Financial Performance - Revenue for the first half of 2023 reached RMB 13,570.86 million, a year-on-year increase of 15.58%[7] - Net profit attributable to the parent company was RMB 84.89 million, up 63.78% year-on-year[7] - Total operating revenue for the first half of 2023 reached 13.76 billion RMB, a 15.9% increase compared to 11.87 billion RMB in the same period of 2022[43] - Net profit attributable to the parent company's owners in the first half of 2023 was 84.89 million RMB, a 63.8% increase from 51.84 million RMB in the same period of 2022[45] - Operating profit for the first half of 2023 was 105.35 million RMB, a 2.0% increase compared to 103.23 million RMB in the same period of 2022[45] - Total comprehensive income for the first half of 2023 was -191,031,239.80 RMB, down from 78,845,945.78 RMB in the first half of 2022[47] - Basic earnings per share increased to 0.05 RMB in the first half of 2023, up from 0.03 RMB in the same period of 2022[47] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the period was RMB 899,280,373.83[122] Orders and Production - New power equipment orders amounted to RMB 18.928 billion, a year-on-year increase of 187.79%, with coal power equipment orders growing by 437.97%[8] - Export orders reached RMB 7.361 billion, a year-on-year increase of 156.84%[8] - Power generation equipment production reached 12.83 million kW, a year-on-year increase of 49.9%[9] - The company secured several major contracts, including the world's largest 500MW impact-type hydroelectric unit and a 400MW variable-speed pumped storage unit[22] Assets and Liabilities - Total assets increased by 9.56% to RMB 69.33138 billion, with current assets accounting for 84.54% of total assets[13] - Total liabilities increased by 12.15% to RMB 57.09663 billion, mainly due to an increase in contract liabilities (advance receipts)[13] - Total assets increased to RMB 69.33 billion as of June 30, 2023, up from RMB 63.28 billion at the beginning of the year[38] - Current assets rose to RMB 58.61 billion, compared to RMB 53.52 billion at the start of 2023[37] - Non-current assets grew to RMB 10.72 billion, up from RMB 9.76 billion at the beginning of the year[38] - Total liabilities increased to RMB 57.10 billion, up from RMB 50.91 billion at the start of 2023[40] - Current liabilities rose to RMB 52.94 billion, compared to RMB 45.86 billion at the beginning of the year[39] - Non-current liabilities decreased to RMB 4.16 billion, down from RMB 5.05 billion at the start of 2023[40] - Total assets as of June 30, 2023, amounted to 69.33 billion RMB, a 9.6% increase from 63.28 billion RMB at the beginning of the year[42] - Total equity attributable to the parent company's owners as of June 30, 2023, was 11.53 billion RMB, a 1.7% decrease from 11.73 billion RMB at the beginning of the year[42] - Total liabilities and equity as of June 30, 2023, reached 69.33 billion RMB, a 9.6% increase from 63.28 billion RMB at the beginning of the year[42] - Total equity as of June 30, 2023, was 12.23 billion RMB, a 1.1% decrease from 12.37 billion RMB at the beginning of the year[42] - Minority interest in equity as of June 30, 2023, was 709.54 million RMB, a 9.9% increase from 645.91 million RMB at the beginning of the year[42] - Total owner's equity amounted to 12.19 billion RMB as of H1 2023, with minority interests at 626 million RMB[54] - Undistributed profits stood at 4.68 billion RMB in H1 2023, reflecting a 55.8 million RMB increase from the previous period[54] - The company's capital reserve (capital surplus) was 4.34 billion RMB as of H1 2023[54] - The company's total equity attributable to owners was 11.57 billion RMB in H1 2023, with a slight increase of 73.9 million RMB from the previous period[54] Cash Flow - Cash and cash equivalents increased by 6.32% to RMB 183.9461 billion as of June 30, 2023, compared to the beginning of the period[14] - Cash and cash equivalents increased to RMB 18.39 billion, up from RMB 17.30 billion at the beginning of the year[37] - Cash received from sales of goods and services in the first half of 2023 was 17,460,424,872.49 RMB, a significant increase from 11,698,804,483.53 RMB in the same period of 2022[48] - Net cash flow from operating activities in the first half of 2023 was 1,322,174,637.46 RMB, up from 825,359,071.13 RMB in the same period of 2022[49] - Cash paid for goods and services in the first half of 2023 was 13,338,955,050.96 RMB, an increase from 10,883,485,237.11 RMB in the same period of 2022[49] - Net cash flow from investing activities in the first half of 2023 was -318,891,740.59 RMB, compared to -287,696,481.28 RMB in the same period of 2022[50] - Cash received from investments in the first half of 2023 was 585,669,693.39 RMB, a significant increase from 0 RMB in the same period of 2022[50] - Cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets