[Glossary](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This section provides definitions of key terms used throughout the report [Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides an overview of the company's basic information and key financial performance metrics [Company Information](index=5&type=section&id=%E4%B8%80%E3%80%81%20%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This chapter provides the company's basic business registration information, including names, legal representative, and contact details - The company's Chinese abbreviation is 'State Grid Information & Telecommunication', stock code is **600131**, formerly known as 'Minjiang Hydropower'[9](index=9&type=chunk)[13](index=13&type=chunk) [Key Accounting Data and Financial Indicators](index=5&type=section&id=%E4%B8%83%E3%80%81%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In H1 2021, the company achieved operating revenue of **RMB 2.88 billion**, a 6.79% increase, and net profit attributable to shareholders of **RMB 217 million**, up 29.57%, with net cash outflow from operating activities expanding to **RMB 955 million** Key Accounting Data for H1 2021 | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 2.88 billion RMB | 2.70 billion RMB | 6.79% | | Net Profit Attributable to Shareholders (RMB) | 217.14 million RMB | 167.58 million RMB | 29.57% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) (RMB) | 205.89 million RMB | 164.78 million RMB | 24.95% | | Net Cash Flow from Operating Activities (RMB) | -954.75 million RMB | -575.17 million RMB | N/A | | **Asset Status** | **End of Current Period** | **End of Prior Year** | **YoY Change (%)** | | Net Assets Attributable to Shareholders (RMB) | 4.86 billion RMB | 4.64 billion RMB | 4.68% | | Total Assets (RMB) | 10.91 billion RMB | 11.03 billion RMB | -1.12% | Key Financial Indicators for H1 2021 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic EPS (RMB/share) | 0.18 | 0.15 | 20.00% | | Diluted EPS (RMB/share) | 0.18 | 0.15 | 20.00% | | Weighted Average ROE (%) | 4.57% | 5.07% | Decrease of 0.5 percentage points | | Weighted Average ROE (Excl. Non-recurring Items) (%) | 4.34% | 4.99% | Decrease of 0.65 percentage points | - During the reporting period, the company's non-recurring gains and losses totaled **RMB 11.25 million**, primarily from government subsidies and other defined items[17](index=17&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the company's operations, financial performance, and future outlook [Industry and Main Business Overview](index=7&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company's main business spans cloud-network infrastructure, enterprise general digital applications, and power digital applications, benefiting from national digital economy strategies like 'East Data West Computing' and 'Dual Carbon' goals - The company's main business is divided into three segments: - **Cloud-Network Infrastructure**: Provides communication, computing infrastructure construction, operation, and cloud platform services - **Enterprise General Digital Applications**: Offers general digital products and services like ERP, enterprise portals, and operational visualization - **Power Digital Applications**: Delivers software and hardware products and solutions in areas such as power marketing and energy trading[18](index=18&type=chunk) - Industry growth is driven by the national 'East Data West Computing' strategy, promoting data center development, and the deep integration of energy and digital revolutions under 'Dual Carbon' goals, creating significant opportunities for the company in energy digitalization[20](index=20&type=chunk)[21](index=21&type=chunk) [Core Competitiveness Analysis](index=8&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness stems from its complete cloud-network integration capabilities, first-mover advantage, extensive communication and data center resources, robust technology with over a thousand patents, comprehensive business qualifications, and strong brand influence in the energy sector - The company possesses full-chain 'cloud-network integration' service capabilities, covering underlying computing resources and upper-layer application services, demonstrating a significant competitive advantage[22](index=22&type=chunk) - As one of the earliest enterprises in power industry information and communication, the company has deep industry understanding, strong customer stickiness, and a clear first-mover advantage[22](index=22&type=chunk) - The company holds over a thousand patents and software copyrights, forming a series of core technologies and products with independent intellectual property rights, including cloud data centers and energy trading platforms[22](index=22&type=chunk) [Discussion and Analysis of Operations](index=9&type=section&id=%E4%B8%89%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In H1 2021, the company achieved operating revenue of **RMB 2.88 billion** (up 6.79%) and net profit attributable to parent of **RMB 217 million** (up 29.57%), optimizing business for 'Dual Carbon' goals and expanding into grid digitalization and external markets H1 2021 Operating Performance | Indicator | Amount | YoY Growth | | :--- | :--- | :--- | | Operating Revenue (RMB) | 2.88 billion RMB | 6.79% | | Net Profit Attributable to Shareholders (RMB) | 217.00 million RMB | 29.57% | - To support 'Dual Carbon' goals, the company established an Energy (Carbon Asset) Management and Operations Center, developing dual-carbon digital products and optimizing its 'Cloud-Network Integration 2.0' business layout with a 'digital foundation + energy application' core[24](index=24&type=chunk) - In grid digitalization, the company supported the launch of Marketing 2.0 in Jiangsu, with online State Grid registered users exceeding **160 million**; in external markets, it built a charging operation network service platform, connecting **141** charging stations[24](index=24&type=chunk)[25](index=25&type=chunk) [Analysis of Main Business](index=10&type=section&id=(%E4%B8%80)%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, operating revenue grew by **6.79%** due to increased sales, while financial expenses decreased by **108.55%** due to reduced loans and increased interest income; R&D expenses rose by **12.43%**, and net cash outflow from operating activities expanded to **RMB 955 million** due to increased procurement payments Analysis of Key Financial Statement Items | Item | Current Period Amount | Prior Period Amount | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 2.88 billion RMB | 2.70 billion RMB | 6.79% | Increased Sales | | Financial