Group 1: Event Announcement - The company will participate in the "2019 Annual Investor Online Reception Day" on May 15, 2019, from 15:00 to 17:00 [1] - The event will be held online via the platform provided by Shenzhen Panorama Network Co., Ltd. [1] - Investors can log in to "Panorama Roadshow" to engage in discussions [1] Group 2: Purpose and Engagement - The aim is to enhance investor relations and communication [1] - Company executives will interact with investors regarding the 2018 annual performance, corporate governance, and operational status [1] - Investors are encouraged to actively participate in the event [1]

[Important Notice](index=2&type=section&id=Item%201.%20Important%20Notice) The board, supervisory board, and senior management ensure the report's accuracy and completeness, with all directors attending the review meeting - The company's Board of Directors, Supervisory Board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, assuming corresponding legal responsibilities, with all directors attending the review meeting[2](index=2&type=chunk) [Company Profile](index=3&type=section&id=Item%202.%20Company%20Profile) This section provides an overview of the company's key financial data, indicators, and shareholder structure for the reporting period [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2019, operating revenue grew by 5.95% to **930 million RMB**, net profit increased by 4.03% to **99.97 million RMB**, while operating cash flow turned negative, and total assets reached **11.95 billion RMB** Key Financial Indicators for Q1 2019 | Indicator | Current Period | Prior Year Period | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 930,194,031.10 | 877,920,176.71 | 5.95% | | Net Profit Attributable to Shareholders (RMB) | 99,969,617.93 | 96,095,528.39 | 4.03% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Gains and Losses (RMB) | 97,671,914.32 | 64,640,527.83 | 51.10% | | Net Cash Flow from Operating Activities (RMB) | -131,425,948.95 | 643,708,363.85 | -120.42% | | Basic Earnings Per Share (RMB/share) | 0.09 | 0.09 | 0.00% | | Weighted Average Return on Net Assets | 3.76% | 3.54% | 0.22% | | **Indicator** | **End of Current Period** | **End of Prior Year** | **Year-over-Year Change** | | Total Assets (RMB) | 11,947,254,174.62 | 10,811,355,424.73 | 10.51% | | Net Assets Attributable to Shareholders (RMB) | 2,682,275,897.32 | 2,637,419,940.69 | 1.70% | - During the reporting period, the company's **non-recurring gains and losses totaled 2.30 million RMB**, primarily from government subsidies and other defined profit and loss items[5](index=5&type=chunk) [Shareholder Information](index=4&type=section&id=II.%20Total%20Number%20of%20Shareholders%20and%20Top%20Ten%20Shareholders%27%20Holdings%20at%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had **76,397 common shareholders**, with the top two shareholders holding nearly **40%** combined, indicating concentrated ownership - As of the end of the reporting period, the company had a total of **76,397 common shareholders**[7](index=7&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | State Power Investment Corporation Limited | State-owned Legal Person | 33.37% | 367,816,000 | | SPIC Hebei Electric Power Co., Ltd. | State-owned Legal Person | 6.02% | 66,311,196 | | Li Liang | Domestic Natural Person | 0.31% | 3,380,000 | | Li Xiuying | Domestic Natural Person | 0.28% | 3,065,601 | | Ye Xiangdong | Domestic Natural Person | 0.27% | 3,000,000 | - State Power Investment Corporation Limited, the largest shareholder, is the controlling shareholder of SPIC Hebei Electric Power Co., Ltd., the second-largest shareholder[8](index=8&type=chunk) [Significant Events](index=6&type=section&id=Item%203.%20Significant%20Events) This section details significant financial data changes and other important matters during the reporting period, including the absence of unfulfilled commitments or specific investment activities [Analysis of Major Financial Data and Indicator Changes](index=6&type=section&id=I.