Investment Rating - The report does not specify an investment rating for the company [4]. Core Insights - Jingneng Clean Energy is the largest gas power supplier in Beijing, with its gas power and heating segment contributing 61% of the company's revenue and 36% of its operating profit in 2023 [2]. - The company has a strong focus on renewable energy, with an expected increase in renewable energy installed capacity to 12.5GW by the end of 2024, up from 9.78GW in 2023 [2]. - The company emphasizes shareholder returns, with a dividend yield of 7.2%, which is the highest in the industry [3]. Summary by Sections Company Overview - Jingneng Clean Energy, a subsidiary of Jingneng Group, was listed on the Hong Kong Stock Exchange in 2011 and operates in various clean energy sectors including gas, wind, solar, and hydropower across 26 provinces [1][2]. Gas Power Segment - The gas power segment has an installed capacity of 4.7GW, accounting for over 40% of Beijing's gas power generation and heating supply [2]. - In 2023, gas power generation contributed 50% of the company's total generation, with sales agreements linked to the pricing guidelines from the Beijing Development and Reform Commission [2]. Renewable Energy Growth - The company has been increasing its investment in renewable energy projects, with wind power being the largest segment at 5.57GW and solar power at 3.8GW [2]. - Renewable energy generation accounted for 50% of the total generation in 2023, contributing 38% to the company's revenue and 73.9% to its operating profit [2]. Shareholder Returns - The company has a strong track record of returning value to shareholders, with cumulative dividends reaching 6.78 billion yuan since its listing and a rising dividend payout ratio from 24.5% in 2021 to 37.7% in 2023 [3]. - The operating cash flow was robust, reaching 11.27 billion yuan in 2022 and 9.43 billion yuan in 2023, supporting the company's high dividend policy [3]. Financial Metrics - The company's market capitalization is approximately 17.23 billion HKD, with a current share price of 2.09 HKD [4]. - The expected net profit for 2024 is projected to exceed 3 billion yuan, corresponding to a low PE ratio of 5.2 times, indicating potential for stock price appreciation [3].

Assets and Liabilities - As of March 31, 2024, the total current assets amounted to RMB 22,215,208,618.79, an increase from RMB 18,651,538,113.34 at the beginning of the period, reflecting a growth of approximately 8.4%[2] - The cash and cash equivalents stood at RMB 6,847,396,622.21, compared to RMB 2,580,107,266.11 at the beginning of the period, indicating a significant increase of approximately 165.5%[2] - Accounts receivable reached RMB 13,085,150,945.46, up from RMB 10,934,649,336.92, representing an increase of about 19.7%[2] - Non-current assets totaled RMB 74,645,016,173.24, slightly up from RMB 74,304,062,883.78, showing a marginal increase of approximately 0.5%[3] - The total assets of the company as of March 31, 2024, were RMB 96,860,224,792.03, compared to RMB 93,962,127,987.06 at the beginning of the period, reflecting an overall growth of about 3.1%[3] - The net value of fixed assets was RMB 50,405,053,298.74, down from RMB 51,050,729,246.11, indicating a decrease of approximately 1.3%[3] - The company reported a long-term equity investment of RMB 1,659,699,100.98, which is an increase from RMB 1,626,781,466.57, reflecting a growth of about 2%[3] - The inventory balance was RMB 93,199,809.69, compared to RMB 87,491,521.64 at the beginning of the period, indicating an increase of approximately 6.2%[2] - The company’s total liabilities were not explicitly stated in the provided documents, but the increase in total assets suggests a potential increase in liabilities as well[3] - Total current liabilities amounted to RMB 20,744,519,859.13, a decrease from RMB 21,549,405,112.92 at the beginning of the period, representing a reduction of approximately 3.74%[5] - Long-term borrowings increased to RMB 30,702,027,847.76 from RMB 28,345,007,316.01, reflecting a growth of about 8.25%[6] - Total liabilities reached RMB 60,832,787,777.37, up from RMB 59,268,683,414.05, indicating an increase of approximately 2.64%[6] - The total non-current liabilities were RMB 40,088,267,918.24, an increase from RMB 37,719,278,301.13, representing a growth of about 6.34%[6] Equity and Retained Earnings - The total equity attributable to shareholders of the parent company was RMB 35,169,208,846.24, compared to RMB 33,875,318,080.15 at the beginning of the period, marking an increase of around 3.81%[7] - The company's retained earnings rose to RMB 18,400,061,322.92 from RMB 17,071,313,388.87, showing an increase of approximately 7.76%[7] - The company maintained a stable capital structure with total equity of RMB 36,027,437,014.66, reflecting a solid financial foundation for future growth[7] Revenue and Profitability - Total operating revenue for the period reached RMB 6,516,358,013.58, representing an increase from RMB 6,325,730,599.39 in the previous period, a growth of approximately 3.02%[8] - Total operating costs amounted to RMB 5,134,329,217.49, slightly up from RMB 5,113,488,011.84, indicating a marginal increase of about 0.41%[8] - Operating profit for the period was RMB 1,647,966,183.25, compared to RMB 1,614,506,236.03 in the previous period, reflecting an increase of approximately 2.06%[9] - Net profit attributable to shareholders of the parent company was RMB 1,328,747,934.05, up from RMB 1,307,770,986.33, marking a growth of around 1.03%[9] - The company reported a total profit of RMB 1,672,709,842.67, compared to RMB 1,632,812,964.49 in the previous period, an increase of approximately 2.45%[9] Expenses and Other Income - Research and development expenses increased significantly to RMB 1,838,824.61 from RMB 382,594.71, indicating a growth of over 380%[8] - Other comprehensive income after tax was reported at -RMB 74,402,381.23, compared to -RMB 30,380,627.60 in the previous period, showing a decline[10] - The total comprehensive income for the period was RMB 1,293,631,808.62, slightly down from RMB 1,325,900,569.30 in the previous period, a decrease of about 2.43%[10] - The company recognized government grants amounting to RMB 1,260,421.00 during the period, a significant decrease from RMB 18,500,000.00 in the previous period[9] - The company reported a foreign exchange loss of RMB 213,900.04, contrasting with a gain of RMB 52,950,953.90 in the previous period, indicating a notable shift in foreign exchange performance[8] Cash Flow - The net cash flow from operating activities for the current period is RMB 