Event Details - The company will participate in the 2020 Xinjiang Region Listed Companies Investor Online Collective Reception Day on June 24, 2020, from 15:00 to 17:30 [2] - The event will be held online via the "Panorama·Roadshow World" website or the WeChat public account "Panorama Finance" [2] Attendees - Company Chairman Liu Wei [2] - Company Vice President and Board Secretary Chen Zhiyong [2] - Company CFO Xi Hong [2] Purpose - To facilitate a deeper understanding of the company's situation, development strategy, operational status, financing plans, equity incentives, and sustainable development among investors [2] Announcement - The announcement was made by the Board of Directors of Xinjiang Tianfu Energy Co., Ltd. on June 18, 2020 [4]

2020 年第一季度报告 公司代码：600509 公司简称：天富能源 新疆天富能源股份有限公司 2020 年第一季度报告 1 / 23 2020 年第一季度报告 一、 二、 11Í 四、 目录 | --- | |----------------| | | | 重要提示 . | | 公司基本情况 . | | 重要事项 . | | 附录 . | 2 / 23 2020 年第一季度报告 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人刘伟、主管会计工作负责人奚红及会计机构负责人（会计主管人员）姚玉桂保证 季度报告中财务报表的真实、准确、完整。 1.4 本公司第一季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 | --- | --- | --- | --- | --- | |-----------------------------------------------|-------------------|--- ...

Financial Performance - The company's operating revenue for 2019 was approximately ¥4.89 billion, a decrease of 1.24% compared to ¥4.96 billion in 2018[22] - The net profit attributable to shareholders for 2019 was a loss of approximately ¥413.36 million, a decline of 934.34% from a profit of ¥49.54 million in 2018[22] - The net cash flow from operating activities was approximately ¥1.21 billion, down 21.77% from ¥1.55 billion in 2018[22] - The total assets at the end of 2019 were approximately ¥20.27 billion, a decrease of 5.43% from ¥21.44 billion at the end of 2018[22] - The net assets attributable to shareholders decreased by 6.19% to approximately ¥6.11 billion from ¥6.51 billion at the end of 2018[22] - The company's basic and diluted earnings per share for 2019 were both -0.3590 CNY, representing a decrease of 934.88% compared to 2018[25] - The company's total revenue for 2019 was significantly impacted by a decrease in power supply volume and a decline in electricity prices, leading to a reduction in operating income[25] - The net profit attributable to shareholders for 2019 was -194,382,228.34 CNY, with a notable decrease in operating income and increased coal costs due to environmental inspections[25] - The company's revenue for the reporting period was 4.894 billion yuan, a decrease of 1.24% year-on-year, while the total profit was -425 million yuan, a decrease of 701.49%[44] Operational Challenges - The company faced significant challenges, as indicated by the substantial decline in net profit and revenue[22] - The company has outlined potential risks in its operations, which are detailed in the report[8] - The company experienced an 8.10% decrease in power generation compared to the previous year, largely due to a decline in electricity demand from large industrial enterprises[34] - The company faced a significant increase in fuel costs due to rising coal prices and transportation costs[40] - The company increased its purchase of electricity from the national grid by 110.11% compared to the previous year, raising overall electricity costs[40] - The company's planned electricity generation was 17.055 billion kWh, but the actual generation was 13.009 billion kWh, a decrease of 8.10% year-on-year, achieving 76.28% of the annual plan[44] Environmental Initiatives - The company reduced its sulfur dioxide emissions by 16.30%, nitrogen oxides by 12.50%, and particulate matter by 53.70% through technological innovation and environmental upgrades[43] - The company has implemented environmental protection measures, achieving near-zero emissions through technological upgrades to its power generation units[188] - The company completed ultra-low emission modifications for its power generation units, enhancing its environmental protection capabilities[193] - The company has established emergency response plans for environmental incidents, which have been filed with the local environmental protection bureau[197] - The company conducts self-monitoring of emissions through a third-party service provider, ensuring compliance with environmental regulations[198] Strategic Developments - The company plans to expand its natural gas business outside of Shihezi through new constructions and acquisitions, aiming to increase sales volume and market share[34] - The company completed a share swap involving its subsidiaries, enhancing the proportion of hydropower in its energy supply system[34] - The company plans to achieve a power generation target of 17.055 billion kWh and a gas supply target of 185.25 million cubic meters in 2019[88] - The company plans to expand its market presence through strategic acquisitions, including a 65% stake in Xinjiang Lihua Green Source New Energy[83] - The company is considering strategic acquisitions to enhance market share, with a budget allocation of 200 million for potential deals[145] Financial Management - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm[5] - The company managed to lower its financial costs by 4.16% year-on-year, amounting to 467.39 million yuan[44] - The company approved a budget for related party transactions in 2019, estimating purchases of raw materials not exceeding CNY 465.5 million and sales of products not exceeding CNY 94.5 million[124] - The company approved a comprehensive credit line of 300 million yuan from Bank of Beijing for a one-year term, guaranteed by Tianfu Group[181] - The company has diversified its financing sources, engaging with multiple banks including China Construction Bank and Agricultural Bank of China for various