the sunlight.
Chinese people have aspired to convey their vision of harmony between heaven, earth, and humanity through architecture. Regarding the decision to install photovoltaic panels on the roof of her house, villager Zhang Hui told the Global Times that by installing photovoltaic panels on their roofs, they earn extra money, and the clean energy generated by the panels also gives them a channel to make their contribution to the country’s emissions reduction and energy conservation efforts.
“We want to further emphasize the harmonious coexistence of humanity and nature, embodying a characteristic of Chinese modernization through our roofs,” she said.
In recent years, China’s solar photovoltaic technology is emerging as a key component of China’s strategy to achieve its “dual carbon” goals, which aimed at achieving peak carbon emissions by 2030, and carbon neutrality by 2060.
The creation of this elevated landscape is a vivid representation of the Chinese people’s efforts in building a “Beautiful China” in all respects. In this revolutionary transformation that involving production methods, lifestyles, and values, countless individuals have keenly perceived that China is keeping pace with the times, making a sound, inclusive ecological environment for the well-being of the people.
Cash in on the sun
For the residents of the village, installing rooftop solar systems and earning money from sunlight has now become a source of joy. “Because when you look up, you can see your own roof, and it reminds you of the abundant harvest you have,” Zhang said.
Since 2016, Yuanlong village has successively built a 5-megawatt rooftop photovoltaic power station, supplied by photovoltaic panels on the roofs of over 1,635 immigrant households, accounting for nearly 96 of the village’s total households. As of March 2024, this initiative had earned a total of 40.22 million yuan ($ 5.5 million) in photovoltaic revenue for the village.
Since 2018, Zhang’s family has been renting the 54-square-meter rooftop to the power company, and the annual rental fee has increased from 300 yuan to 480 yuan as the power station has gradually entered a stable operating phase.
Beyond the tangible rental income, Zhang has also witnessed the thriving changes brought to her village by the rooftop photovoltaic power station program.
In 2020, the photovoltaic power station in Yuanlong village generated 850,000 yuan in revenue for the village collective. A portion of this revenue is distributed to villagers as rental fees, while another part is used as dividends for the village collective’s shares, funding various public welfare expenditures such as environmental sanitation improvements, major illness assistance for villagers, and education support.
The Global Times has learned how the rooftop solar systems program in Yuanlong village was operated: the local government attracts external investment to bid for the construction of a photovoltaic power station, guarantees a 100 percent buyback of the project’s output, ensuring that the village and its residents will receive 100 percent of profits during the 20-year operational period of the power station.
“Turning green, clean energy advantages into economic development advantages is a new concept for us,” said Ha Manpeng, 44, a villager from Yuanlong
Ha and many other villagers learned that the area they live has a high altitude, flat terrain and long sunlight hours, making it suitable for the installing of clean and efficient solar photovoltaic systems
“Simply retrofit the vacant roof, there will be a stable and long-term additional benefit. The manufacturers cooperating with the government will regularly send personnel to maintain, and regularly update the equipment, thus we have nothing to worry about,” Ha said.
Comfort life out of mountains
Zhang jokingly remarked that rooftop solar power generation has allowed the Yuanlong’s villagers to truly transition from a weather-dependent life to “making money from the weather.”
The over 10,000 villagers in Yuanlong were moved from another village – Xihaigu in 2012, which is a largely mountainous region that was labeled the “most unfit place for human settlement” by the United Nations in the 1970s due to land reclamation, drought, and a fragile ecological environment.
Ha recalled his childhood living in the village hidden in the folds of the mountains, where every household was plunged into darkness at night.
Over the past 40 years, Ningxia launched six large-scale resettlement schemes, moving some 1.23 million people from Xihaigu to more habitable areas. The relocation was part of the poverty alleviation drive, fulfilling many villagers’ desire for a comfortable life out of the mountains.
Having escaped the vicious cycle of ecological and survival crises, what kind of life and development path did the villagers of Xihaigu choose in their new homes?
Yuanlong village is one of the villages that has benefited early from the income generated by photovoltaic power stations. Ha was among the first residents to install solar panels on roof.
Initially, Ha’s personal experience with the five photovoltaic panels installed on his roof was simply that they provided shade on sunny days, and made the roof less prone to leaks on rainy days. As more households in the village adopted the solar rooftops, Ha witnessed a profound improvement in the living conditions of the villagers, along with an increase in their income.
As of November 2020, China had achieved the feat of delisting all 832 poverty-stricken counties. The development of photovoltaic power stations, as a typical model of industrial poverty alleviation, has contributed to this historic achievement.
According to China’s National Energy Administration, by the end of 2020, China had built photovoltaic power stations with a combined capacity of 26.36 million kilowatts, generating approximately 18 billion yuan in annual electricity revenue, and creating 1.25 million public welfare jobs.
When this clean, low-carbon, safe, and efficient energy enters the homes of ordinary people, it not only provides shelter through new types of rooftops for families, but also supports more Chinese people in achieving a moderately prosperous life. Many residents have come to realize that their choices contribute to the country’s energy conservation and emission reduction efforts.
They want to do even more.
“When I was a child, there was no electricity in my home, but now we can even produce electricity at home. In our village, people prefers to buy new energy vehicles. Waste sorting has become a habit for the villagers,” Ha said.
“When we go out traveling, the children can immediately ‘capture’ solar panels everywhere. They are also very happy to see that more and more villages began to install solar rooftops just like us,” Zhang added.
Green electricity town
Facing the changes in life, as an official of the Yuanlong village, Zhang’s focus has gradually shifted from the land owned by villagers to the cattle and sheep they raise, and the job opportunities available to them. Now, she is also gradually learning to consider all these key aspects within the context of the new era of development she is in.
Whenever representatives from enterprises and communities visit Yuanlong village, Zhang highlights the embroidery skills of the local women and the solar roofs they have.
One of Zhang’s proudest achievements this year has been helping to showcase and sell the village women’s embroidered crafts to a power supply company in Fuzhou, East China’s Fujian Province. She is very proud that this “green collaboration” has broken through regional limitations, built more bridges for communication between her village and the outside world, and empowered the development of local women.
With the official launch of the “green electricity town” project in Minning town in August 2023, which aims to create a new type of system demonstration area powered entirely by clean energy 24 hours a day, the project is expected to reduce carbon emissions by 48,000 tons annually once completed.
Zhang believes that the villagers in Yuanlong will have more opportunities to showcase their talents and felt gratified that she is living in a country that pays more attention to protecting the ecological environment.
At a national conference on ecological and environmental protection held in July 2023, Chinese President Xi Jinping has stressed efforts to promote the building of a Beautiful China in all respects and accelerate the advancement of modernization featuring harmony between human and nature.
The next five years is a crucial period for building a Beautiful China, which should be placed in a prominent position in building a great modern socialist country in all respects and advancing national rejuvenation, Xi said.
The country should support high-quality development with a high-quality ecological environment and promote the modernization featuring the harmonious co-existence between human and nature, he noted.
Looking up at her rooftop, Zhang eagerly awaits the completion of the “green electricity town.” She hopes it will build a stronger bridge connecting the common people’s dream of a better life with the country’s plans for emission reduction and energy conservation, leading to a more “Beautiful China.”
https://www.globaltimes.cn/page/202411/1323101.shtml
View original content:https://www.prnewswire.com/news-releases/global-times-illuminate-roof-of-beautiful-china-solar-powered-rooftops-transform-countryside-environments-boost-rural-revitalization-efforts-302306546.html
SOURCE Global Times
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Global Times: Illuminate roof of ‘Beautiful China’: Solar-powered rooftops transform countryside environments, boost rural revitalization efforts
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