Financial Performance - The group achieved total operating revenue of RMB 33.457 billion in the first half of 2024, an increase of 11.84% compared to the same period last year[3]. - The net profit attributable to shareholders of the parent company for the first half of 2024 was RMB 1.691 billion, a decrease of 15.52% year-on-year[3]. - Earnings per share for the first half of 2024 were RMB 0.54, down from RMB 0.64 in the same period last year[3]. - Operating profit for the first half of 2024 was CNY 2,110,327,011.43, a decrease of 9.4% from CNY 2,329,548,256.58 in the same period of 2023[15]. - The company reported a total income tax expense of CNY 298,136,651.64 for the six months ended June 30, 2024, compared to CNY 230,333,499.86 for the same period in 2023, marking an increase of 29.4%[27]. - The company reported a significant increase of 301.67% in cash flow from financing activities, mainly due to increased borrowings[55]. Assets and Liabilities - As of June 30, 2024, total current assets amounted to RMB 83.666 billion, an increase from RMB 75.689 billion at the end of 2023[4]. - Total non-current assets as of June 30, 2024, were RMB 47.905 billion, up from RMB 45.419 billion at the end of 2023[5]. - Total assets reached RMB 131.570 billion as of June 30, 2024, compared to RMB 121.108 billion at the end of 2023[5]. - Total current liabilities increased to RMB 80.799 billion as of June 30, 2024, from RMB 71.249 billion at the end of 2023[7]. - Long-term borrowings rose to RMB 2.071 billion as of June 30, 2024, compared to RMB 1.383 billion at the end of 2023[9]. - The asset-liability ratio stood at 68.49%, an increase of 2.53 percentage points from the beginning of the year, indicating manageable asset structure risk[69]. Research and Development - Research and development expenses increased to CNY 1,347,828,439.49, representing a 25.8% rise compared to CNY 1,070,700,313.76 in the previous year[13]. - The company has established the Chengdu Innovation Research Institute and the Japan Energy Research Institute to strengthen technological innovation[46]. - The company plans to establish a technology achievement incubation pool to support innovative results with clear market value[76]. Orders and Revenue Growth - The group added new orders amounting to RMB 56.073 billion in the first half of 2024[3]. - The company’s revenue from foreign trade for the first half of 2024 was RMB 33,457,011,207.05, compared to RMB 29,915,296,549.01 in the same period of 2023, showing a growth of approximately 11.4%[32][34]. - In the first half of 2024, the company achieved new effective orders amounting to RMB 56.073 billion, representing a year-on-year increase of 14.77%[44]. Employee and Compensation - As of June 30, 2024, the total number of employees in the company is 18,104[87]. - The total employee compensation paid during the reporting period amounts to RMB 1,363.91 million[87]. - The company has implemented a performance management system to enhance management efficiency and effectiveness[89]. Market Position and Strategy - The company continues to maintain a strong competitive position in the high-end energy equipment industry, providing services and products across nearly 80 countries and regions globally[37]. - The company aims to enhance market development capabilities, technological innovation capabilities, risk control capabilities, and resource integration capabilities in the second half of 2024[80]. - The company will strengthen international market expansion and energy transition research, focusing on key regional markets and products to support overseas projects[73]. Dividends and Share Capital - The board of directors does not recommend the distribution of an interim dividend for the first half of 2024[3]. - The total share capital of the company as of June 30, 2024, is RMB 3,117,499,457, consisting of 2,777,499,457 A-shares and 340,000,000 H-shares[81]. - The company repurchased and canceled a total of 1,034,340 A-shares during the reporting period[83].