Expenses (RMB) | -1.29 million RMB | 15.12 million RMB | -108.55% | Lower Interest Expense, Higher Interest Income | | R&D Expenses (RMB) | 80.75 million RMB | 71.83 million RMB | 12.43% | Increased R&D Investment | | Net Cash Flow from Operating Activities (RMB) | -955.00 million RMB | -575.00 million RMB | N/A | Increased Procurement Payments | [Analysis of Assets and Liabilities](index=11&type=section&id=(%E4%B8%89)%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) As of the reporting period end, total assets were **RMB 10.91 billion** (down 1.12% from year-start); cash decreased by **47.88%** due to procurement payments, inventory increased by **129.17%** due to work-in-progress, while notes payable decreased by **58.98%** and contract liabilities grew by **53.30%** due to increased sales Changes in Key Asset and Liability Items | Item | Amount at End of Current Period | Change from Prior Year-End (%) | Explanation | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents (RMB) | 1.34 billion RMB | -47.88% | Increased Procurement Payments | | Inventories (RMB) | 461.04 million RMB | 129.17% | Due to Increase in Work-in-Progress | | Notes Payable (RMB) | 444.07 million RMB | -58.98% | Notes Matured and Accepted | | Contract Liabilities (RMB) | 226.00 million RMB | 53.30% | Due to Increased Sales in Current Year | [Analysis of Major Holding and Participating Companies](index=13&type=section&id=(%E5%85%AD)%20%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The company's four wholly-owned subsidiaries are key profit contributors; in H1 2021, Beijing Zhongdian Puhua, Anhui Jiyuan Software, Beijing Zhongdian Feihua, and Sichuan Zhongdian Qimingxing contributed **RMB 58.65 million**, **RMB 39.17 million**, **RMB 49.08 million**, and **RMB 24.83 million** in net profit respectively, while associate Sichuan Futang Hydropower achieved **RMB 119 million** in net profit Operating Performance of Major Subsidiaries in H1 2021 | Company Name | Net Profit (RMB) | Operating Revenue (RMB) | | :--- | :--- | :--- | | Beijing Zhongdian Puhua Information Technology Co., Ltd. | 58.65 million RMB | 901.24 million RMB | | Anhui Jiyuan Software Co., Ltd. | 39.17 million RMB | 702.49 million RMB | | Beijing Zhongdian Feihua Communication Co., Ltd. | 49.08 million RMB | 914.53 million RMB | | Sichuan Zhongdian Qimingxing Information Technology Co., Ltd. | 24.83 million RMB | 372.00 million RMB | [Potential Risks](index=14&type=section&id=(%E4%B8%80)%20%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces significant risks including high dependence on State Grid Corporation, talent loss in its human and technology-intensive operations, infringement of core intellectual property, and rapid technological innovation in the information and communication industry - The company's primary revenue is from State Grid Corporation, posing a significant dependence risk on a single major customer[35](index=35&type=chunk) - As a talent and technology-intensive enterprise, the company faces intense talent competition and the challenge of losing core personnel[35](index=35&type=chunk) - The information and communication industry is rapidly evolving; if the company fails to maintain its technological edge, its competitive advantage may be eroded[35](index=35&type=chunk) [Corporate Governance](index=15&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) This section details the company's governance structure, including changes in its board of directors and senior management [Changes in Directors, Supervisors, and Senior Management](index=15&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company experienced changes in its board and senior management, including the resignation of two directors and one deputy general manager, and the election of two new directors and appointment of one new deputy general manager - During the reporting period, the company's board and senior management underwent multiple changes, including the departure of **two** directors, election of **two** new directors, and the departure and appointment of **one** deputy general manager respectively[38](index=38&type=chunk) [Environmental and Social Responsibility](index=17&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E7%8E%AF%E5%A2%83%E4%B8%8E%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) This section outlines the company's initiatives and performance in environmental protection and social responsibility [Environmental Information](index=17&type=section&id=%E4%B8%80%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%83%85%E5%86%B5) The company and its subsidiaries are not major polluters; in response to 'Dual Carbon' goals, the company established an Energy (Carbon Asset) Management and Operations Center and developed the 'Dianxiangjia' digital energy service platform, providing energy-saving and carbon reduction services to over **400** industrial and commercial users - To reduce carbon emissions, the company established an Energy (Carbon Asset) Management and Operations Center and developed the 'Dianxiangjia' digital energy service platform, providing carbon emission and energy consumption online monitoring services to over **400** industrial and commercial users and **30** controlled emission enterprises[43](index=43&type=chunk) [Social Responsibility](index=17&type=section&id=%E4%BA%8C%E3%80%81%E5%B7%A9%E5%9B%BA%E6%8B%93%E5%B1%95%E8%84%B1%E8%B4%AB%E6%94%BB%E5%9D%9A%E6%88%90%E6%9E%9C%E3%80%81%E4%B9%A1%E6%9D%91%E6%8C%AF%E5%85%B4%E7%AD%89%E5%B7%A5%E4%BD%9C%E5%85%B7%E4%BD%93%E6%83%85%E5%86%B5) Through major asset restructuring, the company replaced traditional hydropower with high-growth cloud-network information and communication industries, promoting industrial upgrading in Aba Prefecture, Sichuan, contributing **RMB 6.64 million** in new taxes in H1 2021, and actively supporting rural revitalization with its technological expertise - Through asset restructuring, the company promoted industrial upgrading in Aba Prefecture, contributing **RMB 6.64 million** in new taxes in H1 2021, and leveraging its digital advantages to conduct systematic research and formulate rural revitalization plans[44](index=44&type=chunk) [Significant Matters](index=18&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers important events and commitments, including litigation, related party transactions, and compliance with undertakings [Fulfillment of Commitments](index=18&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) During the reporting period, all commitments made by the company's actual controller, shareholders, and related parties in the major asset restructuring, including