Financial Performance - The company reported a significant increase in revenue for the first half of 2020, with total revenue reaching approximately ¥XX billion, representing a YY% growth compared to the same period last year[11]. - The net profit attributable to shareholders for the first half of 2020 was approximately ¥XX million, reflecting a ZZ% increase year-on-year[11]. - The company's operating revenue for the first half of 2020 was ¥160.48 billion, an increase of 8.96% compared to the same period last year[17]. - The net profit attributable to shareholders was ¥3.88 billion, a decrease of 2.03% year-on-year[17]. - The net profit after deducting non-recurring gains and losses was ¥3.84 billion, an increase of 6.14% compared to the previous year[17]. - The total profit amounted to CNY 6.768 billion, a slight decrease of 0.72% year-on-year, completing 45.39% of the annual budget[37]. - The company reported a significant increase in prepaid expenses by 30.61% to 3,163.38 million RMB due to business scale growth[50]. - The company’s total profit for the first half of 2020 was CNY 6.77 billion, a slight decrease from CNY 6.82 billion in the same period of 2019[145]. Market Expansion and Strategy - The company is expanding its market presence, targeting international markets with a strategic plan to enter DD new countries by the end of 2021[11]. - The company aims to adapt to the new development pattern of "dual circulation" and enhance its competitive advantages in international markets[26]. - The company is focusing on key development areas and actively adapting to national strategies for infrastructure and urbanization[26]. - The company aims to enhance its international business capabilities and has developed a three-step strategy for global development, focusing on international group operations and local management[33]. - The company plans to enhance its focus on key business areas such as water resources, energy, and environmental markets, while also expanding its overseas project development[61]. Research and Development - New product development initiatives are underway, focusing on innovative technologies in the energy sector, with an investment of approximately ¥CC million allocated for R&D[11]. - The company added 453 new authorized patents, including 64 new invention patents in the first half of 2020[33]. - The company’s research and development expenses increased by 26.02% to approximately ¥4.18 billion, reflecting a commitment to innovation[41]. Risk Management - The company has identified potential risks in its operations, including market volatility and regulatory changes, which are detailed in the risk section of the report[6]. - The company anticipates facing risks related to public health, international operations, market competition, cash flow, and investment in the second half of 2020[61]. Environmental and Social Responsibility - The company is committed to green development and ecological civilization, focusing on clean and renewable energy while integrating water resource and environmental business[34]. - The company has successfully helped 1,308 registered impoverished individuals to escape poverty, with a total investment of 5,034.41 thousand RMB in industrial development poverty alleviation projects[89]. - The company has implemented 25 industrial poverty alleviation projects with a total investment of 2,949.32 thousand RMB[90]. - The company has achieved significant poverty alleviation results in Jianchuan County, which officially lifted its poverty status on May 16, 2020, and the results are deemed "stable and sustainable"[88]. Financial Position - The company's total assets reached ¥876.33 billion, reflecting a growth of 7.76% from the end of the previous year[17]. - The company's long-term equity investments reached CNY 19.527 billion, making up 2.23% of total assets, with a growth of 30.34% from the start of the year[28]. - The total liabilities were reported at CNY 673.81 billion, up from CNY 619.76 billion, which is an increase of about 8.71%[139]. - The company's equity attributable to shareholders reached CNY 111.25 billion, compared to CNY 107.54 billion, showing a growth of approximately 3.16%[139]. Corporate Governance - The board of directors has approved a profit distribution plan, which includes reinvestment into core business areas rather than cash dividends[5]. - The controlling shareholder has committed to avoiding competition with the company and ensuring the independence of the listed company post-equity transfer[71]. - The company has established a quality management system in accordance with GB/T19001-2016 and GB/T50430-2017 standards, with effective operation confirmed by third-party certification audits[66]. Financial Instruments and Accounting - The company recognizes expected credit losses for financial assets measured at amortized cost and those measured at fair value through other comprehensive income, considering all reasonable and supportable information[186]. - Financial assets are measured at fair value with changes recognized in profit or loss if they do not fall into other specified categories[182]. - The company uses a perpetual inventory system for inventory management[191]. Debt and Financing - The company issued bonds totaling RMB 137.30 billion during the reporting period, optimizing its financing structure and reducing overall financing costs[62]. - The company has consistently paid interest on its bonds on time, with no overdue debts reported[135]. - The company’s loan repayment rate was reported at 100% for the period[132]. Operational Efficiency - The company achieved a quarter-on-quarter revenue growth of 46.48% in Q2 2020, indicating a strong recovery from the impacts of the pandemic[37]. - The company’s operating cash flow showed a net outflow of approximately ¥10.75 billion, indicating challenges in cash collection from construction projects[41]. - The company’s overseas project resumption rate reached 55%, with the number of overseas projects suspended due to the pandemic reduced from 202 to 91[38].