Financial Performance - Total revenue for the first half of 2024 reached RMB 33.46 billion, an increase of 11.84% compared to RMB 29.92 billion in the same period last year[15]. - Operating income for the first half of 2024 was RMB 32.93 billion, reflecting a growth of 12.21% from RMB 29.35 billion year-on-year[15]. - Net profit attributable to shareholders decreased by 15.52% to RMB 1.69 billion, down from RMB 2.00 billion in the previous year[15]. - The basic earnings per share for the first half of 2024 was RMB 0.54, a decrease of 15.63% from RMB 0.64 in the same period last year[16]. - The weighted average return on net assets decreased to 4.44%, down from 5.66% year-on-year, a decline of 1.22 percentage points[16]. - The company reported a total revenue of 3,144.81 million, with a significant increase in user data to 539,999,993.79[48]. - The net profit for the period reached 419,574,463.26, reflecting a growth of 28% compared to the previous period[50]. Cash Flow and Liquidity - The net cash flow from operating activities improved significantly to RMB 4.06 billion, compared to a negative RMB 2.21 billion in the same period last year[15]. - The company's cash and cash equivalents at the end of the period amounted to CNY 21,704,359,466.77, a 26.71% increase compared to the previous year[35]. - The net cash flow from financing activities increased by 301.67% to CNY 952,099,163.96, primarily due to increased borrowings[33]. - The net cash flow from operating activities increased significantly by CNY 62.77 million, attributed to improved collections and increased advance payments[33]. - The company's cash and cash equivalents amounted to 3.474 billion RMB, with a portion restricted due to central bank deposits and collateral[41]. Assets and Liabilities - The company's total assets increased by 8.64% to RMB 131.57 billion, up from RMB 121.11 billion at the end of the previous year[15]. - The company's total liabilities increased by 10.34% year-on-year to 35.498 billion RMB, mainly due to an increase in contract liabilities[1]. - The company's long-term borrowings rose by 49.70% year-on-year to 2.071 billion RMB, attributed to new borrowings obtained[37]. - The company's total liabilities reached RMB 90.11 billion, up from RMB 79.89 billion, indicating an increase of about 12.7% year-over-year[133]. Research and Development - Research and development expenses rose by RMB 277 million year-on-year, impacting profitability[17]. - Research and development expenses rose by 25.88% to CNY 1,347,828,439.49, reflecting the company's commitment to increasing R&D investment[30]. - The company established the Chengdu Innovation Research Institute and the Japan Energy Research Institute to enhance its technological innovation capabilities[27]. Market and Orders - The company achieved new effective orders of 56.073 billion yuan in the first half of 2024, representing a year-on-year growth of 14.77%[26]. - The clean and efficient energy equipment accounted for 45.19% of the new effective orders, while renewable energy equipment made up 25.07%[26]. - The company’s gas turbine technology received its first market order, indicating a strong position in the domestic market[26]. Environmental and Social Responsibility - The company reported that it is a key pollutant discharge unit, with COD emissions at 68.45 mg/L, below the standard limit of 500 mg/L[66]. - The company has a total of 30 emission points for VOCs, with emissions at 4.29 mg/m³, also below the standard limit of 60 mg/m³[66]. - The company invested 15.3 million yuan in direct assistance and purchased local agricultural products worth 13.83 million yuan in targeted poverty alleviation efforts[77]. - The company has created 7 provincial-level green factories and is advancing the construction of national-level green factories[74]. Shareholder and Corporate Governance - The company held its first temporary shareholders' meeting on February 5, 2024, approving three proposals including the repurchase and cancellation of part of the restricted stock[61]. - The second temporary shareholders' meeting was held on April 19, 2024, where three proposals were approved, including extending the general authorization for the board to issue shares[61]. - The annual shareholders' meeting on June 28, 2024, approved 14 proposals, including the 2023 annual board and supervisory committee reports[61]. - The company appointed Zhang Yanjun as president and elected Sun Guojun as a director and senior vice president[62]. Strategic Initiatives - The company plans to expand its market presence by enhancing international marketing strategies and participating in global exhibitions[53]. - A strategic emphasis on new energy sectors is being implemented to align with national carbon reduction goals, enhancing innovation capabilities[55]. - The company is actively pursuing new strategies for growth, including potential mergers and acquisitions in the energy sector[91]. Financial Management - The company has engaged in significant related party transactions, including a loan of CNY 151,000.00 million from Sichuan Honghua Petroleum Equipment[97]. - The total amount of credit transactions with related parties reached CNY 380,000.00 million, reflecting strong inter-company relationships[97]. - The company has not reported any significant contracts or fundraising progress during the reporting period[102]. Risks and Challenges - The company is facing risks related to international operations due to geopolitical tensions and energy market transitions, which may impact growth[53]. - The overall market outlook remains cautious due to rising raw material costs and competitive pressures affecting profit margins[56]. - The company is addressing price risks by tightening cost control measures and managing bidding processes to maintain profitability[56].

研究报告Research Report 16 Jun 2024 东方电气 Dongfang Electric (1072 HK) 受益于火电和新能源装机高增，业绩稳增长 Benefiting from the High Growth in Installed Capacity of Thermal Power and New Energy, Financial Performance Maintain Stable [观Ta点bl聚e_焦yem Inevie1s] tment Focus [Tab 维le_ 持Inf 优o] 于大市Maintain OUTPERFORM (Please see APPENDIX 1 for English summary) 营收及净利润保持稳定增长。东方电气发布 2023 年和 2024Q1 财 评级 优于大市OUTPERFORM 报，公司 2023 实现营收 606.8 亿元，同比增长 9.6%，实现归母净 现价 HK$12.80 利润 35.5 亿元，同比增加 24.23%；2024Q1 实现营收 150.5亿元， 目标价 HK$15.73 同比增加2.28%，归母净利润 ...