1,936,951,967.80, a decrease of 29.3% compared to RMB 2,738,437,465.46 in the previous period[12] - Total cash inflow from operating activities is RMB 7,468,764,940.33, down 8.2% from RMB 8,138,077,304.96 in the previous period[12] - Cash outflow from operating activities totaled RMB 5,531,812,972.53, an increase of 2.4% compared to RMB 5,399,639,839.50 in the previous period[12] - Cash flow from investment activities shows a net outflow of RMB 1,217,877,800.14, an improvement from a net outflow of RMB 1,319,796,910.58 in the previous period[14] - Cash inflow from financing activities is RMB 4,135,480,437.82, significantly lower than RMB 7,628,295,710.23 in the previous period, reflecting a decrease of 45.5%[14] - The cash outflow from financing activities is RMB 4,663,691,888.83, down 47.7% from RMB 8,924,975,296.19 in the previous period[15] - The net cash flow from financing activities is negative at RMB -528,211,451.01, compared to a negative RMB -1,296,679,585.96 in the previous period[15] - The ending cash and cash equivalents balance is RMB 6,758,671,507.38, an increase from RMB 5,589,905,663.17 in the previous period[15] - The cash inflow from other operating-related cash is RMB 2,072,399,699.10, down 20.2% from RMB 2,594,757,539.58 in the previous period[12] - The cash received from tax refunds is RMB 25,008,048.48, a decrease of 19.8% compared to RMB 31,124,226.86 in the previous period[12] Future Outlook - The company has not disclosed specific future outlooks or guidance in the provided documents, focusing instead on current financial data[1]

Financial Performance - Revenue for 2023 reached RMB 20,446.028 million, showing a steady increase from previous years[4] - Net profit attributable to equity holders of the company for 2023 was RMB 3,057.641 million, up from RMB 2,841.680 million in 2022[4] - Basic and diluted earnings per share for 2023 were RMB 37.09 cents, up from RMB 34.47 cents in 2022[4] - The company achieved operating revenue of RMB 20.446 billion and pre-tax profit of RMB 4.144 billion in 2023, both reaching historical highs[8] - Renewable energy contributed RMB 29.09 billion in pre-tax profit, a year-on-year increase of 11.72%[11] - The company's net asset return rate attributable to equity holders was 10.32% in 2023, an increase of 0.16 percentage points year-on-year[11] - The company's gas power generation segment achieved pre-tax profit of RMB 1.865 billion, a year-on-year increase of 3.50%[11] - In 2023, the company achieved a net profit of RMB 3,235.2 million, a 7.01% increase from 2022, with attributable profit to equity holders rising 7.60% to RMB 3,057.6 million[23] - Total operating revenue increased by 2.08% to RMB 20,446.0 million in 2023, driven by increased electricity sales from gas power and heating, as well as wind and solar power capacity expansion[24] - Wind power revenue increased by 4.50% to RMB 4,511.9 million in 2023 due to increased installed capacity and electricity sales[26] - Solar power revenue rose by 8.74% to RMB 2,957.8 million in 2023, driven by increased installed capacity and electricity sales[27] - Hydropower revenue decreased by 12.40% to RMB 322.7 million in 2023 due to reduced electricity sales[28] - Other operating revenue, mainly from financial leasing and equipment maintenance, decreased by 46.05% to RMB 85.4 million in 2023 due to reduced external financial leasing income[28] - Other income increased by 6.76% from RMB 1,055.4 million in 2022 to RMB 1,126.7 million in 2023, driven by increased VAT refunds and carbon emission reduction certificate income[29] - Operating expenses rose by 2.95% from RMB 15,914.8 million in 2022 to RMB 16,384.8 million in 2023, due to increased capacity in wind and photovoltaic power generation[30] - Employee costs increased by 10.29% from RMB 1,227.1 million in 2022 to RMB 1,353.4 million in 2023, driven by business expansion and new project costs[33] - Maintenance costs decreased by 42.60% from RMB 560.5 million in 2022 to RMB 321.7 million in 2023, due to cost reduction measures and fewer major repairs[34] - Operating profit increased by 0.33% from RMB 5,170.9 million in 2022 to RMB 5,187.9 million in 2023, with wind power division profit up 15.29% to RMB 2,502.9 million[37] - Hydropower division turned a profit of RMB 142.6 million in 2022 into a loss of RMB 12.8 million in 2023 due to asset impairment[38] - Financial expenses decreased by 17.16% from RMB 1,501.0 million in 2022 to RMB 1,243.4 million in 2023, driven by lower financing costs[40] - Net profit attributable to equity holders increased by 7.60% from RMB 2,841.7 million in 2022 to RMB 3,057.6 million in 2023[43] - Revenue for the year ended December 31, 2023, increased to RMB 20,446,028 thousand, up 2.1% from RMB 20,030,281 thousand in 2022[200] - Operating profit for 2023 was RMB 5,187,881 thousand, slightly higher than RMB 5,170,923 thousand in 2022[200] - Net profit for the year increased to RMB 3,235,203 thousand, up 7.0% from RMB 3,023,414 thousand in 2022[200] - Earnings per share (basic and diluted) rose to RMB 37.09 cents, up from RMB 34.47 cents in 2022[200] - Gas consumption costs for 2023 were RMB 9,365,354 thousand, a 1.9% increase from RMB 9,186,941 thousand in 2022[200] - Depreciation and amortization expenses increased to RMB 3,847,886 thousand, up 4.5% from RMB 3,680,958 thousand in 2022[200] - Employee costs rose to RMB 1,353,435 thousand, a 10.3% increase from RMB 1,227,118 thousand in 2022[200] - Financial expenses decreased to RMB 1,243,402 thousand, down 17.2% from RMB 1,500,967 thousand in 2022[200] - Profit attributable to equity holders of the company increased to RMB 3,057,641 thousand, up 7.6% from RMB 2,841,680 thousand in 2022[200] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 93,594.441 million, with non-current assets at RMB 73,782.632 million[5] - Total equity attributable to equity holders of the company was RMB 30,678.046 million as of December 31, 2023[5] - Total assets of the company reached RMB 93.59 billion by the end of 2023, with a total installed capacity of 14.482 million kilowatts, of which renewable energy accounted for 9.78 million kilowatts, representing 68% of the total installed capacity[8] - Total assets increased by 6.36% from RMB 88,000.2 million in 2022 to RMB 93,594.4 million in 2023, driven by new and acquired projects[45] - Net debt-to-equity ratio decreased slightly from 55.79% in 2022 to 55.65% in 2023, with total borrowings increasing by 7.62% to RMB 49,920.8 million[47] - The company's bank borrowings are secured by property, plant, and equipment worth RMB 2,489.8 million, trade receivables worth RMB 2,512.0 million, finance