[Important Notice](index=2&type=section&id=Important%20Notice) The company ensures the report's accuracy, clarifies its unaudited status, and highlights forward-looking statements and risk disclosures - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions[3](index=3&type=chunk) - This semi-annual report is unaudited[5](index=5&type=chunk) - Forward-looking statements regarding future plans and development strategies in this report do not constitute a substantive commitment to investors, who are advised to be aware of investment risks[6](index=6&type=chunk) - There are no instances of non-operating funds being occupied by controlling shareholders or other related parties, nor are there any external guarantees provided in violation of decision-making procedures[7](index=7&type=chunk)[8](index=8&type=chunk) - The company has detailed potential risks in the report, primarily focusing on the power industry, coal market, and grid safe operation[7](index=7&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section provides definitions for key terms used throughout the report to ensure clarity and understanding Definitions of Common Terms | Common Term | Definition | | :--- | :--- | | The Company, Company, Tianfu Energy | Xinjiang Tianfu Energy Co., Ltd. | | Controlling Shareholder, Zhongxin Building Power Group | Zhongxin Building Power Group Co., Ltd. | | Indirect Controlling Shareholder, Tianfu Group | Xinjiang Tianfu Group Co., Ltd. | | Actual Controller, Eighth Division State-owned Assets Supervision and Administration Commission | State-owned Assets Supervision and Administration Commission of the Eighth Division of Xinjiang Production and Construction Corps | | Reporting Period | January 1, 2025 to June 30, 2025 | | Cogeneration | An advanced energy utilization form where steam from a heat-supply steam turbine generator unit generates electricity and supplies heat | | MW | Megawatt, unit for active power of power generation equipment | | Electricity Generation | An indicator for calculating electricity production, measured in "kilowatt-hours or kWh" | | Heat Supply | The amount of heat from steam or hot water supplied externally by a power plant while generating electricity, measured in kilojoules (KJ) | | Yuan, Ten Thousand Yuan, Hundred Million Yuan | RMB Yuan, RMB Ten Thousand Yuan, RMB Hundred Million Yuan | [Section II Company Profile and Key Financial Indicators](index=4&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's fundamental information, contact details, stock specifics, and key financial performance metrics [I. Company Information](index=4&type=section&id=I.%20Company%20Information) This section outlines the company's basic registration information, including its Chinese name, abbreviation, English name, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | Xinjiang Tianfu Energy Co., Ltd. | | Chinese Abbreviation | Tianfu Energy | | English Name | XINJIANG TIANFU ENERGY CO.,LTD. | | Legal Representative | Liu Wei | [II. Contact Persons and Contact Information](index=4&type=section&id=II.%20Contact%20Persons%20and%20Contact%20Information) This section provides contact information for the company's Board Secretary and Securities Affairs Representative, facilitating investor communication Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Chen Zhiyong | No. 2, Beiyi East Road, Shihezi City, Xinjiang | 0993-2902860 | 0993-2904371 | tfrd.600509@163.com | | Securities Affairs Representative | Yao Yugui | No. 2, Beiyi East Road, Shihezi City, Xinjiang | 0993-2901128 | 0993-2904371 | tfrd.600509@163.com | [III. Brief Introduction to Changes in Basic Information](index=5&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) This section details the historical changes in the company's registered address, with the most recent change occurring in 2016 due to office relocation - The company's registered address changed from "No. 54, Hongxing Road, Shihezi City, Xinjiang" to "No. 2, Beiyi East Road, Shihezi City, Xinjiang" on December 9, 2016[17](index=17&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Placement](index=5&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Placement) This section specifies the company's designated media for information disclosure and the location where reports are kept - The company's selected information disclosure newspapers are "Shanghai Securities News", "Securities Times", "Securities Daily", and the website for semi-annual reports is www.sse.com.cn[18](index=18&type=chunk) - The company's semi-annual report is available at the Securities Investment Department[18](index=18&type=chunk) [V. Company Stock Overview](index=5&type=section&id=V.%20Company%20Stock%20Overview) This section provides the company's stock listing information, including stock type, listing exchange, abbreviation, and code Company Stock Overview | Stock Type | Stock Exchange | Stock Abbreviation | Stock Code | Former Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Tianfu Energy | 600509 | Tianfu Thermal Power | [VII. Company's Key Accounting Data and Financial Indicators](index=5&type=section&id=VII.%20Company%27s%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section presents the company's key accounting data and financial indicators for the first half of 2025, explaining the main reasons for changes in each indicator, showing a decrease in operating revenue but an increase in total profit, with a slight decline in net profit Key Accounting Data for H1 2025 | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4.066 billion Yuan | 4.550 billion Yuan | -10.64 | | Total Profit | 346.38 million Yuan | 316.73 million Yuan | 9.36 | | Net Profit Attributable to Shareholders of Listed Company | 303.78 million Yuan | 313.17 million Yuan | -3.00 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 289.51 million Yuan | 297.56 million Yuan | -2.71 | | Net Cash Flow from Operating Activities | 226.22 million Yuan | 374.82 million Yuan | -39.65 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 7.700 billion Yuan | 7.451 billion Yuan | 3.33 | | Total Assets (Period-end) | 30.190 billion Yuan | 30.565 billion Yuan | -1.23 | Key Financial Indicators for H1 2025 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.2210 | 0.2289 | -3.45 | | Diluted Earnings Per Share (Yuan/share) | 0.2210 | 0.2289 | -3.45 | | Basic Earnings Per Share (Excluding Non-Recurring Gains/Losses) (Yuan/share) | 0.2106 | 0.2175 | -3.17 | | Weighted Average Return on Net Assets (%) | 4.00 | 4.14 | Decrease by 0.14 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains/Losses) (%) | 3.81 | 3.93 | Decrease by 0.12 percentage points | - Operating revenue decreased by **10.64%** year-on-year, primarily due to reduced electricity supply and lower electricity revenue during the reporting period[22](index=22&type=chunk) - Total profit increased by **9.36%** year-on-year, but net profit attributable to shareholders of the listed company decreased by **3.00%** year-on-year, mainly due to increased income tax expenses[20](index=20&type=chunk)[22](index=22&type=chunk) - Net cash flow from operating activities decreased by **39.65%** year-on-year, primarily due to decreased revenue and increased accounts receivable in the current period[20](index=20&type=chunk)[22](index=22&type=chunk) [IX. Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=IX.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section lists the company's non-recurring gains and losses items and their amounts for the first half of 2025, explaining why certain government grants are recognized as recurring gains and losses Non-Recurring Gains and Losses Items and Amounts for H1 2025 | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 583,871.98 | | Government grants recognized in current profit and loss (non-recurring) | 1,426,226.25 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 6,692,921.07 | | Other non-operating income and expenses apart from the above | 6,945,357.26 | | Less: Income tax impact | 379,923.36 | | Impact on minority interests (after tax) | -1,757,457.15 | | Total | 14,270,842.77 | - The company classifies deferred income amortization (24,298,388.03 Yuan), social security subsidies (5,426,935.19 Yuan), stable employment subsidies (117,586.92 Yuan), and other minor subsidies (82,849.55 Yuan) as recurring gains and losses[26](index=26&type=chunk) [XI. Other](index=7&type=section&id=XI.%20Other) This section discloses the company's changes in registered capital and total share capital due to share repurchases, with the industrial and commercial registration procedures now completed - The company completed its share repurchase in 2024 and finalized the registration and filing procedures for changes in registered capital and total share capital on January 24, 2025[28](index=28&type=chunk) - After the change, the registered capital is **1.374 billion Yuan**[28](index=28&type=chunk) [Section III Management Discussion and Analysis](index=7&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section provides a comprehensive analysis of the company's industry, business operations, financial performance, core competitiveness, and investment activities during the reporting period [I. Description of the Company's Industry and Main Business Operations During the Reporting Period](index=7&type=section&id=I.