in the first half of 2023 was 425,654,336.40 RMB, up from 202,334,500.10 RMB in the same period of 2022[50] - Cash paid for investments in the first half of 2023 was 400,407,200.00 RMB, a significant increase from 93,821,500.00 RMB in the same period of 2022[50] - Net cash flow from financing activities decreased to -38.8 million RMB in H1 2023, compared to 653.5 million RMB in H1 2022[51] - Cash and cash equivalents increased by 976.7 million RMB in H1 2023, reaching 17.27 billion RMB at the end of the period[52] - The company absorbed 14.67 million RMB in investment cash in H1 2023, a significant increase from 4.89 million RMB in H1 2022[51] - Debt repayment amounted to 1.06 billion RMB in H1 2023, down from 1.47 billion RMB in H1 2022[51] - Dividend and interest payments totaled 117.9 million RMB in H1 2023, a decrease from 211.4 million RMB in H1 2022[51] - Exchange rate impact on cash and cash equivalents was 12.23 million RMB in H1 2023, slightly higher than 11.58 million RMB in H1 2022[52] R&D and Innovation - R&D expenses increased by RMB 62.06 million to RMB 350.76 million, reflecting the company's focus on innovation and new technologies[12] - The company's R&D investment intensity reached 4% in the first half of 2023, focusing on key core technology breakthroughs and digital transformation[21] - R&D expenses in the first half of 2023 were 350.76 million RMB, a 21.5% increase compared to 288.69 million RMB in the same period of 2022[43] Energy and Environment - Non-fossil energy power generation capacity reached 1.39 billion kW, accounting for 51.5% of total installed capacity, up 3.4 percentage points year-on-year[5] - China's total installed power generation capacity is expected to reach 2.86 billion kilowatts by the end of 2023, a year-on-year increase of 11.5%[25] - Non-fossil energy installed capacity is projected to account for 53% of total capacity, reaching 1.51 billion kilowatts, up 3 percentage points year-on-year[25] - Combined installed capacity of wind and solar power is expected to reach 960 million kilowatts, accounting for one-third of total capacity, up 4 percentage points year-on-year[25] Market and Strategy - The company aims to enhance market share, expand order scale, and improve contract quality in the second half of 2023[26] - The company plans to focus on high-end, intelligent, and green development in equipment manufacturing, with increased investment in technological innovation[26] Corporate Governance - The company has complied with the Corporate Governance Code and appointed a new executive director to fill a vacancy[32] - The audit committee has reviewed and approved the company's unaudited interim financial report for the first half of 2023[33] - The company's consolidated financial statements for the first half of 2023 are prepared in accordance with the "Enterprise Accounting Standards" and relevant regulations, with RMB as the reporting currency[58][62] - The company has assessed its ability to continue operations for the next 12 months and found no significant concerns, thus the financial statements are prepared on a going concern basis[59] Accounts Receivable and Bad Debt - Accounts receivable are measured at fair value initially and presented at amortized cost less impairment, with expected credit losses recognized over the lifetime of the receivables[64][66] - The company applies a provision matrix for accounts receivable based on aging, with impairment rates ranging from 0-5% for receivables within 1 year to 100% for receivables over 5 years[67] - The company's accounts receivable totaled RMB 13,523,204,211.55, with a bad debt provision of RMB 4,978,057,289.62, representing a provision rate of 36.81%[80] - Single-item bad debt provision for accounts receivable amounted to RMB 1,833,582,388.88, with a provision rate of 66.62%[80] - The company's accounts receivable from Harbin Power Technology Development Co., Ltd. amounted to RMB 350,582,500.00, with a bad debt provision of RMB 31,055,125.00, representing a provision rate of 8.86%[82] - The company's accounts receivable from China Shipbuilding Industry Corporation 703 Research Institute amounted to RMB 286,369,055.40, with a bad debt provision of RMB 44,614,150.00, representing a provision rate of 15.58%[82] - The company's accounts receivable from Sudan's Ministry of Water Resources and Electricity amounted to RMB 39,994,803.00, with a 100% bad debt provision due to long-term non-recovery[82] - Accounts receivable with individual bad debt provision: Sudan National Electricity Company (56,360,011.90 RMB, 100% provision)[84], Datang Environment Industry Group (27,384,367.22 RMB, 80% provision)[84], Inner Mongolia Chuangyuan Metal Co., Ltd. (26,904,000.00 RMB, 89.02% provision)[84] - Total accounts receivable with bad debt provision: 