lease receivables worth RMB 309.7 million, and restricted bank deposits worth RMB 46.9 million as of December 31, 2023[87] Renewable Energy Capacity - The company's total installed capacity for power generation reached 14.482 million kW, with renewable energy capacity at 9.78 million kW[6] - Wind power installed capacity stood at 5.566 million kW, primarily located in Inner Mongolia, Shaanxi-Gansu-Ningxia, and the Beijing-Tianjin-Hebei region[6] - Solar power installed capacity was 3.818 million kW, distributed across the northwest, north, and south China regions[6] - Gas-fired cogeneration plants in Beijing have a capacity of 4.702 million kW, accounting for over 40% of Beijing's gas-fired power generation and central heating supply[6] - Renewable energy development capacity reached 5.33 million kW in 2023, a 3-fold increase compared to the previous year, with 4.8 million kW from self-developed projects and 530,000 kW from acquisitions[12] - Total installed renewable energy capacity reached 9.78 million kW by the end of 2023, exceeding gas-fired power capacity by more than double[13] - Wind power generation increased by 15.9% YoY to 12.6 billion kWh, with utilization hours reaching 2,304 hours, 79 hours above the national average[13] - Solar power generation increased by 5.4% YoY to 5.29 billion kWh, with utilization hours reaching 1,387 hours, 101 hours above the national average[13] - Total electricity generation in 2023 reached 38.89 billion kWh, a 6.2% YoY increase, with renewable energy contributing 19.47 billion kWh, a 10.7% YoY increase[13] Operational Efficiency and Cost Management - Cost savings exceeded RMB 30 million through centralized procurement, and digital operations reduced repetitive workloads by 70% and increased per capita operation and maintenance capacity by 35%[14] - The company achieved carbon asset revenue of approximately RMB 30 million through carbon quota trading of 500,000 tons[14] - Digital transformation initiatives included 48 technology projects with an investment of RMB 720 million, resulting in 119 patents and awards[15] - The company aims to become a "smarter, more low-carbon, more flexible, and more resilient" international clean energy service provider in 2024[17] - The company aims to achieve a non-fossil energy installed capacity target of 12.5 GW in 2024, striving to exceed the total installed capacity development goal of 17.35 GW[18] - The company expects a profit impact of RMB 600-700 million in 2024 due to the adjustment of gas power plant electricity prices in Beijing[19] - The company plans to increase its profit target to exceed RMB 4.1 billion in 2024, despite the impact of gas power plant price adjustments[20] - The company will focus on digital transformation, aiming to build a digital operation platform integrating production, operation, and finance[21] Corporate Governance and Compliance - The company successfully entered the "Beijing State-owned Holding Listed Companies ESG Pioneer 30 Index" and received the highest rating of four and a half stars[8] - The company's registered share capital as of December 31, 2023, is RMB 8,244,508,144, divided into 8,244,508,144 shares with a par value of RMB 1.00 each, including 5,414,831,344 domestic legal person shares and 2,829,676,800 H-shares[82] - The company did not purchase, sell, or redeem any listed securities during the year ended December 31, 2023[83] - The company plans to expand its domestic market, focus on high-quality and high-return projects, and maximize shareholder value through self-development, acquisitions, and mergers[84] - The company will support its capital expenditures through various financing channels, including internal funds and bank loans, with sufficient bank credit lines currently available[84] - The company did not enter into any stock-linked agreements during the year ended December 31, 2023, and no such agreements were in effect at the end of 2023[85] - The company has appropriate liability insurance for its directors, supervisors, and senior management, with approved indemnity provisions in place[85] - The controlling shareholder did not pledge any shares in the company to guarantee the company's debts or other obligations during the year ended December 31, 2023[86] - The company did not provide any financial assistance or guarantees to its affiliates that required disclosure under the Listing Rules during the year ended December 31, 2023[88] - The company adopted an H-share stock appreciation rights plan on February 2, 2024, granting a total of 103,062,511 stock appreciation rights to 113激励对象[90] - The company is a leading wind and photovoltaic power operator in China and the largest gas power supplier in Beijing, engaging in diversified clean energy businesses including wind power, photovoltaic power, gas thermal power, small hydropower, and other clean energy projects[91] - The company's audited operating performance, financial position, and cash flow for the year ended December 31, 2023, are detailed in the consolidated income statement, consolidated statement of financial position, and consolidated cash flow statement, respectively[92] - The company maintains good relationships with suppliers and customers, implementing a comprehensive supplier evaluation system and ensuring product quality through manufacturing supervision[93] - The company's environmental policies and performance are discussed in the Environmental, Social, and Governance (ESG) report published on the Hong Kong Stock Exchange website[94] - The company emphasizes compliance with laws and regulations, allocating resources to ensure adherence and maintain good working relationships with regulatory authorities[95] - The company's dividend policy prioritizes maintaining sufficient cash reserves to meet operational needs, future growth, and shareholder value, with dividends to be paid in cash or other forms as approved by the board and shareholders[96] - The company proposes a final dividend of RMB 13.98 cents per share for the year ended December 31, 2023, totaling approximately RMB 1,152.6 million[97] - The final dividend for 2023 is expected to be paid on or around July 31, 2024, subject to approval at the Annual General Meeting[97] - Non-resident enterprise shareholders of H shares will have a 10% enterprise income tax withheld on the final dividend[97] - Individual H shareholders are exempt from Chinese personal income tax on dividends due to the company's status as a foreign-invested enterprise[97] - The company's distributable reserves as of December 31, 2023, were approximately RMB 11,996 million, up from RMB 10,903 million in 2022[100] - The