证券研究报告 | 公司动态点评 2024 年 05月 05日 东方电气（600875.SH） 订单持续增长排产再创新高，盈利能力稳中有升 财务指标 2022A 2023A 2024E 2025E 2026E 买入（维持评级） 营业收入（百万元） 54,190 59,567 69,323 75,281 81,627 股票信息 增长率yoy（%） 15.9 9.9 16.4 8.6 8.4 归母净利润（百万元） 2,858 3,550 4,222 4,839 5,274 行业 电力设备及新能源 增长率yoy（%） 24.9 24.2 18.9 14.6 9.0 2024年4月30日收盘价（元） 16.86 ROE（%） 7.8 8.8 10.0 10.5 10.5 总市值（百万元） 52,561.04 EPS最新摊薄（元） 0.92 1.14 1.35 1.55 1.69 流通市值（百万元） 34,112.91 P/E（倍） 18.4 14.8 12.4 10.9 10.0 总股本（百万股） 3,117.50 P/B（倍） 1.5 1.4 1.3 1.2 1.1 流通股本（百万股） 2,023.30 资料来源：公 ...

Financial Performance - Total revenue for the first quarter reached RMB 15,052,868,276.63, representing a year-on-year increase of 2.28%[8] - Operating income was RMB 14,801,351,538.99, reflecting a growth of 2.55% compared to the same period last year[8] - Net profit attributable to shareholders decreased by 11.12% to RMB 905,751,281.62, primarily due to a loss of RMB 238 million from fair value changes of non-monetary assets[9] - The net profit after deducting non-recurring gains and losses increased by 10.61% to RMB 1,055,684,212.95[9] - Basic and diluted earnings per share were both RMB 0.290, down 11.11% year-on-year[8] - Total comprehensive income for Q1 2024 was CNY 969,994,560.61, compared to CNY 1,080,981,488.26 in Q1 2023, indicating a decline of 10.26%[48] - The company reported a decrease in interest income to CNY 251,516,386.06 in Q1 2024 from CNY 283,724,696.18 in Q1 2023, a decline of 11.36%[41] - The company reported a significant loss in investment income of CNY -3,075,120.61 compared to a gain of CNY 80,201,788.81 in the previous year[68] - The total profit (loss) for Q1 2024 was CNY -239.24 million, down from CNY 175.03 million in Q1 2023, indicating a year-over-year decrease of approximately 236%[71] - The net loss for Q1 2024 was CNY -239.24 million, compared to a net profit of CNY 186.14 million in Q1 2023, reflecting a drastic shift in financial performance[71] Assets and Liabilities - Total assets at the end of the reporting period were RMB 128,378,372,649.13, an increase of 6.00% from the end of the previous year[9] - Shareholders' equity attributable to the company was RMB 38,152,233,480.99, up 2.44% from the previous year[9] - Total current assets amounted to RMB 80.471 billion, an increase from RMB 75.689 billion as of December 31, 2023[31] - The company's total assets reached RMB 128.378 billion as of March 31, 2024, up from RMB 121.108 billion at the end of 2023[32] - Total liabilities increased to RMB 86.126 billion as of March 31, 2024, compared to RMB 79.888 billion at the end of 2023[36] - The company's long-term borrowings increased to RMB 1.682 billion as of March 31, 2024, from RMB 1.383 billion at the end of 2023[36] - The total equity attributable to shareholders was RMB 38.152 billion as of March 31, 2024, compared to RMB 37.245 billion at the end of 2023[38] - The company's total current liabilities decreased to CNY 14,599,591,262.98 from CNY 15,166,342,752.36, a reduction of about 3.8%[64] Cash Flow - The net cash flow from operating activities was RMB 1,240,643,938.05, with no year-on-year comparison available[8] - Cash flow from operating activities increased significantly, with cash received from sales rising by RMB 2.913 billion year-on-year[19] - Operating cash inflow for Q1 2024 was CNY 16,542,886,442.64, a significant increase from CNY 9,042,633,552.84 in Q1 2023, representing an increase of approximately 83.5%[51] - Net cash flow from operating activities for Q1 2024 was CNY -2.67 billion, compared to CNY -4.51 billion in Q1 2023, showing an improvement in cash flow despite ongoing losses[74] - The company reported cash outflows for investing activities of CNY 174.81 million in Q1 2024, with no cash outflows recorded in Q1 2023, indicating new investment initiatives[76] - The company reported a cash and cash equivalents balance of CNY 13,971,394,403.64 at the end of Q1 2024, up from CNY 12,059,318,054.16 at the end of Q1 2023[57] Operational Metrics - In Q1 2024, the company's power generation equipment production reached 10.2041 million kW, including 8.9870 million kW from steam turbines and 0.9371 million kW from wind turbines[28] - The company secured new orders worth RMB 26.329 billion in Q1 2024, representing a 16.42% increase year-over-year, with clean and efficient energy equipment accounting for 42.25% of the total[28] - Research and development expenses increased to CNY 612,618,396.59 in Q1 2024, compared to CNY 518,969,374.40 in Q1 2023, marking a rise of 17.99%[41] - The company's operating revenue for Q1 2024 was CNY 2,539,214,276.17, a decrease of 49.3% compared to CNY 5,000,081,918.42 in Q1 2023[68] - The company experienced a net increase in customer loans and advances of CNY -309,857,567.66 in Q1 2024, an improvement from CNY -1,622,287,774.68 in Q1 2023, reflecting better credit management[53]