Financial Performance - The company achieved a net profit attributable to shareholders of 7,239,365,377.14 CNY for the year 2019, with a net profit of 6,952,165,377.14 CNY attributable to ordinary shareholders[4]. - The parent company reported a net profit of 2,285,626,889.97 CNY for 2019, with a total distributable profit of 3,414,353,163.75 CNY at year-end[4]. - The company's operating revenue for 2019 was approximately ¥347.71 billion, an increase of 18.00% compared to ¥294.68 billion in 2018[17]. - The net profit attributable to shareholders for 2019 was approximately ¥7.24 billion, a decrease of 5.92% from ¥7.70 billion in 2018[17]. - The net cash flow from operating activities in 2019 was approximately ¥9.22 billion, down 51.93% from ¥19.18 billion in 2018[17]. - The total profit amounted to CNY 13.69 billion, representing a 7.34% increase compared to the previous year[38]. - The company's contract backlog reached RMB 995.494 billion, reflecting a year-on-year increase of 8.57%[46]. Dividend Distribution - A cash dividend of 0.3976 CNY per share (including tax) will be distributed to shareholders, totaling 602,206,356.49 CNY, which represents 20.00% of the net profit attributable to ordinary shareholders for the year[4]. - The company plans to carry forward the remaining undistributed profit of 2,812,146,807.26 CNY to future years for distribution[4]. - The total amount of cash dividends, including share repurchase payments of 788,277,794.16 CNY, amounts to 1,390,484,150.65 CNY, accounting for 40.72% of the parent company's distributable profit[4]. Assets and Liabilities - The total assets at the end of 2019 were approximately ¥813.23 billion, an increase of 14.02% from ¥713.25 billion at the end of 2018[17]. - The total interest-bearing liabilities amounted to 317.13 billion RMB, an increase of 16.04 billion RMB or 5.33% from the beginning of the year, with long-term borrowings increasing by 47.34 billion RMB or 23.65%[60]. - Cash and cash equivalents at the end of the period amounted to RMB 70.019 billion, accounting for 8.61% of total assets, a decrease of 21.43% year-on-year[30]. - Accounts receivable at the end of the period stood at RMB 54.692 billion, making up 6.73% of total assets, with a year-on-year increase of 24.73%[30]. Operational Highlights - The company achieved new contract signings of CNY 511.81 billion, a year-on-year increase of 12.29%[38]. - The company maintained over 80% of the planning and design tasks for large and medium-sized hydropower stations in China and over 50% of the global market share in large and medium-sized water conservancy and hydropower construction[32]. - The company has 1,212 ongoing project contracts in 43 countries along the Belt and Road, with a total contract value of CNY 285.12 billion[34]. Risk Management - The company has detailed potential risks in its report, which investors should consider[7]. - The company is facing risks from the COVID-19 pandemic, which has impacted production and increased costs due to project delays and health safety concerns[101]. - International business operations are challenged by geopolitical tensions, trade protectionism, and currency fluctuations, which may affect profitability[102]. Corporate Governance - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[3]. - The audit report for the year was issued by Tianzhi International Accounting Firm, confirming a standard unqualified opinion[3]. - The company has established a standardized corporate governance system in compliance with relevant laws and regulations, enhancing information disclosure and investor relations[199]. Research and Development - The company added 1,697 new patents in 2019, including 257 invention patents, and participated in the revision of 82 international, national, and industry standards[32]. - The research and development expenses for the year totaled RMB 11.29 billion, which is 3.25% of the operating revenue[58]. Environmental and Social Responsibility - Environmental pollution control measures are in place, with emissions from power plants significantly below regulatory limits[151]. - The company reported a total of 9,304.55 million RMB invested in targeted poverty alleviation efforts, exceeding established goals[141]. - The company helped 8,593 registered impoverished individuals to escape poverty during the reporting period[143]. Future Outlook - The company plans to achieve a revenue of CNY 374 billion in 2020, with new contract signings targeted at CNY 553 billion and an investment plan of CNY 87.8 billion[100]. - The company is committed to becoming a leading enterprise in the "Belt and Road" initiative, enhancing its global competitiveness and innovation capabilities[96]. - The company anticipates that the impact of the COVID-19 pandemic on the economy will be short-term, with long-term positive fundamentals remaining intact[92].

[Section I: Definitions](index=4&type=section&id=第一节%20释义) This chapter defines professional terms and abbreviations used in the report, such as BOT (Build-Operate-Transfer), EPC (Engineering-Procurement-Construction), and PPP (Public-Private Partnership), providing a basis for understanding the report content - This chapter primarily defines professional terms and abbreviations used in the report, such as BOT (Build-Operate-Transfer), EPC (Engineering-Procurement-Construction), and PPP (Public-Private Partnership), providing a basis for understanding the report content[9](index=9&type=chunk)[11](index=11&type=chunk) [Section II: Company Profile and Key Financial Indicators](index=6&type=section&id=第二节%20公司简介和主要财务指标) This chapter provides the company's basic information, contact details, and core financial data for the first half of 2019, reporting operating revenue of **147.28 billion yuan** with a **16.34%** increase, while