loan agreements[159] Legal and Compliance Issues - The company has initiated legal proceedings regarding a dispute over the equity transfer with Lihua Storage, seeking 12 million CNY in penalty and 28.65 million CNY in economic losses[84] - The company has faced legal challenges due to Lihua Storage entering bankruptcy proceedings, affecting the completion of the equity transfer agreement[84] - The company is involved in a legal dispute regarding a construction contract, with a claim for payment of 3,854,400 yuan and interest of 174,470 yuan[172] - The company has fully provided for bad debts amounting to 10,481,463.73 yuan related to its investment in Xinjiang Jintianyang Textile Co., Ltd., which has initiated bankruptcy liquidation[172] Shareholder Relations - The company did not propose any profit distribution or capital reserve transfer to increase share capital for 2019[6] - The company has established a clear cash dividend policy, ensuring a distribution ratio of no less than 10% of the distributable profit[108] - The company reported a positive net profit attributable to ordinary shareholders, but did not propose a cash dividend distribution plan for ordinary shares[112] - The company plans to maintain a cash dividend policy, distributing no less than 10% of the distributable profit in profitable years[114] Research and Development - The total R&D investment amounted to 281,888.97 yuan, representing 0.01% of operating revenue, with 100% of the R&D investment being capitalized[57] - The company is investing 50 million in research and development for new technologies aimed at improving operational efficiency[145] Market Trends - In 2019, the national electricity consumption reached 7.23 trillion kWh, a growth of 4.5% compared to the previous year[100] - The second industry electricity consumption was 4.94 trillion kWh, growing by 3.1% year-on-year, contributing 47.9% to the overall electricity consumption growth[100] - The third industry electricity consumption increased by 9.5% year-on-year, with significant growth in information transmission and software services[100]

Financial Performance - Net profit attributable to shareholders was CNY -218,979,720.20, representing a decline of 438.61% year-on-year[17] - Operating revenue for the period was CNY 3,395,565,368.60, down 2.91% from the same period last year[17] - Basic earnings per share were CNY -0.1902, a decrease of 439.64% year-on-year[17] - The weighted average return on equity was -3.42%, a decrease of 4.41 percentage points compared to the previous year[17] - The company expects a net loss of between 190 million and 215 million yuan for the year 2019, primarily due to reduced self-generated electricity and increased costs from coal supply restrictions[36] - Net profit for Q3 2019 was a loss of CNY 103,884,237.88, compared to a profit of CNY 52,979,144.18 in Q3 2018[59] - The total profit loss for Q3 2019 was CNY 97,806,479.72, contrasting with a profit of CNY 56,660,056.20 in Q3 2018[59] - The total comprehensive income for Q3 2019 was a loss of CNY 103,884,237.88, compared to a profit of CNY 52,979,144.18 in Q3 2018[61] Assets and Liabilities - Total assets at the end of the reporting period were CNY 20,621,690,327.40, a decrease of 3.80% compared to the end of the previous year[17] - Total liabilities decreased from CNY 14,850,817,556.44 to CNY 13,644,642,764.27, a reduction of approximately 8.1%[46] - Current assets decreased from CNY 5,805,392,609.34 to CNY 3,544,307,342.61, a decline of about 38.9%[50] - Long-term borrowings slightly decreased from CNY 5,217,289,320.11 to CNY 5,167,684,005.11, a reduction of approximately 1.9%[46] - Total equity increased from CNY 6,586,417,204.95 to CNY 6,977,047,563.13, an increase of about 5.9%[46] - Total non-current liabilities increased from CNY 8,945,948,022.51 to CNY 9,050,578,969.40, an increase of about 1.2%[46] Cash Flow - The net cash flow from operating activities was CNY 365,365,132.96, a decrease of 57.31% compared to the previous year[17] - The net cash flow from operating activities for the first three quarters of 2019 was CNY 1,560,369,004.20, an increase of 77% compared to CNY 883,223,052.96 in the same period of 2018[78] - Total cash inflow from operating activities reached CNY 4,123,778,470.50, up from CNY 3,546,227,662.48 in the previous year, reflecting a growth of approximately 16%[75] - The cash outflow from investing activities amounted to CNY 1,192,159,889.94, significantly higher than CNY 766,871,111.44 in the previous year, indicating an increase of about 55%[78] - The net cash flow from investing activities improved by 23.08% to -¥319,719,628.88, due to reduced investments in bank wealth management products[26] Shareholder Information - The company reported a total of 59,276 shareholders at the end of the reporting period[21] - The largest shareholder, Xinjiang Tianfu Group Co., Ltd., held 29.26% of the shares, amounting to 336,879,787 shares[21] - The company has not issued preferred shares, and there are no known related party relationships among the shareholders[23] Operational Challenges - Cash and cash equivalents decreased by 31.29% to ¥1,451,538,365.79, primarily due to loan repayments[24] - Accounts receivable increased by 102.39% to ¥689,117,310.39, mainly due to delayed collections of electricity and project payments[24] - The company is actively cleaning up underperforming subsidiaries to reduce their negative impact on overall profitability[36] - The company is focusing on reducing non-operational expenditures and controlling variable costs to improve efficiency and profitability[36] Investment Activities - Investment income rose by 332.28% to ¥34,972,633.98, resulting from the disposal of equity in several companies[26] - The company transferred 30% equity of Xinjiang Tianfu Sunshine Biotechnology Co., Ltd. for a total price of 33.5 million CNY, receiving 10.05 million CNY as the first payment[29] - The company implemented a debt-to-equity swap for its wholly-owned subsidiary Xinjiang Tianfu Waste Incineration Power Co., Ltd., converting 30 million CNY of receivables into long-term equity investment[31] Future Plans - The company plans to implement a unified industrial electricity price of 0.3338 yuan per kilowatt-hour to mitigate revenue losses[36] - The company aims to optimize coal procurement by increasing purchases from lower-cost regions and enhancing inventory management to counteract rising coal prices[36]