%20Description%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20Operations%20During%20the%20Reporting%20Period) This section details the company's position within the electricity and heat production and supply industry, along with its operational status and market standing in core businesses such as power generation, supply, heating, natural gas, and water supply [(I) Industry Situation During the Reporting Period](index=7&type=section&id=(I)%20Industry%20Situation%20During%20the%20Reporting%20Period) The company operates in the electricity and heat production and supply industry, a fundamental sector of the national economy, experiencing a 3.7% increase in national electricity consumption in H1 2025, yet a 16.08% decrease in the company's electricity supply due to reduced industrial demand in Xinjiang's Shihezi region - The company operates in the electricity and heat production and supply industry, a crucial basic industry for the national economy[30](index=30&type=chunk) - From January to June 2025, total electricity consumption across society was **4.842 trillion kWh**, a year-on-year increase of **3.7%**[30](index=30&type=chunk) - Due to reduced electricity demand from some industrial enterprises in Xinjiang's Shihezi region, the company's electricity supply decreased by **1.588 billion kWh** year-on-year, a **16.08%** reduction[30](index=30&type=chunk) [(II) Company Business Operations During the Reporting Period](index=7&type=section&id=(II)%20Company%20Business%20Operations%20During%20the%20Reporting%20Period) The company is Xinjiang Production and Construction Corps' largest integrated energy listed company, with core businesses including electricity and heat production and supply, natural gas supply, urban water supply, and construction, holding exclusive franchise rights in Shihezi City and actively expanding comprehensive energy services - The company is Xinjiang Production and Construction Corps' largest integrated energy listed company, primarily engaged in electricity and heat production and supply, natural gas supply, urban water supply, and construction[30](index=30&type=chunk) - The company operates an integrated power generation, supply, and dispatch grid, possessing an independent power supply area and a complete transmission and distribution network system[30](index=30&type=chunk) - As of June 2025, the company's operational controllable power generation capacity is **4,761 MW** (thermal power **2,890 MW**, photovoltaic **1,640 MW**, hydropower **231 MW**), with **1,320 MW** of photovoltaic capacity under construction[31](index=31&type=chunk) - The company holds exclusive franchise rights for the centralized heating network (covering **31.69 million square meters**), urban water supply network, and urban natural gas pipeline network across Shihezi City[31](index=31&type=chunk)[32](index=32&type=chunk) - The company is actively expanding its natural gas business across Xinjiang, building integrated energy service stations offering refueling, charging, photovoltaic power, and convenience store services[33](index=33&type=chunk) [II. Discussion and Analysis of Operating Results](index=8&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operating%20Results) In the first half of 2025, the company's operating revenue decreased by 10.64% year-on-year, but a significant reduction in operating costs due to lower fuel and purchased electricity prices led to a 9.36% increase in total profit; however, net profit attributable to shareholders of the listed company slightly declined due to increased income tax expenses H1 2025 Operating Performance Overview | Indicator | Amount | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 4.07 billion Yuan | -10.64% | | Operating Cost | 3.14 billion Yuan | -15.44% | | Total Profit | 346.38 million Yuan | +9.36% | | Net Profit Attributable to Shareholders of Listed Company | 303.78 million Yuan | -3.00% | | Earnings Per Share | 0.2210 Yuan/share | -0.0079 Yuan/share | - The decrease in operating revenue was primarily influenced by reduced electricity supply and new electricity pricing policies[33](index=33&type=chunk) - The significant decline in operating costs was mainly attributed to lower fuel prices and reduced purchased electricity prices[33](index=33&type=chunk) - Electricity generation was **8.878 billion kWh**, a year-on-year decrease of **12.10%**; electricity supply was **9.677 billion kWh**, a year-on-year decrease of **14.09%**, resulting in electricity revenue of **2.844 billion Yuan**, a year-on-year decrease of **18.15%**[34](index=34&type=chunk) - Heating revenue was **442 million Yuan**, a year-on-year decrease of **5.27%**; heating cost was **455 million Yuan**, a year-on-year decrease of **15.43%**[34](index=34&type=chunk) - Natural gas supply volume was **205.29 million cubic meters**, a year-on-year increase of **26.34%**; natural gas business revenue was **484 million Yuan**, a year-on-year increase of **31.39%**, achieving a net profit of **23.82 million Yuan**, an increase of **8.89 million Yuan** year-on-year[34](index=34&type=chunk) [III. Analysis of Core Competitiveness During the Reporting Period](index=8&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core competitiveness stems from its integrated "source-grid-load-storage" operation model within an independent local power grid, the resource integration advantages of its controlling shareholder Zhongxin Building Power Group, abundant clean energy resources in Xinjiang, and extensive industry management experience - The company operates Xinjiang Production and Construction Corps' largest independent local power grid, utilizing an integrated "source-grid-load-storage" model to enhance new energy absorption, reduce energy costs, and establish a competitive electricity price region[35](index=35&type=chunk) - Controlling shareholder Zhongxin Building Power Group, as the main force in the Corps' new energy construction, aims to become Xinjiang's largest trillion-Yuan power enterprise, positioning Tianfu Energy, its sole listed subsidiary, to fully benefit from industry development dividends[36](index=36&type=chunk)[37](index=37&type=chunk) - Xinjiang, with its vast territory and abundant sunshine, is a key large-scale clean energy base promoted by the national "14th Five-Year Plan", possessing extensive unused land such as Gobi, deserts, and barren areas suitable for large-scale photovoltaic project development[37](index=37&type=chunk) - As the earliest company engaged in power generation and supply in Xinjiang, the company has accumulated rich operational management experience and high-level power dispatching capabilities[37](index=37&type=chunk) [IV. Key Operating Conditions During the Reporting Period](index=9&type=section&id=IV.%20Key%20Operating%20Conditions%20During%20the%20Reporting%20Period) This section provides an in-depth analysis of the company's main business financial statement item changes during the reporting period, detailing asset and liability conditions, including reasons for increases and decreases in various indicators and the status of major restricted assets [(I)Analysis of Main Business](index=9&type=section&id=(I)Analysis%20of%20Main%20Business) The company's main business analysis indicates that both operating revenue and costs decreased due to reduced electricity supply and declining coal prices; selling expenses rose with increased gas sales, administrative expenses increased due to litigation costs, financial expenses grew from exchange losses, and R&D expenses significantly increased due to greater investment; net cash flow from operating activities decreased, while net cash flow from investing activities improved, and net cash flow from financing activities significantly declined Analysis Table of Financial Statement Item Changes | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4.066 billion | 4.550 billion | -10.64 | | Operating Cost | 3.137 billion | 3.711 billion | -15.44 | | Selling Expenses | 77.97 million | 76.95 million | 1.32 | | Administrative Expenses | 142.74 million | 131.80 million | 8.30 | | Financial Expenses | 213.04 million | 197.71 million | 7.75 | | Research and Development Expenses | 13.57 million | 5.96 million | 127.81 | | Net Cash Flow from Operating Activities | 226.22 million | 374.82 million | -39.65 | | Net Cash Flow from Investing Activities | -854.31 million | -1.224 billion | 30.22 | | Net Cash Flow from Financing Activities | 171.33 million | 849.18 million | -79.82 | - Changes in operating revenue and operating costs were primarily due to reduced electricity supply and declining coal prices[38](index=38&type=chunk) - Research and development expenses increased by **127.81%** year-on-year, mainly due to increased R&D investment in the current year[38](index=38&type=chunk) - Net cash flow from operating activities decreased by **39.65%**, primarily due to reduced revenue and increased accounts receivable[38](index=38&type=chunk) - Net cash flow from financing activities decreased by **79.82%**, mainly due to reduced project loans and a year-on-year decrease in capital contributions from minority shareholders[38](index=38&type=chunk) [(III)Analysis of Assets and Liabilities](index=10&type=section&id=(III)Analysis%20of%20Assets%20and%20Liabilities) The