performance compensation, share lock-up, and resolution of horizontal competition and related-party transactions, were being fulfilled without any breaches - Xinchan Group committed that the injected assets would achieve specific net profits for 2019-2022, and this commitment is currently being fulfilled[49](index=49&type=chunk) - State Grid Corporation committed to reducing the proportion of related-party transactions for the listed company to below **50%** within **five** years after the restructuring, and this commitment is currently being fulfilled[51](index=51&type=chunk) [Major Litigation and Arbitration Matters](index=30&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) The company and its subsidiaries are involved in several major contract disputes, including ongoing lawsuits between subsidiary Yangjiawan Company and Huiyuan Company regarding hydropower station construction, the company's re-trial application for a share transfer payment recovery case against Chongqing Bosai Mining was rejected, and subsidiary Jiyuan Software's contract dispute with Zhisheng Company was terminated due to lack of executable asset clues, pending resumption upon new information - Subsidiary Yangjiawan Company is involved in ongoing entrusted contract disputes with Huiyuan Company and Huiyuan Group regarding hydropower station project quality and leakage incidents, with the impact on financial statements currently unpredictable[63](index=63&type=chunk)[342](index=342&type=chunk) - The company's lawsuit against Chongqing Bosai Mining (Group) Co., Ltd. to recover **RMB 24.95 million** in share transfer payments was dismissed by the final judgment, and the re-trial application was also rejected[63](index=63&type=chunk)[346](index=346&type=chunk) [Major Related Party Transactions](index=32&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engages in significant related-party transactions with its ultimate controlling party, State Grid Corporation, and its subsidiaries; in H1 2021, sales to related parties totaled approximately **RMB 2.01 billion**, purchases from related parties totaled approximately **RMB 217 million**, and the company received a **RMB 350 million** short-term entrusted loan from its controlling shareholder Xinchan Group Major Related Party Sales in H1 2021 | Related Party | Related Party Transaction Content | Related Party Transaction Amount (RMB) | | :--- | :--- | :--- | | Other Entities within State Grid Corporation System | Sales of Goods and Provision of Services | 1.15 billion RMB | | State Grid Corporation of China | Sales of Goods and Provision of Services | 221.00 million RMB | | State Grid Information & Telecommunication Industry Group Co., Ltd. | Sales of Goods and Provision of Services | 123.00 million RMB | | State Grid Jiangsu Electric Power Co., Ltd. | Sales of Goods and Provision of Services | 102.00 million RMB | Major Related Party Purchases in H1 2021 | Related Party | Related Party Transaction Content | Related Party Transaction Amount (RMB) | | :--- | :--- | :--- | | Other Entities within State Grid Corporation System | Purchases of Goods, Acceptance of Services | 78.61 million RMB | | Xuchang Xuji Delishier Electric Co., Ltd. | Purchases of Goods, Acceptance of Services | 47.52 million RMB | | Jiangsu Ruizhong Data Co., Ltd. | Purchases of Goods, Acceptance of Services | 21.28 million RMB | - During the reporting period, controlling shareholder Xinchan Group provided the company with a **RMB 350 million** short-term entrusted loan for working capital, with a **1-year** term and **3.85%** interest rate, and the loan balance at period-end was **RMB 350 million**[73](index=73&type=chunk) [Share Changes and Shareholder Information](index=37&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details changes in the company's share capital and information regarding its shareholders [Share Capital Changes](index=37&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's total share capital or share structure [Shareholder Information](index=37&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the reporting period end, the company had **39,099** common shareholders; controlling shareholder State Grid Information & Telecommunication Industry Group Co., Ltd. holds **48.85%** and, through a voting rights entrustment agreement with State Grid Sichuan Electric Power Company, collectively controls **56.83%** of voting rights Top Ten Shareholders' Holdings | Shareholder Name | Shares Held at Period-End | Percentage (%) | | :--- | :--- | :--- | | State Grid Information & Telecommunication Industry Group Co., Ltd. | 583,920,295 | 48.85 | | State Grid Sichuan Electric Power Company | 95,385,704 | 7.98 | | Xinhua Water Conservancy Holding Group Co., Ltd. | 59,849,416 | 5.01 | | Aba State-owned Assets Investment Management Co., Ltd. | 30,654,661 | 2.56 | | Beijing Xinhua Guotai Water Conservancy Asset Management Co., Ltd. | 26,011,299 | 2.18 | - Controlling shareholder State Grid Information & Telecommunication Industry Group Co., Ltd. and State Grid Sichuan Electric Power Company are parties acting in concert, with the latter entrusting its **95,385,704** shares' voting rights to the former[80](index=80&type=chunk) [Preferred Shares Information](index=41&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms the absence of preferred shares for the company during the reporting period [Preferred Shares Information](index=41&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) During the reporting period, the company had no preferred shares - Not applicable[86](index=86&type=chunk) [Bond Information](index=42&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms the absence of bond-related information for the company during the reporting period [Bond Information](index=42&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) During the reporting period, the company had no corporate bonds, company bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds - Not applicable[87](index=87&type=chunk) [Financial Report](index=43&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's consolidated financial statements, including balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=43&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2021, total assets were **RMB 10.91 billion** (down 1.12% from year-start), total liabilities were **RMB 6.05 billion** (down 5.33%), and equity attributable to parent company owners was **RMB 4.86 billion** (up 4.68%), maintaining a stable asset-liability structure Key Items from Consolidated Balance Sheet | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents (RMB) | 1.34 billion RMB | 2.57 billion