net profit attributable to shareholders slightly decreased by **2.42%** to **3.96 billion yuan**, and total assets grew by **9.71%** to **782.54 billion yuan** [Company Information](index=6&type=section&id=公司信息) This section provides the company's basic business and contact information, including its Chinese and English names, legal representative, registered address, website, and information disclosure channels Company Basic Information | Project | Content | | :--- | :--- | | **Chinese Name** | 中国电力建设股份有限公司 | | **Chinese Abbreviation** | 中国电建 | | **English Name** | Power Construction Corporation of China,Ltd | | **Legal Representative** | Yan Zhiyong | | **Stock Code** | 601669 | [Key Accounting Data and Financial Indicators](index=7&type=section&id=主要会计数据和财务指标) During the reporting period, the company's operating revenue increased by **16.34%** year-on-year, but net profit attributable to shareholders and net profit attributable to shareholders excluding non-recurring gains and losses decreased by **2.42%** and **5.08%** respectively, while net cash flow from operating activities improved by **20.32%** and total assets expanded by **9.71%** 2019 H1 Key Accounting Data (Unit: Yuan) | Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 147,284,245,902.52 | 126,603,321,874.08 | 16.34 | | **Net Profit Attributable to Shareholders** | 3,959,180,994.29 | 4,057,301,976.00 | -2.42 | | **Net Profit Attributable to Shareholders (Excluding Non-recurring Gains/Losses)** | 3,615,809,299.92 | 3,809,172,598.08 | -5.08 | | **Net Cash Flow from Operating Activities** | -10,714,558,930.53 | -13,447,541,512.49 | 20.32 | | **Indicator** | **End of Current Period** | **End of Prior Year** | **Period-end vs Prior Year-end Change (%)** | | **Net Assets Attributable to Shareholders** | 88,712,751,003.27 | 86,126,443,285.15 | 3.00 | | **Total Assets** | 782,544,143,090.85 | 713,253,143,812.11 | 9.71 | 2019 H1 Key Financial Indicators | Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (Yuan/share)** | 0.2588 | 0.2652 | -2.42 | | **Weighted Average Return on Net Assets (%)** | 4.86 | 5.38 | Decreased by 0.52 percentage points | | **Weighted Average Return on Net Assets (Excluding Non-recurring Gains/Losses) (%)** | 4.44 | 5.08 | Decreased by 0.64 percentage points | [Non-recurring Gains and Losses and Amounts](index=8&type=section&id=非经常性损益项目和金额) In the first half of 2019, the company's total non-recurring gains and losses amounted to **343.37 million yuan**, primarily comprising gains/losses from disposal of non-current assets, income from entrusted loans, and government grants 2019 H1 Key Non-recurring Gains and Losses (Unit: Yuan) | Non-recurring Gains and Losses Item | Amount | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 138,874,189.80 | | Government Grants Included in Current Profit/Loss | 82,815,973.17 | | Gains/Losses from Entrusted Loans | 168,963,319.03 | | Gains/Losses from Debt Restructuring | 17,534,542.84 | | Net Other Non-operating Income and Expenses | -22,350,919.21 | | **Total** | **343,371,694.37** | [Section III: Company Business Overview](index=9&type=section&id=第三节%20公司业务概要) This chapter details the company's five major business segments, highlighting its world-class technology and market position in hydropower engineering, significant asset growth due to expanded operations, and core competitiveness in serving national strategies, industry leadership, technological innovation, international operations, green development, and industry-finance integration [Main Businesses, Operating Models, and Industry Overview](index=9&type=section&id=主要业务、经营模式及行业情况) The company's core business is hydropower engineering contracting and survey & design, holding over **65%** of domestic construction tasks and over **50%** of the global market share, complemented by power investment and operation with **13.89 million kW** controlled installed capacity, real estate development, and equipment manufacturing and leasing - Hydropower engineering is the company's traditional core business, undertaking over **65%** of domestic construction tasks and over **80%** of planning and design tasks, occupying over **50%** of the global market for large and medium-sized hydropower construction[23](index=23&type=chunk) - As of the end of the reporting period, the company's cumulative controlled operational installed capacity reached **13.89 million kW**, with **2.10 million kW** of power stations under construction[24](index=24&type=chunk) - The company is one of the **16** central state-owned enterprises approved by SASAC to engage in real estate as a primary business, primarily through its subsidiary "PowerChina Real Estate"[24](index=24&type=chunk) [Significant Changes in Major Assets](index=9&type=section&id=主要资产重大变化情况) At the end of the reporting period, the company's accounts receivable increased by **25.47%**, inventories by **15.74%** (due to project payments and real estate costs), and intangible assets by **8.81%** (from BOT/PPP concession rights), with overseas assets accounting for **18.08%** of total assets Major Asset Changes (vs. Beginning of Year) | Asset Item | Period-end Book Value (Billion Yuan) | % of Total Assets | YoY Growth Rate | | :--- | :--- | :--- | :--- | | **Accounts Receivable** | 55.01 | 7.03% | 25.47% | | **Inventories** | 155.43 | 19.86% | 15.74% | | **Intangible Assets** | 153.73 | 19.64% | 8.81% | - As of the end of the reporting period, the company's overseas assets reached **141.48 billion yuan**, accounting for **18.08%** of total assets[26](index=26&type=chunk) [Analysis of Core Competitiveness](index=10&type=section&id=核心竞争力分析) The company's core competitiveness is demonstrated by its ability to serve national strategies, its leading industry position, continuous technological innovation, global international operations across **113** countries, active promotion of green development, and strong industry-finance integration capabilities - The company possesses a full industry chain advantage of "understanding water and electricity, excelling in planning and design, skilled in construction, and capable of investment and operation," making it a crucial force in serving national strategies like the "Belt and Road" initiative[28](index=28&type=chunk) - The company's brands, POWERCHINA and its subsidiaries like SINOHYDRO, have strong international influence, establishing high-end brands in water resources and environment, and infrastructure sectors[29](index=29&type=chunk) - International business has achieved global development, with **287** overseas offices in **113** countries, and actively engages in "third-party market cooperation" with developed countries' enterprises[31](index=31&type=chunk) - A comprehensive financial service system has been initially established, with platforms including a finance company, leasing company, fund company, and factoring company, promoting industry-finance integration[34](index=34&type=chunk) [Section IV: Discussion and Analysis of Operations](index=12&type=section&id=第四节%20经营情况的讨论与分析) In the first half of 2019, the company achieved steady growth with new contract value of **302.70 billion yuan** and operating revenue of **147.28 billion yuan**, both increasing by over **15%**, driven by balanced development across energy, infrastructure, and water resource businesses, strong international performance, and record real estate sales, while actively managing risks related to accounts receivable, international operations, investment, and market competition [Discussion and Analysis of Operations](index=12&type=section&id=经营情况的讨论与分析) During the reporting period, the company's production and operations grew steadily, with both new contract value and operating revenue achieving double-digit growth, driven by balanced development across energy and power, infrastructure, and water environment management, significant international business results, steady power investment, and record real estate sales 2019 H1 Operating Performance | Indicator | Amount (Billion Yuan) | YoY Growth Rate | | :--- | :--- | :--- | | **New Contract Value** | 302.70 | 15.80% | | **Operating Revenue** | 147.28 | 16.34% | | **Total Profit** | 6.82 | 8.19% | - The three core main businesses developed in a balanced manner: energy and power business signed new contracts worth **84.42 billion yuan**, infrastructure business signed **121.13 billion yuan**, and water environment management business won bids totaling **54.94 billion yuan**[36](index=36&type=chunk) - International business signed new contracts worth **84.80 billion yuan**, a year-on-year increase of **7.96%**; overseas main business revenue was **34.17 billion yuan**, a year-on-year increase of **17.45%**[38](index=38&type=chunk) - Real estate business accumulated signed sales contracts worth **15.43 billion yuan**, a year-on-year increase of **34.54%**[40](index=40&type=chunk) [Analysis of Main Business](index=14&type=section&id=主营业务分析) The company's main business maintained overall growth, with total revenue increasing by **16.50%** and gross profit margin slightly increasing to **14.68%**, driven by stable engineering contracting and high growth in power investment, real estate, and equipment manufacturing, with both domestic and overseas revenues showing double-digit growth and improved overseas gross profit margin 2019 H1 Main Business by Industry (Unit: Million Yuan) | By Industry | Operating Revenue | YoY Change in Operating Revenue (%) | Gross Profit Margin (%) | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Engineering Contracting and Survey & Design | 11,685,401.39 | 13.25 | 11.63 | Increased by 0.21 percentage points | | Power Investment and Operation | 822,515.05 | 23.80 | 45.75 | Decreased by 2.64 percentage points | | Real Estate Development | 1,065,290.69 | 35.04 | 24.84 | Decreased by 2.16 percentage points | | Equipment Manufacturing and Leasing | 90,091.52 | 20.00 | 21.01 | Increased by 3.26 percentage points | | Other | 984,338.90 | 35.46 | 13.33 | Increased by 0.85 percentage points | | **Total** | **14,647,637.55** | **16.50** | **14.68** | **Increased by 0.23 percentage points** | 2019 H1 Main Business by Region (Unit: Million Yuan) | By Region | Operating Revenue | YoY Change in Operating Revenue (%) | Gross Profit Margin (%) | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Domestic | 11,230,858.83 | 16.21 | 14.69 | Decreased by 0.15 percentage points | | Overseas | 3,416,778.72 | 17.45 | 14.63 | Increased by 1.49 percentage points | | **Total** | **14,647,637.55** | **16.50** | **14.68** | **Increased by 0.23 percentage points** | [Analysis of Assets and Liabilities](index=16&type=section&id=资产、负债情况分析) As of the end of the reporting period, the company's total assets reached **782.54 billion yuan**, with significant increases in accounts receivable, inventories, long-term receivables, and intangible assets due to expanded operations and PPP/BOT investments, while short-term and long-term borrowings also rose, and **122.30 billion yuan** of assets were restricted for loan collateral Major Asset and Liability Changes (vs. Beginning of Period) | Item Name | Period-end Amount (Million Yuan) | % of Total Assets | % Change from Prior Period-end | | :--- | :--- | :--- | :--- | | Accounts Receivable | 5,501,444.02 | 7.03 | 25.47 | | Inventories | 15,542,566.37 | 19.86 | 15.74 | | Long-term Receivables | 9,822,983.47 | 12.55 | 8.83 | | Intangible Assets | 15,372,723.04 | 19.64 | 8.81 | | Short-term Borrowings | 6,756,511.14 | 8.63 | 16.37 | | Long-term Borrowings | 21,721,010.87 | 27.76 | 21.06 | - As of the end of the reporting period, the company's total restricted assets amounted to **122.30 billion yuan**, primarily including fixed assets (**43.50 billion yuan**), intangible assets (**56.39 billion yuan**), and inventories (**14.57 billion yuan**) used as collateral for borrowings[51](index=51&type=chunk) [Analysis