Financial Performance - The company's operating revenue for the first half of 2019 was ¥2,253,438,319.42, a decrease of 2.03% compared to ¥2,300,168,197.47 in the same period last year[24]. - The net profit attributable to shareholders of the listed company was -¥86,880,322.55, representing a significant decline of 1,078.41% from ¥8,879,750.48 in the previous year[24]. - The net cash flow from operating activities was ¥341,773,483.01, down 49.19% from ¥672,635,280.33 in the same period last year[24]. - Basic earnings per share for the first half of 2019 were -¥0.0755, a decrease of 855.00% compared to ¥0.0100 in the same period last year[27]. - The weighted average return on net assets was -1.34%, a decrease of 1.48 percentage points from 0.14% in the previous year[27]. - The company reported a significant decrease in profit due to a 2,934 million kWh drop in electricity sales volume and an 8,237 million yuan reduction in electricity revenue[40]. - The company expects a net loss of CNY 120 million to CNY 180 million for the first nine months of 2019, primarily due to economic conditions and increased costs[61]. - The company reported a net profit excluding non-recurring gains and losses of -¥154,577,403.64, compared to -¥778,227.04 in the same period last year, indicating a worsening performance[24]. Assets and Liabilities - The total assets at the end of the reporting period were ¥21,297,007,861.53, a decrease of 0.65% compared to ¥21,437,234,761.39 at the end of the previous year[24]. - The net assets attributable to shareholders of the listed company were ¥6,444,484,958.14, down 1.00% from ¥6,509,698,185.17 at the end of the previous year[24]. - The company's total assets for Tianfu Energy Sales reached CNY 2,272,191,667.72 with a net profit of CNY 50,577,903.50 as of June 30, 2019[60]. - The total liabilities decreased slightly from ¥14,850,817,556.44 to ¥14,797,576,955.08, a decrease of approximately 0.36%[182]. - Shareholders' equity decreased from ¥6,586,417,204.95 to ¥6,499,430,906.45, a decline of about 1.32%[182]. Operating Costs - The total operating costs increased to CNY 2.397 billion, up 4.87% year-on-year[35]. - Operating costs increased by 4.97% to ¥1,910,594,661.82 from ¥1,820,075,893.29, primarily due to increased coal costs and depreciation expenses[39]. - The company faced increased coal costs due to supply tightness and rising prices, impacting overall profitability[35]. Cash Flow and Financing - The company’s cash flow from financing activities decreased by 41.18% to ¥154,516,698.24 from ¥262,693,843.81, primarily due to a reduction in borrowings[39]. - The company has applied for a total bank credit limit of 6.05 billion yuan for working capital loans and bank acceptance bills, with various banks participating in the financing[135]. - The company plans to apply for long-term loans not exceeding 2 billion yuan in 2019, with the effective period until the next annual general meeting[135]. Related Party Transactions - The company expects to engage in related party transactions in 2019, with procurement of raw materials not exceeding CNY 465.5 million and sales of products not exceeding CNY 94.5 million[78]. - The total amount of related party transactions for purchasing goods from subsidiaries is CNY 2,188.39 million, with the largest transaction being CNY 2,494.72 million for labor services[79]. Environmental Compliance - The company achieved a total sulfur dioxide emission of 107 tons and nitrogen oxides emission of 195 tons from the Tianhe Thermal Power unit, both within the regulatory limits[114]. - The company completed ultra-low emission modifications for its thermal power units, ensuring compliance with environmental standards[115]. - The company has established emergency response plans for environmental incidents, which have been filed with local environmental authorities[117]. Strategic Initiatives - The company plans to adopt more aggressive marketing strategies to boost revenue in response to changing demand from industrial clients[38]. - The company aims to enhance operational efficiency through technological upgrades and cost management measures[38]. - The company plans to enhance the efficiency of its power generation units and reduce coal consumption through technological upgrades and comprehensive energy utilization[65]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 64,800[149]. - Xinjiang Tianfu Group Co., Ltd. held 336,879,787 shares, accounting for 29.26% of total shares[149]. - The company has no issued preferred shares, and there are no known related party relationships among other shareholders[151]. Debt and Guarantees - The company provided guarantees totaling 7.51 billion yuan for Xinjiang Tianfu Group and its affiliates, while receiving guarantees amounting to 6.50 billion yuan from Xinjiang Tianfu Group[110]. - The company has a total of 60,000,000 debt guarantees for entities with a debt-to-asset ratio exceeding 70%[100]. - The company has signed multiple loan agreements totaling 100 million CNY for electricity purchases, with floating interest rates and one-year terms[107].