RMB | | Accounts Receivable (RMB) | 6.15 billion RMB | 5.47 billion RMB | | Inventories (RMB) | 461.04 million RMB | 201.18 million RMB | | **Total Assets (RMB)** | **10.91 billion RMB** | **11.03 billion RMB** | | **Liabilities** | | | | Short-term Borrowings (RMB) | 450.00 million RMB | 460.00 million RMB | | Notes Payable (RMB) | 444.07 million RMB | 1.08 billion RMB | | Accounts Payable (RMB) | 4.49 billion RMB | 4.26 billion RMB | | **Total Liabilities (RMB)** | **6.05 billion RMB** | **6.39 billion RMB** | | **Shareholders' Equity** | | | | Total Equity Attributable to Parent Company Owners (RMB) | 4.86 billion RMB | 4.64 billion RMB | | **Total Shareholders' Equity (RMB)** | **4.86 billion RMB** | **4.64 billion RMB** | [Consolidated Income Statement](index=48&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2021, total operating revenue reached **RMB 2.88 billion** (up 6.79%), with operating costs at **RMB 2.33 billion** (up 5.06%), indicating improved gross margin; net profit attributable to parent company shareholders was **RMB 217 million** (up 29.57%), significantly enhancing profitability, with basic EPS at **RMB 0.18** Key Items from Consolidated Income Statement | Item | Jan-Jun 2021 | Jan-Jun 2020 | | :--- | :--- | :--- | | Total Operating Revenue (RMB) | 2.88 billion RMB | 2.70 billion RMB | | Total Operating Costs (RMB) | 2.66 billion RMB | 2.57 billion RMB | | Of which: Operating Costs (RMB) | 2.33 billion RMB | 2.22 billion RMB | | R&D Expenses (RMB) | 80.75 million RMB | 71.83 million RMB | | Financial Expenses (RMB) | -1.29 million RMB | 15.12 million RMB | | Total Profit (RMB) | 236.55 million RMB | 189.90 million RMB | | Net Profit (RMB) | 217.14 million RMB | 167.58 million RMB | | Net Profit Attributable to Parent Company Shareholders (RMB) | 217.14 million RMB | 167.58 million RMB | | Basic EPS (RMB/share) | 0.18 | 0.15 | [Consolidated Cash Flow Statement](index=52&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2021, net cash flow from operating activities was **RMB -955 million**, with increased outflow primarily due to higher payments for goods and services; net cash outflow from investing activities was **RMB 154 million**, mainly for fixed asset purchases; net cash inflow from financing activities was **RMB 85 million**, and period-end cash and cash equivalents totaled **RMB 1.22 billion** Key Items from Consolidated Cash Flow Statement | Item | Jan-Jun 2021 | Jan-Jun 2020 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities (RMB) | -954.75 million RMB | -575.17 million RMB | | Net Cash Flow from Investing Activities (RMB) | -153.88 million RMB | -63.58 million RMB | | Net Cash Flow from Financing Activities (RMB) | 85.38 million RMB | 1.09 billion RMB | | Net Increase in Cash and Cash Equivalents (RMB) | -1.02 billion RMB | 450.65 million RMB | | Cash and Cash Equivalents at Period-End (RMB) | 1.21 billion RMB | 1.82 billion RMB | [Significant Accounting Policy Changes](index=84&type=section&id=44.%20%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%92%8C%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1%E7%9A%84%E5%8F%98%E6%9B%B4) Effective January 1, 2021, the company adopted the revised Accounting Standard for Business Enterprises No. 21 — Leases, adjusting opening financial statement items for the cumulative impact, with right-of-use assets and lease liabilities each increasing by **RMB 206 million**, without restating comparable period information - The company adopted the new lease standard effective **January 1, 2021**[172](index=172&type=chunk) - Upon initial adoption of the new lease standard, the company adjusted its consolidated balance sheet as of January 1, 2021, increasing right-of-use assets by **RMB 205.90 million** and lease liabilities by **RMB 205.90 million**[174](index=174&type=chunk)[175](index=175&type=chunk)

Financial Performance - The company's operating revenue for 2020 was approximately ¥7.01 billion, a decrease of 9.71% compared to ¥7.77 billion in 2019[17]. - Net profit attributable to shareholders for 2020 was approximately ¥606.87 million, an increase of 24.62% from ¥486.98 million in 2019[17]. - The net profit after deducting non-recurring gains and losses was approximately ¥538.80 million, a significant increase of 291.95% compared to ¥137.47 million in 2019[17]. - The cash flow from operating activities for 2020 was approximately ¥500.49 million, reflecting a 30.71% increase from ¥382.91 million in 2019[17]. - The total assets at the end of 2020 were approximately ¥11.03 billion, representing a 23.98% increase from ¥8.90 billion at the end of 2019[17]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥4.64 billion, a substantial increase of 69.53% from ¥2.74 billion at the end of 2019[17]. - Basic earnings per share for 2020 were ¥0.52, an increase of 18.18% from ¥0.44 in 2019[18]. - The weighted average return on net assets for 2020 was 15.93%, an increase of 0.39 percentage points from 15.54% in 2019[18]. - The company achieved an annual revenue of RMB 7.01 billion, with a net profit of RMB 607 million, representing a year-on-year growth of 24.62%[33]. - The total comprehensive income for 2020 was ¥606,865,140.61, compared to ¥526,240,219.86 in 2019, reflecting an increase of 15.3%[175]. Dividend Distribution - In 2020, the company achieved a cash dividend distribution of 185,286,154.32 RMB, with a cash dividend ratio of 30.53%[6]. - The company will not issue new shares or increase capital reserves for the 2020 profit distribution, maintaining the total distribution amount unchanged[6]. - The company distributed cash dividends of ¥0.125 per share, totaling approximately ¥149.42 million for the year[19]. - The company reported a cash dividend of 1.55 RMB per 10 shares for the year 2020, totaling 185,286,154.32 RMB, which represents 30.53% of the net profit attributable to ordinary shareholders[63]. - The company has increased its cash dividend from 1.25 RMB per 10 shares in 2019 to 1.55 RMB in 2020, reflecting a commitment to returning value to shareholders[62]. Strategic Goals and Innovations - The company aims to leverage opportunities in energy digitalization, focusing on building high-quality underlying computing power infrastructure and enriching multi-scenario application services[3]. - The company emphasizes the integration of ICT technologies with energy technologies to support the achievement of carbon peak and carbon neutrality goals[3]. - The company is committed to fulfilling its social responsibilities and contributing to the construction of a moderately prosperous society through its information communication technology advantages[2]. - The