of Investment Status](index=17&type=section&id=投资状况分析) During the reporting period, the company actively advanced major non-equity investment projects, including the Chizhou Shanshan Limestone Quarry, Qasim Coal-fired Power Plant, Nam Ou River Phase II Hydropower Project, Zhongshan to Kaiping Expressway, and Chengdu Rail Transit Line 18 PPP project, all progressing as planned with the Qasim project achieving expected returns Major Non-equity Investment Project Progress | Project Name | Estimated Total Investment (Million Yuan) | Cumulative Actual Investment (Million Yuan) | Project Progress | Estimated ROI | | :--- | :--- | :--- | :--- | :--- | | Anhui Chizhou Shenshan Limestone Quarry Project | 903,840.27 | 481,473.03 | Construction Phase | 12% | | Pakistan Qasim Coal-fired Power Plant Project | 1,417,800.00 | 1,275,708.10 | Operation Phase | 14.6% | | Laos Nam Ou River Phase II Hydropower Project | 1,154,640.00 | 777,128.60 | Construction Phase | 9.5% | | Zhongshan to Kaiping Expressway Project | 2,651,722.43 | 688,137.70 | Construction Phase | 8.93% | | Chengdu Rail Transit Line 18 PPP Project | 3,470,000.00 | 1,825,695.50 | Construction Phase | 6.00% | [Analysis of Major Holding and Participating Companies](index=18&type=section&id=主要控股参股公司分析) This section discloses the financial status of the company's major holding subsidiaries, with PowerChina Real Estate Group Co., Ltd. and PowerChina Overseas Investment Co., Ltd. significantly contributing to net profit, and several subsidiaries, including PowerChina Eco-Environment Group, experiencing over **30%** year-on-year performance changes due to business expansion and increased investment income - PowerChina Real Estate Group Co., Ltd. and PowerChina Overseas Investment Co., Ltd. are the two subsidiaries with the largest profit contributions, with net profits of **728 million yuan** and **674 million yuan** respectively in the first half of the year[58](index=58&type=chunk) - Some subsidiaries experienced rapid performance growth, with PowerChina Eco-Environment Group's net profit increasing by **886.57%** year-on-year, primarily due to a significant increase in new contracts and operating scale in the water resources and environment business[59](index=59&type=chunk) [Potential Risks](index=20&type=section&id=可能面对的风险) The company identified major risks for the second half of 2019, including accounts receivable, international operations, investment, and market competition, and outlined countermeasures such as strengthening accounts receivable management, accelerating international localization, enhancing investment risk analysis, and consolidating market position by serving national strategies - The company faces major risks including accounts receivable, international operations, investment, and market competition[62](index=62&type=chunk) - Countermeasures include: strengthening dynamic management and assessment of accounts receivable; promoting the "three-step strategy" for international business (group-level, localization, globalization); adhering to the principle of "total control, efficiency first" for investments; consolidating its position in the energy, power, and water conservancy industries, and expanding into emerging businesses like water environment management[62](index=62&type=chunk) [Other Disclosures](index=21&type=section&id=其他披露事项) Macro policy, particularly infrastructure investment and "Belt and Road" initiatives, provides favorable development prospects for the company, which increased its total interest-bearing debt by **17.72%** to **354.46 billion yuan** to support business growth, optimized its financing structure by issuing **7.5 billion yuan** and **800 million USD** in new bonds, and maintained stable quality management and safety production without major accidents - Macro industry analysis indicates that continuous national investment in infrastructure, clean energy, water resources and environmental governance, along with the advancement of the "Belt and Road" initiative, provide favorable development prospects for the company[63](index=63&type=chunk) - During the reporting period, the company's total interest-bearing debt increased by **53.37 billion yuan** from the beginning of the year to **354.46 billion yuan**, a **17.72%** increase, primarily to support business development[65](index=65&type=chunk) - The company and its subsidiaries issued new bonds totaling **7.5 billion yuan** and **800 million USD**, effectively optimizing the financing structure and reducing financing costs[65](index=65&type=chunk) [Section V: Significant Matters](index=24&type=section&id=第五节%20重要事项) This chapter discloses significant corporate governance and operational matters, including shareholder meetings, no semi-annual profit distribution, the controlling shareholder's fulfillment of asset restructuring commitments, a change in audit firm, a favorable arbitration outcome, and details on related party transactions, external guarantees, poverty alleviation, environmental information, and accounting policy changes [Fulfillment of Commitments](index=25&type=section&id=承诺事项履行情况) The company's controlling shareholder, PowerChina Group, continued to fulfill its major asset restructuring commitments, including resolving horizontal competition by injecting or disposing of eligible power grid auxiliary and power investment businesses within **8** years from August 30, 2014, and strictly adhering to share lock-up commitments - Controlling shareholder PowerChina Group committed to injecting eligible power grid auxiliary businesses with good prospects and clear ownership into the listed company within **8** years from August 30, 2014; other enterprises will be disposed of through closure, merger, or transfer[75](index=75&type=chunk) - PowerChina Group committed that the **4.155 billion** shares subscribed through asset restructuring would remain locked up for an additional **12** months