XCEP(SH:600505)2014-08-15 16:00Financial Performance - The company achieved an operating revenue of CNY 318.67 million, representing a 4.75% increase compared to the same period last year[18]. - The net profit attributable to shareholders was CNY 1.78 million, a decrease of 89.46% year-on-year[18]. - The company completed a power generation of 202.20 million kWh, down 5.37% from the previous year[20]. - The sales volume reached 546.60 million kWh, a decline of 3.37% compared to the same period last year[20]. - The weighted average return on net assets was 0.20%, down 1.83 percentage points from the previous year[17]. - The net cash flow from operating activities was CNY 62.09 million, a decrease of 15.57% year-on-year[18]. - Operating costs increased by 15.18% to CNY 259,470,073.96 from CNY 225,272,523.24, primarily due to increased depreciation and salary expenses related to the commissioning of the Yongninghe Fourth-level Hydropower Station[21][22]. - The net profit attributable to the parent company's shareholders decreased by 89.46% to CNY 1,782,832.83 from CNY 16,920,188.14, mainly due to increased costs and reduced investment income[21][23]. - The company's cash flow from operating activities decreased by 15.57% to CNY 62,085,911.53, attributed to increased operating expenditures compared to the previous year[21][23]. - The gross profit margin for the hydropower sector decreased by 7.36 percentage points to 18.33%[30]. - The net profit for the first half of 2014 was CNY 1,360,364.07, a significant decrease of 92.6% compared to CNY 18,274,404.76 in the previous year[72]. - The company's net profit for the current period is CNY 7,854,780.00, down 47.9% from CNY 14,817,124.66 in the previous period[74]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1.85 billion, a decrease of 1.40% from the end of the previous year[18]. - The total assets of Sichuan Xichang Electric Power Co., Ltd. as of June 30, 2014, amounted to RMB 1,848,554,418.52, a decrease from RMB 1,874,792,846.09 at the beginning of the year[63]. - Current assets totaled RMB 237,136,523.30, down from RMB 264,846,341.13 at the beginning of the year, indicating a decline of approximately 10.5%[63]. - The company's cash and cash equivalents decreased to RMB 159,557,081.18 from RMB 190,261,583.93, representing a decline of about 16.1%[63]. - Total liabilities amounted to RMB 589,015,452.70, an increase from RMB 559,677,219.34, indicating a rise of about 5.5%[64]. - The company's equity attributable to shareholders was CNY 888,227,015.61, down from CNY 891,309,260.61 at the beginning of the year[68]. - The total liabilities increased from CNY 277,673,260.21 to CNY 300,093,273.60, representing a growth of approximately 8.5%[198]. Shareholder Information - The total number of shareholders at the end of the reporting period is 24,727[57]. - The largest shareholder, State Grid Sichuan Electric Power Company, holds 15.16% of the shares, totaling 55,272,460 shares[57]. - The second-largest shareholder, Liangshan State-owned Investment Development Co., Ltd., holds 14.82% of the shares, totaling 54,039,720 shares, with 12,700,000 shares pledged[57]. - The company executed a profit distribution plan for 2013, distributing a cash dividend of CNY 0.30 per share, totaling CNY 10.94 million[43]. Cash Flow and Investments - The net cash flow from financing activities improved by 45.69%, reducing outflows to CNY 68,672,535.66 from CNY 126,447,766.16 in the previous year[21][23]. - The company received CNY 50,000,000.00 from investment recoveries, which is double the amount of CNY 25,300,000.00 received in the previous period[79]. - The total investment cash outflow was 83,784,011.09 CNY, indicating significant capital expenditures during the period[82]. - The company received 80,000,000.00 CNY from borrowing, which contributed to the financing cash inflow[82]. Operational Plans and Future Outlook - The company plans to enhance decision-making and management capabilities to stabilize performance and maximize shareholder value[20]. - The company plans to achieve a total sales volume of 1.103 billion kWh in the second half of the year[24]. - The company has set a future performance guidance with a target of achieving a net profit growth of 46.38% for the next half of the year[177]. - New projects include the construction of a 220KV substation with an investment of CNY 2.33 million, which is expected to enhance capacity and reliability[177]. Receivables and Credit Management - The company's accounts receivable increased by 60.40% to CNY 60,847,736.40, mainly due to delayed collection of electricity fees[26][27]. - The aging analysis of accounts receivable shows that 89.05% (CNY 21,289,240.15) is within one year, while 10.82% (CNY 2,586,194.91) is over five years[149]. - The total accounts receivable amounted to CNY 55,469,001.67, with a bad debt provision of CNY 14,847,014.73, representing 26.7% of the total[148]. - The total bad debt provision for accounts receivable and other receivables reflects a conservative approach to credit risk management, with overall provisions exceeding CNY 150 million[152]. Fixed Assets and Investments - The total fixed assets increased by CNY 68,778,090.98, with CNY 56,358,297.13 transferred from construction in progress[174]. - The net value of fixed assets at the end of the period was CNY 1,303,366,862.00[175]. - The company has pledged fixed assets with a net value of CNY 488,806,124.17 for bank loans[174]. - The total value of long-term equity investments remained at CNY 23,094,709.76, indicating stability in this area[186]. Tax and Regulatory Compliance - The company continues to enjoy a preferential corporate income tax rate of 15% due to its compliance with the encouraged industries in the western region of China, effective from January 1, 2011, to December 31, 2020[141]. - The company's subsidiary, Laqing Power Plant, will apply a simplified VAT rate of 3% for its electricity production starting from July 1, 2014, as it qualifies as a small hydropower unit with a capacity of 50,000 kW or less[142].