company plans to invest approximately ¥24.7 billion in "new infrastructure" projects, which is expected to stimulate social investment of around ¥100 billion[29]. - The company aims to provide customized solutions for power marketing and energy trading, enhancing operational efficiency for power grid enterprises[26]. - The company plans to establish an Energy (Carbon Asset) Management Operation Center and an Energy Digital Innovation Center to enhance its capabilities in the energy value chain[59]. - The company is committed to increasing R&D investment and fostering innovation in energy internet technologies and standards[59]. Market and Customer Relations - The company reported a significant focus on investor relations management and enhancing the depth and breadth of information disclosure[2]. - The company has a significant reliance on a single customer, the State Grid Corporation, which poses a risk to its business development and profitability if there are any reductions in investment from this client[60]. - The company is actively expanding its market beyond the State Grid, focusing on large energy enterprises to mitigate risks associated with customer concentration[60]. - The company has experienced a notable impact from the COVID-19 pandemic but has adapted to the changing market conditions[28]. Research and Development - Research and development expenses totaled RMB 413 million, reflecting an 8% increase compared to the previous year[34]. - The company completed 193 patent applications during the reporting period, marking an 11% increase year-on-year, and received 57 patent grants, a 16% increase[34]. - The company is investing 200 million yuan in R&D for innovative solutions in the telecommunications sector[142]. - The number of R&D personnel was 662, making up 58.95% of the total workforce[43]. Financial Management and Liabilities - The company reduced interest-bearing liabilities by RMB 315 million, enhancing capital efficiency[34]. - The total liabilities for 2020 amounted to ¥6,388,145,844.53, compared to ¥6,157,783,705.35 in 2019, showing an increase of about 3.7%[171]. - The company reported a decrease in short-term borrowings to ¥460,000,000.00 in 2020 from ¥775,000,000.00 in 2019, a reduction of about 40.6%[171]. - The company’s total liabilities were ¥6,388,145,844.53 in 2020, compared to ¥6,157,783,705.35 in 2019, showing an increase of about 3.7%[171]. Corporate Governance and Compliance - The company has completed its asset restructuring and industry transformation, enhancing its "cloud-network integration" capabilities[2]. - The company maintains independence from its controlling shareholder in terms of personnel, assets, finance, and operations[157]. - The company has established a fair and transparent performance evaluation and incentive mechanism for its senior management, with annual performance targets set by the board[160]. - The company has a complete internal control system, with no significant deficiencies reported during the reporting period[161]. - The internal control audit report for the year was issued with a standard unqualified opinion[161]. Legal and Regulatory Matters - There were several ongoing major litigation and arbitration cases, including disputes with Chongqing Bosai Mining Group Co., Ltd.[93]. - The company has not faced any risks of suspension or termination of listing during the reporting period[92]. - The company is actively working to advance the execution of court rulings related to its claims[95]. Social Responsibility and Community Engagement - The company has donated a total of CNY 5.35 million to poverty alleviation efforts from 2013 to 2020, including CNY 2 million for education and CNY 3.35 million for poverty-stricken villages[114]. - The company has established a strategic cooperation relationship with Aba Prefecture to enhance economic development and support poverty alleviation efforts[113]. - The company has been awarded the "2020 Annual Poverty Alleviation Award" by People's Daily Online for its contributions to poverty alleviation[114]. Shareholder Information - The total number of ordinary shares increased to 1,195,394,544 shares after the issuance of 88,048,293 new shares[122]. - The largest shareholder, State Grid Information Communication, holds 583,920,295 shares, representing 48.85% of total shares[131]. - The company raised a total of 603,221,096 RMB through private placements during the reporting period[126]. - The company’s shareholding structure shows a diverse mix of state-owned and private entities among the top shareholders[131].

[Important Notice](index=3&type=section&id=%E4%B8%80%E3%80%81%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report and assume legal responsibility; the report is unaudited - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false statements, misleading representations, or major omissions, and assume individual and joint legal responsibility[3](index=3&type=chunk) - All directors attended the board meeting to review the quarterly report[3](index=3&type=chunk) - Company head Yang Shu, chief accountant Sun Hui, and head of accounting department Chen Yaqin guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[3](index=3&type=chunk) - This company's first quarterly report is unaudited[3](index=3&type=chunk) [Company Profile](index=3&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) As of the end of the reporting period, the company's total assets decreased by 9.06% year-on-year, while net assets attributable to shareholders increased by 0.94%; operating revenue grew by 14.49%, and net profit attributable to shareholders increased by 4.53%, with a significant decrease in net cash flow from operating activities [Key Financial Data](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) As of the end of the reporting period, total assets were **10.029 billion yuan**, a 9.06% decrease from the previous year-end; net assets attributable to shareholders were **4.684 billion yuan**, a 0.94% increase; operating revenue from the beginning of the year to period-end was **1.068 billion yuan**, up 14.49%; net profit attributable to shareholders was **43.76 million yuan**, up 4.53%; and net cash flow from operating activities was **-877 million yuan**, a significant decrease Overview of Key Financial Data | Indicator | As of Reporting Period End (2021.03.31) (yuan) | As of Previous Year End (2020.12.31) (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 10,029,468,000.76 | 11,028,789,897.18 | -9.06 | | Net Assets Attributable to Shareholders of Listed Company | 4,683,819,989.08 | 4,640,060,076.24 | 0.94 | | **From Year-Beginning to