NMHD(600863)2024-04-25 09:57Financial Performance - Revenue for 2023 was RMB 22.525 billion, a decrease of 2.34% compared to 2022[20] - Net profit attributable to shareholders in 2023 was RMB 2.005 billion, an increase of 13.44% year-over-year[20] - Basic earnings per share for 2023 were RMB 0.29, a 16% increase from 2022[21] - Weighted average return on equity (ROE) for 2023 was 12.56%, an increase of 0.72 percentage points from 2022[21] - Operating cash flow for 2023 was RMB 5.332 billion, a 3.45% increase year-over-year[20] - Total assets at the end of 2023 were RMB 39.479 billion, a decrease of 1.76% compared to the end of 2022[20] - Non-recurring gains and losses in 2023 included RMB 11.907 million from the disposal of non-current assets[26] - Government subsidies in 2023 amounted to RMB 11.561 million, a significant decrease from RMB 30.177 million in 2022[26] - Revenue for 2023 was RMB 22.525 billion, a decrease of 2.34% year-over-year, primarily due to a 6.80% decline in electricity sales revenue and a 0.97% decline in heating sales revenue, partially offset by a 43.02% increase in coal sales revenue[49][53] - Net profit attributable to shareholders was RMB 2.005 billion, an increase of 13.44% year-over-year, driven by lower fuel costs and reduced financial expenses[49] - Cash dividend amount (including tax) is 1,070,409,601.00 RMB, accounting for 60.75% of the net profit attributable to ordinary shareholders of the listed company[155] - The net profit attributable to ordinary shareholders of the listed company is 1,762,007,022.03 RMB[155] Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.85 per 10 shares, totaling approximately RMB 1,207,474,245.03 based on the total shares of 6,526,887,811 as of December 31, 2023[4] Operational Metrics - The company's total installed capacity and equity installed capacity are key metrics, with equity installed capacity calculated as the sum of wholly-owned, controlled, and affiliated power plants' capacities multiplied by their respective ownership percentages[13] - Coal production in 2023 reached 13.2617 million tons, a year-over-year increase of 52.09%[23] - Coal sales volume in 2023 was 6.2281 million tons, up 64.09% compared to the previous year[23] - Electricity generation in 2023 was 60.713 billion kWh, a slight decrease of 0.59% year-on-year, while heat supply increased by 5.51% to 18.6874 million GJ[43] - Average on-grid electricity price decreased by 6.23% to 343.94 RMB/MWh (excluding tax), and coal sales price dropped by 12.84% to 401.50 RMB/ton (excluding tax)[43] - Coal production capacity increased to 15 million tons/year, with a reported coal output of 13.2617 million tons in 2023, a year-on-year increase of 52.09%[43] - Electricity generation decreased by 0.59% to 60.713 billion kWh, with a 4.70% increase in coal-fired power generation in the Mengxi region and a 93.38% increase in photovoltaic power generation[49] - Average electricity selling price decreased by 6.23% to RMB 343.94 per MWh (excluding tax), contributing to the decline in electricity sales revenue[49][53] - Coal sales volume increased by 64.09% to 6.2281 million tons, while the average coal selling price decreased by 12.84% to RMB 401.50 per ton (excluding tax)[49][53] - Standard coal price decreased by 11.59% to RMB 594.62 per ton, leading to a reduction in fuel costs for power generation[50] New Energy and Environmental Initiatives - The company invested in the construction of a 108.903MW distributed photovoltaic pilot project in Fengzhen City, to be undertaken by its subsidiary Fengchuan New Energy Company[33] - The company's new energy installed capacity ratio increased to 13.81% after the full-capacity grid connection of the 380MW new energy project in Inner Mongolia[33] - New energy projects approved or filed in 2023 include 1,200 MW wind power project in Kubuqi Desert and 108.903 MW distributed photovoltaic project in Fengzhen City[45] - New energy capacity reached 1,826.2 MW, accounting for 13.81% of total installed capacity, with 380 MW new energy project achieving full-capacity grid connection in 2023[45] - Wind power capacity in operation reached 1,756.2 MW, while photovoltaic capacity stood at 70 MW[45] - The company's coal-fired power units have achieved ultra-low emissions, meeting national environmental standards[46] - The company invested 319,308,800 RMB in environmental protection during the reporting period[163] - The company's coal-fired power plants achieved 100% operation rates for dust removal and desulfurization facilities, with dust removal efficiency of 99.93% and desulfurization efficiency of 