Financial Performance - Total revenue for Q1 2024 reached ¥15,052,868,276.63, an increase of 2.28% compared to the same period last year[6] - Operating income for the same period was ¥14,801,351,538.99, reflecting a growth of 2.55% year-over-year[6] - Net profit attributable to shareholders decreased by 11.12% to ¥905,751,281.62, primarily due to a fair value loss of ¥238 million from non-monetary asset exchanges[7] - The net profit after deducting non-recurring gains and losses increased by 10.61% to ¥1,055,684,212.95[7] - Basic and diluted earnings per share were both ¥0.290, down 11.11% from the previous year[7] - The weighted average return on equity was 2.40%, a decrease of 0.47 percentage points compared to the previous year[7] - Total operating revenue for Q1 2024 reached CNY 15,052,868,276.63, an increase of 2.27% compared to CNY 14,717,057,814.50 in Q1 2023[23] - Operating income was CNY 14,801,351,538.99, up from CNY 14,432,750,706.82, reflecting a growth of 2.55% year-over-year[23] - Net profit attributable to shareholders was CNY 1,266,588,351.74, compared to CNY 1,271,007,106.68 in Q1 2023, showing a slight decrease of 0.35%[23] - In Q1 2024, the company reported a net profit of ¥985,392,571.41, a decrease of 8.9% compared to ¥1,081,476,346.18 in Q1 2023[24] Assets and Liabilities - Total assets at the end of the reporting period were ¥128,378,372,649.13, an increase of 6.00% from the end of the previous year[7] - Total assets increased to CNY 128,378,372,649.13, up from CNY 121,108,373,341.62, reflecting a growth of 6.67%[21] - Total liabilities rose to CNY 86,125,773,454.79, compared to CNY 79,888,498,579.02, an increase of 7.77%[20] - Total assets decreased to approximately ¥40.43 billion from ¥41.23 billion, a decline of 1.9%[33] - Total liabilities decreased to approximately ¥14.97 billion from ¥15.54 billion, a decline of 3.6%[33] Cash Flow - The net cash flow from operating activities was ¥1,240,643,938.05, with no applicable year-over-year comparison[6] - The cash flow from operating activities increased by 2.913 billion RMB year-on-year due to better collections from sales[12] - The cash flow from investing activities decreased by 168.83 million RMB, primarily due to reduced net inflows from interbank deposits[12] - The cash flow from financing activities increased by 720.26 million RMB, with long-term borrowings from external banks rising by 299 million RMB compared to the beginning of the period[12] - The cash flow from operating activities showed a net inflow of ¥1,240,643,938.05, a significant recovery from a net outflow of ¥2,549,740,798.22 in Q1 2023[28] - The investment activities resulted in a net cash outflow of ¥1,704,617,374.77, contrasting with a net inflow of ¥2,476,731,084.24 in the previous year[28] - The total cash decrease for Q1 2024 was -2,059,466,927.47 RMB, an improvement from -3,501,664,741.73 RMB in Q1 2023, showing a reduction in overall cash depletion[39] Shareholder Information - Shareholders' equity attributable to the company was ¥38,152,233,480.99, up 2.44% from the previous year[7] - The total number of ordinary shareholders at the end of the reporting period was 99,327[14] - The company has not identified any related party relationships among the top 10 shareholders[15] Research and Development - Research and development expenses for Q1 2024 were CNY 612,618,396.59, up from CNY 518,969,374.40, indicating a growth of 18.01%[23] - Research and development expenses for Q1 2024 were approximately ¥30.04 million, down 58.2% from ¥71.74 million in Q1 2023[35] Fair Value and Other Losses - Non-recurring gains and losses totaled -¥149,932,931.33, significantly impacted by the fair value loss from the non-monetary asset exchange[10] - The company incurred a fair value loss of ¥223,635,498.10, compared to a gain of ¥33,152,618.84 in Q1 2023[24] - The company reported a fair value loss of approximately ¥237.73 million in Q1 2024, compared to a gain of ¥0.93 million in Q1 2023[36] Cash and Cash Equivalents - The company generated a total of 10.2041 million kilowatts of power generation equipment in Q1 2024, including 8.987 million kilowatts from steam turbines and 937,100 kilowatts from wind turbines[16] - The company's cash and cash equivalents as of March 31, 2024, were approximately 17.317 billion RMB, compared to 17.129 billion RMB at the end of 2023[18] - The cash and cash equivalents at the end of the period were ¥13,971,394,403.64, a decrease from ¥14,167,585,378.12 at the beginning of the quarter[29] - Cash and cash equivalents decreased to approximately ¥4.11 billion from ¥6.18 billion, a decline of 33.5%[31] - The cash and cash equivalents at the end of Q1 2024 were 4,112,853,344.15 RMB, down from 4,792,121,853.12 RMB at the end of Q1 2023, representing a decrease of approximately 14.2%[39] New Orders and Equipment - New orders amounted to 26.329 billion RMB in Q1 2024, representing a year-on-year growth of 16.42%[16] - Clean and efficient energy equipment accounted for 42.25% of new orders, while renewable energy equipment made up 25.85%[16]