Reporting Period End** | | | | | Net Cash Flow from Operating Activities | -876,502,401.74 | -418,873,772.08 | N/A | | Operating Revenue | 1,068,471,169.86 | 933,226,087.25 | 14.49 | | Net Profit Attributable to Shareholders of Listed Company | 43,759,912.84 | 41,863,814.99 | 4.53 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 35,725,448.53 | 37,951,005.13 | -5.86 | | Weighted Average Return on Net Assets (%) | 0.94 | 1.52 | Decreased by 0.58 percentage points | | Basic Earnings Per Share (yuan/share) | 0.04 | 0.04 | | | Diluted Earnings Per Share (yuan/share) | 0.04 | 0.04 | | [Shareholder Information as of Reporting Period End: Total Shareholders, Top Ten Shareholders, and Top Ten Unrestricted Shareholders](index=4&type=section&id=2.2%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the end of the reporting period, the company had **38,163 shareholders**; State Grid Information & Telecommunication Industry Group Co., Ltd. was the largest shareholder with a **48.85% stake**, with details on the top ten shareholders and top ten unrestricted tradable share shareholders and their affiliations also disclosed - As of the end of the reporting period, the company had a total of **38,163 shareholders**[6](index=6&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name (Full) | Shares Held at Period-End | Percentage (%) | Number of Restricted Shares Held | Share Status | Pledged or Frozen Shares | Shareholder Type | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | State Grid Information & Telecommunication Industry Group Co., Ltd. | 583,920,295 | 48.85 | 558,713,938 | Unrestricted | 0 | State-owned legal entity | | State Grid Sichuan Electric Power Company | 95,385,704 | 7.98 | 95,385,704 | Unrestricted | 0 | State-owned legal entity | | Xinhua Water Conservancy Holding Group Co., Ltd. | 59,849,416 | 5.01 | 0 | Unrestricted | 0 | State-owned legal entity | | Aba State-owned Assets Investment Management Co., Ltd. | 30,654,661 | 2.56 | 0 | Unrestricted | 0 | State-owned legal entity | | Beijing Xinhua Guotai Water Conservancy Asset Management Co., Ltd. | 26,011,299 | 2.18 | 0 | Unrestricted | 0 | State-owned legal entity | | Tibet Longkun Information Technology Partnership (Limited Partnership) | 22,700,594 | 1.90 | 0 | Unrestricted | 0 | Domestic non-state-owned legal entity | | China Three Gorges Capital Holdings Co., Ltd. | 17,835,909 | 1.49 | 0 | Unrestricted | 0 | State-owned legal entity | | China State-owned Enterprise Structural Adjustment Fund Co., Ltd. | 12,118,634 | 1.01 | 0 | Unrestricted | 0 | State-owned legal entity | | CSC Financial Asset Management - Aba State Investment and Development Company - CSC Alpha Corei No. 3 Single Asset Management Plan | 9,440,000 | 0.79 | 0 | Unrestricted | 0 | Unknown | | CSC Financial Asset Management - Aba State-owned Assets Investment Management Co., Ltd. - CSC Alpha Corei No. 17 Single Asset Management Plan | 9,000,000 | 0.75 | 0 | Unrestricted | 0 | Unknown | Top Ten Unrestricted Tradable Shareholders' Holdings | Shareholder Name | Number of Unrestricted Tradable Shares Held | Share Type | Quantity | | :--- | :--- | :--- | :--- | | Xinhua Water Conservancy Holding Group Co., Ltd. | 59,849,416 | RMB Common Stock | 59,849,416 | | Aba State-owned Assets Investment Management Co., Ltd. | 30,654,661 | RMB Common Stock | 30,654,661 | | Beijing Xinhua Guotai Water Conservancy Asset Management Co., Ltd. | 26,011,299 | RMB Common Stock | 26,011,299 | | State Grid Information & Telecommunication Industry Group Co., Ltd. | 25,206,357 | RMB Common Stock | 25,206,357 | | Tibet Longkun Information Technology Partnership (Limited Partnership) | 22,700,594 | RMB Common Stock | 22,700,594 | | China Three Gorges Capital Holdings Co., Ltd. | 17,835,909 | RMB Common Stock | 17,835,909 | | China State-owned Enterprise Structural Adjustment Fund Co., Ltd. | 12,118,634 | RMB Common Stock | 12,118,634 | | CSC Financial Asset Management - Aba State Investment and Development Company - CSC Alpha Corei No. 3 Single Asset Management Plan | 9,440,000 | RMB Common Stock | 9,440,000 | | CSC Financial Asset Management - Aba State-owned Assets Investment Management Co., Ltd. - CSC Alpha Corei No. 17 Single Asset Management Plan | 9,000,000 | RMB Common Stock | 9,000,000 | | China Huarong Asset Management Co., Ltd. | 8,917,954 | RMB Common Stock | 8,917,954 | - State Grid Information & Telecommunication Industry Group Co., Ltd. and State Grid Sichuan Electric Power Company are parties acting in concert, both wholly-owned subsidiaries of State Grid Corporation of China; Beijing Xinhua Guotai Water Conservancy Asset Management Co., Ltd. is a wholly-owned subsidiary of Xinhua Water Conservancy Holding Group Co., Ltd[8](index=8&type=chunk) [Shareholder Information as of Reporting Period End: Total Preferred Shareholders, Top Ten Preferred Shareholders, and Top Ten Unrestricted Preferred Shareholders](index=5&type=section&id=2.3%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E4%BC%98%E5%85%88%E8%82%A1%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company had no preferred shareholders as of the end of the reporting period - The company has no preferred shareholders[8](index=8&type=chunk) [Significant Events](index=6&type=section&id=%E4%B8%89%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) During the reporting period, the company experienced several significant changes in key financial statement items and indicators across the balance sheet, income statement, and cash flow statement, with detailed explanations for these changes; there were no other significant event developments, overdue commitments, or warnings of major changes [Significant Changes and Reasons for Key Financial Statement Items and Indicators](index=6&type=section&id=3.1%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) On the balance sheet, cash and cash equivalents, accounts receivable financing, short-term borrowings, notes payable, and taxes payable significantly decreased, while inventories and other current liabilities substantially increased; on the income statement, R&D expenses, taxes and surcharges, and income tax expenses rose, while financial expenses, other income, credit impairment losses, and non-operating income declined; in the cash flow statement, net cash flow from operating and investing activities decreased year-on-year, while net cash flow from financing activities increased - Cash and cash equivalents decreased by **45.19%** from the beginning of the year, primarily due to the maturity and payment of notes payable and increased cash payments for goods and services[9](index=9&type=chunk)[10](index=10&type=chunk) - Accounts