2015-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2015 was RMB 18.20 billion, a decrease of 4.10% compared to RMB 18.98 billion in the same period last year[21]. - The net profit attributable to shareholders was RMB 168.37 million, down 79.94% from RMB 839.29 million year-on-year[21]. - The total profit for the current period is CNY 261.38 million, representing a significant decline of 73.95% year-on-year[57]. - The comprehensive gross margin for main operations was 11.91%, a decrease of 3.77 percentage points from the previous year[29]. - The operating profit dropped to RMB 261.82 million, down 72.66% from RMB 960.08 million in the same period last year[135]. - The total comprehensive income for the first half of 2015 was RMB 185.72 million, down 79.25% from RMB 893.68 million in the same period last year[135]. - The company reported a net profit margin for the period is not explicitly stated but can be inferred from the changes in retained earnings and total equity[129]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at RMB -996.34 million, a decline of 855.51% compared to RMB 131.88 million in the previous year[21]. - The company reported a net cash flow from operating activities for the first half of 2015 was -996,341,998.43 RMB, a significant decline compared to 131,877,492.15 RMB in the same period last year[139]. - The total cash and cash equivalents at the end of the period stood at 16,286,304,430.78 RMB, up from 10,891,825,675.62 RMB year-over-year, indicating a stronger liquidity position[139]. - Cash inflow from sales of goods and services was 15,693,980,912.84 RMB, down 9.1% from 17,263,868,193.84 RMB in the previous year, indicating a decline in revenue generation[139]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 82.87 billion, a decrease of 2.76% from RMB 85.23 billion at the end of the previous year[21]. - The company's total liabilities are CNY 59.16 billion, which is an 8.66% decrease compared to the beginning of the year[58]. - The debt-to-asset ratio at the end of the period is 71.38%, a decrease of 4.60 percentage points from the beginning of the year, indicating improved financial health[59]. - The total amount of actual transactions under the "Financial Services Framework Agreement" as of June 30, 2015, was CNY 12,101,810,000, with an annual cap of CNY 12,500,000,000[79]. Shareholder Equity and Capital - The net assets attributable to shareholders increased by 16.57% to RMB 22.78 billion from RMB 19.54 billion at the end of the previous year[21]. - The equity attributable to shareholders increased by 15.87% to CNY 23.72 billion, primarily due to the conversion of convertible bonds[58]. - The company issued CNY 4 billion of convertible bonds on July 10, 2014, with a maturity of 6 years and a coupon rate starting at 0.5%[83]. - The company successfully completed the conversion of RMB 4 billion convertible bonds, increasing the total share capital from 2,003,860,000 shares to 2,336,900,368 shares[18]. Market and Competition - The company faced severe market competition and a significant decline in product gross margins due to a slowdown in the domestic power market and overcapacity in power generation equipment[28]. - The company plans to enhance internal management and deepen reforms to improve development quality amid ongoing market challenges[34]. - The company plans to expand its market presence and invest in new product development to drive future growth[144]. Strategic Initiatives - The company has identified strategic opportunities for mergers and acquisitions to enhance its competitive position in the market[144]. - The company is focusing on technological advancements, with a budget allocation of 1,000 million for R&D in the upcoming year[144]. - The company aims to improve operational efficiency through strategic cost management initiatives[150]. Governance and Compliance - The company has fully complied with the corporate governance code as per the Hong Kong Stock Exchange rules during the reporting period[95]. - The company confirmed that all directors and supervisors adhered to the securities trading standards during the reporting period[96]. - The audit and review committee, composed of three independent non-executive directors, approved the accounting treatment methods adopted by the company[97]. Employee and Compensation - The company has 24,658 employees as of June 30, 2015, and manages employee compensation according to established policies[92]. - Long-term employee compensation payable increased by 103.03% compared to the beginning of the year, primarily due to an increase in retired personnel during the period[42]. Financial Reporting and Accounting Policies - The financial report for the first half of 2015 is unaudited and includes various financial statements such as the consolidated balance sheet and profit statement[121][126]. - The company’s accounting year runs from January 1 to December 31, with an operating cycle of 12 months[164][165]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[168].