Group 1: Event Announcement - The company will participate in the 2019 Xinjiang Listed Companies Investor Online Reception Day on July 26, 2019, from 15:00 to 17:30 [2] - The event will be held online via the "Panjing Roadshow" platform, allowing investors to join through the website or WeChat [2] Group 2: Attendees - Attendees include the company's Chairman Liu Wei, Deputy General Manager and Board Secretary Chen Zhiyong, and Chief Financial Officer Xi Hong [2] Group 3: Company Assurance - The Board of Directors guarantees that the announcement contains no false records, misleading statements, or significant omissions, and they bear individual and joint responsibility for the content's truthfulness, accuracy, and completeness [2]

Financial Performance - The company's operating revenue for 2018 was approximately CNY 4.96 billion, an increase of 16.94% compared to CNY 4.24 billion in 2017[23]. - The net profit attributable to shareholders for 2018 was CNY 49.54 million, a decrease of 72.29% from CNY 178.78 million in 2017[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 22.86 million, down 84.6% from CNY 148.42 million in 2017[23]. - The net cash flow from operating activities increased significantly to CNY 1.55 billion, a rise of 429.76% compared to CNY 292.29 million in 2017[23]. - Basic and diluted earnings per share decreased to ¥0.0430, down 77.37% from ¥0.1900 in the previous year[26]. - The weighted average return on equity dropped to 0.76%, a decrease of 2.85 percentage points compared to 3.61% in the previous year[26]. - The company's net profit decreased significantly by 72.29% compared to the previous year due to rising production costs and multiple reductions in electricity sales prices[41]. - The average selling price of electricity decreased due to multiple government price adjustments, impacting overall profitability[44]. Revenue and Sales - Operating revenue for 2018 was driven by an increase in electricity sales, with total electricity sales reaching 13.411 billion kWh, up 18.65% year-over-year[32]. - The company achieved a revenue growth of 16.94% year-on-year, reaching a total revenue of 36.43 billion CNY in the electricity business, with a sales volume of 134.11 billion kWh, an increase of 18.65%[41]. - The total power generation reached 141.56 billion kWh, representing a year-on-year increase of 31.80%[41]. - The company’s heating business revenue increased by 6.03% to 5.12 billion CNY, despite a 4.88% decrease in heating volume due to improved efficiency measures[41]. - The company achieved a total natural gas supply of 180.66 million cubic meters, a year-on-year increase of 28.41%, generating revenue of 363 million yuan, up 32.95%[44]. Costs and Expenses - Total costs increased by 28.96% to CNY 3,806,228,523.32, driven by higher coal prices and increased depreciation from construction projects being transferred to fixed assets[53]. - The cost of electricity production rose by 33.05% to CNY 2,714,668,710.80, accounting for 71.32% of total costs, due to increased power generation and rising coal prices[53]. - The company implemented cost control measures, resulting in a 25% increase in operating costs year-on-year, despite efforts to manage coal prices and consumption[44]. Investments and Expansion Plans - The company plans to expand its natural gas business beyond the Shihezi area, aiming to increase its market share in the gas sector[32]. - The company is actively investing in clean energy and transitioning towards becoming a comprehensive urban service provider, enhancing its competitive edge in the market[32]. - The company plans to invest 1.117835 million yuan in technological transformation projects to improve operational efficiency[102]. - The company plans to conduct financing leases with a total amount of up to 3.1 billion CNY at an annual interest rate of 6.00% for a term of 5 years[11]. Cash Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.16 per 10 shares, totaling CNY 18.42 million, based on a total share capital of 1,151,415,017 shares[7]. - In 2018, the cash dividend was reduced to 0.16 RMB per 10 shares, amounting to 18,422,640.28 RMB, representing 37.18% of the net profit attributable to ordinary shareholders[110]. - The company implemented a cash dividend policy, distributing at least 10% of the distributable profits as cash dividends, ensuring sustainable operation and long-term development[109]. Risk Management and Compliance - The report includes a detailed description of potential risks faced by the company, which investors are advised to review[9]. - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm[6]. - The board of directors and senior management have confirmed the accuracy and completeness of the financial report[4]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[9]. Environmental and Social Responsibility - The company has invested significantly in environmental protection measures, achieving emissions below national standards and moving towards near-zero emissions[39]. - The company achieved a 25.26% reduction in sulfur dioxide emissions and a 15.80% reduction in nitrogen oxides compared to the previous year, meeting national environmental targets ahead of schedule[191]. - The company has engaged in social responsibility initiatives, including educational support in poverty alleviation efforts[186]. - The company has implemented employee welfare measures, including health check-ups and additional medical insurance for staff[189]. Financing and Guarantees - The company reported a significant increase in short-term borrowings by 208.43% to CNY 1,819,750,000.00, aimed at supplementing working capital[65]. - The company provided guarantees totaling RMB 7.37 billion for Xinjiang Tianfu Group Co., Ltd. as of the end of the reporting period[172]. - The company has multiple loan agreements with various banks, totaling over 500 million yuan, aimed at supporting operational and project financing needs[166]. - The company approved guarantees totaling 730 million yuan for its subsidiaries in 2018, including 100 million yuan for Shihezi Tianfu Nanridian Co., 400 million yuan for Xinjiang Tianfu Tianyuan Gas Co., and 130 million yuan for Xinjiang Tianfu Jinyang New Energy Co.[176].