%20Changes%20and%20Reasons%20for%20Major%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period) Significant changes in financial data include substantial increases in receivables and borrowings, and a surge in cash paid for other financing activities Changes in Major Financial Data and Reasons | Item | Change Percentage | Primary Reason | | :--- | :--- | :--- | | Notes Receivable | 748.68% | Primarily due to increased notes receivable from Liangcun Thermal Power and Dacheng | | Other Receivables | 122.66% | Primarily due to Changyuan Tianhuacheng paying **66 million RMB** in financing lease deposits to Taiping Petrochemical | | Short-term Borrowings | 172.41% | Primarily due to the head office and Liangcun increasing short-term borrowings by **600 million RMB** | | Long-term Payables | 392.07% | Primarily due to Zhineng Electric Power and Changyuan Tianhuacheng increasing financing lease payables by **523 million RMB** | | Minority Interest Income/Loss | -61051.43% | Primarily due to the recognition of minority interest income/loss from Liangcun Thermal Power in the current period | | Cash Paid for Debt Repayment | -80.88% | Primarily due to the head office and Liangcun Thermal Power repaying large loans in the prior year period | | Cash Paid for Other Financing Activities | 81554.09% | Primarily due to Changyuan Tianhuacheng paying **66 million RMB** in financing lease deposits to Taiping Petrochemical | [Other Significant Matters](index=6&type=section&id=III.%20Unfulfilled%20Commitments%20by%20the%20Company%27s%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20Other%20Committed%20Parties%20During%20the%20Reporting%20Period) During the reporting period, the company had no significant event progress, share repurchases, overdue unfulfilled commitments, or specific investment activities - During the reporting period, the company had no significant event progress, share repurchases, or overdue unfulfilled commitments[12](index=12&type=chunk) - The company did not forecast its operating performance for January-June 2019[13](index=13&type=chunk) - During the reporting period, the company had no securities investments, derivative investments, illegal external guarantees, or fund occupation by the controlling shareholder[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [Financial Statements](index=8&type=section&id=Item%204.%20Financial%20Statements) This section presents the company's consolidated and parent company financial statements for Q1 2019, along with adjustments and audit status [Consolidated Financial Statements](index=8&type=section&id=1.%20Consolidated%20Financial%20Statements) This section provides the company's consolidated financial statements for Q1 2019, showing asset growth, slight revenue and profit increases, but significant operating cash outflow [Consolidated Balance Sheet](index=8&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of March 31, 2019, total assets were **11.95 billion RMB**, total liabilities **8.26 billion RMB**, and equity attributable to parent company owners **2.68 billion RMB** Key Items from Consolidated Balance Sheet | Item | March 31, 2019 (RMB) | December 31, 2018 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 11,947,254,174.62 | 10,811,355,424.73 | +10.51% | | Total Liabilities | 8,259,594,884.21 | 7,205,868,341.26 | +14.62% | | Total Equity Attributable to Parent Company Owners | 2,682,275,897.32 | 2,637,419,940.69 | +1.70% | [Consolidated Income Statement](index=14&type=section&id=3.%20Consolidated%20Income%20Statement) In Q1 2019, total operating revenue grew by 5.95% to **930 million RMB**, operating profit surged by 94.14% to **154 million RMB**, and net profit attributable to parent company owners was **99.97 million RMB** Key Items from Consolidated Income Statement | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 930,194,031.10 | 877,920,176.71 | +5.95% | | Operating Profit | 154,462,423.82 | 79,563,785.00 | +94.14% | | Total Profit | 156,836,041.31 | 111,065,375.43 | +41.21% | | Net Profit Attributable to Parent Company Owners | 99,969,617.93 | 96,095,528.39 | +4.03% | | Basic Earnings Per Share | 0.09 | 0.09 | 0.00% | [Consolidated Cash Flow Statement](index=18&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) Net cash flow from operating activities was **-131 million RMB**, a significant deterioration, with investing activities showing outflow and financing activities showing inflow Key Items from Consolidated Cash Flow Statement | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -131,425,948.95 | 643,708,363.85 | | Net Cash Flow from Investing Activities | -457,576,543.81 | -823,934,655.58 | | Net Cash Flow from Financing Activities | 677,821,388.04 | 465,378,223.42 | | Net Increase in Cash and Cash Equivalents | 56,348,170.75 | 285,151,931.69 | [Parent Company Financial Statements](index=11&type=section&id=2.