company made external donations of approximately RMB 36 million during the reporting period, excluding employee personal donations[101] - H share transfer registration will be suspended from June 21 to June 26, 2024, for determining eligibility to attend and vote at the Annual General Meeting[99] - H share transfer registration will also be suspended from July 3 to July 8, 2024, for determining eligibility to receive the proposed final dividend[99] - The company's major shareholder, Jingneng Group, holds 5,190,483,053 domestic shares, representing 95.86% of the domestic share class and 62.96% of the total share capital[112] - Beijing State-owned Assets Management holds 5,414,831,344 domestic shares, accounting for 100% of the domestic share class and 65.68% of the total share capital[112] - Central Huijin Investment Ltd. holds 656,036,000 H-shares, representing 23.18% of the H-share class and 7.96% of the total share capital[112] - China Reinsurance (Group) Corporation holds 656,036,000 H-shares, accounting for 23.18% of the H-share class and 7.96% of the total share capital[112] - Beijing Energy Investment holds 471,612,800 H-shares, representing 16.67% of the H-share class and 5.72% of the total share capital[112] - Beijing Enterprises Holdings Limited holds 196,964,000 H-shares, accounting for 6.96% of the H-share class and 2.39% of the total share capital[112] - Beijing Enterprises Clean Energy Technology Investment Co., Ltd. holds 196,964,000 H-shares, representing 6.96% of the H-share class and 2.39% of the total share capital[112] - China Property & Casualty Reinsurance Co., Ltd. holds 196,704,000 H-shares, accounting for 6.95% of the H-share class and 2.39% of the total share capital[112] - Beijing Energy Group directly holds 5,174,447,731 domestic shares of the company, accounting for 68.68% of the total issued shares as of December 31, 2023[117] - The company's equipment maintenance framework agreement with Beijing Energy Group has an estimated annual cap of RMB 250 million, RMB 260 million, and RMB 270 million for the years 2023, 2024, and 2025, respectively[118] - The service framework agreement with Beijing Energy Group includes property management services with an estimated annual cap of RMB 85 million, RMB 90 million, and RMB 95 million for 2023, 2024, and 2025, respectively[119] - The actual transaction amount for equipment maintenance services under the framework agreement with Beijing Energy Group in 2023 was RMB 93.4 million, below the annual cap of RMB 250 million[116] - The actual transaction amount for property management services under the service framework agreement with Beijing Energy Group in 2023 was RMB 71.2 million, below the annual cap of RMB 85 million[116] - The actual transaction amount for administrative services under the service framework agreement with Beijing Energy Group in 2023 was RMB 67.3 million, below the annual cap of RMB 85 million[116] - The actual transaction amount for financial services (deposit services) with Beijing Energy Finance in 2023 was RMB 6,433.2 million, below the annual cap of RMB 8,000 million[116] - The actual transaction amount for financial services (other financial services) with Beijing Energy Finance in 2023 was RMB 0.4 million, below the annual cap of RMB 15 million[116] - The actual transaction amount for property leasing services with Beijing Energy Group in 2023 was RMB 52.1 million, below the annual cap of RMB 60.1 million[116] - The actual transaction amount for financial leasing services with Beijing Energy Leasing in 2023 was RMB 551.9 million, below the annual cap of RMB 3,000 million[116] - The new contract energy management framework agreement with Jingneng Group has an estimated annual cap of RMB 26.5 million for each of the three years ending December 31, 2025[120] - The new heat sales and procurement framework agreement with Jingneng Group has an estimated annual cap of RMB 2,351.8 million for each of the three years ending December 31, 2025[121] - The new materials procurement framework agreement with Jingneng Group has an estimated annual cap of RMB 160 million for each of the three years ending December 31, 2025, with no transactions occurring in 2023 due to changes in the company's procurement model[122] - The new financial leasing framework agreement with Beijing Jingneng Leasing has an estimated annual cap of RMB 1,000 million for each of the three years ending December 31, 2025[123] - The new financial services framework agreement with Jingneng Finance has estimated annual caps for deposit services of RMB 8,000 million, RMB 9,500 million, and RMB 11,000 million for the three years

Investment Rating - The report assigns a "Buy" rating to the company, with a target price of HKD 2.10, indicating a potential upside of 20.7% from the current price of HKD 1.74 [11]. Core Views - The company has shown impressive progress in wind and solar installations, with an expected dividend yield of 8.7%, the highest in its sub-industry [2][6]. - Despite a slight decline in profits due to asset impairment, the company’s net profit for 2023 increased by 7.4% year-on-year to RMB 3.06 billion, slightly below expectations [1][6]. - The management anticipates achieving its 2024 installation target of 12.5 GW, with a high probability of completing 2.7 GW of new wind and solar capacity by the end of 2024 [1][2]. Financial Summary - Revenue is projected to grow from RMB 20.03 billion in 2022 to RMB 26.59 billion by 2026, reflecting a compound annual growth rate (CAGR) of approximately 13.5% [3][12]. - Net profit is expected to increase from RMB 2.95 billion in 2022 to RMB 4.77 billion in 2026, with a CAGR of around 30.1% [3][12]. - The company’s earnings per share (EPS) is forecasted to grow from RMB 0.35 in 2022 to RMB 0.57 in 2026, with a notable increase in the dividend payout ratio to 38% in 2023 [3][12]. Installation Capacity and Performance - The company aims to increase its total installed capacity from 13.71 GW in 2024 to 25.64 GW by 2026, with wind and solar accounting for a growing share of the total [7][8]. - The expected contribution from wind and solar power is projected to rise significantly, with wind and solar accounting for 62.7% of total power generation by 2024 [7][8]. Market Position - The company maintains a strong market position with a market capitalization of approximately HKD 4.92 billion and an average daily trading volume of 14.18 million shares [5][11]. - The report highlights that the company’s valuation remains attractive, with a price-to-earnings (P/E) ratio of 5.2 times for 2024, suggesting room for further valuation improvement [2][12].