Financial Performance - Operating revenue for the period was CNY 1,347,443,176.05, an increase of 10.58% year-on-year[11] - Net profit attributable to shareholders was CNY 53,888,785.34, down 27.07% from the previous year[11] - The company's total equity attributable to shareholders rose to ¥6,563,586,970.51 from ¥6,509,698,185.17, reflecting an increase of about 0.83%[35] - The total profit for the first quarter was 58,458,315.14 RMB, down from 115,299,869.26 RMB, indicating a decrease of about 49%[52] - The net profit for the first quarter was 49,909,401.45 RMB, a significant drop from 98,809,004.16 RMB, reflecting a decline of approximately 49%[52] Cash Flow - Net cash flow from operating activities was CNY 95,646,260.61, a significant increase of 294.81% compared to the same period last year[11] - The net cash flow from financing activities decreased by 168.55% to -¥344,592,955.02, primarily due to an increase in cash payments related to financing activities[19] - The company's operating cash flow for Q1 2019 was CNY 95,646,260.61, a significant increase from CNY 24,226,058.82 in Q1 2018, representing a growth of approximately 295%[56] - Cash inflow from financing activities totaled CNY 1,264,600,000.00, down from CNY 1,633,200,000.00 in the previous year, marking a decrease of about 23%[58] - The company reported a net cash outflow from financing activities of CNY -344,592,955.02, compared to a net inflow of CNY 502,713,312.15 in Q1 2018[58] Assets and Liabilities - Total assets at the end of the reporting period were CNY 21,257,420,113.48, a decrease of 0.84% compared to the end of the previous year[11] - The company's total assets as of the latest report were CNY 20,187,484,108.12, down from CNY 20,532,001,141.25[40] - Total liabilities decreased to CNY 13,405,925,963.80 from CNY 13,800,352,398.38, a reduction of about 2.9%[40] - Total current liabilities decreased to ¥5,456,775,216.78 from ¥5,904,869,533.93, a reduction of about 7.56%[33] - The total liabilities decreased to ¥14,636,191,961.63 from ¥14,850,817,556.44, indicating a decline of about 1.44%[35] Investments - Long-term equity investments decreased by 95.55% to CNY 5,851,200.54, mainly due to the disposal of equity in certain subsidiaries[16] - Investment income reached ¥27,666,244.86, marking a 100% increase, mainly from the disposal of equity in Liyue Tianfu and Sunshine Biotechnology[19] - The company has terminated the plan to transfer its 39.39% stake in Liyue Tianfu due to the subsidiary's inactivity and has completed the deregistration process[19] - The net cash flow from investment activities decreased by 207.17% to -¥103,861,745.01, primarily due to a reduction in cash received related to investment activities[19] - The cash inflow from investment activities was CNY 49,429,230.56, significantly lower than CNY 258,229,676.76 in Q1 2018, indicating a decline of about 81%[62] Shareholder Information - The number of shareholders at the end of the reporting period was 68,284[13] - The company has not issued preferred shares, and there are no known related party transactions among shareholders[15] - The basic and diluted earnings per share were both 0.05 RMB, compared to 0.06 RMB in the previous period, reflecting a decline of approximately 17%[47] - The total comprehensive income attributable to the parent company owners was 53,888,785.34 RMB, down from 73,887,377.44 RMB, indicating a decrease of about 27%[47] Operational Metrics - Accounts receivable increased by 65.64% to CNY 863,254,279.49, primarily due to an increase in electricity receivables[16] - Total operating costs for Q1 2019 were CNY 1,324,749,489.03, up from CNY 1,137,083,043.02 in Q1 2018, indicating an increase of about 16.5%[45] - Operating costs increased to 933,693,665.19 RMB from 766,083,073.06 RMB, representing a rise of approximately 22%[49] - Cash inflow from sales of goods and services was CNY 1,332,442,817.49, a substantial increase from CNY 902,356,715.62 in Q1 2018, representing a growth of around 47%[56] - The company spent CNY 995,030,248.76 on purchasing goods and services, which is an increase from CNY 632,526,806.75 in the same quarter last year, reflecting a rise of approximately 57%[56]

Financial Performance - The company's operating revenue for 2018 was approximately CNY 4.96 billion, an increase of 16.94% compared to CNY 4.24 billion in 2017[23]. - The net profit attributable to shareholders for 2018 was CNY 49.54 million, a decrease of 72.29% from CNY 178.78 million in 2017[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 22.86 million, down 84.6% from CNY 148.42 million in 2017[23]. - The net cash flow from operating activities increased significantly to CNY 1.55 billion, a rise of 429.76% compared to CNY 292.29 million in 2017[23]. - Basic earnings per share decreased by 77.37% to ¥0.0430, while diluted earnings per share also fell by the same percentage[26]. - The weighted average return on equity dropped to 0.76%, a decrease of 2.85 percentage points from the previous year[26]. - The company achieved an operating revenue growth of 16.94% year-on-year, totaling 3.64 billion CNY, despite a significant net profit decline of 72.29% due