TEC(SH:600780)2016-03-28 16:00Financial Performance - In 2015, the company's operating revenue was CNY 5,672,834,463.70, a decrease of 11.40% compared to CNY 6,402,884,193.59 in 2014[18]. - The net profit attributable to shareholders was CNY 369,905,610.50, down 34.50% from CNY 564,783,936.93 in the previous year[18]. - The net cash flow from operating activities was CNY 1,119,915,321.11, reflecting a decline of 22.99% from CNY 1,454,190,443.11 in 2014[18]. - Basic earnings per share decreased by 34.51% to CNY 0.3226 from CNY 0.4926 in 2014[19]. - The weighted average return on equity was 8.28%, down 5.52 percentage points from 13.80% in the previous year[20]. - The total profit amounted to 497 million RMB, reflecting a decline of 33.80% year-on-year[48]. - The net profit attributable to the parent company was 370 million RMB, down 34.50% from the previous year[48]. - The company reported a decrease in gas sales volume by 48%, totaling 1.06 million cubic meters[48]. - The company's power generation business revenue decreased by 17.36% year-on-year, while the distribution business revenue decreased by 4.20%[54]. - The gross profit margin for the power business was 22.10%, down by 2.07 percentage points compared to the previous year[54]. Asset Management - The total assets at the end of 2015 were CNY 8,767,636,054.91, an increase of 5.10% from CNY 8,342,091,178.20 in 2014[18]. - The company's net assets attributable to shareholders increased by 5.49% to CNY 4,579,741,519.18 from CNY 4,341,526,961.53 in 2014[18]. - The total installed capacity increased from 1,200 MW to 1,280 MW, improving market competitiveness and generation capacity[36]. - The total cash and cash equivalents increased by 321.15% to CNY 408.41 million in 2015 from CNY 96.97 million in 2014[59]. - The company's total current assets amounted to approximately CNY 2.07 billion, an increase from CNY 1.53 billion at the beginning of the year, reflecting a growth of about 35.7%[181]. Operational Challenges - The company faces operational pressures due to the overall economic downturn in Shanxi Province[2]. - The power generation industry faced challenges in 2015, with a 0.5% increase in total electricity consumption, the lowest growth rate in 40 years, and a 1.4% decline in secondary industry electricity consumption[29]. - The company expects a continued low growth rate in electricity consumption in 2016, with an anticipated installed capacity increase of around 10 million kilowatts[30]. - The company highlighted that the overall electricity consumption growth rate is expected to remain low, reflecting a sluggish demand in the market[85]. - The company faces challenges due to traditional industry overcapacity and a potential decline in electricity market demand, impacting operational efficiency[87]. Strategic Initiatives - The company completed the acquisition of 100% equity in Jineng Baode Coal Power Co., Ltd. in January 2016, which is currently in the infrastructure phase[2]. - The company completed a cash acquisition of 100% equity in Baode Coal Power from Jinneng Power Group, enhancing installed capacity and expanding its main business scale[32]. - The company plans to transfer its 40% stake in Guoxing Company to Shanxi Gas Industry Group, having received approval from the provincial state-owned assets supervision and administration commission[29]. - The company is positioned as a pilot enterprise for comprehensive electricity system reform in Shanxi Province, aiming to enhance its operational capabilities[41]. - The company plans to enhance its capital operations to improve asset quality and expand its scale, focusing on low calorific coal power generation and high voltage transmission markets[95]. Governance and Compliance - The company has focused on optimizing governance and internal controls, ensuring no significant regulatory violations occurred during the year[45]. - The company has committed to avoiding related party transactions that could harm shareholder interests, ensuring fair market practices[112]. - The company has maintained compliance with its remuneration management system without any violations during the reporting period[150]. - The company has strengthened investor relations management, ensuring effective communication channels and maintaining a cash dividend policy[159]. - The company has established a training program aimed at improving governance capabilities and operational standards across subsidiaries[155]. Environmental and Safety Management - The company completed the desulfurization and ultra-low emission upgrades for its power generation units, meeting national environmental standards[86]. - The company is committed to enhancing its energy efficiency and reducing pollutant emissions in line with national environmental policies, which include the promotion of ultra-low emissions standards[104]. - The company emphasizes the importance of safety management and aims to establish a robust safety production management system[97]. - The company focused on enhancing safety management, achieving zero accidents and injuries across all subsidiaries during the year[39]. - Major capital expenditures for environmental upgrades totaled 180 million RMB in 2015, with a budget of 200 million RMB for 2016[74]. Market Position and Future Outlook - The company is actively pursuing market expansion by developing industrial gas users and optimizing investment returns in its gas business[41]. - The company aims to leverage opportunities from the ongoing electricity system reforms in Shanxi to enhance market participation and expand trading capabilities[89]. - The company plans to focus on coal-electricity integration and expand its industrial development space, aiming for comprehensive energy growth[88]. - The company is committed to improving its operational quality and governance structure to become a leading and competitive listed company in the province[91]. - The company is enhancing its governance structure to align with regulatory requirements and improve investor relations[100].