Financial Performance - For the year ended December 31, 2023, the group's revenue was RMB 20,446.0 million, an increase of 2.08% compared to the previous year[2]. - The profit attributable to equity holders for the year was RMB 3,057.6 million, representing a growth of 7.60% year-on-year[2]. - Basic and diluted earnings per share for the year were RMB 37.09[3]. - Operating profit for the year was RMB 5,187.9 million, slightly up from RMB 5,170.9 million in the previous year[3]. - Total comprehensive income for the year was RMB 3,264.8 million, compared to RMB 2,996.1 million in the previous year[4]. - The company reported a net profit of RMB 3,235.2 million for the year, compared to RMB 3,023.4 million in the previous year[4]. - The company achieved operating revenue of RMB 20.446 billion and a pre-tax profit of RMB 4.144 billion, both reaching historical highs[54]. - Profit before tax increased by 7.81% to RMB 4,143.8 million in 2023, compared to RMB 3,843.5 million in 2022[90]. Dividends and Shareholder Returns - The board proposed a final dividend of RMB 13.98 per share, totaling RMB 1,152.6 million[2]. - The company approved a final dividend of RMB 0.1302 per share for the year ending December 31, 2023, totaling RMB 1,152,582,000, subject to shareholder approval[12]. - The company plans to distribute a final dividend of RMB 0.1398 per share for the year ended December 31, 2023, totaling approximately RMB 1,152.6 million[106]. Assets and Liabilities - Non-current assets increased to RMB 73,782.6 million from RMB 69,424.4 million year-on-year[5]. - The company's total assets amounted to RMB 93,594.4 million as of December 31, 2023[5]. - Total assets as of December 31, 2023, amounted to RMB 122,684,059,000, compared to RMB 116,591,048,000 in 2022, reflecting an increase of approximately 5.3%[30]. - The total liabilities as of December 31, 2023, were RMB 89,486,659,000, up from RMB 85,635,660,000 in 2022, which is an increase of about 4.3%[31]. - The company's net current liabilities improved to RMB (2,399,402) thousand from RMB (8,785,859) thousand, indicating a significant reduction in financial strain[6]. - The total liabilities decreased to RMB 22,211,211 thousand from RMB 27,361,729 thousand, a decline of 18.9%[6]. Revenue Segmentation - Revenue from customer contracts in the gas power and heating segment was RMB 10,462,089,000, while the wind power segment generated RMB 4,511,859,000, and the solar power segment contributed RMB 2,957,812,000 for the year ended December 31, 2023[20]. - Revenue from the gas power and heating segment increased by 0.82% to RMB 12,568.2 million, with electricity sales rising by 1.46% to RMB 10,462.1 million[70]. - Wind power segment revenue grew by 4.50% to RMB 4,511.9 million due to increased installed capacity[71]. - Solar power segment revenue increased by 8.74% to RMB 2,957.8 million, attributed to higher sales from new installations[72]. Operational Efficiency and Cost Management - The company reduced costs by over RMB 30 million through centralized procurement and improved operational efficiency, reducing on-site repetitive work by approximately 70%[57]. - Operating expenses rose by 2.95% to RMB 16,384.8 million, primarily due to increased costs associated with new wind and solar projects[75]. - Financial expenses decreased by 17.16% to RMB 1,243.4 million, reflecting a reduction in financing costs with the average interest rate dropping to 2.85%[88]. Clean Energy Initiatives - The company is focused on expanding its clean energy business, including gas power generation and renewable energy sources[8]. - The company plans to continue expanding its clean energy projects, with most operational projects already approved for price subsidies[49]. - The installed capacity of non-fossil energy power generation reached 157 million kW by the end of 2023, a year-on-year increase of 23.6%, surpassing 50% of the total installed capacity for the first time[52]. - The total installed capacity of wind and solar power reached 1,050 million kW by the end of 2023, a year-on-year increase of 38.2%[52]. Future Outlook and Strategic Goals - The company anticipates a profit target of RMB 4.1 billion for 2024, while facing an estimated impact of RMB 600-700 million due to the adjustment of electricity prices for gas-fired power plants[62]. - The company aims to achieve a non-fossil energy installed capacity target of 12.5 million kilowatts, striving to exceed a total installed capacity development goal of 17.35 million kilowatts[61]. - The company will focus on digital transformation, aiming to integrate "digital + energy" to improve management efficiency and data value[64]. - The company is actively pursuing the development of offshore wind power projects and aims to push forward major base projects in regions like Chengde and Xilingol[61]. Corporate Governance and Social Responsibility - The company has complied with all corporate governance codes as per the Hong Kong Stock Exchange regulations for the year ended December 31, 2023[110]. - The company has committed over RMB 30 million in social donations and has implemented more than 20 industry assistance projects, showcasing its corporate social responsibility[60]. - The company aims to enhance competitiveness and attract core talent through the stock appreciation rights plan, promoting long-term stable development[104].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Beijing Jingneng Clean Energy Co., Limited 北京京能清潔能源電力股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：00579） 公告 截至2023年9月30日止9個月的內部財務數據 本公告乃由北京京能清潔能源電力股份有限公司（「本公司」）根據證券及期貨條例第XIVA 部項下內幕消息條文（定義見香港聯合交易所有限公司證券上巿規則（「上市規則」），及上 巿規則第13.09(2)條作出。 由於本公司已於中國公開發行債務融資工具，本公司根據中國人民銀行及中國銀行間巿 場交易商協會的相關規則及法規，公佈本公司及其附屬公司根據中國公認會計原則所編 製截至2023年9月30日止9個月的內部財務數據。 投資者務請注意，截至2023年9月30日止9個月的內部財務數據並無經獨立核數師審核， 亦無經本公司審計委員會審閱。 有關文件已於2023年10月27日分別在中 ...