after the lock-up period expired on June 19, 2019, until June 18, 2020[73](index=73&type=chunk) [Major Litigation and Arbitration Matters](index=29&type=section&id=重大诉讼、仲裁事项) During the reporting period, there were no new major litigation or arbitration matters, and a previously disclosed construction contract dispute with Vinh Son-Song Hinh Hydropower JSC in Vietnam concluded with a final award from the Vietnam International Arbitration Centre, ruling that the Vietnamese owner pay the company's joint venture approximately **568 million yuan** in project payments and related fees, safeguarding the company's legitimate rights Arbitration Result for Vietnam Upper Kon Tum Hydropower Project | Applicant | Respondent | Litigation/Arbitration Type | Amount Involved (Yuan) | Ruling | | :--- | :--- | :--- | :--- | :--- | | Company Joint Venture | Vinh Son-Song Hinh Hydropower JSC | Construction Contract Dispute | 551,574,159.95 | Ruled that the respondent pay approximately 568 million yuan and related fees, rejecting the counter-claim | [Major Related Party Transactions](index=31&type=section&id=重大关联交易) The company's daily related party transactions with PowerChina Group and its subsidiaries, primarily involving mutual engineering and financial services, were within annual planned limits, with actual mutual engineering services totaling **7.94 billion yuan**, and the company also utilized **4 billion yuan** in funds from the controlling shareholder, resulting in financial expense savings - The company's daily related party transactions with controlling shareholder PowerChina Group were conducted within the annual planned limits; as of June 30, 2019, the actual amount of mutual engineering survey, design, and contracting services was **7.94 billion yuan**[82](index=82&type=chunk)[83](index=83&type=chunk) - The company accepted and utilized funds provided by controlling shareholder PowerChina Group, with a balance of **4 billion yuan** at the end of the reporting period; the cost of using these funds was lower than market benchmark interest rates, saving financial expenses[87](index=87&type=chunk)[88](index=88&type=chunk) [Major Contracts and Their Performance](index=34&type=section&id=重大合同及其履行情况) This section primarily discloses the company's external guarantees, totaling **19.46 billion yuan** (excluding guarantees to wholly-owned subsidiaries), representing **21.94%** of net assets, with **18.77 billion yuan** to subsidiaries and **68.59 million yuan** to other parties, all performing normally without overdue situations Summary of External Guarantees (Unit: Million Yuan) | Guarantee Item | Amount | | :--- | :--- | | Period-end Guarantee Balance to Subsidiaries (B) | 1,877,402.81 | | Period-end Guarantee Balance to Other Parties (A) | 68,593.18 | | **Total Guarantees (A+B)** | **1,945,995.99** | | **Total Guarantees as % of Company's Net Assets** | **21.94%** | [Listed Company's Poverty Alleviation Work](index=36&type=section&id=上市公司扶贫工作情况) In the first half of 2019, the company invested **51.31 million yuan** in targeted poverty alleviation funds and materials, dispatched **6** seconded cadres, and achieved significant results in industrial development, employment, education, and health, earning commendations from the State Council Leading Group Office of Poverty Alleviation and Development and local governments 2019 H1 Targeted Poverty Alleviation Achievements | Indicator | Quantity and Progress | | :--- | :--- | | **Fund Investment** | 50.31 Million Yuan | | **Material Value** | 1.00 Million Yuan | | **Number of Registered Poor People Helped to Escape Poverty** | 7,951 People | | **Investment in Industrial Poverty Alleviation Projects** | 14.25 Million Yuan | | **Vocational Skills Training Investment** | 0.66 Million Yuan | - The company received an overall evaluation of "Good" in the 2018 central government unit targeted poverty alleviation performance assessment organized by the State Council Leading Group Office of Poverty Alleviation and Development[96](index=96&type=chunk) [Environmental Information](index=39&type=section&id=环境信息情况) The company's two thermal power subsidiaries, Huating Power Generation and Chongxin Power Generation, as key national pollution monitoring units, maintained major pollutant emissions far below national standards and permit limits during the reporting period, with efficient pollution control facilities and ongoing ultra-low emission upgrades, ensuring stable environmental facility operation and no illegal discharge incidents - The two key polluting subsidiaries (Huating Power Generation, Chongxin Power Generation) met the "Emission Standard of Air Pollutants for Thermal Power Plants" for sulfur dioxide, nitrogen oxides, and particulate matter emissions[100](index=100&type=chunk)[101](index=101&type=chunk) - Chongxin Power Generation completed ultra-low emission upgrades for two units half a year ahead of schedule, while Huating Power Generation is implementing high-load dust and nitrogen reduction upgrades[102](index=102&type=chunk) [Explanation of Changes in Accounting Policies, Estimates, and Methods](index=40&type=section&id=会计政策、会计估计和核算方法变更说明) Effective January 1, 2019, the company adopted new Ministry of Finance regulations, including a revised financial statement format and new financial instrument recognition and measurement standards, which led to retrospective adjustments to the balance sheet and impacted the classification and measurement of financial assets at the beginning of the period - Effective January 1, 2019, the company adopted the newly revised financial statement format issued by the Ministry of Finance, disaggregating "Notes Receivable and Accounts Receivable" into "Notes Receivable" and "Accounts Receivable," and separately presenting "Research and Development Expenses" which were originally included in administrative expenses[108](index=108&type=chunk)[109](index=109&type=chunk) - Effective