%20Parent%20Company%20Financial%20Statements) This section provides the parent company's financial statements, showing a slight decrease in total assets, a turnaround to profitability in operating profit, and a large net outflow in operating cash flow [Parent Company Balance Sheet](index=11&type=section&id=2.%20Parent%20Company%20Balance%20Sheet) As of March 31, 2019, parent company total assets were **4.97 billion RMB**, total liabilities **2.26 billion RMB**, and total owner's equity **2.71 billion RMB** Key Items from Parent Company Balance Sheet | Item | March 31, 2019 (RMB) | December 31, 2018 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 4,967,049,943.61 | 5,005,485,751.58 | -0.77% | | Total Liabilities | 2,256,689,221.62 | 2,269,571,252.26 | -0.57% | | Total Owner's Equity | 2,710,360,721.99 | 2,735,914,499.32 | -0.93% | [Parent Company Income Statement](index=16&type=section&id=4.%20Parent%20Company%20Income%20Statement) In Q1 2019, parent company operating revenue grew by 3.06% to **464 million RMB**, operating profit turned profitable at **27.31 million RMB**, and net profit reached **29.56 million RMB** Key Items from Parent Company Income Statement | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Operating Revenue | 464,264,479.47 | 450,460,777.85 | | Operating Profit | 27,312,778.26 | -9,055,223.19 | | Net Profit | 29,559,883.97 | 22,196,033.90 | [Parent Company Cash Flow Statement](index=20&type=section&id=6.%20Parent%20Company%20Cash%20Flow%20Statement) Net cash flow from operating activities for the parent company was **-86 million RMB**, a significant decrease, with investing activities showing outflow and financing activities showing inflow Key Items from Parent Company Cash Flow Statement | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -86,400,527.36 | 651,461,923.64 | | Net Cash Flow from Investing Activities | -124,246,676.93 | -288,299,695.26 | | Net Cash Flow from Financing Activities | 188,608,305.55 | -305,584,146.88 | [Notes on Financial Statement Adjustments](index=22&type=section&id=II.%20Explanation%20of%20Financial%20Statement%20Adjustments) Effective January 1, 2019, the company adopted new financial instrument standards, reclassifying an investment with no significant impact on opening financial statement data - The company first adopted the new financial instrument standards on January 1, 2019, and adjusted relevant items in the financial statements at the beginning of the year of first adoption[37](index=37&type=chunk) - Specifically, an available-for-sale financial asset in Mengxian Dongfang Zhenxing Coal Industry Co., Ltd., with a carrying amount of **0 RMB** under the old standards, was reclassified to other equity instrument investments under the new standards, with its carrying amount remaining **0 RMB**[39](index=39&type=chunk)[41](index=41&type=chunk) [Audit Report](index=25&type=section&id=III.%20Audit%20Report) The company's Q1 2019 report is unaudited - This quarterly report is unaudited[42](index=42&type=chunk)

Financial Performance - Operating revenue for the reporting period was ¥692,790,958.63, reflecting a year-on-year growth of 5.49%[8] - Net profit attributable to shareholders was ¥17,025,566.71, representing a 1.96% increase compared to the same period last year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥15,330,866.36, up by 2.21% year-on-year[8] - Basic earnings per share remained at ¥0.020, unchanged from the previous year[8] - The weighted average return on net assets increased by 0.60% to 4.73%[8] Shareholder Information - The total number of shareholders at the end of the reporting period was 80,316[12] - The largest shareholder, State Power Investment Corporation, holds 33.37% of the shares, totaling 367,816,000 shares[12] Government Subsidies and Non-Recurring Items - Government subsidies recognized in the current period amounted to ¥37,017,091.10[9] - Non-recurring gains and losses totaled ¥35,481,892.09 after tax effects[9] - Operating income from non-operating activities surged by 976.50% primarily due to government subsidies amounting to 30 million yuan[16] Asset Changes - Total assets at the end of the reporting period reached ¥11,294,204,713.82, an increase of 34.00% compared to the end of the previous year[8] - Accounts receivable increased by 33.01% due to