to increased production costs and reduced electricity sales prices[41]. - The company reported total revenue of 4.956 billion yuan, a year-on-year increase of 16.94%, while net profit attributable to shareholders decreased by 72.29% to 50 million yuan[47]. Cash Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.16 per 10 shares, totaling CNY 18.42 million, based on a total share capital of 1,151,415,017 shares[7]. - For 2018, the company plans to distribute a cash dividend of 0.16 RMB per 10 shares, totaling 18,422,640.28 RMB, which is 37.18% of the net profit attributable to ordinary shareholders[110]. - The company has established a clear cash dividend policy, ensuring a minimum distribution of 10% of the distributable profit[109]. - The company commits to a cash dividend policy, ensuring that annual cash dividends will not be less than 10% of the distributable profits when profitable[116]. Operational Highlights - Operating income for 2018 was driven by an increase in electricity sales, with total electricity sales reaching 13.411 billion kWh, up 18.65% year-on-year[32]. - The electricity business generated a total power generation of 14.156 billion kWh, representing a year-on-year increase of 31.80%, and electricity sales volume reached 13.411 billion kWh, up 18.65%[41]. - The heating business recorded a total heating supply of 20.0793 million GJ, a decrease of 4.88% year-on-year, while revenue from heating services increased by 6.03% to 512 million CNY due to an increase in heating area[41]. - The natural gas business saw a 29.10% increase in vehicle gas supply and a 43.10% increase in industrial gas usage year-on-year, driven by differentiated marketing strategies and a focus on industrial clients[41]. Market Position and Strategy - The company has a unique position in the market as the only legal electricity supplier in the Shihezi area, with a self-owned installed capacity of 3,173 MW[32]. - The company is actively investing in clean energy and transitioning towards becoming a comprehensive urban service provider, enhancing its competitive edge in the market[32]. - The company plans to expand its natural gas business beyond the Shihezi area, aiming to increase market share and sales volume[32]. - The company is transitioning towards a comprehensive urban energy service platform, leveraging its unique multi-energy operational model and extensive experience in energy dispatch[36]. Risk Management and Compliance - The company has detailed potential risks in the report, which investors should review[9]. - The audit report for the company was issued by Tianzhi International Accounting Firm with a standard unqualified opinion[6]. - The company emphasizes that forward-looking statements do not constitute substantive commitments to investors, highlighting the importance of investment risk awareness[8]. - The company has invested significantly in environmental protection measures, ensuring that emissions meet or exceed national standards, and is moving towards near-zero emissions[39]. Financial Management and Investments - The company completed the issuance of asset securitization products, raising 710 million yuan to support operational funding needs[44]. - The company has strengthened its service management and emergency response capabilities, enhancing customer satisfaction and brand value in the local community[39]. - The company has established a comprehensive independent power supply network covering an area of approximately 7,000 square kilometers, with a self-owned installed capacity of 3,173 MW[36]. - The company has built a natural gas pipeline network exceeding 700 kilometers, serving 184,300 households, and is expanding its gas business beyond Shihezi to other regions in Xinjiang[36]. Environmental Initiatives - The company reported a 25.26% decrease in sulfur dioxide emissions and a 15.80% decrease in nitrogen oxide emissions compared to the previous year, achieving its emission reduction targets[188]. - The company has implemented ultra-low emission modifications for its power generation units, with all pollution control facilities operating normally[193]. - The company has completed environmental impact assessments for its power generation projects, ensuring compliance with environmental regulations[194]. - The company has engaged a third-party service provider for environmental monitoring, ensuring compliance with self-monitoring plans submitted to local environmental authorities[196]. Future Outlook - The company plans to generate 17.055 billion kWh of electricity and supply 16.504 billion kWh in 2019, with a construction investment plan totaling approximately 1.4008235 billion yuan[102]. - The company aims to increase the installed capacity of non-fossil energy to approximately 840 million kW by the end of 2019, representing about 41.8% of total capacity[98]. - The company anticipates a stable electricity consumption growth rate of around 5.5% for 2019, with a projected increase in installed capacity of 11 million kW[98]. - The company will continue to enhance clean and efficient power supply capabilities while promoting market-oriented reforms in the electricity sector[99].