company's asset and liability structure underwent several changes, with significant decreases in notes receivable, inventories, short-term borrowings, notes payable, other payables, and non-current liabilities due within one year, while prepayments, other non-current assets, and long-term borrowings increased; certain assets are restricted due to bank acceptance bill deposits, project mortgage loans, and equity pledge loans Changes in Assets and Liabilities | Item Name | Period-end Amount (Yuan) | Prior Year-end Amount (Yuan) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 375.63 million | 586.82 million | -35.99 | Decrease in notes received this period | | Prepayments | 62.63 million | 46.94 million | 33.44 | Increase in prepaid natural gas expenses this year | | Other Receivables | 116.67 million | 168.53 million | -30.77 | Recovery of prior period construction project payments this period | | Inventories | 238.81 million | 467.43 million | -48.91 | Decrease in coal inventory this period | | Other Non-current Assets | 176.62 million | 57.01 million | 209.82 | Increase in prepaid engineering costs this period | | Short-term Borrowings | 136.00 million | 1.431 billion | -90.50 | Repayment of short-term borrowings this period | | Notes Payable | 48.32 million | 218.61 million | -77.90 | Decrease in payments made by notes for goods | | Taxes Payable | 44.30 million | 25.44 million | 74.13 | Increase in income tax payable this year | | Other Payables | 1.058 billion | 2.263 billion | -53.25 | Repayment of borrowings from controlling shareholder this period | | Non-current Liabilities Due Within One Year | 1.026 billion | 1.817 billion | -43.55 | Decrease in long-term borrowings and long-term payables due within one year | | Other Current Liabilities | 432.12 million | 672.90 million | -35.78 | Decrease in endorsed notes not derecognized at period-end | | Long-term Borrowings | 13.452 billion | 9.735 billion | 38.18 | Increase in project loans this period | Major Restricted Assets at Period-end | Item | Period-end Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 260.05 million | Bank acceptance bill deposits, migrant worker wages, etc., not readily available | | Fixed Assets | 1.718 billion | Mortgage loans for Tianhe Thermal Power 2x330 cogeneration project; mortgage loans for Manas County Kensiwate Water Conservancy Hub Project; mortgage loans for Xiying, Huyang, Fengxiang, Zhenxing, Xinwang 220KV transmission and transformation projects | | Long-term Equity Investments | 506.75 million | Guarantee and pledge loans for 100.00% equity of ZeZhong Water Affairs | | Total | 2.485 billion | / | [(IV)Analysis of Investment Status](index=11&type=section&id=(IV)Analysis%20of%20Investment%20Status) During the reporting period, the company completed the cash acquisition of 100% equity in two 0.5GW photovoltaic project subsidiaries from related party Tianfu Group for 366.16 million Yuan, aiming to integrate power resources - The company acquired 100% equity in two 0.5GW photovoltaic project subsidiaries from related party Tianfu Group for **366.16 million Yuan** in cash[42](index=42&type=chunk) - The acquired subsidiaries are Xinjiang Zhongtian Feichi Clean Energy Co., Ltd. and Xinjiang Zhongtian Rongju Clean Energy Co., Ltd[42](index=42&type=chunk) - Related industrial and commercial registration procedures were completed in February 2025[42](index=42&type=chunk) [(VI)Analysis of Major Holding and Associate Companies](index=11&type=section&id=(VI)Analysis%20of%20Major%20Holding%20and%20Associate%20Companies) This section lists the financial information of the company's major holding and associate subsidiaries, covering their main businesses, registered capital, total assets, net assets, operating revenue, operating profit, and net profit, reflecting the operating status of each subsidiary in different business areas Major Subsidiaries and Associate Companies with over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (million Yuan) | Total Assets (million Yuan) | Net Assets (million Yuan) | Operating Revenue (million Yuan) | Operating Profit (million Yuan) | Net Profit (million Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shihezi ZeZhong Water Affairs Co., Ltd. | Subsidiary | Drinking water; urban water supply, drainage, sewage treatment | 226.53 | 967.98 | 539.10 | 68.96 | -5.99 | -6.28 | | Manas County Kensiwate Hydropower Co., Ltd. | Subsidiary | Hydropower generation | 226.37 | 299.17 | 246.34 | 17.96 | -1.63 | -1.76 | | Xinjiang Tianfu Jinyang New Energy Co., Ltd. | Subsidiary | Development and utilization of new energy such as solar and wind power | 160.37 | 252.15 | 240.24 | 25.41 | 5.52 | 4.35 | | Xinjiang Tianfu Tianyuan Gas Co., Ltd. | Subsidiary | Retail and storage of natural gas | 128.11 | 1,225.28 | 528.92 | 502.28 | 29.99 | 23.82 | | Shihezi Tianfu Rural Power Co., Ltd. | Subsidiary | Electricity supply and sales | 100.00 | 1,024.38 | 876.71 | 237.57 | 39.98 | 34.29 | | Xinjiang Tianfu Green Energy Photovoltaic Power Generation Co., Ltd. | Subsidiary | Solar power generation technical services; power generation, transmission, supply (distribution) business | 10.00 | 1,689.88 | 8.70 | 52.66 | -0.48 | -0.48 | | Xinjiang Tianfu Energy Power Sales Co., Ltd. | Subsidiary | Power purchase and sales, thermal power generation, heating | 849.30 | 1,461.03 | 1,326.89 | 535.24 | 79.34 | 71.57 | | Xinjiang Zhongtian Rongju Clean Energy Co., Ltd. | Subsidiary | Power generation, transmission, supply (distribution) business | 20.00 | 469.12 | 86.13 | 13.04 | -1.22 | -1.22 | | Xinjiang Zhongtian Feichi Clean Energy Co., Ltd. | Subsidiary | Power generation, transmission, supply (distribution) business | 80.00 | 1,510.31 | 245.56 | 35.07 | -11.27 | -11.27 | | Xinjiang Tianfu Weiye Engineering Co., Ltd. | Subsidiary | Construction engineering; construction labor subcontracting | 60.00 | 1,972.90 | 223.27 | 299.87 | -15.27 | -18.32 | | Xinjiang Bingrong Clean Energy Co., Ltd. | Subsidiary | Power generation, transmission, supply (distribution) business | 1,080.00 | 3,804.48 | 766.49 | 0.54 | 0.56 | 0.62 | [V. Other Disclosure Matters](index=13&type=section&id=V.%20Other%20Disclosure%20Matters) This section discloses the company's exposure to electricity market and pricing policy risks, new energy integration and grid safety risks, and operational risks related to accounts receivable collection, while also highlighting its commitment to green energy development, shareholder returns through share repurchases and cash dividends, and enhanced investor relations management [(I) Potential Risks](index=13&type=section&id=(I)%20Potential%20Risks) The company faces risks from electricity market and pricing policy adjustments leading to demand decline, new energy generation volatility impacting integration and grid safety, and operational risks of difficulty in collecting accounts receivable due to electricity price adjustments - The electricity industry is highly susceptible to macroeconomic conditions, where economic downturns may lead to decreased electricity demand, and electricity pricing policy adjustments can affect the company's profitability[48](index=48&type=chunk) - The volatility, randomness, and intermittency of photovoltaic power generation pose challenges to grid safety and stable operation, potentially leading to curtailment and limited generation capacity[48](index=48&type=chunk) - Due to electricity pricing policy adjustments, some electricity customers have not paid their electricity bills, resulting in a significant amount of accounts receivable for electricity, posing a risk that not all amounts may be recovered[49](index=49&type=chunk) [(II) Other Disclosure Matters](index=14&type=section&id=(II)%20Other%20Disclosure%20Matters) The company actively responds to the "Quality Improvement, Efficiency Enhancement, and High Returns" initiative, focusing on green energy development and enhancing new energy integration through an integrated "source-grid-load-storage" approach; in 2024, it completed share repurchases and reduced registered capital, while prioritizing cash dividends, with cumulative cash dividends of 1.812 billion Yuan since listing, and actively engaging with investors - The company actively responds to the Shanghai Stock Exchange's "Quality Improvement, Efficiency Enhancement, and High Returns" special initiative, focusing on a clean, low-carbon, safe, and efficient green energy development strategy[50](index=50&type=chunk) - The company is building a city-level "source-grid-load-storage" integrated project, consolidating network flexibility resources to enhance new energy absorption capacity[50](index=50&type=chunk) - In 2024, the company repurchased **4.6352 million shares** (accounting for **0.34%** of total share capital) through centralized bidding, with a total repurchase amount of **24.0049 million Yuan**, used to reduce registered capital[50](index=50&type=chunk) - The company emphasizes establishing and improving a normalized dividend mechanism, with cumulative cash dividends of **1.812 billion Yuan** since listing, achieving an average dividend payout ratio of **59.07%**[52](index=52&type=chunk) - The company maintains close communication with institutional and retail investors