January 1, 2019, the company implemented new financial instrument standards, adjusting the opening retained earnings and other related items based on the cumulative impact, without adjusting comparable period information[110](index=110&type=chunk) Major Impacts of New Financial Instrument Standards on Consolidated Balance Sheet as of January 1, 2019 (Unit: Yuan) | Affected Statement Item | Impact Amount | | :--- | :--- | | Financial Assets Held for Trading | +4,145,437.75 | | Available-for-sale Financial Assets | -3,249,385,624.30 | | Other Equity Instruments Investment | +3,225,842,612.09 | | Other Receivables | -1,012,164,044.35 | | Undistributed Profits | -443,364,591.48 | | Minority Interests | +67,723,151.80 | [Section VI: Changes in Ordinary Shares and Shareholder Information](index=42&type=section&id=第六节%20普通股股份变动及股东情况) During the reporting period, the company's total share capital structure remained unchanged, with **269,264** ordinary shareholders and the controlling shareholder, Power Construction Corporation of China, Ltd., holding **58.34%** of shares, while a share repurchase plan was completed by July 16, 2019, repurchasing **153 million** shares, accounting for **1%** of total share capital [Changes in Shares](index=42&type=section&id=股份变动情况) The company's total share capital and share structure remained unchanged during the reporting period, but a share repurchase plan was completed by July 16, 2019, with a cumulative repurchase of **152,999,901** shares, accounting for **1%** of total share capital, at a total cost of approximately **788.28 million yuan** - The company implemented a share repurchase, cumulatively repurchasing **152,999,901** shares (**1%** of total share capital), with a total payment of **788,277,794.16 yuan**[115](index=115&type=chunk) [Shareholder Information](index=42&type=section&id=股东情况) As of the end of the reporting period, the company had **269,264** ordinary shareholders, with the controlling shareholder, Power Construction Corporation of China, Ltd., holding **58.34%** of shares, and other top ten shareholders including state-owned legal entities such as Beijing Chengtong Financial Holdings, China Securities Finance, and Guoxin Investment Top Ten Shareholders' Shareholding | Shareholder Name | Period-end Shareholding (Shares) | % | | :--- | :--- | :--- | | Power Construction Corporation of China, Ltd. | 8,925,803,976 | 58.34 | | Beijing Chengtong Financial Holdings Co., Ltd. | 471,975,230 | 3.08 | | China Securities Finance Corporation Limited | 457,441,779 | 2.99 | | Guoxin Investment Co., Ltd. | 455,388,752 | 2.98 | | Zhongyuan Equity Investment Management Co., Ltd. | 309,129,808 | 2.02 | [Section VII: Preferred Shares Information](index=45&type=section&id=第七节%20优先股相关情况) This chapter discloses information regarding the company's issued preferred shares, "PowerChina Preferred 1," totaling **20 million** shares issued in 2015 with a par dividend rate of **5.00%**, which are classified as other equity instruments due to their non-convertible nature and lack of cash settlement requirement, with **4** preferred shareholders at the end of the reporting period [Issuance and Listing of Preferred Shares](index=45&type=section&id=优先股发行与上市情况) The company issued "PowerChina Preferred 1" preferred shares on September 17, 2015, with an issuance quantity of **20 million** shares, an issuance price of **100 yuan/share**, and a par dividend rate of **5.00%**, with all raised funds fully utilized to supplement working capital and operating funds "PowerChina Preferred 1" Preferred Share Basic Information | Preferred Share Code | Preferred Share Abbreviation | Issuance Date | Issuance Price (Yuan) | Par Dividend Rate (%) | Issuance Quantity | | :--- | :--- | :--- | :--- | :--- | :--- | | 360016 | PowerChina Preferred 1 | 2015.09.17 | 100 | 5.00 | 20,000,000 | [Preferred Shareholder Information](index=45&type=section&id=优先股股东情况) As of the end of the reporting period, the company had **4** preferred shareholders, all institutional investors, including asset management plans or trust products established by Bosera Funds, Bank of Communications International Trust, CCB Trust, and COFCO Trust, holding **30%**, **30%**, **20%**, and **20%** respectively - As of the end of the reporting period, there were **4** preferred shareholders, all institutional investors[120](index=120&type=chunk) [Section VIII: Information on Directors, Supervisors, and Senior Management](index=47&type=section&id=第八节%20董事、监事、高级管理人员情况) During the reporting period, there were no changes in the shareholdings or positions of the company's directors, supervisors, and senior management [Changes in Shareholdings](index=47&type=section&id=持股变动情况) During the reporting period, there were no changes in the shareholdings of the company's current and former directors, supervisors, and senior management - During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management[124](index=124&type=chunk) [Section IX: Corporate Bonds Information](index=48&type=section&id=第九节%20公司债券相关情况) This chapter outlines the company's outstanding corporate bonds, with two bonds, "12 Zhongshui 01" and "12 Zhongshui 02," totaling **5 billion yuan**, issued in 2012 with funds used as stipulated, and Dagong Global Credit Rating maintaining the company's and related bond credit ratings at AAA, while the company's current ratio and quick ratio both improved, and the asset-liability ratio was **80.52%**, indicating stable debt repayment indicators [Basic Information on Corporate Bonds](index=48&type=section&id=公司债券基本情况) The company has two outstanding corporate bonds, "12 Zhongshui 01" and "12 Zhongshui 02," issued on October 29, 2012, with bond balances of **2 billion yuan** and **3 billion yuan** respectively, and coupon rates of **5.03%** and **5.20%** Corporate Bond Basic Information | Bond Abbreviation | Code | Issuance Date | Maturity Date | Bond Balance (Yuan) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | 12 Zhongshui 01 | 122193 | 2012.10.29 | 2019.10.29 | 2,000,000,000 | 5.03 | | 12 Zhongshui 02 | 122194 | 2012.10.29 | 2022.10.29 | 3,000,000,000 | 5.20 | [Corporate Bond Rating Information](index=48&type=section&id=公司债券评级情况) On May 28, 2019, Dagong Global Credit Rating Co., Ltd. conducted a follow-up rating on the company and its issued bonds, maintaining the company's corporate credit rating at AAA, and the credit ratings for "12 Zhongshui 01" and "12 Zhongshui 02" bonds at AAA - Dagong Global Credit Rating Co., Ltd. maintained the company's corporate credit rating and related bond credit ratings at **AAA**[128](index=128&type=chunk) [Accounting Data and Financial Indicators](index=49&type=section&id=会计数据和财务指标) As of the end of the reporting period, the company's current ratio and quick ratio were **104.19%** and **62.22%** respectively, both improving from the end of the previous year, indicating enhanced short-term solvency, while the asset-liability ratio slightly increased to **80.52%**, and the EBITDA interest coverage ratio decreased to **1.82** times Major Financial Indicator Changes | Major Indicator | End of Current Period | End of Prior Year | Reason for Change | | :--- | :--- | :--- | :--- | | Current Ratio | 104.19% | 96.39% | Increase in current assets higher than increase in current liabilities | | Quick Ratio | 62.22% | 58.35% | Increase in quick assets higher than increase in current liabilities | | Asset-Liability Ratio (%) | 80.52 | 79.97 | Increased financing scale | | **Major Indicator** | **Current Period (Jan-Jun)** | **Prior Year Period** | **Reason for Change** | | EBITDA Interest Coverage Ratio | 1.82 | 2.15 | Increase in interest expense higher than increase in EBITDA | [Section X: Financial Report](index=51&type=section&id=第十节%20财务报告) This chapter contains the company's unaudited 2019 semi-annual financial statements, including consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity, accompanied by detailed notes covering company overview, basis of financial statement preparation, significant accounting policies and estimates and their changes, and detailed explanations of major items in the consolidated financial statements [Changes in Significant Accounting Policies and Estimates](index=98&type=section&id=重要会计政策和会计估计的变更) Effective January 1, 2019, the company adopted new Ministry of Finance regulations, including a revised financial statement format and new financial instrument standards, which led to retrospective adjustments to the balance sheet as of January 1, 2019, impacting the classification and measurement of financial assets and affecting items such as accounts receivable, other equity instrument investments, and undistributed profits - Effective January 1, 2019, the company adopted the newly revised financial statement format issued by the Ministry of Finance, disaggregating "Notes Receivable and Accounts Receivable" into "Notes Receivable" and "Accounts Receivable," and separately presenting "Research and Development Expenses" which were originally included in administrative expenses[271](index=271&type=chunk)[273](index=273&type=chunk) Major Impacts of New Financial Instrument Standards on Consolidated Balance Sheet as of January 1, 2019 (Unit: Yuan) | Affected Statement Item | Impact Amount | | :--- | :--- | | Financial Assets Held for Trading | +4,145,437.75 | | Available-for-sale Financial Assets | -3,249,385,624.30 | | Other Equity Instruments Investment | +3,225,842,612.09 | | Other Receivables | -1,012,164,044.35 | | Undistributed Profits | -443,364,591.48 | | Minority Interests | +67,723,151.80 | [Notes to Consolidated Financial Statement Items](index=105&type=section&id=合并财务报表项目注释) The notes provide detailed explanations for each major item in the consolidated financial statements, showing monetary funds of **95.92 billion yuan** (with **3.31 billion yuan** restricted), inventories of **155.43 billion yuan** (mainly real estate and unsettled engineering), intangible assets of **153.73 billion yuan** (primarily concession rights), short-term and long-term borrowings of **67.57 billion yuan** and **217.21 billion yuan** respectively, and main business revenue accounting for over **99%** of total operating revenue - Period-end book value of inventories was **155.43 billion yuan**, including **91.14 billion yuan** for real estate development costs and development products, and **50.83 billion yuan** for completed but unsettled assets from construction contracts[321](index=321&type=chunk)[325](index=325&type=chunk) - Period-end book value of intangible assets was **153.73 billion yuan**, with concession rights having an original book value of **147.28 billion yuan**, representing the most significant component of intangible assets[355](index=355&type=chunk) - During the reporting period, investment income from long-term equity investments accounted for using the equity method was **231 million yuan**, and the period-end book value of investments in associates and joint ventures reached **14.32 billion yuan**[334](index=334&type=chunk)[429](index=429&type=chunk) [Section XI: Reference Documents](index=210&type=section&id=第十一节%20备查文件目录) This chapter lists the reference documents, including financial statements signed and sealed by the company's legal representative, chief accountant, and head of accounting department, as well as originals of all company documents and announcements publicly disclosed on media designated by the China Securities Regulatory Commission during the reporting period - This chapter lists the reference documents, including financial statements signed and sealed by the company's legal representative, chief accountant, and head of accounting department, as well as originals of all company documents and announcements publicly disclosed on media designated by the China Securities Regulatory Commission during the reporting period[537](index=537&type=chunk)