Group 1: Company Overview - Jiangsu Guoxin is primarily composed of two sectors: energy and finance, with a focus on traditional coal-fired power generation [2] - The company operates power plants mainly in Jiangsu and Shanxi provinces, with coal-fired plants located along the Jiangsu coastline and three coal plants in Shanxi [2] - The company aims to become a comprehensive energy service provider, enhancing traditional energy while actively participating in new energy projects and expanding energy storage initiatives [2] Group 2: New Energy Initiatives - Since the end of 2021, Jiangsu Guoxin has invested in new energy projects, which will help achieve carbon emission and carbon neutrality goals [2] - The company is exploring chemical energy storage and considering establishing carbon investment trusts to participate in the carbon market [3] Group 3: Coal and Electricity Pricing - The company anticipates that coal prices will stabilize in 2022, returning to a more reasonable range due to government efforts [3] - The long-term coal price for 2022 is yet to be finalized, pending guidance from the National Development and Reform Commission [3] - The long-term electricity price for 2022 is set at 0.466 yuan per kWh, approximately 20% higher than the benchmark coal-fired electricity price in Jiangsu [3] Group 4: Market Dynamics - The electricity market in Jiangsu is fully marketized for coal-fired generation, but residential and institutional electricity usage remains non-marketized [3] - All of the company's thermal power units have completed peak-shaving and frequency modulation upgrades, with varying costs depending on the depth of modifications and associated projects [4] Group 5: Auxiliary Services - To encourage thermal power companies to participate in peak-shaving and frequency modulation, the grid compensates based on participation depth, duration, and time slots [4] - The compensation costs for auxiliary services are shared among all regulated power generation companies, with thermal power units receiving higher compensation due to their significant participation [4]

Financial Performance - Total operating revenue for the first half of 2022 was CNY 14,915,301,448.18, an increase of 15.72% compared to CNY 12,832,142,376.28 in the same period last year[19]. - Net profit attributable to shareholders of the listed company decreased by 41.92% to CNY 812,477,828.93 from CNY 1,392,621,780.90 in the previous year[19]. - Net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 738,438,924.65, down 33.74% from CNY 1,108,308,277.90 in the same period last year[19]. - Basic and diluted earnings per share both decreased by 40.54% to CNY 0.22 from CNY 0.37 in the same period last year[19]. - The company reported a significant decrease in income tax expenses by 40.81%, totaling CNY 190,773,617.01 due to a decline in total profit[49]. - The total comprehensive income for the first half of 2022 was 878,455,950.93, compared to 1,676,427,905.75 in the same period of 2021, a decline of approximately 47.5%[193]. Cash Flow - Net cash flow from operating activities significantly improved to CNY 4,998,144,662.00, a 4,696.41% increase from a negative cash flow of CNY -121,160,308.23 in the previous year[19]. - The net cash flow from financing activities showed a slight improvement, with a net outflow of ¥1,824,978,681.16 in the first half of 2022, compared to a net outflow of ¥2,123,455,663.67 in the first half of 2021[199]. - The cash received from interest, fees, and commissions increased to ¥747,919,603.65 in the first half of 2022, compared to ¥397,538,496.85 in the first half of 2021[197]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 81,099,130,254.21, reflecting a 0.79% increase from CNY 80,454,321,811.09 at the end of the previous year[19]. - Total liabilities decreased to CNY 42,042,584,276.36 from CNY 42,394,794,790.06, a reduction of 0.8%[186]. - The company's accounts receivable rose to ¥3,060,811,736.24 from ¥2,919,358,752.57, reflecting an increase of approximately 4.8%[184]. Revenue Segments - The energy segment's revenue was 14.463 billion yuan, up 15.17% year-on-year, primarily due to rising electricity prices[31]. - Revenue from electricity generation accounted for 96.97% of total revenue, amounting to CNY 14,463,601,304.89, with a year-on-year growth of 15.18%[52]. - The financial segment achieved a total profit of 1.371 billion yuan, a year-on-year increase of 21.78%[32]. Environmental Performance - The company reported that it is classified as a key pollutant discharge unit by environmental protection authorities[95]. - Jiangsu Guoxin achieved a stable operation of environmental protection facilities with a desulfurization and denitrification utilization rate of 100% for both 1 and 2 units[97]. - The company invested approximately 158 million RMB in environmental protection measures, including closed coal yard construction and emission reduction technology upgrades, contributing to significant reductions in air pollutants[117]. Strategic Initiatives - The company plans to increase its investment in new energy projects by 250 to 500 million yuan[29]. - The company is actively exploring new energy technologies such as electrochemical energy storage and hydrogen energy[29]. - Jiangsu Guoxin is investing 200 million yuan in R&D for new energy technologies, with a focus on solar and wind energy solutions[134]. Corporate Governance - The company has committed to maintaining independence in operations, finance, and management, ensuring no overlap with controlling entities[126]. - The company guarantees that its financial department operates independently and does not share bank accounts with controlling entities[127]. - The company has established a complete and independent governance structure to ensure the independence of its board and management[127]. Market Position and Expansion - The company plans to expand its market presence by entering two new provinces, aiming for a 25% increase in market share by the end of 2023[135]. - Jiangsu Guoxin is strategically positioned in Jiangsu Province, leveraging its regional advantages to expand market share and enhance competitiveness in the energy market[40]. - The company aims to enhance its renewable energy capacity through equity participation, focusing on integrating new energy models and technologies to improve competitiveness and transition to a comprehensive energy service provider[81]. Challenges and Risks - The coal market is expected to see price fluctuations due to increased demand and supply constraints, with the company planning to optimize coal procurement and reduce transportation costs to manage fuel expenses[81]. - The trust industry faces challenges from stricter financial regulations and a shift towards serving the real economy, prompting the company to innovate and enhance its asset management capabilities[84]. - The company is committed to improving its compliance and risk management systems to navigate the evolving financial landscape and mitigate operational risks[85].