receivable financing decreased by **57.04%** from the beginning of the year, mainly due to the maturity and endorsement of bills[9](index=9&type=chunk)[10](index=10&type=chunk) - Inventories increased by **118.91%** from the beginning of the year, primarily due to increased investment in projects that have not yet met revenue recognition criteria[9](index=9&type=chunk)[10](index=10&type=chunk) - Short-term borrowings decreased by **30.43%** from the beginning of the year, mainly due to the repayment of matured loans[9](index=9&type=chunk)[10](index=10&type=chunk) - Notes payable decreased by **56.00%** from the beginning of the year, primarily due to the maturity and payment of bills[9](index=9&type=chunk)[10](index=10&type=chunk) - Taxes payable decreased by **72.30%** from the beginning of the year, mainly due to the payment of taxes due at the beginning of the year[9](index=9&type=chunk)[10](index=10&type=chunk) - Other current liabilities increased by **121.37%** from the beginning of the year, primarily due to an increase in other financial liabilities[9](index=9&type=chunk)[10](index=10&type=chunk) - Deferred income decreased by **100.00%** from the beginning of the year, mainly due to the completion and settlement of government grant projects[9](index=9&type=chunk)[10](index=10&type=chunk) Balance Sheet Item Changes | Balance Sheet Item | March 31, 2021 (yuan) | December 31, 2020 (yuan) | Change Amount (yuan) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,410,766,787.60 | 2,573,690,308.34 | -1,162,923,520.74 | -45.19 | | Accounts Receivable Financing | 29,251,214.02 | 68,095,528.47 | -38,844,314.45 | -57.04 | | Inventories | 440,402,085.49 | 201,178,586.27 | 239,223,499.22 | 118.91 | | Short-term Borrowings | 320,000,000.00 | 460,000,000.00 | -140,000,000.00 | -30.43 | | Notes Payable | 476,248,205.39 | 1,082,459,558.81 | -606,211,353.42 | -56.00 | | Taxes Payable | 35,341,509.26 | 127,571,981.30 | -92,230,472.04 | -72.30 | | Other Current Liabilities | 25,072,049.00 | 11,325,704.00 | 13,746,345.00 | 121.37 | | Deferred Income | 0.00 | 4,372.98 | -4,372.98 | -100.00 | - Research and development expenses increased by **42.51%** year-on-year, primarily due to increased R&D investment during the period[10](index=10&type=chunk)[11](index=11&type=chunk) - Financial expenses decreased by **114.84%** year-on-year, mainly due to increased interest income and decreased interest expenses[10](index=10&type=chunk)[11](index=11&type=chunk) - Other income decreased by **41.10%** year-on-year, primarily due to a reduction in government grants[10](index=10&type=chunk)[11](index=11&type=chunk) - Credit impairment losses decreased by **71.33%** year-on-year, mainly because the provision for bad debts was lower than in the same period last year[10](index=10&type=chunk)[11](index=11&type=chunk) - Non-operating income decreased by **88.95%** year-on-year, primarily due to the receipt of refunded litigation fees in the same period last year[10](index=10&type=chunk)[11](index=11&type=chunk) - Income tax expenses increased by **57.76%** year-on-year, primarily due to an increase in total profit compared to the same period last year[10](index=10&type=chunk)[11](index=11&type=chunk) - Taxes and surcharges increased by **283.33%** year-on-year, primarily due to an increase in value-added tax leading to higher surcharges[11](index=11&type=chunk) Income Statement Item Changes | Income Statement Item | Jan-Mar 2021 (yuan) | Jan-Mar 2020 (yuan) | Change Amount (yuan) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Taxes and Surcharges | 2,104,809.77 | 549,086.59 | 1,555,723.18 | 283.33 | | Research and Development Expenses | 37,431,765.28 | 26,265,922.40 | 11,165,842.88 | 42.51 | | Financial Expenses | -1,294,661.23 | 8,722,284.74 | -10,016,945.97 | -114.84 | | Other Income | 9,244,222.38 | 15,694,475.72 | -6,450,253.34 | -41.10 | | Credit Impairment Losses | -1,288,029.19 | -4,492,382.76 | 3,204,353.57 | -71.33 | | Non-Operating Income | 45,500.79 | 411,718.84 | -366,218.05 | -88.95 | | Income Tax Expenses | 3,675,417.88 | 2,329,748.83 | 1,345,669.05 | 57.76 | - Net cash flow from operating activities decreased year-on-year, primarily due to increased payments for purchases[12](index=12&type=chunk) - Net cash flow from investing activities decreased year-on-year, primarily due to cash outflows for capital expenditure projects[12](index=12&type=chunk) - Net cash flow from financing activities increased year-on-year, primarily due to a reduction in restricted funds[12](index=12&type=chunk) Cash Flow Statement Item Changes | Cash Flow Statement Item | Jan-Mar 2021 (yuan) | Jan-Mar 2020 (yuan) | Change Amount (yuan) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -876,502,401.74 | -418,873,772.08 | -457,628,629.66 | N/A | | Net Cash Flow from Investing Activities | -141,591,341.22 | -8,434,676.91 | -133,156,664.31 | N/A | | Net Cash Flow from Financing Activities | 52,795,019.72 | -76,136,230.62 | 128,931,250.34 | N/A | [Analysis and Explanation of Progress, Impact, and Solutions for Significant Events](index=7&type=section&id=3.2%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) There were no significant event developments requiring disclosure during the reporting period - There was no analysis or explanation of the progress, impact, or solutions for significant events during the reporting period[12](index=12&type=chunk) [Overdue Unfulfilled Commitments During the Reporting Period](index=7&type=section&id=3.3%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) There were no overdue unfulfilled commitments during the reporting period - There were no overdue unfulfilled commitments during the reporting period[12](index=12&type=chunk) [Warning and Explanation of Potential Cumulative Net Loss or Significant Change in Net Profit from Year-Beginning to End of Next Reporting Period Compared to Prior Year](index=7&type=section&id=3.4%20%E9%A2%84%E6%B5%8B%E5%B9%B4%E5%88%9D%E8%87%B3%E4%B8%8B%E4%B8%80%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E7%B4%AF%E8%AE%A1%E5%87%80%E5%88%A9%E6%B6%A6%E5%8F%AF%E8%83%BD%E4%B8%BA%E4%BA%8F%E6%8D%9F%E6%88%96%E8%80%85%E4%B8%8E%E4%B8%8A%E5%B9%B4%E5%90%8C%E6%9C%9F%E7%9B%B8%E6%AF%94%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E8%AD%A6%E7%A4%BA%E5%8F%8A%E5%8E%9F%E5%9B%A0%E8%AF%B4%E6%98%8E) There was no warning of potential cumulative net loss or significant change in net profit compared to the same period last year during the reporting period - There was no warning or explanation regarding a potential cumulative net loss or significant change in net profit from the beginning of the year to the end of the