Financial Performance - In the first half of 2023, the company achieved operating revenue of RMB 10.549 billion, representing a year-on-year increase of 4.82%[15] - The profit attributable to equity holders reached RMB 2.055 billion, up 14.87% year-on-year[15] - The company's operating income increased by 4.82% to RMB 10,548.8 million in the first half of 2023, driven by increased installed capacity in wind and solar power segments[21] - The net profit attributable to equity holders rose by 14.87% to RMB 2,054.9 million in the first half of 2023 compared to RMB 1,788.9 million in the same period of 2022[20] - Operating profit increased by 8.23% from RMB 2,895.4 million in the first half of 2022 to RMB 3,133.8 million in the first half of 2023[33] - Net profit for the period increased by 14.93% from RMB 1,880.4 million in the first half of 2022 to RMB 2,161.1 million in the first half of 2023[41] - The total comprehensive income for the period amounted to RMB 2,274,544,000, compared to RMB 1,885,004,000 in 2022, reflecting a strong performance[78] Power Generation and Capacity - The total power generation of the company was 19.311 billion kWh, a year-on-year increase of 9.23%[15] - The gas power and heating segment generated 9.619 billion kWh, increasing by 4.39% year-on-year[15] - The wind power segment's generation was 6.574 billion kWh, up 24.06% year-on-year, exceeding the national growth rate by 4.07 percentage points[15] - The photovoltaic segment produced 2.595 billion kWh, reflecting a year-on-year growth of 5.31%[15] - Renewable energy generation accounted for over 50% of the company's total power generation[15] - The company achieved a total installed capacity of 13,939 MW as of June 30, 2023, representing a year-on-year growth of 4.02%[17] - The company's renewable energy project installed capacity accounted for 66.27% of total installed capacity, an increase of 1.36 percentage points year-on-year[17] Financial Position and Liabilities - Total assets increased by 5.37% from RMB 88,000.2 million as of December 31, 2022, to RMB 92,727.7 million as of June 30, 2023, driven by new investments and acquisitions[43] - Total liabilities increased by 7.21% from RMB 55,578.0 million as of December 31, 2022, to RMB 59,585.1 million as of June 30, 2023, due to funding needs for project construction[43] - Net debt-to-equity ratio increased by 1.5 percentage points from 55.79% as of December 31, 2022, to 57.29% as of June 30, 2023[45] - The company’s comprehensive financing cost decreased to 2.99%, down 0.57 percentage points from 3.56% in the same period last year[18] Operating Expenses - Operating expenses rose by 4.57% to RMB 8,011.1 million, attributed to increased gas consumption and costs associated with new capacity in wind and solar segments[27] - Employee costs increased by 9.55% to RMB 533.2 million due to business expansion and new project-related labor costs[30] - Maintenance and repair expenses increased by 6.32% from RMB 232.5 million in the first half of 2022 to RMB 247.2 million in the first half of 2023[31] - Other expenses rose by 21.93% from RMB 521.3 million in the first half of 2022 to RMB 635.6 million in the first half of 2023, primarily due to increased operating costs from new wind and solar power projects[31] Investments and Projects - The company completed 2.59 million kW of renewable energy project filings in the first half of 2023, exceeding the target by 136,000 kW, with a growth rate of 110% compared to the same period last year[16] - The company acquired several subsidiaries in the first half of 2023, including Xiamen Yangwanzhang Clean Energy Co., Ltd. and Guangdong Ansheng New Energy Co., Ltd., focusing on solar and wind power project development[55] - The company established multiple new subsidiaries in 2023 to enhance its clean energy project construction capabilities, including Beijing Jingneng Comprehensive Energy Co., Ltd.[56] - The company aims to complete its annual grid-connected capacity targets by actively advancing ongoing projects, including the Chagan Nur 1 million kW wind-solar project and the 600,000 kW wind power project in Bayannur[61] Employee and Governance - The company employed 3,202 staff as of June 30, 2023, with over 47% of employees under the age of 35[47] - The employee training participation rate reached 100% in the first half of 2023, focusing on enhancing professional skills and cultural literacy[51] - The company has implemented a multi-level incentive mechanism to enhance employee performance and motivation through clear performance targets[50] - The company has adopted the corporate governance code and complied with all relevant rules as of June 30, 2023[64] Cash Flow and Financing - The company’s cash flow from operating activities for the six months was RMB 119,772,000, showcasing operational efficiency[82] - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 1,614,059,000, a decrease of 56.8% compared to RMB 3,737,290,000 for the same period in 2022[85] - The net cash used in investing activities amounted to RMB (3,223,837,000), compared to RMB (2,316,124,000) in the previous year, indicating an increase in investment outflows[85] - The net cash generated from financing activities was RMB 1,832,790,000, a significant improvement from a net cash outflow of RMB (224,198,000) in the same period last year[85] Revenue Breakdown - Revenue from electricity sales amounted to RMB 9,368,050,000, with a breakdown of RMB 5,226,854,000 from gas power, RMB 2,516,287,000 from wind power, RMB 1,499,874,000 from photovoltaic power, and RMB 125,035,000 from hydropower[106] - The total income from customer contracts for the six months ended June 30, 2023, was RMB 10,478,337,000, compared to RMB 9,991,583,000 in the previous year, indicating a significant increase in contract revenue[104] - The company’s overseas revenue was RMB 143,971,000, while domestic revenue was RMB 10,334,366,000 for the six months ended June 30, 2023[106] Tax and Compliance - The income tax expense for the first half of 2023 was RMB 432,041,000, an increase from RMB 381,694,000 in the same period of 2022, reflecting a rise of approximately 13.2%[121] - The group benefits from a preferential corporate income tax rate of 15% for certain projects in western China, with tax exemptions for the first three years of operation[122] Shareholder Returns - The company declared dividends amounting to RMB 990,990,000 during the reporting period, indicating a commitment to returning value to shareholders[83] - The company did not propose an interim dividend for the six months ended June 30, 2023[74]

