SDIC Power(SH:600886)2016-04-07 16:00Financial Performance - In 2015, the company's total revenue was CNY 31.28 billion, with a net profit attributable to shareholders of CNY 5.43 billion, resulting in earnings per share of CNY 0.7998[2]. - In 2015, the company's operating revenue was CNY 31,279,699,772.91, a decrease of 5.09% compared to CNY 32,957,169,192.11 in 2014[24]. - The net profit attributable to shareholders was CNY 5,427,522,203.84, down 3.08% from CNY 5,599,833,222.73 in 2014[24]. - The basic earnings per share decreased to CNY 0.7998, a decline of 3.08% from CNY 0.8252 in 2014[26]. - The company's main business revenue from electricity generation was 30.92 billion yuan, a decrease of 3.21% year-on-year, with a gross margin of 52.79%[59]. - The company's net profit attributable to shareholders was 5.43 billion yuan, a decline of 3.08% compared to the previous year, with basic earnings per share of 0.7998 yuan, also down 3.08%[52]. - The company achieved a profit stability despite challenges, with overall profitability remaining on par with the previous year[46]. Electricity Generation and Consumption - The total electricity consumption in China was 5.55 trillion kWh, a year-on-year growth of 0.5%, which is a decline of 3.6 percentage points compared to the previous year[2]. - The average electricity consumption in the secondary industry decreased by 1.4%, marking the first negative growth in nearly 40 years[2]. - In 2015, the company achieved a total power generation of 113.95 billion kWh, with on-grid electricity of 110.94 billion kWh, representing year-on-year growth of 0.72% and 0.87% respectively[51]. - The total electricity generation for the year was 11,395,266.91 million kWh, a year-on-year increase of 0.72%[80]. - The average utilization hours for the company's controlled enterprises were 4,376 hours, with hydropower generation increasing its share from 61.78% to 65.25%[46]. Investments and Expansion Plans - The company aims to expand into international markets, particularly in the "Belt and Road" regions, focusing on thermal power projects while managing risks[3]. - The company plans to continue expanding its hydropower and renewable energy projects, with increased investments in infrastructure projects[70]. - The company aims to achieve a total power generation of 1,198 billion kWh in 2016, with plans to add 4.218 million kW of new installed capacity, including multiple new projects[103]. - The total planned investment for domestic projects in 2016 is ¥603,660 million, with significant allocations to various subsidiaries, including ¥223,600 million for Yalong River Basin Hydropower Development[105]. - The company plans to invest $212 million in acquiring a 40% stake in the Indonesian Wandan coal-fired power project and £277 million in acquiring 100% of a UK offshore wind company[105]. Cost Management and Efficiency - The company emphasizes cost reduction and efficiency improvement through competitive procurement and inventory management to enhance profitability[2]. - The company implemented cost control measures, resulting in a decrease in coal heat value loss and procurement costs[46]. - The company is focusing on optimizing existing thermal power plants and developing hydropower projects while exploring overseas investment opportunities to ensure sustainable growth[102]. Dividends and Shareholder Relations - The board proposed a cash dividend of CNY 0.27993 per share, totaling CNY 1.90 billion, which accounts for 35% of the net profit attributable to shareholders[4]. - The company plans to enhance its internal control and human resource efficiency systems to ensure healthy development and protect investor rights[50]. - The company aims to improve investor relations management and increase cash dividend ratios to balance current and long-term investor interests[50]. - The company plans to maintain a cash dividend policy that ensures at least 30% of the average distributable profit over the last three years is distributed as cash dividends[115]. Risk Management and Market Conditions - The company anticipates ongoing low growth or potential decline in national electricity consumption due to economic slowdown and structural adjustments, impacting power generation utilization hours[101]. - The company faces risks related to overcapacity in the power industry and potential changes in industrial policies, which may lead to increased market competition and uncertainty in electricity pricing[107]. - The company plans to actively respond to electricity price adjustments and market competition risks to maintain reasonable profit levels[108]. Corporate Governance and Management - The company has a strong management team with extensive experience in investment, construction, and operation management[42]. - The company is focused on maintaining a robust governance framework with independent directors overseeing operations and compliance[166]. - The company has maintained a consistent leadership structure with no changes in shareholding among the directors and senior management during the reporting period[160]. - The company continues to ensure transparency in its compensation structure for board members and senior management, with detailed disclosures in the financial report[160]. Financial Position and Assets - The total assets at the end of 2015 were CNY 183,544,781,167.84, reflecting a 5.64% increase from CNY 173,751,883,460.60 at the end of 2014[24]. - The company's total equity attributable to shareholders increased by 14.84% to CNY 26,578,474,517.14 at the end of 2015 from CNY 23,143,855,713.35 at the end of 2014[24]. - The company reported a total asset increase of 9.79 billion yuan, reaching 183.55 billion yuan by the end of 2015, with a debt-to-asset ratio of 72.00%, down 3.4 percentage points year-on-year[52]. Environmental and Regulatory Compliance - The company is not classified as a heavy polluting enterprise by national environmental protection authorities[141]. - The company will ensure that the injected assets comply with national laws and regulations, including environmental protection and safety production[120].