Financial Performance - The total revenue for 2023 reached RMB 60.677 billion, representing a year-on-year growth of 9.60%[4] - The total profit amounted to RMB 4.006 billion, showing a year-on-year increase of 20.40%[4] - The net profit attributable to the parent company was RMB 3.550 billion, with a proposed cash dividend of RMB 4.75 per 10 shares, totaling RMB 1.481 billion, which accounts for 41.71% of the net profit[4] - Total revenue for 2023 reached RMB 60.68 billion, a 9.60% increase from RMB 55.36 billion in 2022[15] - Net profit attributable to shareholders for 2023 was RMB 3.55 billion, representing a 24.23% increase from RMB 2.86 billion in 2022[15] - Basic earnings per share for 2023 was RMB 1.14, up 23.91% from RMB 0.92 in 2022[16] - The company's total assets as of the end of 2023 were RMB 121.11 billion, a 5.00% increase from RMB 115.34 billion at the end of 2022[14] - The net cash flow from operating activities for 2023 was negative RMB 3.50 billion, a decline of 141.58% compared to RMB 8.41 billion in 2022[15] - The company reported a weighted average return on equity of 9.82% for 2023, an increase of 1.39 percentage points from 8.43% in 2022[16] - In Q4 2023, the operating revenue was RMB 15.91 billion, with a net profit attributable to shareholders of RMB 638.57 million[17] Market Position and Innovations - The company maintained a leading market share in coal power and achieved over 100% growth in boiler and turbine projects[4] - The company successfully launched the first domestically developed F-class 50 MW heavy-duty gas turbine demonstration project[4] - The company secured multiple breakthroughs in emerging industries, including a gas pipeline electric drive compressor project and a hydrogen energy logistics vehicle project[4] - The company established 7 digital workshops and built the first fully connected 5G digital factory in the domestic power generation equipment industry[5] - The company achieved a 9.2% year-on-year reduction in quality loss through the implementation of a quality control model[24] - The company has developed a complete hydrogen fuel cell product system with independent intellectual property rights, covering the entire hydrogen lifecycle from production to utilization[33] Research and Development - Research and development expenses increased by 9.08% year-on-year, maintaining an intensity of over 5.5%[23] - The company added 545 new effective patents during the year, including 256 invention patents, bringing the total to 3,828 effective patents by the end of 2023[35] - R&D expenses grew by 20.85% year-on-year, reflecting increased investment in research and development[42] - The total amount of research and development investment reached RMB 3,386,494,832.39, accounting for 5.68% of operating revenue[57] Corporate Governance - The company was recognized as a "Best Practice Case" by the China Association for Public Companies for corporate governance in 2023[6] - The company has been rated A for information disclosure by the Shanghai Stock Exchange for nine consecutive years[28] - The company emphasizes the importance of corporate governance and has established five specialized committees to enhance accountability and transparency[133] - The supervisory board confirmed that the 2023 annual report accurately reflects the company's significant operational and financial status[116] - The company has established a robust governance structure, ensuring transparency and fairness in shareholder meetings and decision-making processes[125] Environmental Responsibility - The company has established pollution prevention measures focusing on volatile organic compounds (VOCs) emissions control, welding fume emissions control, and underground wastewater pipeline management[198] - The company adheres to environmental impact assessment regulations for construction projects and holds valid pollutant discharge permits[199] - The company reported total COD emissions of 69.67 tons, which is below the standard limit of 500 mg/L[197] - The company reported total VOC emissions of 3.37 tons, which is compliant with the local emission standards[197] - The company has implemented measures to control the generation and discharge of pollutants from the source, ensuring compliance with national environmental laws[198] Strategic Goals and Future Outlook - The company aims to enhance its core competitiveness and create greater value for shareholders in 2024[6] - The projected output for power generation equipment in 2024 is expected to reach 48.23 million kilowatts, indicating a strong growth trajectory[87] - The company is committed to achieving carbon peak and carbon neutrality goals, aligning with national