TGWC(SH:600116)2016-01-25 16:00Financial Performance - In 2015, the company's operating revenue was CNY 1,315,752,891.93, an increase of 1.38% compared to CNY 1,297,834,574.08 in 2014[22] - The net profit attributable to shareholders was CNY 207,183,529.37, representing a significant increase of 45.86% from CNY 142,038,790.78 in the previous year[22] - The net profit after deducting non-recurring gains and losses was CNY 176,022,877.64, up 59.53% from CNY 110,340,574.85 in 2014[22] - Basic earnings per share increased by 20.75% to CNY 0.64 in 2015 compared to CNY 0.53 in 2014[24] - The weighted average return on equity decreased by 2.55 percentage points to 10.36% in 2015 from 12.91% in 2014[24] - The net profit for 2015 was 207 million CNY, representing a year-on-year growth of 46%, achieving the best historical level[52] - The company reported a net profit of approximately 207.18 million RMB for the year 2015, with a cash dividend payout ratio of 23.96% of the net profit attributable to shareholders[143] Cash Flow and Assets - The net cash flow from operating activities was CNY 381,977,258.69, reflecting a 7.11% increase from CNY 356,614,165.11 in 2014[22] - The total assets at the end of 2015 were CNY 4,336,943,031.51, a growth of 20.23% compared to CNY 3,607,061,576.06 in 2014[22] - The net assets attributable to shareholders increased to CNY 2,245,248,456.66, a rise of 94.74% from CNY 1,152,960,873.57 in the previous year[22] - The asset-liability ratio stood at 47.55% as of the end of 2015, indicating a stable financial structure[52] - The total liabilities decreased by 14.05% to 2.062 billion CNY compared to the beginning of the year[52] Investment and Capital Expenditure - The company completed a non-public stock issuance, raising 833.96 million CNY, which contributed to an increase in capital reserves by 770.49 million CNY[41] - The company has initiated a 600 million CNY investment plan for rural power grid upgrades, with 120 million CNY from central capital[49] - The company plans to invest an additional 40,000 million CNY in rural power grid upgrades, funded by 20% from central budget and 80% from bank loans[89] - The company’s capital expenditure for the Yunnan Mangya River Hydropower Station was 1,732 million CNY, with a total investment of 15,614 million CNY[84] Operational Performance - The company's electricity generation in 2015 was 740 million kWh, an increase of 27.48% compared to 580 million kWh in the previous year[52] - The average utilization hours of the power generation units were nearly 4,000 hours, with self-generated hydropower increasing by 26.87% year-on-year[48] - The company achieved an actual online electricity generation of 16.93 billion kWh and a sales volume of 15.60 billion kWh in 2015, with revenue of 918 million yuan, which was in line with the planned targets[123] Market and Economic Context - The overall economic growth in China slowed to 6.9% in 2015, impacting electricity demand and industry growth[35] - The total electricity consumption in China for 2015 was 5,550 billion kWh, with a year-on-year growth of 0.5%[35] - The company is positioned in a region with a strong market advantage, covering approximately 90% of the electricity supply area in Wanzhou District, with limited competition due to the independent regional grid[116] Risks and Challenges - The company faces significant operational pressure due to a high proportion of expensive purchased electricity, as its own installed capacity is relatively small compared to the increasing electricity demand in the Wanzhou area[118] - The company faces operational risks due to dependence on rainfall for hydropower generation, which may lead to higher costs for purchasing electricity if self-generated capacity is insufficient[130] - The company is monitoring macroeconomic factors to adjust its operational strategies in response to market risks associated with economic downturns[131] Shareholder and Governance - The company has a diverse shareholder base, including state-owned enterprises and private investors, which may enhance its market stability[196] - The total number of ordinary shares increased from 267,533,200 to 331,001,834 after the issuance of new shares[185] - The company has committed to maintaining independence in operations, assets, and finances to ensure a complete business system[146] Future Outlook - The company plans to continue expanding its hydropower capacity, with a target of adding approximately 10 million kilowatts annually until 2020[107] - The company plans to optimize its electricity procurement channels and reduce costs associated with purchased electricity[120] - The company will actively seek new business opportunities and develop high-end markets in the electric power survey, design, and installation sector[121]