Financial Performance - For the six months ended June 30, 2023, revenue was RMB 10,549 million, an increase of 4.82% compared to the same period in 2022[2]. - Profit before tax for the same period was RMB 2,593 million, reflecting a growth of 14.63% year-on-year[2]. - Net profit attributable to equity holders for the six months was RMB 2,055 million, up 14.87% from the previous year[2]. - Basic and diluted earnings per share for the period were RMB 24.92, compared to RMB 21.70 in the same period last year[3]. - Operating profit for the six months was RMB 3,133 million, an increase from RMB 2,895 million in the prior year[3]. - Total comprehensive income for the period was RMB 2,274 million, compared to RMB 1,885 million in the same period of 2022[4]. - The company reported a profit of RMB 2,054,907,000 for the six months ended June 30, 2023, compared to RMB 1,788,903,000 for the same period in 2022, reflecting a year-over-year increase of approximately 14.9%[30]. - The company’s income tax expense for the first half of 2023 was RMB 432,041,000, an increase from RMB 381,694,000 in the same period of 2022, representing a rise of 13.2%[26]. - The company reported a total of RMB 13,465,879,000 in trade receivables as of June 30, 2023, compared to RMB 11,027,087,000 as of December 31, 2022, indicating an increase of 22.1%[31]. Revenue Breakdown - The revenue breakdown includes RMB 5,226,854 thousand from gas power and heating, RMB 2,516,287 thousand from wind power, RMB 1,499,874 thousand from photovoltaic power, and RMB 125,035 thousand from hydropower, contributing to a total of RMB 10,478,337 thousand from customer contracts[15]. - The company’s revenue from customer contracts for the six months ended June 30, 2023, includes RMB 1,109,765 thousand from heat sales, which is a significant component of the overall revenue[15]. - The company’s overseas revenue for the six months ended June 30, 2023, was RMB 143,971 thousand, indicating a continued presence in international markets[15]. Operational Performance - As of June 30, 2023, the total power generation was 19.311 billion kWh, an increase of 9.23% year-on-year[37]. - The company completed 2.59 million kW of capacity filings in the first half of 2023, exceeding the target by 110% compared to the previous year[38]. - The installed capacity as of June 30, 2023, was 13.939 million kW, a year-on-year increase of 4.02%[40]. - Renewable energy projects accounted for 66.27% of the total installed capacity, an increase of 1.36 percentage points year-on-year[40]. - The average utilization hours for gas power generation equipment increased by 47 hours year-on-year to 1,136 hours[35]. - The company’s wind power generation increased by 24.06% year-on-year, with an average utilization of 1,237 hours, up 51 hours from the previous year[37]. - The company’s hydroelectric power generation decreased by 25.42% year-on-year, with an average utilization of 1,247 hours[37]. - The company has significant ongoing projects, with 3.22 million kW of capacity under construction, of which 3.07 million kW are renewable energy projects[40]. Financial Position - Non-current assets as of June 30, 2023, amounted to RMB 71,237 million, up from RMB 69,424 million at the end of 2022[5]. - Total assets increased by 5.37% from RMB 88,000.2 million as of December 31, 2022, to RMB 92,727.7 million as of June 30, 2023, due to increased investments in new projects and acquisitions[63]. - Total liabilities rose by 7.21% from RMB 55,578.0 million as of December 31, 2022, to RMB 59,585.1 million as of June 30, 2023, driven by funding needs for project construction[63]. - The net debt-to-equity ratio increased by 1.5 percentage points from 55.79% as of December 31, 2022, to 57.29% as of June 30, 2023[65]. - The company’s total equity increased to RMB 33,142,595,000 as of June 30, 2023, compared to RMB 32,422,221,000 at the end of 2022, showing a growth of approximately 2.2%[7]. Cost and Expenses - Operating expenses increased by 4.57% to RMB 8,011.1 million, primarily due to higher gas consumption and costs associated with new wind and solar projects[50]. - The total financial expenses decreased to RMB 635,709,000 in the first half of 2023 from RMB 752,986,000 in the same period of 2022, a reduction of approximately 15.6%[25]. - The company’s depreciation and amortization expenses totaled RMB 1,914,175,000 for the six months ended June 30, 2023, compared to RMB 1,795,077,000 for the same period in 2022, reflecting an increase of 6.6%[28]. Strategic Initiatives - The company plans to enhance its position as a leading clean energy service provider in line with its "14th Five-Year Plan" for high-quality development in the second half of 2023[73]. - The company aims to accelerate project construction and achieve the annual grid-connected capacity target, focusing on multiple wind and solar projects in the second half of 2023[74]. - The company plans to continue its dual-driven strategy of "independent development and mergers & acquisitions" to enhance project expansion, with specific targets for various energy projects including offshore wind and pumped storage[75]. - The company is focused on expanding its operational segments, including gas power, wind power, photovoltaic power, and hydropower, to enhance overall performance and market reach[19]. Governance and Compliance - The company has adhered to high standards of corporate governance as per the Hong Kong Stock Exchange's guidelines during the reporting period[78]. - The company has adopted a standard code for securities trading by directors and supervisors, confirming compliance during the reporting period[79]. - The audit committee has reviewed the company's interim performance and the unaudited financial statements for the six months ending June 30, 2023[80]. - The interim results announcement is available on the Hong Kong Stock Exchange's website and the company's website[81].

Assets and Liabilities - As of March 31, 2023, the total current assets amounted to RMB 20,634,967,699.45, an increase from RMB 18,716,597,533.40 at the beginning of the period, representing a growth of approximately 10.0%[2] - The trade receivables reached RMB 12,659,658,270.34, up from RMB 11,000,235,860.08, indicating an increase of about 15.1%[2] - The cash and cash equivalents stood at RMB 5,674,136,530.44, compared to RMB 5,560,237,051.44 at the beginning of the period, reflecting a growth of approximately 2.0%[2] - Non-current assets totaled RMB 69,363,868,258.10, slightly down from RMB 69,648,950,130.22, showing a decrease of about 0.4%[3] - The total assets reached RMB 89,998,835,957.55, an increase from RMB 88,365,547,663.62, representing a growth of approximately 1.8%[3] - Long-term equity investments amounted to RMB 1,669,804,808.89, up from RMB 1,636,317,967.57, indicating an increase of about 2.0%[3] - The company's fixed assets were valued at RMB 50,436,129,317.54, down from RMB 51,092,800,192.80, reflecting a decrease of approximately 1.3%[3] - The inventory increased to RMB 115,822,702.01 from RMB 97,244,976.14, marking a growth of about 19.1%[2] - As of March 31, 2023, the total current liabilities amounted to RMB 24,141,238,743.52, a decrease of 9.4% from RMB 26,542,256,512.15 at the beginning of the period[4] - The total non-current liabilities reached RMB 32,002,940,655.55, an increase from RMB 29,334,804,928.03, representing an increase of approximately 5.7%[5] - The total liabilities amounted to RMB 56,144,179,399.07, which is an increase of 0.5% compared to RMB 55,877,061,440.18 at the beginning of the period[5] Equity and Profitability - The total equity attributable to shareholders was RMB 33,007,140,624.05, up from RMB 31,685,366,031.41, indicating an increase of about 4.2%[6] - The company's retained earnings stood at RMB 16,516,295,961.04, compared to RMB 15,208,524,974.71, marking an increase of approximately 8.6%[6] - Total operating revenue for the period reached RMB 6,325,730,599.39, an increase of 1.97% compared to RMB 6,202,622,035.05 in the previous period[7] - Total operating costs amounted to RMB 5,113,488,011.84, up from RMB 5,008,833,964.95, reflecting a cost increase of 2.5%[7] - Net profit attributable to the parent company was RMB 