the company receiving settlement bills for electricity from the grid company[16] - Other receivables rose by 92.32% primarily due to an increase in performance guarantee receivables from Liangneng Company[16] - Long-term equity investments increased by 66.60% as a result of the company's investment in an industrial fund[16] - Construction in progress surged by 86.14% mainly due to the commencement of construction in multiple locations including Heshun and Yuxian[16] - Long-term prepaid expenses increased by 117.08% primarily due to new leasing fees from Zhineng Electric Power[16] Borrowings and Financial Expenses - Short-term borrowings increased significantly by 154.36% with an addition of 439 million yuan in short-term loans for Liangcun Power Plant and 500 million yuan for the headquarters[16] - Long-term borrowings rose by 106.68% due to increased long-term loans for Yuxian, Heshun, and Liangcun[16] - Financial expenses increased by 68.66% mainly due to the increase in short and long-term borrowings and the capitalization of interest expenses from project production[16] Investment Cash Flow - Cash received from investment increased by 152.81% mainly due to additional registered capital from other shareholders of Zaoqiang Huiguang Company[16]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 1,448,963,194.36, representing a 1.32% increase compared to CNY 1,430,020,882.72 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 117,515,918.51, a 36.89% increase from CNY 85,849,165.58 year-on-year[18]. - The net cash flow from operating activities surged by 262.64% to CNY 432,536,168.65, compared to CNY 119,273,118.97 in the previous year[18]. - The company's basic earnings per share increased by 37.50% to CNY 0.11, up from CNY 0.08 in the same period last year[18]. - The weighted average return on net assets improved to 4.14%, an increase of 1.15 percentage points from 2.99% in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 83,706,442.19, reflecting a 3.10% decrease from CNY 86,388,271.60 year-on-year[18]. - The company achieved a total revenue of CNY 1.448 billion and a net profit of CNY 117.52 million for the first half of 2018[32]. - The company reported a net profit of approximately 22.87 million for the acquisition of 100% equity in Shanxi Renewable Energy Co., Ltd. during the reporting period[52]. Assets and Liabilities - The total assets at the end of the reporting period reached CNY 10,307,027,146.78, marking a 22.29% increase from CNY 8,428,305,574.36 at the end of the previous year[18]. - The company's net assets attributable to shareholders decreased by 8.16% to CNY 2,558,873,555.08 from CNY 2,786,159,097.87 at the end of the previous year[18]. - The total liabilities increased to ¥7,567,545,450.99 from ¥5,495,849,916.46, indicating a growth of approximately 37.7%[128]. - Non-current liabilities rose to ¥4,296,859,611.61 from ¥2,738,607,890.19, reflecting an increase of about 57.0%[128]. - Shareholders' equity decreased to ¥2,739,481,695.79 from ¥2,932,455,657.90, indicating a decline of about 6.6%[128]. Investment and Expansion Plans - The company plans to expand its business scope to include wind power and solar power generation projects[18]. - The company has initiated the development of offshore wind power projects in collaboration with the Dalian Huayuan口 Economic Zone Management Committee[33]. - The company plans to ensure that all or part of the capacity of wind power projects in Heshun, Zaoqiang, Fucheng, and Dacheng will be put into operation within the year[53]. - The company aims to control fuel costs by ensuring that the proportion of economically viable coal types in the mix is no less than 20%[53]. - The company is committed to gradually injecting quality assets into its operations over three years, leveraging the overall advantages of the State Power Investment Corporation[170]. Operational Efficiency - The company completed electricity sales of 22.34 billion kWh and heat sales of 11.43 million GJ during the reporting period[32]. - The company maintained a coal consumption rate of 291.43 g/kWh, a reduction of 4.28 g/kWh year-on-year[34]. - The company secured a market electricity volume of 1.133 billion kWh, achieving a market share of 3.4% in Hebei South Network[34]. - The gross profit margin for the heating and electricity segment was 15.30%, with a slight increase of 2.29% year-on-year[40]. - The company