1,833,582,388.88 RMB, with 1,221,509,657.69 RMB provision[86] - Accounts receivable aged within 1 year: 5,939,459,175.20 RMB, accounting for 50.81% of total receivables[90] - Accounts receivable aged 1-2 years: 1,776,239,859.84 RMB, accounting for 15.20% of total receivables[90] - Accounts receivable aged 2-3 years: 1,199,479,136.82 RMB, accounting for 10.26% of total receivables[90] - Accounts receivable aged over 3 years: 2,774,443,650.81 RMB, accounting for 23.73% of total receivables[90] - Net bad debt provision for the period: -43,112,307.96 RMB[91] - Actual write-off of accounts receivable for the period: 13,798,267.80 RMB[91] Other Financial Metrics - Gross profit margin decreased to 10.72%, down 4.46 percentage points year-on-year, primarily due to lower contract prices for ongoing nuclear power projects[11] - The company's capital leverage ratio (non-current liabilities to total equity) decreased to 0.36:1 as of June 30, 2023, from 0.43:1 at the beginning of the period[14] - Total borrowings as of June 30, 2023, amounted to RMB 75.7334 billion, with RMB 58.3593 billion due within one year and RMB 17.3741 billion due after one year[15] - Contract liabilities increased by RMB 41.2302 billion to RMB 215.5146 billion as of June 30, 2023[15] - Fixed asset investments during the first half of 2023 totaled RMB 4.6728 billion, primarily allocated to nuclear power capacity enhancement and other key projects[16] - The company's foreign currency deposits amounted to approximately RMB 656.82 million as of June 30, 2023, with hedging strategies in place to mitigate exchange rate risks[17] - Unused funds from the 2017 domestic share subscription amounted to RMB 96 million as of June 30, 2023, with the remaining funds fully utilized[18] - The company employed 11,746 on-duty staff as of June 30, 2023, with a total payroll of RMB 777.94 million[23] - Total share capital as of June 30, 2023, is 1,706,523,000 shares, with state-owned legal person shares accounting for 60.41%[27] - The company has no contingent liabilities to external parties, with total guarantees for subsidiaries amounting to 11.5715 billion yuan[30] - Assets pledged for working capital loans amount to 887.9 million yuan as of June 30, 2023[31] - Total operating costs for the first half of 2023 were 13.54 billion RMB, a 21.5% increase compared to 11.14 billion RMB in the same period of 2022[43] - Other comprehensive income after tax for the first half of 2023 was -295,431,646.88 RMB, a significant decrease compared to 17,248,383.30 RMB in the same period of 2022[46] - Credit impairment losses for the period were RMB 29,824,106.66, compared to a loss of RMB -521,747,927.36 in the previous period[117] - Asset impairment losses totaled RMB -222,034,440.89, including inventory write-downs of RMB -20,048,274.85 and contract asset impairment losses of RMB -201,975,817.49[118] - The company did not recommend any interim dividend for the six months ended June 30, 2023[123] - Restricted assets included monetary funds of RMB 3,725,205,741.27, fixed assets of RMB 65,917,864.86, and intangible assets of RMB 23,171,998.13[120] - Purchases from companies under the same control amounted to RMB 15,038,031.44, a significant increase from RMB 546,192.21 in the previous period[128] - Service fee expenses to companies under the same control decreased slightly to RMB 14,068,821.06 from RMB 14,301,809.56[128] - Interest income from entrusted loans to companies under the same control surged to RMB 66,836,094.17 from RMB 2,905,660.38[131] - Key management personnel compensation increased to RMB 7,336,661.88 from RMB 2,469,186.00[134] - Technical development service fees from companies under the same control totaled RMB 22,238,207.60[136] - Short-term borrowings from the controlling company remained steady at RMB 3,997,091,932.96[140] - Accounts receivable from companies under the same control stood at RMB 591,992.00, down from RMB 6,106,792.00[137] - Other receivables from the controlling company increased to RMB 1,732,830.19 from RMB 154,650,000.00[137] - Contract assets from companies under the same control rose to RMB 3,040,000.00 from RMB 174,166.67[137] - Long-term payables to the controlling company remained unchanged at RMB 1,000,000.00[140] - Total internal group revenue is RMB 1,157,153,820.79[144] - The company has signed but not yet incurred large contract expenditures for asset construction totaling RMB 45,950,581.03 as of June 30, 2023[145] - Harbin Electric Corporation (Headquarters) has an unpaid contract amount of RMB 26,664,000.00, expected to be invested in 2023[146] - Harbin Turbine Factory Co., Ltd. has an unpaid contract amount of RMB 19,286,581.03, expected to be invested in 2023[146] - No significant contingent assets or post-balance sheet events were disclosed as of June 30, 2023[147]
哈尔滨电气(01133) - 2023 - 中期财报