HDECL(SH:600726)2018-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2018 was ¥5,125,064,678.28, representing a 14.31% increase compared to ¥4,483,297,534.39 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was -¥45,940,751.08, a decrease of 143.84% from ¥104,791,695.01 in the previous year[18]. - The net cash flow from operating activities increased by 70.02% to ¥319,796,720.03 from ¥188,095,430.02 year-on-year[18]. - Operating revenue for the reporting period was CNY 5.125 billion, a year-on-year increase of 14.31% due to increased electricity sales[31]. - Operating costs rose to CNY 4.717 billion, a 21.65% increase primarily driven by higher coal prices[31]. - The company reported a basic and diluted earnings per share of -¥0.02, down from ¥0.05 in the prior period[87]. - The total comprehensive income for the current period was -¥54,078,723.08, a decline from ¥136,959,517.27 in the prior period[87]. - The company recorded a net loss of CNY 45,487,409.00, highlighting financial difficulties in the current fiscal period[99]. Assets and Liabilities - The total assets decreased by 4.08% to ¥24,352,575,362.31 from ¥25,388,999,129.42 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company decreased by 1.66% to ¥2,270,030,211.85 from ¥2,308,256,196.85 at the end of the previous year[18]. - The company's cash and cash equivalents at the end of the reporting period amount to ¥1,131,009,816.90, down from ¥1,605,263,874.68 at the beginning of the period[79]. - Accounts receivable increased to ¥1,542,860,063.95 from ¥1,387,445,643.54, indicating a growth of approximately 11.2%[79]. - Total liabilities decreased from ¥22,664,724,529.60 to ¥21,673,788,171.49, a decline of about 4.37%[80]. - Owner's equity decreased from ¥2,724,274,599.82 to ¥2,678,787,190.82, a decrease of approximately 1.67%[81]. Operational Highlights - The company's total electricity generation reached 13.499 billion kWh, an increase of 16.13% year-on-year[29]. - The on-grid electricity volume was 12.172 billion kWh, up 15.71% compared to the previous year[29]. - The average on-grid electricity price was CNY 352.70 per thousand kWh[29]. - The company has become the largest power generation and centralized heating operator in Heilongjiang Province[26]. - The company is focusing on sustainable development through innovation and optimization of its operational structure[26]. Risks and Challenges - The company faced significant risks as outlined in the detailed risk factors section of the report[6]. - The company predicts a cumulative net loss for the next reporting period due to rising coal prices and increased auxiliary service costs in the electricity market[40]. - The coal supply risk is heightened due to structural reforms in the coal industry, leading to reduced supply and high coal prices[45]. - The company is exposed to risks from an incomplete electricity market, which limits sales growth primarily to Heilongjiang Province[44]. Legal and Governance - The company reported a significant legal victory in a lawsuit against Henan Xinzhu Construction Engineering Co., with the court ruling in favor of the company[51]. - The company has ongoing legal matters, including a case involving its subsidiary Longyuan Power Fuel Co., which was sued for approximately RMB 99.7 million, but the court ruled in favor of the company[51]. - The company appointed Tianzhi International Accounting Firm as the annual audit and internal control audit institution for the reporting period, replacing Lixin Accounting Firm after 6 years of service[50]. Environmental Initiatives - The company has established an environmental self-monitoring plan for 2018, in compliance with national regulations, and has published this information on the relevant monitoring platform[66]. - The company has completed ultra-low emission renovations for 14 coal-fired units with a total capacity of 4,700 MW, accounting for 70.18% of the total installed capacity[61]. - The company has implemented emergency response plans for environmental incidents at all 8 key pollutant discharge units, enhancing their prevention and response capabilities[64]. Strategic Initiatives - The company plans to enhance its market expansion efforts, focusing on new product development and technological advancements[100]. - The company is engaged in various strategic initiatives, including market expansion and technological development in the energy sector[112]. - The company has undergone significant capital restructuring, including a non-public issuance of 597,609,561 shares at a price of RMB 2.51 per share, raising net funds of RMB 1,475,142,247.42[111].