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) [Statement on Report Authenticity](index=3&type=section&id=1.1%20Statement%20on%20Report%20Authenticity) The Board of Directors, Supervisory Committee, and senior management affirm the truthfulness, accuracy, and completeness of this unaudited quarterly report - Company management confirmed the truthfulness, accuracy, and completeness of the 2018 third-quarter report[7](index=7&type=chunk) - This company's third-quarter report is unaudited[7](index=7&type=chunk) [Company Overview](index=3&type=section&id=Item%20II.%20Company%20Overview) [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) For the first three quarters of 2018, revenue grew by 21.64%, while net profit attributable to shareholders significantly declined by 77.48%, with basic EPS decreasing by 82.39%, though operating cash flow remained stable with a slight 2.70% increase 2018 First Three Quarters Key Financial Indicators | Indicator | Year-to-Date (Jan-Sep) | Prior Year-to-Date (Jan-Sep) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | CNY 3,497,186,626.82 | CNY 2,874,955,962.55 | 21.64% | | Net Profit Attributable to Shareholders | CNY 64,669,846.63 | CNY 287,224,469.42 | -77.48% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) | CNY 48,514,356.48 | CNY 270,343,490.53 | -82.05% | | Net Cash Flow from Operating Activities | CNY 855,812,007.81 | CNY 833,296,152.53 | 2.70% | | Basic Earnings Per Share (CNY/share) | 0.056 | 0.318 | -82.39% | | Weighted Average Return on Net Assets (%) | 0.01% | 5.89% | Decreased by 5.88 percentage points | - From the beginning of the year to the end of the reporting period, the company's total non-recurring gains and losses amounted to **CNY 16.16 million**, primarily from government subsidies and reversal of impairment provisions for receivables[8](index=8&type=chunk) [Shareholder Information at Period-End](index=4&type=section&id=2.2%20Shareholder%20Information%20at%20Period-End) As of the reporting period end, the company had 53,009 shareholders, with Xinjiang Tianfu Group Co., Ltd. as the controlling shareholder at 29.26% ownership, part of which is pledged - As of the end of the reporting period, the company had **53,009 shareholders**[9](index=9&type=chunk) Top Three Shareholders' Holdings | Shareholder Name | Shares Held at Period-End | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Xinjiang Tianfu Group Co., Ltd. | 336,879,787 | 29.26 | State-owned Legal Person | | Shihezi Tianfu Zhisheng Equity Investment Co., Ltd. | 122,351,233 | 10.63 | State-owned Legal Person | | Shihezi Urban Construction Investment and Management Co., Ltd. | 43,541,364 | 3.78 | State-owned Legal Person | [Preferred Shareholder Information at Period-End](index=5&type=section&id=2.3%20Preferred%20Shareholder%20Information%20at%20Period-End) The company has not issued preferred shares, thus no related shareholder information is available - The company has not issued preferred shares[10](index=10&type=chunk) [Significant Matters](index=5&type=section&id=Item%20III.%20Significant%20Matters) [Analysis of Significant Changes in Financial Statement Items](index=5&type=section&id=3.1%20Analysis%20of%20Significant%20Changes%20in%20Financial%20Statement%20Items) During the reporting period, significant changes occurred across financial statement items, including a surge in prepayments and construction in progress due to increased project investments, a rise in short-term borrowings for liquidity, and a disproportionate increase in operating costs driven by coal prices and depreciation, leading to profit decline Balance Sheet Major Change Items | Item | Period-End Balance (CNY) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Prepayments | 328,278,452.94 | 499.31 | Increase in prepayments for engineering materials and coal | | Construction in Progress | 1,432,221,902.38 | 361.69 | Increased investment in 2×660MW project, power grid renovation, etc | | Short-term Borrowings | 1,620,000,000.00 | 174.58 | Increase to supplement working capital | | Taxes Payable | 2,594,269.63 | -88.99 | Decrease in value-added tax and income tax payable | | Non-current Liabilities Due Within One Year | 60,683,547.09 | -86.20 | Repayment of maturing long-term borrowings | Income Statement Major Change Items (Year-to-Date) | Item | Amount (CNY) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,497,186,626.82 | 21.64 | Increase in electricity sales volume | | Operating Costs | 2,765,506,131.82 | 41.82 | Increase in coal costs and depreciation expenses | | Investment Income | 8,090,180.60 | 1387.28 | Investment income from asset-backed securitization products | | Income Tax Expense | 17,505,571.16 | -69.98 | Decrease in profit | [Progress of Significant Matters](index=7&type=section&id=3.2%20Progress%20of%20Significant%20Matters) The company reported progress on several significant matters, including successful issuance of short-term financing bonds, a stalled equity acquisition due to judicial preservation, substantial new guarantees for the controlling shareholder, and ongoing efforts to issue green corporate bonds - Financing activities: Issued two tranches of short-term commercial papers (SCP) totaling **CNY 900 million** during the year to supplement operating funds[14](index=14&type=chunk) - Equity acquisition stalled: The acquisition of 65% equity in Lihua Luyuan by subsidiary Tianyuan Gas is unable to be fully completed due to judicial preservation of part of the target company's equity, with only **44.17%** of the equity transfer completed for industrial and commercial registration[16](index=16&type=chunk)[17](index=17&type=chunk) - External guarantees: Provided new guarantees totaling **CNY 3.2 billion** for controlling shareholder Tianfu Group and its affiliated enterprises[18](index=18&type=chunk) - Green bond issuance: The application