through performance briefings, roadshows, and investor hotlines[52](index=52&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=15&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section covers changes in the company's directors and senior management, environmental information disclosure for key polluting entities, and specific efforts in poverty alleviation and rural revitalization [I. Changes in Directors, Supervisors, and Senior Management](index=15&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, Director and Deputy General Manager Kong Wei resigned due to work changes, the board of directors elected Li Jinsong as a director, and appointed Xu Haijun and Chen Chen as deputy general managers Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Change Type | | :--- | :--- | :--- | | Kong Wei | Director, Deputy General Manager | Resignation | | Li Jinsong | Director | Election | | Xu Haijun | Deputy General Manager | Appointment | | Chen Chen | Deputy General Manager | Appointment | - Mr. Kong Wei resigned from his positions as director and deputy general manager due to work changes, with his resignation effective upon delivery to the board of directors[55](index=55&type=chunk) - Mr. Li Jinsong was nominated as a candidate for the eighth board of directors and approved by the general meeting of shareholders[55](index=55&type=chunk) - Mr. Xu Haijun and Mr. Chen Chen were appointed as deputy general managers of the company[56](index=56&type=chunk) [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=15&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company's thermal power enterprises, designated as key polluting units, strictly adhere to environmental regulations, ensuring stable operation of desulfurization, denitrification, and dust removal equipment for compliant pollutant discharge; all thermal power units hold pollution discharge permits, undergo regular environmental impact assessments, and conduct emergency response drills, with no significant environmental incidents or administrative penalties during the reporting period - The company's thermal power enterprises are key polluting units, with desulfurization, denitrification, and dust removal equipment operating safely and stably, ensuring legal and compliant operations regarding gas, water, noise, slag, hazardous waste, and solid waste[57](index=57&type=chunk) Environmental Operation Status of Company's Thermal Power Units During the Reporting Period | Unit Name | Main Pollutant | Emission Concentration | Applicable Pollutant Emission Standard | Exceedance Status | | :--- | :--- | :--- | :--- | :--- | | Tianhe Thermal Power Branch 2×330MW Units | Sulfur Dioxide | 14.6 mg/m³ | Less than 35 mg/m³ | None | | | Nitrogen Oxides | 33.8 mg/m³ | Less than 50 mg/m³ | None | | | Soot | 2.4 mg/m³ | Less than 10 mg/m³ | None | | Tianhe Thermal Power Branch 2×660MW Units | Sulfur Dioxide | 10.6 mg/m³ | Less than 35 mg/m³ | None | | | Nitrogen Oxides | 33.4 mg/m³ | Less than 50 mg/m³ | None | | | Soot | 2.3 mg/m³ | Less than 10 mg/m³ | None | | Tianfu Energy Power Sales Co., Ltd. 2×330MW Units | Sulfur Dioxide | 12.5 mg/m³ | Less than 35 mg/m³ | None | | | Nitrogen Oxides | 34.0 mg/m³ | Less than 50 mg/m³ | None | | | Soot | 2.0 mg/m³ | Less than 10 mg/m³ | None | - All of the company's normally operating thermal power units, excluding normal startup, ignition, and daily calibration times, did not experience any exceedances[58](index=58&type=chunk) - The company and its subsidiaries strictly comply with environmental laws and regulations, with environmental facilities operating at a **100%** synchronous rate, and all pollution control facilities maintaining normal operation and meeting discharge standards[58](index=58&type=chunk)[59](index=59&type=chunk) - All of the company's thermal power plants hold pollution discharge permits issued by local environmental protection authorities and strictly implement the environmental impact assessment system[60](index=60&type=chunk) - The company has prepared and filed emergency response plans for environmental incidents, conducting regular drills, and received no administrative penalties for environmental issues during the reporting period[61](index=61&type=chunk)[63](index=63&type=chunk) [V. Specific Situations of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work](index=17&type=section&id=V.%20Specific%20Situations%20of%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20and%20Other%20Work) The company actively supports the high-quality development strategy for southern Xinjiang by leveraging its subsidiaries in power installation, hydropower operation and maintenance, natural gas market expansion, and new energy industry layout, contributing significantly to regional industrial and economic growth - Tianfu Weiye (power installation, construction) established branches in Kashi City, Aksu City, Kunyu City, and Tumxuk City in southern Xinjiang to expand projects such as power lines, solar greenhouse electricity, lighting, and heating[64](index=64&type=chunk)[65](index=65&type=chunk) - Hongshanzui Power Plant actively entered the southern Xinjiang hydropower operation, maintenance, and repair market, completing multiple hydropower project O&M and overhaul tasks in Hotan, Kashi, Kizilsu, Aksu, and Korla[65](index=65&type=chunk) - Tianyuan Gas utilized its natural gas operation and management expertise to establish a controlling stake in Xinjiang Lihua Luyuan New Energy Co., Ltd. in Tiemenguan City, Second Division, expanding the natural gas market in southern Xinjiang[65](index=65&type=chunk) - The company is accelerating its new energy industry layout in southern Xinjiang, with the 200MW photovoltaic and supporting 60MW/240MWh "source-grid-load-storage" integrated project in Tumxuk City, Third Division, planned for grid connection within 2025[66](index=66&type=chunk) [Section V Significant Matters](index=19&type=section&id=Section%20V%20Significant%20Matters) This section details the company's fulfillment of commitments, major litigation, significant related party transactions, and the progress of raised funds utilization [I. Fulfillment of Commitments](index=19&type=section&id=I.%20Fulfillment%20of%20Commitments) The company, its controlling shareholder, and indirect controlling shareholder have strictly fulfilled all commitments during the reporting period, primarily concerning resolving horizontal competition, standardizing related party transactions, addressing guarantee balances, and maintaining the listed company's independence, along with disclosing a three-year shareholder dividend return plan Fulfillment of Commitments | Promisor | Commitment Background | Commitment Type | Summary of Commitment Content | Commitment Date | Has Performance Deadline | Commitment Period | Strictly Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tianfu Group | Related to initial public offering | Resolve horizontal competition | Not to increase investment in businesses identical or similar to the company's, ensure subsidiaries do not compete, gradually inject operational assets into the company, and not harm the interests of the company and other shareholders | February 28, 2002 | No | Long-term | Yes | | Tianfu Group | Related to refinancing | Resolve horizontal competition | Same as above | June 2007 | No | Long-term | Yes | | Tianfu Group | Related to refinancing | Resolve horizontal competition | Same as above | February 2012 | No | Long-term | Yes | | Tianfu Group | Related to acquisition | Resolve horizontal competition | Ensure no increase in investment in businesses identical or similar to the company's, ensure subordinate enterprises do not compete, inject similar assets into the company through trusteeship, leasing, acquisition, etc., and not harm the interests of the company and other shareholders | April 12, 2022 | No | Long-term | Yes | | Tianfu Group | Related to acquisition | Standardize related party transactions | Standardize and reduce related party transactions, adhere to market principles, sign agreements according to law, and not use related party transactions to illegally transfer funds or profits; committed that if coal transportation service procurement exceeds 50% in 2026, control of Tianfu Yitong will be transferred to Tianfu Energy in 2027 | July 25, 2022 to 2027 | Yes | Long-term | Yes | | Tianfu Energy | Related to acquisition | Standardize related party transactions | Standardize and reduce related party transactions, adhere to market principles, and sign agreements according to law; committed to gradually reduce coal transportation service procurement from Tianfu Yitong over the next four years, and if it does not fall below 50% in 2026, control of Tianfu Yitong will be acquired in 2027 | July 25, 2022 to 2027 | Yes | Long-term | Yes | | Zhongxin Building Power Group, Tianfu Group | Related to acquisition | Resolve guarantee balance | Tianfu Energy's existing loan guarantee balance continues to be guaranteed by Tianfu Group, and incremental loans are guaranteed by Zhongxin Building Power Group or Tianfu Group; for Tianfu Energy's new guarantees for Tianfu Group before June 30, 2025, Zhongxin Building Power Group will provide counter-guarantees, and no new guarantees will be added thereafter | December 18, 2023 | Yes | Long-term | Yes | | Zhongxin Building Power Group, Tianfu Group | Related to acquisition | Reduce and standardize related party transactions | Ensure Tianfu Energy's business independence and asset completeness, not use control to seek preferential transactions, avoid unnecessary transactions, and ensure necessary transactions follow fair principles | December 26, 2023 | No | Long-term | Yes | | Zhongxin Building Power Group, Tianfu Group | Related to acquisition | Maintain listed company independence | Ensure the listed company's independence in assets, personnel, finance, organization, and business | December 26, 2023 | No | Long-term | Yes | | Zhongxin Building Power Group, Tianfu Group | Related to acquisition | Avoid horizontal competition (change) | Committed that there are currently no substantive horizontal competition businesses within the listed company's operating area, and future new business opportunities will be preferentially offered to the listed company, or invested first and then injected into the listed company when conditions are mature | July 23, 2024 | Yes | Long-term | Yes | | Tianfu Energy | Other commitments to small and medium shareholders | Dividends | The company may distribute dividends in cash, stock, or a combination of both, with priority given to cash dividends; when conditions for cash dividends are met, the single-year cash dividend shall not be less than 10% of the distributable profit for that year | May 8, 2024 to 2026 | Yes | Long-term | Yes | [VII. Major Litigation and Arbitration Matters](index=25&type=section&id=VII.%20Major%20Litigation%20and%20Arbitration%20Matters) The company was involved in multiple significant lawsuits during the reporting period, primarily contract disputes with industrial customers concerning substantial electricity bill differences and interest on occupied funds, with some cases having entered the enforcement stage; additionally, the controlling subsidiary Shihezi Tianfu South Thermal Power Co., Ltd. is undergoing compulsory liquidation - In the supply and consumption contract dispute with Xinjiang Shangni Biotechnology Co., Ltd., the company won both the first and second instances, with Shangni Company ordered to pay an electricity bill difference of **23.346 million Yuan** and capital occupation losses of **609.38 thousand Yuan**; **8 million Yuan** has been forcibly deducted after applying for enforcement[75](index=75&type=chunk) - The company filed a lawsuit with the Intermediate People's Court of the Eighth Division of Xinjiang Production and Construction Corps, demanding Xinjiang Production and Construction Corps Eighth Division Tianshan Aluminum Co., Ltd. pay an electricity bill difference of **505.94 million Yuan** and interest losses of **20.91 million Yuan**[76](index=76&type=chunk) - The company filed a lawsuit with the Urumqi Intermediate People's Court against Xinjiang Western Hesheng Silicon Material Co., Ltd. for a supply and consumption contract dispute, with total claims of **494.94 million Yuan**, and applied for litigation preservation[77](index=77&type=chunk) - The company filed a lawsuit with the Urumqi Intermediate People's Court against Xinjiang Western Hesheng Silicon Industry Co., Ltd. for a supply and consumption contract dispute, with total claims of **61.04 million Yuan**, and applied for litigation preservation[78](index=78&type=chunk) - Controlling subsidiary Shihezi Tianfu South Thermal Power Co., Ltd. was accepted for compulsory liquidation in 2019, and the liquidation team personnel were replaced in April 2025[79](index=79&type=chunk) [X. Significant Related Party Transactions](index=26&type=section&id=X.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company engaged in various daily operating transactions with related parties, including procurement, sales of goods, and labor services, and renewed loan agreements with its controlling shareholder and gas pipeline lease agreements with related parties, all conducted on market-based principles [(I) Related Party Transactions Related to Daily Operations](index=26&type=section&id=(I)%20Related%20Party%20Transactions%20Related%20to%20Daily%20Operations) The company anticipates approximately **1.7 billion Yuan** in daily related party transactions for 2025, covering raw material procurement, product sales, and provision/acceptance of labor; actual related party transaction amounts for purchasing goods, selling goods, and providing/receiving labor during the reporting period were within the estimated range and priced at market rates - The company expects to purchase raw materials and goods not exceeding **60 million Yuan** from related parties, sell products not exceeding **500 million Yuan**, provide labor not exceeding **55 million Yuan**, accept labor not exceeding **930 million Yuan**, and engage in other transactions not exceeding **20 million Yuan** in 2025[80](index=80&type=chunk) Daily Related Party Transactions for H1 2025 | Related Party Transaction Type | Related Party Transaction Amount (Yuan) | | :--- | :--- | | Purchase of Goods | 16,762,786.45 | | Sale of Goods | 25,606,169.22 | | Provision of Labor | 19,473,747.36 | | Acceptance of Labor | 376,797,911.48 | | Total | 438,640,614.51 | [(IV) Related Party Debt and Credit Transactions](index=28&type=section&id=(IV)%20Related%20Party%20Debt%20and%20Credit%20Transactions) The company renewed a loan agreement with its controlling shareholder, Zhongxin Building Power Group, for a total amount not exceeding **500 million Yuan** to support project construction and production operations, and has already signed two loan contracts totaling **500 million Yuan** - The company renewed a "Loan Agreement" with its controlling shareholder, Zhongxin Building Power Group Co., Ltd., for a loan amount not exceeding **500 million Yuan**, with a one-year term and an interest rate not higher than the loan market quoted rate[84](index=84&type=chunk) - On April 10 and April 25, 2025, the company renewed two "Loan Contracts" with Zhongxin Building Power Group, totaling **500 million Yuan**[85](index=85&type=chunk) [(VII) Other](index=29&type=section&id=(VII)%20Other) Related party Xinjiang Tianfu Yitong Supply Chain Management Co., Ltd. won the bid for the company's 2025 coal transportation project, with the transaction amount included in the annual related party transaction quota; additionally, the company's wholly-owned subsidiary Xinjiang Tianfu Tianyuan Gas Co., Ltd. renewed a gas pipeline asset group lease agreement with Xinjiang Tianfu Group Co., Ltd. for a three-year term, with a total rent of **46.8 million Yuan** - Related party Xinjiang Tianfu Yitong Supply Chain Management Co., Ltd. won the bid for the company's 2025 coal transportation project, with a winning price not exceeding **0.65 Yuan/ton·kilometer**, and the transaction amount is included in the annual related party transaction quota[87](index=87&type=chunk) - The company's wholly-owned subsidiary Xinjiang Tianfu Tianyuan Gas Co., Ltd. renewed the "Gas Pipeline Asset Group Lease Agreement" with Xinjiang Tianfu Group Co., Ltd. for a three-year term (June 1, 2025 to May 31, 2028), with an annual rent of **15.6 million Yuan** and a total rent of **46.8 million Yuan**[88](index=88&type=chunk) [XI. Significant Contracts and Their Fulfillment](index=29&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Fulfillment) During the reporting period, the company fulfilled several significant contracts, including lease agreements with related parties, substantial guarantees provided for related parties, and multiple bank loan agreements; the total external guarantee amount exceeded 100% of net assets, but all were covered by counter-guarantees; additionally, the company signed an energy performance contracting agreement for a comprehensive energy efficiency improvement project [(I) Entrustment, Contracting, and Leasing Matters](index=29&type=section&id=(I)%20Entrustment%2C%20Contracting%2C%20and%20Leasing%20Matters) As a lessor, the company leased houses and buildings to Tianfu Yitong, Tianfu Xiandai, and International Economic and Trade, recognizing a total lease income of **1.9505 million Yuan** this period; as a lessee, the company leased specialized equipment, houses and buildings, land use rights, and urban utility tunnels from Tianfu Group and others, incurring rental payments and interest expenses Company as Lessor Lease Information | Lessee Name | Type of Leased Asset | Lease Income Recognized This Period (Yuan) | | :--- | :--- | :--- | | Tianfu Yitong | Houses and Buildings | 1,219,047.62 | | Tianfu Xiandai | Houses and Buildings | 731,428.57 | | International Economic and Trade | Houses and Buildings | 0 | | Total | / | 1,950,476.19 | Company as Lessee Lease Information (Partial) | Lessor Name | Type of Leased Asset | Rent Paid This Period (Yuan) | Lease Liability Interest Expense This Period (Yuan) | | :--- | :--- | :--- | :--- | | Tianfu Group | Specialized Equipment | 13,914,380.22 | 2,765,716.52 | | Tianfu Group | Houses and Buildings | 2,634,910.62 | 1,334,734.06 | | Tianfu Group | Land Use Rights | 288,760.21 | 442,246.00 | | Urban Utility Tunnel | Houses and Buildings | 231,650.18 | 394,822.66 | | Tianfu Real Estate | Houses and Buildings | 140,129.94 | 2,594,449.83 | [(II) Significant