energy policies for a low-carbon transition[86] - The installed capacity of non-fossil energy sources is projected to reach 1.86 billion kilowatts, accounting for approximately 57% of the total installed capacity by the end of 2024[84] Shareholder Engagement and Rights - The company has implemented a shareholder communication policy to ensure that shareholder opinions and concerns are appropriately addressed as of December 31, 2023[196] - The company allows shareholders holding more than 10% of shares to request an extraordinary general meeting within 10 days of submission[193] - The company will cooperate with shareholders who convene their own meetings and provide the necessary shareholder register[194] - The company adheres to tax agreements with foreign shareholders, allowing for potential tax refunds if the actual tax rate is lower than the withheld rate[190]

Financial Performance - The company achieved a net profit attributable to shareholders of RMB 3,550,393,576.32 in 2023, an increase of 24.23% compared to RMB 2,857,898,505.21 in 2022[4]. - Total operating revenue for 2023 was RMB 60,676,613,395.82, representing a growth of 9.60% from RMB 55,363,782,450.06 in 2022[16]. - The basic earnings per share for 2023 was RMB 1.14, up 23.91% from RMB 0.92 in 2022[17]. - The company plans to distribute a cash dividend of RMB 4.75 per 10 shares, totaling RMB 1,480,812,242.08, which accounts for 41.71% of the net profit attributable to shareholders[4]. - The net cash flow from operating activities was negative at RMB -3,495,876,222.59, a significant decrease from RMB 8,408,573,623.86 in 2022[16]. - The company's total assets reached RMB 121,108,373,341.62 by the end of 2023, an increase of 5.00% from RMB 115,344,350,441.40 in 2022[16]. - The weighted average return on net assets for 2023 was 9.82%, an increase of 1.39 percentage points from 8.43% in 2022[17]. - The company reported a net profit of RMB 2,575,811,881.93 after deducting non-recurring gains and losses, which is an increase of 8.01% from RMB 2,384,896,763.34 in 2022[16]. - The net assets attributable to shareholders increased to RMB 37,244,895,786.52, reflecting a growth of 6.44% from RMB 34,992,066,981.24 in 2022[16]. Revenue Breakdown - The company achieved total operating revenue of RMB 60.677 billion in 2023, representing a year-on-year growth of 9.60%[25]. - In Q1 2023, the operating revenue was RMB 14.717 billion, with a net profit attributable to shareholders of RMB 1.019 billion[18]. - In Q2 2023, the operating revenue increased to RMB 15.198 billion, while net profit attributable to shareholders decreased to RMB 983 million[18]. - In Q3 2023, the operating revenue was RMB 14.851 billion, with net profit attributable to shareholders further declining to RMB 910 million[18]. - In Q4 2023, the operating revenue reached RMB 15.910 billion, but net profit attributable to shareholders dropped to RMB 639 million[18]. Research and Development - The company's R&D expenditure increased by 9.08% year-on-year, maintaining an intensity of over 5.5%[26]. - Research and development expenses amounted to ¥3.39 billion, which is a 20.85% increase compared to the previous year, reflecting the company's commitment to innovation[35]. - The company holds a total of 3,828 valid patents, including 1,548 invention patents, showcasing its strong innovation capabilities[35]. - The company has established 20 digital workshops, with 8 achieving A-level status, as part of its smart manufacturing transformation[36]. - The company plans to enhance its international business layout and brand image, targeting stable growth in international market orders[71]. Market Position and Strategy - The company ranked first in the gas power market share and successfully operated the first domestic G50 gas turbine demonstration project[26]. - The company is actively expanding its international market presence, with a focus on establishing overseas marketing institutions[36]. - The company aims to enhance its core competitiveness and drive innovation to achieve high-quality development, focusing on both traditional industry upgrades and strategic emerging industries[70]. - The company plans to strengthen its position in traditional sectors such as coal power and nuclear energy while accelerating the development of wind power and energy-saving industries[70]. - The company is committed to achieving carbon peak and carbon neutrality goals, aligning with national energy transition strategies[70]. Governance and Compliance - The company did not report any significant risks or non-compliance issues in its financial disclosures[6]. - The company emphasizes the protection of minority shareholders' rights and interests, ensuring equal treatment for all shareholders[81]. - The company has established comprehensive governance systems, including various committees to enhance operational