next reporting period compared to the same period last year[12](index=12&type=chunk) [Appendix](index=8&type=section&id=%E5%9B%9B%E3%80%81%E9%99%84%E5%BD%95) The appendix includes the company's consolidated and parent company financial statements for the first quarter of 2021, along with details on adjustments made to the opening financial statements upon initial adoption of the new lease accounting standard [Financial Statements](index=8&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's consolidated and parent company balance sheets, income statements, and cash flow statements for the first quarter of 2021, comprehensively illustrating the financial position and operating results as of the end of the reporting period [Consolidated Balance Sheet](index=8&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) Presents the company's consolidated financial position as of March 31, 2021 - The consolidated balance sheet for the company as of March 31, 2021 is provided[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [Parent Company Balance Sheet](index=11&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) Presents the parent company's financial position as of March 31, 2021 - The parent company balance sheet for the company as of March 31, 2021 is provided[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Consolidated Income Statement](index=14&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) Presents the company's consolidated operating results for the first quarter of 2021 - The consolidated income statement for the company's first quarter of 2021 is provided[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) [Parent Company Income Statement](index=17&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) Presents the parent company's operating results for the first quarter of 2021 - The parent company income statement for the company's first quarter of 2021 is provided[23](index=23&type=chunk)[24](index=24&type=chunk) [Consolidated Cash Flow Statement](index=19&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Presents the company's consolidated cash flows for the first quarter of 2021 - The consolidated cash flow statement for the company's first quarter of 2021 is provided[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) [Parent Company Cash Flow Statement](index=21&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Presents the parent company's cash flows for the first quarter of 2021 - The parent company cash flow statement for the company's first quarter of 2021 is provided[28](index=28&type=chunk)[29](index=29&type=chunk) [Initial Adoption of New Lease Accounting Standard from 2021 and Adjustments to Opening Financial Statements](index=23&type=section&id=4.2%202021%20%E5%B9%B4%E8%B5%B7%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%B0%83%E6%95%B4%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E5%BD%93%E5%B9%B4%E5%B9%B4%E5%88%9D%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company initially adopted the new lease accounting standard from January 1, 2021, and adjusted the opening consolidated and parent company financial statements in accordance with transitional provisions, primarily impacting items such as right-of-use assets and lease liabilities in the consolidated statements [Consolidated Statement Adjustments](index=23&type=section&id=%E5%90%88%E5%B9%B6%E6%8A%A5%E8%A1%A8%E8%B0%83%E6%95%B4%E6%83%85%E5%86%B5) Details the adjustments made to the consolidated financial statements upon the initial adoption of the new lease accounting standard - The company adopted the revised "Accounting Standard for Business Enterprises No. 21 – Leases" (Cai Kuai [2018] No. 35) effective January 1, 2021[32](index=32&type=chunk) - In accordance with transitional provisions, entities initially adopting this standard should adjust the opening retained earnings and other relevant financial statement items for the year of initial adoption based on the cumulative effect, with comparative period information not being restated[32](index=32&type=chunk) Consolidated Balance Sheet Adjustments upon Initial Adoption of New Lease Standard | Item | December 31, 2020 (yuan) | January 1, 2021 (yuan) | Adjustment Amount (yuan) | | :--- | :--- | :--- | :--- | | **Non-Current Assets:** | | | | | Right-of-Use Assets | | 205,899,276.63 | 205,899,276.63 | | Total Non-Current Assets | 1,751,217,699.49 | 1,957,116,976.12 | 205,899,276.63 | | Total Assets | 11,028,789,897.18 | 11,234,689,173.81 | 205,899,276.63 | | **Non-Current Liabilities:** | | | | | Lease Liabilities | | 205,899,276.63 | 205,899,276.63 | | Deferred Income | 4,372.98 | 4,372.98 | 0.00 | | Total Non-Current Liabilities | 4,372.98 | 205,903,649.61 | 205,899,276.63 | | Total Liabilities | 6,388,145,844.53 | 6,594,045,121.16 | 205,899,276.63 | [Parent Company Statement Adjustments](index=26&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%8A%A5%E8%A1%A8%E8%B0%83%E6%95%B4%E6%83%85%E5%86%B5) Details the adjustments made to the parent company's financial statements upon the initial adoption of the new lease accounting standard - The company adopted the revised "Accounting Standard for Business Enterprises No. 21 – Leases" (Cai Kuai [2018] No. 35) effective January 1, 2021[35](index=35&type=chunk) - In accordance with transitional provisions, entities initially adopting this standard should adjust the opening retained earnings and other relevant financial statement items for the year of initial adoption based on the cumulative effect, with comparative period information not being restated[35](index=35&type=chunk) - The parent company financial statements did not show specific adjustments upon initial adoption of the new lease standard, with all item amounts remaining consistent between December 31, 2020, and January 1, 2021[33](index=33&type=chunk)[34](index=34&type=chunk) [Explanation of Retrospective Adjustment of Prior Period Comparative Data upon Initial Adoption of New Lease Accounting Standard from 2021](index=28&type=section&id=4.3%202021%20%E5%B9%B4%E8%B5%B7%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%BF%BD%E6%BA%AF%E8%B0%83%E6%95%B4%E5%89%8D%E6%9C%9F%E6%AF%94%E8%BE%83%E6%95%B0%E6%8D%AE%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, the company did not retrospectively adjust prior period comparative data - During the reporting period, the company did not retrospectively adjust prior period comparative data[35](index=35&type=chunk) [Audit Report](index=28&type=section&id=4.4%20%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This quarterly report is unaudited - This company's first quarterly report is unaudited[3](index=3&type=chunk)