1,307,770,986.33, compared to RMB 1,244,925,476.64 in the previous period, representing a growth of 5.05%[8] - The company reported a total profit of RMB 1,632,812,964.49, an increase from RMB 1,552,988,660.00, marking a rise of 5.15%[8] Cash Flow - The net cash flow from operating activities for the current period is RMB 2,738,437,465.46, compared to RMB 1,579,988,017.21 in the previous period, indicating a significant increase[11] - The total cash inflow from investment activities is RMB 465,127,284.86, while cash outflow is RMB 1,784,924,195.44, resulting in a net cash flow from investment activities of -RMB 1,319,796,910.58[11] - Cash inflow from financing activities amounts to RMB 7,628,295,710.23, with cash outflow totaling RMB 8,924,975,296.19, leading to a net cash flow from financing activities of -RMB 1,296,679,585.96[12] - The total cash and cash equivalents at the end of the period is RMB 5,589,905,663.17, down from RMB 5,988,027,999.96 in the previous period[12] Other Financial Metrics - Research and development expenses were RMB 382,594.71, significantly lower than RMB 2,686,559.04 in the previous period, indicating a decrease of 85.8%[7] - Other income included government subsidies of RMB 18,500,000.00, compared to RMB 200,000.00 in the previous period, showing a substantial increase[8] - The company experienced a foreign exchange loss of RMB 52,950,953.90, compared to a gain of RMB 11,050,762.91 in the previous period[7] - The total comprehensive income for the period was RMB 1,325,900,569.30, down from RMB 1,381,172,838.44, reflecting a decrease of 4.01%[9] - The company reported a significant increase in investment income, totaling RMB 35,012,326.16, compared to RMB 57,186,471.03 in the previous period, indicating a decrease of 38.8%[8] - The net loss from other comprehensive income was RMB -30,380,627.60, contrasting with a gain of RMB 89,653,414.03 in the previous period[9]

Financial Performance - Total revenue for 2022 reached RMB 20,030 million, an increase from RMB 18,645 million in 2021, representing a growth of 7.4%[13] - Operating profit for 2022 was RMB 5,171 million, compared to RMB 4,828 million in 2021, reflecting a year-on-year increase of 7.1%[13] - Net profit attributable to shareholders for 2022 was RMB 2,847 million, up from RMB 2,529 million in 2021, marking a growth of 12.6%[13] - Basic earnings per share for 2022 was RMB 34.53, an increase from RMB 30.67 in 2021, representing a growth of 12.3%[13] - The company's annual operating revenue was RMB 20.03 billion, achieving a total profit of RMB 3.844 billion, with a compound annual growth rate of over 10% for total assets, total profit, and net assets over three years[17] - Operating revenue for 2022 was RMB 20.03 billion, a year-on-year increase of 7.4%, while pre-tax profit rose to RMB 3.84 billion, up 17.0% year-on-year[22] - In 2022, the company achieved a net profit of RMB 3,028.6 million, an increase of 13.46% compared to RMB 2,669.3 million in 2021[35] - Profit before tax increased by 17.01% from RMB 3,284.9 million in 2021 to RMB 3,843.5 million in 2022[57] Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 87,995 million, up from RMB 86,040 million in 2021, indicating a growth of 2.2%[14] - Total liabilities as of December 31, 2022, were RMB 55,561 million, compared to RMB 54,868 million in 2021, reflecting an increase of 1.3%[14] - Total assets increased by 2.27% from RMB 86,040.3 million as of December 31, 2021, to RMB 87,994.6 million as of December 31, 2022, due to investments in new construction and acquisitions[60] Installed Capacity and Energy Generation - The company’s total installed capacity reached 13,719 MW as of December 31, 2022, with gas-fired power accounting for 4,702 MW, representing 40% of Beijing's gas power generation[15] - The company’s wind power installed capacity was 5,066 MW, primarily located in regions with rich wind resources[15] - The total installed capacity of renewable energy in the country reached 1.21 billion kW by the end of 2022, accounting for 47.3% of the total installed capacity, an increase of 2.5 percentage points year-on-year[18] - Total power generation for 2022 was 36.63 billion kWh, with renewable energy generation at 17.59 billion kWh, a year-on-year increase of 31.0%[23] - The total installed capacity of the group reached 13.719 million kW in 2022, an increase of 10.2% year-on-year[22] Renewable Energy Initiatives - The renewable energy installed capacity increased by 4.2%, with 2.65 million kW of renewable energy grid-connected and development rights obtained in 2022[17] - The company supplied 169 million kWh of green electricity to the Winter Olympics venues, achieving 100% green power supply during the event[17] - The company is focused on green development and aims to become a leading clean energy service provider internationally[15] - The group aims to accelerate the construction of a modern energy system in 2023, focusing on the "wind and solar strategy" and dual-driven development through self-construction and acquisitions[29] Strategic Planning and Market Expansion - The company plans to strengthen strategic planning and deepen quality improvement and safety management in response to major opportunities in the renewable energy sector[17] - The company aims to enhance its core competitiveness and achieve higher quality, efficiency, and sustainable development in 2023[17] - The company aims to expand its market presence by optimizing power generation models and increasing participation in green electricity trading[33] - Market expansion plans include entering two new international markets by Q2 2024, which is anticipated to increase market share by 5%[81] Employee and Governance Practices - The company has established a performance assessment system to motivate employees, linking performance results to compensation[76] - Employee training participation reached 100%, with a focus on enhancing professional skills and cultural literacy[78] - The company has implemented a retirement and employee benefits plan, details of which can be found in the financial statement notes[160] - The board of directors consists of 11 members, including 4 executive directors, 3 non-executive directors, and 4 independent non-executive directors[180] - The company has adopted a corporate governance code and maintains high standards to protect shareholder interests and enhance corporate value[179] Related Party Transactions - The company confirmed that procurement from the top five suppliers accounted for 73.9% of total procurement for the year ending December 31, 2022, with the largest supplier contributing 46.9%[159] - Sales to the top five customers represented 98% of total sales for the year ending December 31, 2022, with the largest customer accounting for 78%[159] - Related party transactions were reviewed and deemed compliant with Hong Kong Stock Exchange regulations, with no harm to shareholder interests identified[175] Sustainability and Environmental Commitment - The board of directors has approved a new sustainability initiative, committing to a 30% reduction in carbon emissions by 2025[84] - The company emphasizes the importance of sustainable development, focusing on employee engagement, customer service, and partnerships with suppliers[161] - The board is committed to ongoing training and professional development for directors to ensure compliance with legal and regulatory standards[197]