completed the development of 170,000 square meters of heating area and signed agreements for geothermal and dry hot rock demonstration projects[33]. Financial Management - Financial expenses surged by 102.98% to CNY 80,530,337.56, primarily due to increased short-term and long-term borrowings[38]. - The company reported a net increase in cash and cash equivalents of CNY 168,519,401.31, a decrease of 68.52% compared to CNY 535,292,328.32 in the previous year[38]. - The cash flow from financing activities decreased by 9.37% to CNY 1,060,104,183.59 from CNY 1,169,682,886.93[38]. - The company has implemented strict internal controls and auditing procedures to ensure compliance and risk management[99]. - The financial company has established a comprehensive internal control system to mitigate risks and ensure compliance with regulations[94]. Shareholder Information - The total number of shares before the change was 1,102,273,226, with 39.54% being limited shares and 60.46% being unrestricted shares[107]. - The number of shareholders at the end of the reporting period was 82,969, with no preferred shares having voting rights[110]. - The largest shareholder, State Power Investment Corporation, held 33.37% of the shares, totaling 367,816,000 shares[110]. - The company did not undergo any changes in its controlling shareholder or actual controller during the reporting period[112]. - The company reported no preferred shares existing during the reporting period[115]. Compliance and Governance - The company has not experienced any major litigation or arbitration matters during the reporting period[62]. - The company has not engaged in any related party transactions during the reporting period[65]. - The company has a governance structure that includes a board of directors, supervisory board, and management team to ensure accountability and operational efficiency[93]. - The financial company operates under the supervision of the China Banking Regulatory Commission and adheres to relevant financial laws and regulations[94]. - The company follows the enterprise accounting standards, ensuring the financial statements reflect a true and complete picture of its financial status[172].

Financial Performance - The company's operating revenue for Q1 2018 was ¥877,920,176.71, representing a 6.06% increase compared to ¥827,729,326.47 in the same period last year[8] - Net profit attributable to shareholders was ¥96,095,528.39, a 24.91% increase from ¥76,929,682.47 year-on-year[8] - The net cash flow from operating activities surged by 3,011.47% to ¥643,708,363.85, compared to ¥20,688,258.90 in the previous year[8] - Basic earnings per share increased by 28.57% to ¥0.09, up from ¥0.07 in the same period last year[8] Assets and Liabilities - Total assets at the end of the reporting period reached ¥9,488,073,415.83, marking a 13.56% increase from ¥8,355,305,574.36 at the end of the previous year[8] - The company's net assets attributable to shareholders decreased by 8.93% to ¥2,537,453,164.96 from ¥2,786,159,097.87 at the end of the previous year[8] Government Support - The company received government subsidies amounting to ¥31,315,943.70 during the reporting period[9] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 88,664[11] Investment and Projects - The company plans to increase its investment in construction projects, with a 31.27% rise in ongoing projects[15] Financial Expenses - The company reported a significant increase in financial expenses by 87.87%, primarily due to increased short-term borrowings[15] Compliance and Governance - The company reported no overdue commitments from actual controllers, shareholders, related parties, acquirers, or other related parties during the reporting period[17] - There are no significant changes or warnings regarding the cumulative net profit from the beginning of the year to the next reporting period[18] - The company did not engage in any securities investments during the reporting period[19] - There were no derivative investments made by the company during the reporting period[20] - The company did not conduct any research, communication, or interview activities during the reporting period[21] - There were no instances of illegal external guarantees during the reporting period[22] - The company reported no non-operating fund occupation by controlling shareholders or their related parties during the reporting period[23]