Guarantees Performed and Not Yet Completed During the Reporting Period](index=31&type=section&id=(II)%20Significant%20Guarantees%20Performed%20and%20Not%20Yet%20Completed%20During%20the%20Reporting%20Period) During the reporting period, the company provided new guarantees totaling **3.43 billion Yuan** for related parties, with a period-end external guarantee balance of **6.87 billion Yuan** and guarantees for subsidiaries totaling **1.042 billion Yuan**, bringing the total guarantee amount to **7.912 billion Yuan**, representing **106.18%** of the company's net assets; all guarantees provided for related parties are covered by counter-guarantees, and no overdue repayments occurred Company's External Guarantees (Excluding Guarantees for Subsidiaries) | Guaranteed Party | Guarantee Amount (Yuan) | Guarantee Start Date | Guarantee End Date | Guarantee Fulfilled | Guarantee Overdue | Counter-Guarantee Status | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tianfu Group | 300,000,000 | January 28, 2022 | January 28, 2025 | Yes | No | Yes | Yes | | Tianfu Group | 200,000,000 | February 28, 2022 | February 28, 2025 | Yes | No | Yes | Yes | | Tianfu Group | 230,000,000 | March 14, 2022 | March 21, 2025 | Yes | No | Yes | Yes | | Tianfu Group | 300,000,000 | March 23, 2022 | March 24, 2025 | Yes | No | Yes | Yes | | Tianfu Group | 150,000,000 | November 4, 2022 | November 10, 2027 | No | No | Yes | Yes | | ... | ... | ... | ... | ... | ... | ... | ... | | Total Guarantee Amount Incurred During Reporting Period | 3.43 billion | / | / | / | / | / | / | | Total Guarantee Balance at Period-end (A) | 6.87 billion | / | / | / | / | / | / | Company's Total Guarantee Amount (Including Guarantees for Subsidiaries) | Indicator | Amount (Yuan) | | :--- | :--- | | Total Guarantee Amount (A+B) | 7.912 billion | | Ratio of Total Guarantee Amount to Company's Net Assets (%) | 106.18 | | Amount of Guarantees Provided for Shareholders, Actual Controllers, and Their Related Parties (C) | 6.87 billion | | Amount of Debt Guarantees Provided Directly or Indirectly for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% (D) | 7.17 billion | | Amount of Guarantees Exceeding 50% of Net Assets (E) | 4.186 billion | | Total of the Above Three Guarantee Amounts (C+D+E) | 18.226 billion | - During the reporting period, the company provided new guarantees totaling **3.43 billion Yuan** for Tianfu Group and its affiliated enterprises, with Tianfu Group and Zhongxin Building Power Group providing counter-guarantees and signing "Counter-Guarantee Contracts" for these guarantees[95](index=95&type=chunk) - The company provided guarantees for indirect controlling shareholder Tianfu Group not exceeding **1.3 billion Yuan** and **1.35 billion Yuan**, both approved by the board of directors and general meeting of shareholders[95](index=95&type=chunk) - During the reporting period, the company provided new guarantees totaling **400 million Yuan** for its subsidiaries[96](index=96&type=chunk) [(III) Other Significant Contracts](index=37&type=section&id=(III)%20Other%20Significant%20Contracts) During the reporting period, the company signed multiple loan contracts totaling approximately **1.97 billion Yuan** for project construction, electricity purchases, and daily operational turnover; concurrently, it entered into numerous guarantee contracts, providing guarantees totaling approximately **3.43 billion Yuan** for related parties; additionally, the company signed an energy performance contracting agreement with Tongfang Energy Conservation Engineering Technology Co., Ltd. for the Tianhe Thermal Power Plant and its heating area comprehensive energy efficiency improvement project, with an estimated investment of **312.69 million Yuan** - During the reporting period, the company signed **16 loan contracts** totaling approximately **1.97 billion Yuan**, used for flexibility upgrades of Tianhe Thermal Power Branch units, electricity purchases, daily operational turnover, and M&A transaction payments[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - During the reporting period, the company signed **19 guarantee contracts**, providing guarantees totaling approximately **3.43 billion Yuan** for Tianfu Group and its subsidiaries[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - The company signed the "Tianhe Thermal Power Plant and its Heating Area Comprehensive Energy Efficiency Improvement Project Energy Performance Contracting Agreement" with Tongfang Energy Conservation Engineering Technology Co., Ltd., with an estimated investment of **312.69 million Yuan**, where Tongfang Energy Conservation is responsible for investment, construction, and operation and maintenance during the contract period[107](index=107&type=chunk) [XII. Explanation of Progress in Use of Raised Funds](index=39&type=section&id=XII.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The company's overall use of raised funds is progressing smoothly, with cumulative investment reaching **99.64%** of the net raised amount; the "400,000 kW Photovoltaic Base Project Construction in Northern Xinjiang Production and Construction Corps" has achieved full capacity grid connection, but its current period's benefits fell short of expectations due to market electricity prices and depreciation; the company also utilized idle raised funds for cash management, with a period-end balance of **8.7962 million Yuan** [(I)Overall Use of Raised Funds](index=39&type=section&id=(I)Overall%20Use%20of%20Raised%20Funds) The company's net proceeds from issuing shares to specific investors amounted to **1.482 billion Yuan**, with cumulative investment reaching **1.476 billion Yuan** as of the end of the reporting period, representing an investment progress of **99.64%** Overall Use of Raised Funds | Source of Raised Funds | Net Amount of Raised Funds (Yuan) | Total Committed Investment in Prospectus or Offering Memorandum (Yuan) | Total Cumulative Investment of Raised Funds as of Period-end (Yuan) | Cumulative Investment Progress of Raised Funds as of Period-end (%) | | :--- | :--- | :--- | :--- | :--- | | Issuance of shares to specific objects | 1.482 billion | 1.482 billion | 1.477 billion | 99.64 | [(II)Details of Fund-Raising Projects](index=39&type=section&id=(II)Details%20of%20Fund-Raising%20Projects) The "400,000 kW Photovoltaic Base Project Construction in Northern Xinjiang Production and Construction Corps" has a cumulative investment of **99.64%** of its budget and achieved full capacity grid connection by the end of 2023; however, due to market-based photovoltaic electricity prices and high depreciation, the project's benefit for the first half of 2025 was **-483.00 thousand Yuan**, falling short of expected benefits Details of Fund-Raising Projects Usage | Fund-Raising Project Name | Committed Investment in Prospectus or Offering Memorandum (Yuan) | Cumulative Investment Amount as of Period-end (Yuan) | Investment Progress as of Period-end (%) | Benefits Achieved This Year (Yuan) | Reasons for Not Meeting Expected Benefits | | :--- | :--- | :--- | :--- | :--- | :--- | | 400,000 kW Photovoltaic Base Project Construction in Northern Xinjiang Production and Construction Corps | 1.482 billion | 1.477 billion | 99.64 | -483,003.08 | Photovoltaic electricity prices implemented market-based pricing in 2023, and the project has been in operation for a short period, resulting in high fixed asset depreciation, which caused the project to not meet its original expected benefits for the current period | | Total | 1.482 billion | 1.477 billion | / | -483,003.08 | / | - The fund-raising project "400,000 kW Photovoltaic Base Project Construction in Northern Xinjiang Production and Construction Corps" achieved full capacity grid connection and power generation by the end of December 2023[111](index=111&type=chunk) - Project benefits fell short of expectations, primarily due to market-based photovoltaic electricity prices and high fixed asset depreciation[111](index=111&type=chunk) [(IV)Other Circumstances Regarding the Use of Raised Funds During the Reporting Period](index=41&type=section&id=(IV)Other%20Circumstances%20Regarding%20the%20Use%20of%20Raised%20Funds%20During%20the%20Reporting%20Period) The company utilized idle raised funds for cash management, with the board of directors approving maximum limits of **1.5 billion Yuan** and **45 million Yuan** for such plans; as of June 30, 2025, the balance of unexpired agreed deposits for idle raised funds used for cash management was **8.7962 million Yuan** - The company has been approved to use idle raised funds for cash management up to a maximum of **1.5 billion Yuan** (July 2023) and **45 million Yuan** (August 2024)[113](index=113&type=chunk)[114](index=114&type=chunk) - As of June 30, 2025, the unexpired balance of agreed deposits for idle raised funds used for cash management was **8.7962 million Yuan**[114](index=114&type=chunk) [Section VI Share Changes and Shareholder Information](index=42&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details any changes in the company's share capital and provides an overview of its shareholder structure [I. Changes in Share Capital](index=42&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[117](index=117&type=chunk) [II. Shareholder