98.86%[166] - All coal-fired power plants under the company have obtained environmental permits and operate in compliance with regulations[165] - The company has developed emergency response plans for sudden environmental incidents across all its coal-fired power plants[168] Financial and Market Risks - Expected growth in electricity consumption in 2024 is around 6%, with new energy sources continuing rapid development, while thermal power transitions to a supporting and regulating role, leading to a potential decline in thermal power generation[105] - Thermal power faces pricing risks due to increased market competition, with potential declines in coal power prices and higher marketization of new energy sources[105] - Coal procurement risks in 2024 include reduced long-term contract coverage (below 80% of demand) and challenges in securing stable supply during peak demand periods[106] - Coal sales face downward price pressure due to declining demand from coal-fired power plants and reduced seasonal price increases[107] - Carbon market risks include tighter quota allocations and rising carbon trading prices, increasing compliance costs for power generation companies[107] - Environmental risks are heightened as stricter policies are expected, requiring upgrades to existing power units and increased clean energy adoption[107] - The company plans to optimize coal procurement strategies, enhance long-term contract fulfillment, and manage inventory to control costs[106] - The company will focus on upgrading coal-fired units, improving efficiency, and adjusting pricing strategies to mitigate market risks[105] - The company aims to expand coal market sales, optimize production, and reduce costs to enhance profitability[107] - The company will monitor carbon market policies and develop carbon trading strategies to maximize emission reduction benefits[107] Leadership and Governance - High-ranking executives have held multiple positions across various energy and financial companies in Inner Mongolia, indicating a strong network and expertise in the region's energy sector[130] - The company has a significant presence in the energy sector with executives holding positions in key companies such as Inner Mongolia Datang International Tuoketuo Power Generation Co., Ltd. and Inner Mongolia Guohua Zhungeer Power Generation Co., Ltd.[130] - The company's leadership includes individuals with extensive experience in the energy and financial sectors, such as Gao Yuan, who serves as a director at China Huaneng Finance Co., Ltd.[130] - The company has a diversified portfolio with executives holding positions in companies ranging from power generation to insurance, such as Yongcheng Property Insurance Co., Ltd.[130] - The company's leadership includes individuals with experience in both traditional and renewable energy sectors, such as Ban Guorui, who serves as the General Manager and Deputy Party Secretary at Inner Mongolia Huaneng Kubuqi Energy Co., Ltd.[130] - The company has a strong presence in the railway sector with executives holding positions in companies like Inner Mongolia Jitong Railway (Group) Co., Ltd.[130] - The company's leadership includes individuals with experience in the legal and financial advisory sectors, such as Yan Jiehui, who serves as a lawyer and director at Inner Mongolia Yingce Law Firm[131] - The company has a diversified leadership team with executives holding positions in companies ranging from agriculture to animal health, such as Lu Wenbing, who serves as a director at Inner Mongolia Shengluyuan Biotechnology Co., Ltd.[131] - The company's leadership includes individuals with experience in the real estate and tax advisory sectors, such as Dong Yanxia, who serves as the deputy manager at Inner Mongolia Qihua Real Estate Appraisal Consulting Co., Ltd.[131] - The company has a strong presence in the coal and energy sectors with executives holding positions in companies like Inner Mongolia Beilian Electric Energy Development Co., Ltd.