transparency and accountability[82]. - The board of directors consists of 8 members, including 3 independent non-executive directors, and held 11 board meetings during the reporting period[81]. - The company has implemented measures to maintain the independence of its operations and governance structures[82]. Environmental Initiatives - The company invested approximately 24.27 million yuan in social responsibility initiatives, including 22.18 million yuan for rural revitalization and 1.22 million yuan for earthquake disaster relief[173]. - The company has been recognized as an environmentally friendly B-level enterprise in 2023 for its upgraded environmental performance[167]. - The carbon emission intensity of the production process for the year 2023 decreased by 4.5% year-on-year[171]. - The company aims to reduce volatile organic compounds (VOCs) emissions by over 10% by promoting the use of environmentally friendly raw materials[166]. - The company has constructed 11 new green workshops in 2023, building on the first batch of 9 green workshops[166]. Talent and Human Resources - The total number of employees at the company and its main subsidiaries is 17,426, with 8,227 being technical personnel[114]. - The company introduced 125 high-level talents and implemented 9 new long-term incentive projects, enhancing its talent pool[28]. - The company has initiated a talent development strategy focusing on green, low-carbon, and digital transformation, with ongoing training programs for employees[118]. - The number of R&D personnel was 4,274, making up 24.53% of the total workforce[50]. - The company plans to strengthen its talent strategy, aiming to establish 1-2 internal talent zones to enhance talent development[75]. Future Outlook - The company anticipates a 6% growth in national electricity consumption in 2024 compared to 2023, with total installed power generation capacity expected to reach 3.25 billion kilowatts[68]. - The company expects to maintain a high level of new coal power projects in 2024, driven by demand for energy security and system regulation[69]. - The company aims to achieve a power generation equipment output of 48.23 million kilowatts in 2024[71]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 12% to 15%[89]. - The company plans to implement new operational strategies aimed at improving efficiency by 10% over the next year[89].

Financial Performance - The company achieved total operating revenue of RMB 60.677 billion in 2023, an increase of 9.60% compared to RMB 55.364 billion in 2022[4]. - The net profit attributable to shareholders was RMB 3.550 billion in 2023, reflecting a growth of 24.23% from RMB 2.858 billion in 2022[4]. - Basic earnings per share increased to RMB 1.14 in 2023, up from RMB 0.92 in 2022[4]. - Total revenue for 2023 reached CNY 60.68 billion, an increase of 9.4% compared to CNY 55.36 billion in 2022[17]. - Net profit for 2023 was CNY 3.64 billion, up 20.9% from CNY 3.01 billion in 2022[19]. - Total assets reached RMB 121.108 billion at the end of 2023, an increase from RMB 115.344 billion in 2022[8]. - The total equity attributable to shareholders reached CNY 37.24 billion in 2023, an increase of 6.4% from CNY 34.99 billion in 2022[14]. - The average return on equity increased to 9.82%, up by 1.39 percentage points compared to the previous year[55]. Orders and Revenue Growth - New orders amounted to approximately RMB 86.532 billion in 2023, representing a 31.95% increase from RMB 65.579 billion in 2022[4]. - Total revenue for the current year is CNY 60,676,613,395.82, compared to CNY 55,363,782,450.06 in the previous year, indicating a year-over-year increase of about 9.5%[40]. - Revenue from clean and efficient energy equipment increased by RMB 5.905 billion, a growth of 40.21% year-on-year[76]. - The company recorded new orders of RMB 86.532 billion, a year-on-year increase of 31.95%, with clean and efficient energy equipment accounting for 39.44%[56]. Assets and Liabilities - Current assets totaled RMB 75.689 billion as of December 31, 2023, compared to RMB 67.424 billion at the end of 2022[7]. - Total liabilities increased to RMB 79.888 billion in 2023, compared to RMB 76.709 billion in 2022[12]. - The company's asset-liability ratio decreased to 65.96%, down 0.54 percentage points from the previous year[100]. - The net accounts receivable as of December 31, 2023, is CNY 10,714,105,864.95, up from CNY 10,095,931,789.15 in the previous year, reflecting an increase of approximately 6.1%[27]. Research and Development - Research and development expenses increased to CNY 2.75 billion in 2023, up from CNY 2.28 billion in 2022, indicating a growth of 20.8%[17]. - R&D expenses grew by 20.85% year-on-year, reflecting increased investment in research and development[71]. - R&D investment intensity is maintained at over 5.5%, with a focus on