Information](index=42&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had **69,728** common shareholders; among the top ten shareholders, Zhongxin Building Power Group Co., Ltd. held the highest proportion at **33.60%**, with some shares subject to freezing, and Zhongxin Building Power Group and Tianfu Group are parties acting in concert - As of the end of the reporting period, the total number of common shareholders was **69,728**[118](index=118&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period-end (shares) | Percentage (%) | Pledged, Marked, or Frozen Shares (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Zhongxin Building Power Group Co., Ltd. | 461,775,740 | 33.60 | 0 | State-owned Legal Person | | Qiu Weimin | 16,211,823 | 1.18 | 7,190,000 (Frozen) | Domestic Natural Person | | Xinjiang Production and Construction Corps Investment Co., Ltd. | 13,144,607 | 0.96 | 0 | State-owned Legal Person | | Xinjiang Tianfu Group Co., Ltd. | 11,500,000 | 0.84 | 0 | State-owned Legal Person | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | 8,883,200 | 0.65 | 0 | State-owned Legal Person | | Shihezi State-owned Capital Operation Co., Ltd. | 8,075,200 | 0.59 | 0 | State-owned Legal Person | | Zhuhai Echo Asset Management Co., Ltd. - Echo No. 1 Private Equity Fund | 6,296,400 | 0.46 | 0 | State-owned Legal Person | | China Merchants Bank Co., Ltd. - China Asset Management CSI 1000 ETF | 5,240,500 | 0.38 | 0 | State-owned Legal Person | | Jinan Hanxiang Investment Management Partnership (Limited Partnership) | 4,560,000 | 0.33 | 0 | State-owned Legal Person | | Huang Huarong | 4,500,000 | 0.33 | 0 | Domestic Natural Person | - Zhongxin Building Power Group and Tianfu Group are parties acting in concert[121](index=121&type=chunk) [Section VII Bond-Related Information](index=44&type=section&id=Section%20VII%20Bond-Related%20Information) This section confirms that the company has no outstanding corporate bonds or non-financial enterprise debt financing instruments - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[123](index=123&type=chunk) - The company has no convertible corporate bonds[123](index=123&type=chunk) [Section VIII Financial Report](index=45&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's financial statements, including the audit report status, balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, taxation, and financial statement items [I. Audit Report](index=45&type=section&id=I.%20Audit%20Report) This section explicitly states that this semi-annual report is unaudited - This semi-annual report is unaudited[125](index=125&type=chunk) [II. Financial Statements](index=45&type=section&id=II.%20Financial%20Statements) This section provides the company's consolidated and parent company financial statements for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively presenting the company's financial position and operating results - The consolidated balance sheet shows that as of June 30, 2025, the company's total assets were **30.190 billion Yuan**, total liabilities were **21.447 billion Yuan**, and total owners' equity was **8.742 billion Yuan**[125](index=125&type=chunk)[127](index=127&type=chunk) - The consolidated income statement shows that for January-June 2025, total operating revenue was **4.066 billion Yuan**, net profit was **303.33 million Yuan**, and net profit attributable to parent company shareholders was **303.78 million Yuan**[132](index=132&type=chunk)[133](index=133&type=chunk) - The consolidated cash flow statement shows that for January-June 2025, net cash flow from operating activities was **226.22 million Yuan**, net cash flow from investing activities was **-854.31 million Yuan**, and net cash flow from financing activities was **171.33 million Yuan**[139](index=139&type=chunk)[140](index=140&type=chunk) [III. Company Overview](index=61&type=section&id=III.%20Company%20Overview) This section outlines Xinjiang Tianfu Energy Co., Ltd.'s establishment history, share capital changes, business scope, registered address, legal representative, and ultimate controlling party, affirming its status as Xinjiang Production and Construction Corps' largest integrated energy listed company - Xinjiang Tianfu Energy Co., Ltd. was established on March 28, 1999, and listed on February 28, 2002[153](index=153&type=chunk) - The company's share capital has undergone multiple issuances and repurchases, with a total share capital of **1.374 billion shares** as of June 30, 2025[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) - The company's business scope is extensive, including coal sales, thermal power, hydropower, electricity supply, heating, instrument production, sales and installation, power industry technical consulting services, logistics and warehousing services, clean energy development and utilization, engineering design, and building material sales[157](index=157&type=chunk) - The company's parent company is Zhongxin Building Power Group Co., Ltd., and its ultimate controlling party is the State-owned Assets Supervision and Administration Commission of the Eighth Division of Xinjiang Production and Construction Corps[158](index=158&type=chunk) [IV. Basis for Preparation of Financial Statements](index=62&type=section&id=IV.%20Basis%20for%20Preparation%20of%20Financial%20Statements) This section states that the company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant regulations, with no significant uncertainties affecting its going concern ability within the next 12 months - These financial statements are prepared on a going concern basis, in accordance with actual transactions and relevant provisions of enterprise accounting standards[160](index=160&type=chunk) - From the end of this reporting period to the next 12 months, the company has no significant uncertainties affecting its ability to continue as a going concern[161](index=161&type=chunk) [V. Significant Accounting Policies and Estimates](index=62&type=section&id=V.%20

Overview - The company, Xinjiang Tianfu Energy Co., Ltd., has announced a capital increase for its wholly-owned subsidiary, Xinjiang Tianfu Green Energy Photovoltaic Power Co., Ltd., and a capital reduction for another wholly-owned subsidiary, Xinjiang Tianfu Energy Sales Co., Ltd. [1][2] Capital Increase and Reduction Details - The capital increase for Tianfu Green Energy involves converting a debt of 550 million RMB into equity, raising its registered capital from 10 million RMB to 560 million RMB [1][2] - The capital reduction for Tianfu Energy Sales involves a total reduction of 940 million RMB, which includes a decrease in registered capital by 626.67 million RMB and a reduction in capital reserves by 313.33 million RMB, resulting in a new registered capital of 222.64 million RMB [1][2] Subsidiary Information Tianfu Green Energy - Established on March 4, 2022, with a registered capital of 10 million RMB, located in Shihezi, Xinjiang [2] - Main business includes solar power generation technology services, energy storage technology services, and photovoltaic equipment leasing [2] Tianfu Energy Sales - Established on July 7, 2016, with a registered capital of 849.30 million RMB, also located in Shihezi, Xinjiang [2] - Engages in electricity purchase and sales, thermal power generation, and energy technology consulting [2] Financial Performance Tianfu Green Energy - Total assets as of June 30, 2025, were 1,689.88 million RMB, with total liabilities of 1,681.18 million RMB and total equity of 87.04 million RMB [4] - Revenue for the first half of 2025 was 52.66 million RMB, with a net loss of 4.83 million RMB [5] Tianfu Energy Sales - Total assets as of June 30, 2025, were 1,461.03 million RMB, with total liabilities of 134.14 million RMB and total equity of 1,326.89 million RMB [4] - Revenue for the first half of 2025 was 535.24 million RMB, with a net profit of 71.57 million RMB [5] Strategic Implications - The capital increase and reduction are part of the company's strategic plan to optimize its capital structure, with no significant impact on the operations of either subsidiary or the overall company [1][2][6]

Summary of Key Points Core Viewpoint - The company announced a provision for impairment losses totaling 91,591,163.55 yuan for the first half of 2025, significantly impacting its financial results and reflecting the current asset status [1][2]. Group 1: Impairment Provision Details - The impairment provision includes credit impairment losses from accounts receivable, other receivables, and notes receivable, with specific amounts of -101,032,419.28 yuan, -3,481,446.77 yuan, and 12,922,702.50 yuan respectively [1]. - The total impairment provision represents a reduction of 91,591,163.55 yuan in the company's consolidated profit, accounting for 36.87% of the audited net profit attributable to shareholders for the year 2024 [2]. Group 2: Board and Supervisory Committee Opinions - The board of directors confirmed that the provision for credit impairment is based on sufficient evidence and accurately reflects the company's asset status, thus agreeing to the provision [2]. - The supervisory committee also endorsed the provision, stating it complies with accounting standards and accurately represents the company's asset value and operational results [2].

