NMHD(600863)2016-04-25 16:00Financial Performance - The company's operating revenue for 2015 was approximately ¥10.83 billion, a decrease of 20.57% compared to ¥13.63 billion in 2014[21]. - Net profit attributable to shareholders was approximately ¥699.15 million, down 48.69% from ¥1.36 billion in 2014[21]. - Basic earnings per share decreased to ¥0.12, a decline of 48.69% from ¥0.23 in 2014[22]. - The net cash flow from operating activities was approximately ¥2.99 billion, down 31.00% from ¥4.34 billion in 2014[21]. - Total assets at the end of 2015 were approximately ¥38.21 billion, a decrease of 1.44% from ¥38.77 billion at the end of 2014[21]. - The weighted average return on equity decreased to 6.68%, down 5.08 percentage points from 11.76% in 2014[22]. - The company's total equity attributable to shareholders decreased by 3.42% to approximately ¥10.27 billion at the end of 2015[21]. - The company's net profit attributable to shareholders was 699 million RMB, a decline of 48.69% compared to the previous year[42]. - The company reported a total revenue of 1,014,281.44 million RMB, which is an 18.31% decrease from the previous year[80]. Market Conditions - The coal-fired power generation benchmark on-grid price will decrease by 0.0165 RMB per kWh starting January 2016, which is expected to impact the company's overall performance in 2016[7]. - The company anticipates a continued decline in the utilization hours of thermal power equipment due to market oversupply and economic factors, affecting operational efficiency[7]. - The average utilization hours for thermal power generation fell to 4,329 hours in 2015, indicating challenges in the thermal power sector[33]. - The Inner Mongolia power market remains oversupplied, prompting the company to enhance its marketing strategies and internal capabilities to improve competitiveness[35]. - The company anticipates a dual weakness in the coal market in 2016, with excess supply continuing to impact coal prices[106]. - The company expects to face intensified competition in the power market due to surplus generation capacity in the Inner Mongolia region, impacting profitability[99]. Operational Strategies - The company aims to enhance its competitiveness by optimizing unit operations, improving system efficiency, and accelerating the construction of new units[7]. - The company is actively developing power export projects and clean energy initiatives to expand its operational scale and market share[7]. - The company will continue to analyze power market policies and trends to formulate effective marketing strategies[7]. - The company plans to enhance its cost management and operational efficiency in response to the challenging market conditions[63]. - The company will prioritize cost control and electricity load management in response to the challenging operating environment in 2016[102]. - The company plans to invest approximately 330 million RMB in environmental protection expenditures in 2016[81]. Environmental Initiatives - The company invested 454 million RMB in environmental upgrades, including desulfurization and denitrification projects[46]. - The company has achieved compliance with the air pollutant emission standards set by the national regulations for its power generation facilities[137]. - The company has actively engaged in social responsibility initiatives, ensuring stable heat supply despite significant losses in the residential heating business[135]. - The company has established emergency response plans for various environmental pollution incidents, including hazardous chemical leaks and extreme weather events, to enhance its emergency management capabilities[141]. - The company’s wastewater treatment systems recycle treated wastewater for various uses, including dust suppression and greening[138]. Shareholder and Governance - The company plans to distribute a cash dividend of 0.60 RMB per 10 shares, totaling 348,464,700 RMB based on a total share capital of 580,774.5 million shares as of December 31, 2015[2]. - The controlling shareholder, North Power Company, increased its shareholding by 500,000 shares, raising its ownership from 56.62% to 56.63%[155]. - The total number of common stock shareholders increased from 289,130 to 296,938 during the reporting period[157]. - The company has no internal employee stock situation as of the reporting period[156]. - The company has appointed several directors and executives to various positions in other organizations, including Li Xiangliang as Chairman of Inner Mongolia Shangdu Power Co., Ltd. and Tie Mu'er as Vice Chairman of Inner Mongolia Guohua Zhunge'er Power Co., Ltd.[175]. Financial Management - The company's cash and cash equivalents decreased by 42.34% year-on-year, primarily due to enhanced fund management and efficiency[69]. - The company's total liabilities increased significantly, with bonds payable rising to 280,000 million RMB, a 180% increase compared to the previous period[69]. - The company's debt-to-asset ratio increased from 63.06% in 2014 to 64.13% in 2015, an increase of 1.07 percentage points[155]. - The company has established a remuneration policy based on the management methods of North United Power Co., Ltd.[185]. - The company has implemented a comprehensive internal control management system to enhance management levels and ensure asset safety and integrity[190].