[131] - The company has established a comprehensive evaluation and incentive mechanism for senior management, linking their compensation to company performance and individual performance[158] - The company has strengthened internal control systems, revising and formulating 7 key governance and internal control regulations during the reporting period[159] - The company has enhanced management over subsidiaries, establishing a systematic internal control system and long-term supervision mechanism[160] - The company received an unqualified opinion on its internal control audit report from Zhongzheng Tiantong Accounting Firm[161] Research and Development - The company obtained 360 patent authorizations in 2023, including 30 invention patents[35] - The company obtained 360 patent authorizations in 2023, including 30 invention patents[45] - Total R&D investment in 2023 was 46,438,373.64 yuan, accounting for 0.21% of total revenue[67] - The company has 72 R&D personnel, representing 1.24% of total employees, with 8 holding master's degrees and 45 holding bachelor's degrees[68] - R&D expenses increased significantly by 223.04% to RMB 46.44 million, reflecting increased investment in research and development[52] Market and Industry Trends - National electricity consumption reached 9.22 trillion kWh, a 6.7% year-over-year increase, driven by economic recovery[36] - Inner Mongolia's installed capacity of wind power reached 69.54GW, a 52.38% year-over-year increase, and solar power reached 21.9GW, a 48.19% increase[36] - The company's average electricity selling price in the Mengxi grid area was 341.36 yuan/MWh, a 9.85% year-over-year decrease[38] - Inner Mongolia aims to add over 40GW of new energy installed capacity in 2024, with a total investment of 300 billion yuan in the new energy industry chain[38] - Total installed capacity of the company is 13,226.2 MW, with coal-fired power accounting for 11,400 MW (86.19%) and new energy capacity at 1,826.2 MW (13.81%)[42] Financial Structure and Capital Management - The company's comprehensive financing cost rate decreased by 61 basis points year-over-year, with financial expenses reduced by 197 million yuan, a 33.61% decrease[33] - The company successfully issued the first asset-backed note (quasi-REITs) in Inner Mongolia, raising 2.001 billion yuan in equity financing[33] - The company successfully issued RMB 2.001 billion in equity-type asset-backed notes (quasi-REITs) with a coupon rate of 3.5%, marking a financial innovation breakthrough[47] - Major shareholder Northern Company increased its stake by 0.408% to 51.05% of total shares, demonstrating strong confidence in the company's future development[48] - Cash and cash equivalents increased by 63.69% to 1,594,920,761.58 yuan, mainly due to the issuance of bonds not yet repaid[71] - Accounts receivable increased by 3.25% to 4,313,299,909.74 yuan, primarily due to growth in electricity fee receivables[71] - Inventory decreased by 41.76% to 304,331,003.72 yuan, mainly due to a decline in coal inventory[71] - Construction in progress increased by 238.07% to 1,953,668,919.15 yuan, driven by the expansion of the Judar New Energy Company[71] Customer and Supplier Relationships - Top 5 customers accounted for 97.42% of total annual sales, amounting to 2,194,406.58 million yuan, with related party sales contributing 259,103.35 million yuan, or 11.50% of total sales[63] - Inner Mongolia Electric Power Group Co., Ltd. was the largest customer, contributing 1,186,555.82 million yuan, or 52.68% of total sales[64] - Top 5 suppliers accounted for 61.12% of total annual procurement, amounting to 717,143.87 million yuan, with related party procurement contributing 319,413.47 million yuan, or 27.22% of total procurement[65] Accounting and Financial Adjustments - The non-operational fund occupation by the controlling shareholder, Northern United Power Co., Ltd., amounted to 3,171.14 million yuan at the beginning of the period, with an additional 339.66 million yuan occupied during the reporting period, and a total repayment of 3,510.80 million yuan, resulting in a zero balance at the end of the period[192] - The company implemented changes in accounting policies following the Ministry of Finance's "Accounting Standards Interpretation No. 16," effective from January 1, 2023, affecting deferred tax treatment for single transactions and equity instrument dividends[196] - The adjustment impact on the consolidated balance sheet included a decrease of 167,485.71 yuan in long-term equity investments and an increase of 1,005,889.88 yuan in deferred tax assets as of December 31, 2022[199] - The company's undistributed profits increased by 422,843.85 yuan due to the accounting policy adjustments as of December 31, 2022[199] - Minority shareholders' equity increased by 432,308.89 yuan as a result of the accounting policy adjustments as of December 31, 2022[199] Company Information - The company's registered address is in Hohhot, Inner Mongolia, and it has been located there since April 21, 1999, after moving from Baotou[16] - The company's stock is listed on the Shanghai Stock Exchange under the ticker symbol 600863, with the stock abbreviation "内蒙华电" (Inner Mongolia Mengdian Huaneng)[18]