HTGF(SH:600864)2018-08-23 16:00Financial Performance - Total operating revenue for the first half of 2018 was CNY 1,465,844,245.73, an increase of 13.71% compared to CNY 1,289,096,033.14 in the same period last year[17]. - Net profit attributable to shareholders was a loss of CNY 114,861,203.83, a decrease of 144.98% from a profit of CNY 255,381,047.88 in the previous year[17]. - The company's net assets attributable to shareholders decreased by 1.92% to CNY 13,200,198,527.63 from CNY 13,458,921,838.88 at the end of the previous year[17]. - Total assets decreased by 7.37% to CNY 42,653,682,344.20 from CNY 46,048,787,473.55 at the end of the previous year[17]. - Basic earnings per share for the first half of 2018 was -CNY 0.05, a decline of 141.67% compared to CNY 0.12 in the same period last year[18]. - The weighted average return on net assets was -0.86%, a decrease of 2.71 percentage points from 1.85% in the previous year[18]. - The company reported a total profit of -22.5 million CNY, a decline of 201.45% compared to the previous year[59]. - The company reported a net profit of -150 million yuan for the reporting period, with total revenue of 570 million yuan[83]. - The company recognized an impairment provision totaling RMB 408.19 million for various financial assets, significantly impacting the consolidated profit for the first half of 2018[143]. - The net profit attributable to the parent company decreased by RMB 306.15 million due to the impairment provision[143]. Revenue and Costs - Total operating costs surged by 64.70% to CNY 2,028,907,390.25, up from CNY 1,231,902,587.59 in the previous year[66]. - The increase in total operating revenue was primarily driven by an increase in heating area and higher interest income from pledged equity repurchase[68]. - Operating costs increased due to rising coal prices and an increase in heating area, alongside higher interest expenses from bonds and debt[68]. - The thermal power business generated revenue of 706.47 million CNY, an increase of 5.45% year-on-year, but profit decreased by 66.14% to 41.95 million CNY[55]. - The company's securities business revenue decreased by 1.85% year-on-year to 570 million CNY, while total operating costs surged by 120.99% to 793 million CNY[59]. Cash Flow and Financing - The company reported a net cash flow from operating activities of -CNY 1,456,393,980.73, compared to -CNY 3,588,523,292.99 in the previous year[17]. - Net cash flow from financing activities decreased by 69.98%, dropping to CNY 738,945,979.19 from CNY 2,461,286,016.96[67]. - Cash inflow from financing activities totaled 4,125,730,000.00 RMB, down from 5,307,070,000.00 RMB year-over-year, reflecting a decline in financing activities[193]. - The net cash flow from financing activities was 738,945,979.19 RMB, a decrease from 2,461,286,016.96 RMB in the previous year, indicating reduced financing efficiency[193]. - The ending balance of cash and cash equivalents was 6,316,458,246.74 RMB, down from 6,985,735,022.50 RMB at the end of the previous period[193]. Assets and Liabilities - Total assets decreased from CNY 46,048,787,473.55 to CNY 42,653,682,344.20, a decline of approximately 7.9%[181]. - Total liabilities decreased from CNY 32,401,163,462.80 to CNY 29,272,033,028.58, a reduction of about 9.5%[181]. - Current liabilities decreased from CNY 23,786,164,437.34 to CNY 19,436,481,815.05, representing a decrease of approximately 18.5%[181]. - Non-current liabilities increased from CNY 8,614,999,025.46 to CNY 9,835,551,213.53, an increase of about 14.1%[181]. - Owner's equity decreased from CNY 13,647,624,010.75 to CNY 13,381,649,315.62, a decline of approximately 2.0%[181]. Business Operations - The company’s main business includes thermal power and securities, focusing on power generation, heating supply, and industrial steam production[22]. - The company operates four thermal power plants with a total of 130 tons of steam boilers, producing electricity and industrial steam[22]. - The company has a total installed capacity of 99 MW, which has not changed compared to the same period last year[36]. - The total heating area covered by the company is 30.81 million square meters, accounting for 11.8% of the total heating area in Harbin[31]. - The company has maintained its operational scale with 9 generating units, which has remained unchanged from the previous year[38]. Environmental Compliance - The company has established a total of 3 emission outlets at its thermal power plant, with specific pollutant discharge standards set for each outlet[122]. - The annual emission limits for the thermal power plant are set at 246.23 tons for particulate matter, 1649.9 tons for sulfur dioxide, and 2899.42 tons for nitrogen oxides[123]. - The company has implemented significant upgrades to its pollution control facilities, including bag filters and desulfurization systems, to meet current environmental standards[130]. - The company is committed to ongoing environmental compliance and improvement, ensuring that all facilities meet the latest emission standards[130]. - The company plans to upgrade four 70MW hot water boilers for desulfurization and denitrification in the second half of 2018 to meet new emission standards[131]. Shareholder Information - The total number of ordinary shareholders reached 36,628 by the end of the reporting period[150]. - The largest shareholder, Harbin Investment Group, holds 796,834,680 shares, representing 37.79% of the total share capital[152]. - Harbin Investment Group increased its holdings by 28,463,447 shares, with a total investment of RMB 213.42 million, accounting for 1.35% of the company's total shares[154]. - The company has not reported any changes in its share capital structure during the reporting period[146]. - The total equity attributable to the parent company at the end of the current period is 13,381,649,315.62, a decrease of 265,974,695.13 compared to the previous period[199]. Risk Management - The company faces significant risks from coal price fluctuations, which heavily impact profitability due to high coal costs[91]. - Environmental policy changes may require substantial upgrades to existing facilities to meet new emission standards starting January 1, 2019[92]. - The company is experiencing aging equipment risks, with several boilers and generators exceeding their 30-year design life, necessitating research into alternative heat sources[92]. - Credit risk remains a concern due to tightening financing conditions for small and medium enterprises, leading to potential defaults on stock pledge clients[96]. - The company has been enhancing its internal control system to improve risk management and operational efficiency[64]. Corporate Governance - The company has made various commitments regarding the authenticity and accuracy of the information provided, with specific commitments made on multiple dates from 2015 to 2016[101]. - The company has not faced any penalties or investigations related to its directors and senior management[101]. - The company has committed to avoiding related party transactions and ensuring the independence of the listed company[101]. - The company has not reported any major contracts or guarantees during the reporting period[112]. - The company has not reported any changes in the shareholding of directors, supervisors, and senior management during the reporting period[160]. Community Engagement - The company has engaged in targeted poverty alleviation efforts, helping 5 registered impoverished individuals to escape poverty[116]. - The company has conducted over 10 on-site assistance visits and participated in various poverty alleviation meetings[115]. - The company has focused on industrial poverty alleviation, supporting local characteristic industries to increase farmers' income[114]. - The company has implemented public service projects to improve education, healthcare, and social security in impoverished areas[119]. - The company has successfully completed its poverty alleviation efforts in Fuyuan County, achieving official poverty alleviation status as of 2018[120].