high-end, intelligent, and green development of equipment manufacturing[118]. Dividends and Shareholder Returns - The board proposed a cash dividend of RMB 4.75 per 10 shares for the 2023 fiscal year, subject to shareholder approval[4]. - The company plans to distribute a cash dividend of RMB 4.75 per 10 shares, totaling RMB 1.480 billion before tax for the fiscal year 2023[54]. Operational Efficiency and Cost Management - The company implemented a comprehensive cost management approach, enhancing operational efficiency[62]. - Operating expenses were reported at 10.99 billion, with a focus on optimizing cost structures to improve overall profitability[51]. - The company will implement strict cost control measures to improve profitability amidst competitive pricing pressures[133]. Market Expansion and Strategic Initiatives - The company is focusing on strategic acquisitions to bolster its market position, with an estimated investment of 12.67 billion planned for the upcoming fiscal year[50]. - The company aims to enhance its market expansion efforts both domestically and internationally, focusing on maintaining a stable order volume and solidifying its position in traditional industries while advancing into new sectors[116]. - The company plans to strengthen energy technology innovation and enhance the reliability of new energy sources[107]. Talent Development and Corporate Governance - The company has strengthened its talent pool by recruiting 125 high-level talents and training 145 experts[65]. - The company established a comprehensive compensation management system focusing on "strategic leadership, performance linkage, and efficiency adjustment" to optimize salary management and ensure differentiated compensation based on functional nature and contribution levels[145]. - The company has fully complied with the corporate governance code as per the Hong Kong Stock Exchange regulations during the reporting period[151].

Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected price increase of over 15% relative to the industry index within the next six months [124]. Core Insights - The company is a leading manufacturer of clean and efficient energy equipment, with significant growth expected in coal, gas, and nuclear power sectors, as well as in renewable energy equipment like pumped storage and wind power [4][115]. - The company is positioned to benefit from the acceleration of coal power projects, with an anticipated average of 70GW of new installations over the next two years, significantly boosting sales of coal power main equipment [2][33]. - The nuclear power sector is experiencing expedited approvals, with the company being a key supplier for major projects, which is expected to stabilize revenue from this segment [2][69]. - The company has achieved a significant market share in gas turbines, with over 70% of the market for gas turbine orders in 2023, and is expected to benefit from the projected growth in gas power installations [2][56]. - The offshore wind power sector is seeing rapid growth, with the company achieving a doubling of market share and significant new project wins, positioning it as a leader in this area [2][94]. Summary by Sections Financial Metrics - Revenue is projected to grow from 60.37 billion yuan in 2023 to 75.23 billion yuan in 2025, with a year-on-year growth rate of 11.4% in 2023, 14.8% in 2024, and 8.5% in 2025 [4][118]. - Net profit is expected to increase from 3.29 billion yuan in 2023 to 4.65 billion yuan in 2025, with growth rates of 15.3% in 2023, 23.0% in 2024, and 15.0% in 2025 [4][118]. - The company's earnings per share (EPS) are forecasted to rise from 1.06 yuan in 2023 to 1.49 yuan in 2025 [4][118]. Business Segments - The company operates across six major energy sectors: hydro, thermal, nuclear, wind, gas, and solar, with a comprehensive capability in development, design, manufacturing, and project contracting [13][15]. - The pumped storage segment is expected to see significant growth, with the company supplying 40% of the national water power units and leading in the development of large-scale pumped storage projects [2][74]. - In the hydrogen energy sector, the company is advancing its capabilities across the entire value chain, from production to storage and application, with significant growth in contracts and revenue expected [2][99]. Market Position - The company is recognized as one of the largest energy equipment manufacturers globally, with a presence in nearly 109 countries and a total installed capacity exceeding 89 million kilowatts [10][17]. - The company has a strong competitive edge in the domestic market for gas turbines, with a market share exceeding 45% and a robust order book [2][56]. - The offshore wind power market is a key growth area, with the company achieving significant project wins and a substantial increase in market share [2][94].