Core Viewpoint - Xinjiang Tianfu Energy Co., Ltd.'s subsidiary, Xinjiang Tianfu Special Fiber Pulp Manufacturing Co., Ltd., is applying for bankruptcy liquidation due to long-term operational inactivity and inability to repay debts [2][4] Group 1: Company Overview - Xinjiang Tianfu Special Fiber Pulp Manufacturing Co., Ltd. was established in June 2007 with a registered capital of 40 million yuan, where Xinjiang Tianfu Energy holds an 80% stake [2][3] - The company primarily engages in the production and sales of paper, insulation materials, and fibers [3] Group 2: Financial Situation - As of December 31, 2024, total assets were 1.19 million yuan, while total liabilities were 1,516.88 million yuan, resulting in total equity of -1,515.69 million yuan [3] - For the first half of 2025, the company reported zero revenue and a net loss of 0.08 million yuan [3] Group 3: Bankruptcy Liquidation Impact - If the court accepts the bankruptcy liquidation, the company will lose control over Tianfu Special Fiber, and it will no longer be included in the consolidated financial statements [4] - The bankruptcy application is not expected to significantly impact the company's ongoing operations or financial performance [4]

Core Viewpoint - The announcement details a supplementary agreement for a general contracting project between Xinjiang Tianfu Energy's subsidiary and Kuitun Huaneng Electric Power Construction Co., with a contract value of 51.736 million yuan to accommodate changes in project design [1][2]. Group 1: Transaction Overview - The project involves a 3GW photovoltaic project in Manas County, with the supplementary agreement amounting to 5.17361 million yuan due to changes in the original planned route [1][2]. - The total amount for the project, including the main contract and supplementary agreement, is 47.41546 million yuan, with Kuitun Huaneng responsible for 47.10546 million yuan and China Energy Construction Group responsible for 310 thousand yuan [2]. Group 2: Related Party Information - Kuitun Huaneng Electric Power Construction Co. is a limited liability company with a registered capital of 100 million yuan, primarily engaged in power facility installation and construction [3][4]. - As of June 30, 2025, Kuitun Huaneng reported total assets of 156.87354 million yuan and total liabilities of 123.54461 million yuan [4][5]. Group 3: Pricing Basis for Related Transactions - The supplementary agreement's amount is based on the price from the publicly tendered main contract, ensuring fairness and transparency in pricing [5][6]. Group 4: Impact on the Company - The supplementary agreement is expected to facilitate the smooth progress of the photovoltaic project, contributing to the company's energy structure optimization and sustainable development [5][6]. Group 5: Approval Procedures - The transaction was approved by the company's board of directors with a unanimous vote, and independent directors confirmed that the transaction adheres to fair and transparent principles, protecting the interests of shareholders [6][7].

Core Viewpoint - The report highlights the financial performance of Xinjiang Tianfu Energy Co., Ltd. for the first half of 2025, indicating a decrease in revenue and net profit due to reduced electricity demand and increased tax expenses, while overall profit increased due to lower operating costs [1][2][3]. Company Overview and Financial Indicators - The company reported operating revenue of approximately 4.07 billion RMB, a decrease of 10.64% compared to the same period last year [2][3]. - Total profit reached approximately 346.38 million RMB, an increase of 9.36% year-on-year [2][3]. - Net profit attributable to shareholders was approximately 303.78 million RMB, down 3.00% from the previous year [2][3]. - The company’s net assets increased by 3.33% to approximately 7.70 billion RMB [2][3]. Business Operations - The company operates in the electricity and heat production and supply industry, which is crucial for the national economy and closely linked to the development of secondary industries [3][4]. - As of June 2025, the company had a controllable power generation capacity of 4,761 MW, including 2,890 MW from thermal power, 1,640 MW from photovoltaic, and 231 MW from hydropower [3][4]. - The company has a unique "combined heat and power" production method, providing centralized heating for the entire city of Shihezi, covering an area of 31.69 million square meters [3][4]. Market and Industry Context - The overall electricity consumption in China for the first half of 2025 was approximately 4,841.8 billion kWh, with a year-on-year growth of 3.7% [3][4]. - The company is positioned as the largest comprehensive energy listed company in the Xinjiang Production and Construction Corps, with a focus on electricity, heat, natural gas supply, and urban water supply [3][4]. - The company has exclusive rights to operate the natural gas business in Shihezi, enhancing its market position in the region [3][4]. Financial Performance Analysis - The decrease in operating revenue was primarily due to a reduction in electricity supply and income, which fell by 14.09% year-on-year [4][5]. - Operating costs decreased significantly due to lower fuel prices and reduced electricity purchase costs, contributing to the increase in total profit [4][5]. - The net cash flow from operating activities was approximately 226.22 million RMB, down 39.65% from the previous year, attributed to decreased revenue and increased accounts receivable [4][5]. Competitive Advantages - The company benefits from having the largest independent local power grid in the Xinjiang Production and Construction Corps, allowing effective management of electricity resources [6][7]. - The integration of power generation, supply, and scheduling enhances the company's ability to respond to market fluctuations and ensures stable energy supply [6][7]. - The company is strategically positioned to capitalize on the growing demand for clean energy, supported by favorable government policies and the region's abundant solar resources [6][7].

Company Overview - Xinjiang Tianfu Energy Co., Ltd. reported total assets of approximately 30.19 billion RMB at the end of the reporting period, a decrease of 1.23% compared to the previous year [1] - The net assets attributable to shareholders increased by 3.33% to approximately 7.70 billion RMB [1] Financial Performance - The company's operating revenue for the reporting period was approximately 4.07 billion RMB, representing a decrease of 10.64% year-on-year [1] - Total profit increased by 9.36% to approximately 346.38 million RMB compared to the same period last year [1] - The net profit attributable to shareholders decreased by 3.00% to approximately 303.78 million RMB [1] - The net profit after deducting non-recurring gains and losses was approximately 289.51 million RMB, down 2.71% year-on-year [1] - The net cash flow from operating activities was approximately 226.22 million RMB, a significant decrease of 39.65% compared to the previous year [1] - The weighted average return on net assets was 4.00%, a decrease of 0.14 percentage points [1] - Basic and diluted earnings per share were both 0.2210 RMB, down 3.45% from the previous year [1] Shareholder Information - As of the end of the reporting period, the total number of shareholders was 69,728 [1] - The largest shareholder, China New Power Group Co., Ltd., holds 33.60% of the shares, totaling approximately 461.78 million shares [1]

Core Points - The company held its 13th meeting of the 8th Board of Directors on August 11, 2025, where several key resolutions were passed [1][2][3] - The company approved its 2025 semi-annual report and summary, which was reviewed by the Board's Audit Committee [1] - The company agreed to a special report on the use of raised funds for the first half of 2025, with unanimous approval from the board [1] - The company recognized a credit impairment provision, reflecting its asset status, with unanimous board approval [2] - The company decided to reduce the capital of its wholly-owned subsidiary, Xinjiang Tianfu Green Energy Photovoltaic Power Co., Ltd., by 940 million yuan, affecting its registered capital and capital reserve [2] - The company applied for an additional credit limit of 200 million yuan from China Construction Bank, bringing the total credit limit to 600 million yuan [2] - The company authorized its subsidiary, Xinjiang Tianfu Special Fiber Pulp Manufacturing Co., Ltd., to apply for bankruptcy liquidation [3] - The company approved a supplementary agreement for a total contract amount of 51.7361 million yuan with Kuitun Huaneng Power Construction Co., Ltd., with independent directors providing consent [3][6]

Core Viewpoint - The supervisory board of Xinjiang Tianfu Energy Co., Ltd. has approved the 2025 semi-annual report and related documents, confirming compliance with legal and regulatory requirements, and reflecting the company's operational and financial status for the first half of 2025 [1][2][3]. Group 1: Meeting Decisions - The supervisory board unanimously agreed that the preparation and review procedures of the 2025 semi-annual report and summary comply with all relevant laws, regulations, and internal management systems [1][2]. - The board approved the special report on the storage and use of raised funds for the first half of 2025, with all votes in favor [2][3]. - The board agreed to the provision for credit impairment, which accurately reflects the company's asset status, with unanimous support [3]. Group 2: Financial Adjustments - The company approved a capital reduction of 940 million yuan for its wholly-owned subsidiary, Xinjiang Tianfu Green Energy Photovoltaic Power Co., Ltd., resulting in a decrease in registered capital and capital reserves [3][4]. - The company applied for an additional credit limit of 200 million yuan from China Construction Bank, bringing the total credit limit to 600 million yuan [4]. Group 3: Corporate Actions - The company authorized the application for bankruptcy liquidation of its controlling subsidiary, Xinjiang Tianfu Special Fiber Pulp Manufacturing Co., Ltd., with unanimous support from the supervisory board [8]. - The company approved a supplementary agreement for a total contract amount of 51.7361 million yuan with Kuitun Huaneng Power Construction Co., Ltd. [9].

Group 1 - The core point of the article is that Tianfu Energy announced a contract supplement agreement for a solar power project due to changes in the original planned route, with a total amount of 51.7361 million yuan [1] - Tianfu Energy's subsidiary, the New Power Group, won the bid for the 3GW photovoltaic project in Manas County, which is part of a larger 18.34GW renewable energy initiative [1] - The total amount of related party transactions for the company over the past 12 months, excluding those requiring shareholder approval, is 124.5688 million yuan, indicating ongoing business activities with related parties [1]