for non-public issuance of green corporate bonds not exceeding **CNY 1.3 billion** has been accepted by the Shanghai Stock Exchange and awaits approval[23](index=23&type=chunk) [Unfulfilled Commitments Beyond Due Date](index=9&type=section&id=3.3%20Unfulfilled%20Commitments%20Beyond%20Due%20Date) The company has no unfulfilled commitments beyond their due date during the reporting period - The company has no unfulfilled commitments beyond their due date[25](index=25&type=chunk) [Full-Year Performance Forecast](index=9&type=section&id=3.4%20Full-Year%20Performance%20Forecast) The company forecasts a 50% to 80% year-over-year decline in full-year 2018 net profit, primarily due to surging coal prices, increased depreciation and finance costs from new fixed assets, and reduced electricity revenue from tariff adjustments - The company expects net profit for January-December 2018 to decrease by **50%-80%** compared to the same period last year[25](index=25&type=chunk) - Key reasons for performance decline: - Continuous significant increase in raw coal prices, leading to higher costs for electricity and heating businesses[25](index=25&type=chunk) - Increased depreciation and finance costs after the 2×660 MW units were transferred to fixed assets[25](index=25&type=chunk) - Reduced electricity revenue due to regional electricity price adjustments influenced by policy[25](index=25&type=chunk) [Appendix](index=10&type=section&id=Item%20IV.%20Appendix) [Financial Statements](index=10&type=section&id=4.1%20Financial%20Statements) This appendix includes the company's unaudited consolidated and parent company balance sheets, income statements, and cash flow statements for the third quarter of 2018 [Consolidated Balance Sheet](index=10&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2018, total assets were CNY 20.41 billion, a 4.90% increase from the beginning of the year, with total liabilities at CNY 13.78 billion and equity attributable to parent company owners at CNY 6.51 billion Consolidated Balance Sheet Major Items (September 30, 2018) | Item | Period-End Balance (CNY) | Beginning-of-Year Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 20,406,593,937.49 | 19,454,157,451.31 | | Total Liabilities | 13,780,254,137.71 | 12,834,056,833.53 | | Total Equity Attributable to Parent Company Owners | 6,514,986,999.86 | 6,504,433,662.94 | [Parent Company Balance Sheet](index=12&type=section&id=Parent%20Company%20Balance%20Sheet) As of September 30, 2018, the parent company's total assets were CNY 19.78 billion, total liabilities CNY 13.04 billion, and total owner's equity CNY 6.74 billion Parent Company Balance Sheet Major Items (September 30, 2018) | Item | Period-End Balance (CNY) | Beginning-of-Year Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 19,778,583,788.94 | 18,913,412,916.75 | | Total Liabilities | 13,036,065,597.43 | 12,195,836,878.42 | | Total Owner's Equity | 6,742,518,191.51 | 6,717,576,038.33 | [Consolidated Income Statement](index=14&type=section&id=Consolidated%20Income%20Statement) For the first three quarters of 2018, the company achieved total operating revenue of CNY 3.50 billion, up 21.64%, but total profit decreased by 77.38% to CNY 77.86 million, and net profit attributable to parent company owners significantly dropped by 77.48% to CNY 64.67 million Consolidated Income Statement Major Items (Jan-Sep 2018) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 3,497,186,626.82 | 2,874,955,962.55 | | Total Operating Costs | 3,431,338,329.78 | 2,547,975,942.46 | | Total Profit | 77,861,262.87 | 344,258,410.88 | | Net Profit Attributable to Parent Company Owners | 64,669,846.63 | 287,224,469.42 | [Parent Company Income Statement](index=17&type=section&id=Parent%20Company%20Income%20Statement) For the first three quarters of 2018, the parent company's operating revenue reached CNY 2.95 billion, a 17.46% increase, while net profit declined by 74.08% to CNY 79.06 million Parent Company Income Statement Major Items (Jan-Sep 2018) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Operating Revenue | 2,948,402,598.73 | 2,510,171,756.47 | | Total Profit | 92,976,967.57 | 361,125,120.37 | | Net Profit | 79,058,662.87 | 305,025,553.73 | [Consolidated Cash Flow Statement](index=18&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first three quarters of 2018, net cash flow from operating activities remained robust at CNY 855.81 million, while net cash outflow from investing activities was CNY 415.63 million, and from financing activities was CNY 7.42 million, with cash and cash equivalents totaling CNY 1.45 billion at period-end Consolidated Cash Flow Statement Major Items (Jan-Sep 2018) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 855,812,007.81 | | Net Cash Flow from Investing Activities | -415,628,007.97 | | Net Cash Flow from Financing Activities | -7,419,545.13 | | Net Increase in Cash and Cash Equivalents | 432,764,454.71 | [Parent Company Cash Flow Statement](index=20&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) For the first three quarters of 2018, the parent company's net cash flow from operating activities was CNY 883.22 million, net cash outflow from investing activities was CNY 366.72 million, and net cash inflow from financing activities was CNY 1.50 million, with cash and cash equivalents at CNY 1.37 billion at period-end Parent Company Cash Flow Statement Major Items (Jan-Sep 2018) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 883,223,052.96 | | Net Cash Flow from Investing Activities | -366,718,311.20 | | Net Cash Flow from Financing Activities | 1,501,226.46 | | Net Increase in Cash and Cash Equivalents | 518,005,968.22 | [Audit Report](index=21&type=section&id=4.2%20Audit%20Report) The financial statements in this quarterly report are unaudited - This quarterly report is unaudited[47](index=47&type=chunk)