TEC(SH:600780)2014-03-19 16:00Financial Performance - Basic earnings per share for 2013 increased by 3.43% to RMB 0.3343 compared to RMB 0.3232 in 2012[23] - The weighted average return on net assets decreased by 0.49 percentage points to 10.35% in 2013 from 10.84% in 2012[23] - The company reported a net loss from other operating income and expenses amounting to RMB -24,513,787.13 in 2013, compared to RMB 7,720,754.40 in 2012[24] - Non-operating income from government subsidies related to normal business operations was RMB 3,902,627.96 in 2013, up from RMB 3,091,898.93 in 2012[24] - The company’s diluted earnings per share remained unchanged at RMB 0.3343 in 2013 compared to 2012[23] - The company’s net loss from non-recurring gains and losses totaled RMB -11,865,116.59 in 2013, contrasting with a gain of RMB 8,691,964.65 in 2012[24] - The company achieved an operating revenue of RMB 6.41 billion in 2013, representing a year-on-year increase of 5.86%[25] - The net profit attributable to shareholders was RMB 383.24 million, up 3.41% compared to the previous year[25] - The net cash flow from operating activities reached RMB 1.42 billion, reflecting an 18.70% increase year-on-year[25] - The total assets at the end of 2013 amounted to RMB 8.09 billion, a 9.35% increase from the previous year[25] Operational Highlights - The company completed a total electricity generation of 5.859 billion kWh, a decrease of 9.75% year-on-year, while electricity sales increased by 9.98% to 7.162 billion kWh[28] - The company has completed the transformation of four generator units, increasing the total installed capacity to 1,240 MW, with further upgrades in progress[31] - The company prioritized safety management and achieved a stable safety production record throughout the year[30] - The company is focused on stabilizing operations and ensuring shareholder rights, despite some operational indicators not meeting expectations due to lower-than-expected electricity consumption[41] - The company achieved a total installed capacity increase from 1,200 MW to 1,240 MW, enhancing reliability and economic efficiency of power generation[47] Strategic Initiatives - The company plans to enhance its coal-electricity integration strategy and explore coal-electric joint ventures to stabilize coal supply and control production costs[32] - The company is committed to developing a comprehensive energy base in Shanxi, leveraging coal, electricity, and gas as core components[47] - The company is focused on enhancing equipment safety management and has completed significant technical upgrades, increasing single unit capacity from 300 MW to 320 MW[47] - The company is implementing smart grid and information technology improvements across its distribution network[47] - The company plans to enhance its power generation and distribution capabilities, focusing on optimizing existing assets and exploring new projects[62] Governance and Compliance - The board of directors emphasized the importance of internal control and governance, ensuring compliance with regulatory requirements and enhancing information disclosure quality[34] - The company has no violations of decision-making procedures for providing guarantees to external parties[4] - The company has established a comprehensive internal control system to ensure compliance, asset security, and accurate financial reporting[154] - An internal control audit was conducted by Da Hua Accounting Firm, which issued a standard unqualified opinion on the effectiveness of the company's internal controls as of December 31, 2013[157] - The company has implemented a strict insider information management system, with no incidents of insider trading or information leakage reported[141] Shareholder and Financial Management - The company plans to distribute a total profit of RMB 126,115,277.53, with a cash dividend of RMB 1.10 per 10 shares based on the total share capital of 1,146,502,523 shares as of the end of 2013[4] - The company implemented a cash dividend of RMB 115 million, representing over 30% of the annual profit, to reward investors[34] - The company has revised its profit distribution policy to ensure compliance and transparency, with a cash dividend of 1.00 RMB per 10 shares distributed for the 2012 fiscal year, totaling approximately 114.65 million RMB[72] - The total amount of guarantees provided by the company during the reporting period (excluding guarantees for subsidiaries) is CNY 2,300 million[88] - The total amount of guarantees (including those for subsidiaries) is CNY 2,300 million[88] Challenges and Risks - The company faces challenges from increased competition and regulatory pressures, which may impact its operational efficiency and profitability[60] - The company faces risks including policy changes in the electricity sector, industry competition, environmental regulations, and price fluctuations affecting operational performance[69] - The company has not encountered any significant environmental issues during the reporting period, adhering to national environmental protection standards[75] Human Resources and Management - The total number of employees in the parent company and major subsidiaries is 5,323, with 27 in the parent company and 5,296 in subsidiaries[129] - The company implements a salary system that includes annual salary and performance-based pay, linking total salary management with performance evaluation[130] - The total remuneration for the board members and senior management during the reporting period amounted to 2.23 million CNY, with 990,600 CNY being the total remuneration paid to independent directors[115] - The company emphasizes a talent-driven strategy to foster a learning environment and enhance its core competitiveness in the energy sector[68] Future Outlook - The company expects a 7% growth in national electricity consumption in 2014, indicating a positive outlook for the power industry[57] - The company’s 2014 operational targets include generating 6 billion kWh of electricity, selling 7.5 billion kWh, and achieving revenue of over 6.811 billion RMB while controlling operating costs within 5.442 billion RMB[66] - The company plans to invest 1.2 billion RMB in technological upgrades and ongoing construction projects in 2014, ensuring sufficient funding through centralized management and various financing methods if necessary[68]