JINKONG POWER(SZ:000767)2017-04-20 16:00Financial Performance - The company's operating revenue for 2016 was ¥8,258,167,237.14, a decrease of 9.23% compared to ¥9,097,494,935.90 in 2015[19]. - The net profit attributable to shareholders for 2016 was ¥85,623,969.31, down 79.21% from ¥411,882,460.09 in 2015[19]. - The net cash flow from operating activities decreased by 56.84% to ¥1,198,614,063.86 in 2016 from ¥2,777,347,127.70 in 2015[19]. - The basic earnings per share for 2016 was ¥0.037, a decline of 79.44% compared to ¥0.180 in 2015[19]. - Power generation revenue decreased by 20.16% to ¥6,222,954,773.65, accounting for 75.36% of total revenue[39]. - Coal-fired power revenue saw a significant decline of 22.25%, totaling ¥5,957,018,226.90, which represented 72.13% of total power revenue[39]. - The company reported a substantial increase in coal revenue, rising by 874.44% to ¥445,793,980.99, contributing 5.40% to total revenue[39]. - The total sales volume of electricity decreased by 12.21% to 2,365,583.99 million kWh, while production volume also fell by 12.09% to 2,618,400.93 million kWh[44]. - The company’s gross profit margin for the power sector was 14.56%, down from the previous year, with operating costs decreasing by 8.27%[43]. Assets and Investments - Total assets at the end of 2016 increased by 36.75% to ¥45,396,213,520.81 from ¥33,195,953,201.67 at the end of 2015[19]. - The net assets attributable to shareholders rose by 52.46% to ¥8,818,414,366.94 at the end of 2016 from ¥5,783,906,718.97 at the end of 2015[19]. - Long-term equity investments increased by 19.64% year-on-year, primarily due to an investment of 100 million CNY in a joint venture[31]. - Fixed assets grew by 15.03% year-on-year, mainly due to the completion of the 2*35 MW thermal power project and the Zhinvquan wind power project[31]. - Cash and cash equivalents increased by 172.73% year-on-year, primarily due to funds raised from a non-public stock issuance[31]. Operational Challenges and Strategies - The company reported a significant decline in net profit due to various operational challenges and market conditions[19]. - The company continues to focus on improving operational efficiency and exploring new market opportunities[19]. - The company has identified major risk factors in its future development and has outlined corresponding countermeasures[5]. - The company plans to enhance operational efficiency by focusing on cost control, particularly in fuel procurement, to maintain competitive pricing[76]. - Environmental regulations are tightening, with increased scrutiny on emissions and a national carbon trading market being established, impacting operational strategies[75]. Dividends and Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for the year[6]. - The company has not distributed any cash dividends over the past three years, with net profits of approximately CNY 85.62 million in 2016, CNY 411.88 million in 2015, and CNY 600.60 million in 2014, all with a 0% dividend payout ratio[85]. - The largest shareholder, Datong Coal Mine Group Co., Ltd., holds 30.17% of the shares, totaling 680,012,800 shares[144]. - The second largest shareholder, Shanxi Provincial Government State-owned Assets Supervision and Administration Commission, holds 13.27% of the shares, totaling 299,130,000 shares[144]. - The third largest shareholder, State Power Investment Corporation, holds 12.41% of the shares, totaling 279,758,170 shares[144]. Innovation and Development - The company received 3 utility model patents and 5 invention patents during the year, reflecting its commitment to technological innovation[37]. - The company aims to actively participate in power distribution reforms to extend its power generation industry chain[36]. - The company is focusing on innovation and efficiency improvements to achieve its annual targets and drive transformation[76]. - The company is exploring the "coal-electric-X" development model, particularly in the Yongji region, to integrate coal, electricity, and aluminum industries[77]. - The company is focusing on technological innovation, including the development of energy-saving monitoring technologies and advanced zero-emission technologies for desulfurization wastewater[78]. Financial Management and Governance - The company has a structured governance framework with a mix of experienced professionals in key positions, ensuring effective oversight and management[157][159]. - The total remuneration for directors, supervisors, and senior management in 2016 amounted to CNY 4.6299 million[162]. - The company has a well-defined internal control system that enhances risk management and internal control standards[174]. - The audit opinion for Shanxi Zhangze Electric Power Co., Ltd. is a standard unqualified opinion, indicating that the financial statements fairly reflect the company's financial position as of December 31, 2016[198]. - The financial statements were prepared in accordance with the Chinese Accounting Standards, ensuring fair representation of the company's financial results for the year 2016[198]. Employee and Talent Management - The company employed a total of 8,788 staff, with 6,327 in production roles and 1,805 in technical positions[165]. - The number of employees with a bachelor's degree or higher reached 2,171, representing approximately 24.7% of the total workforce[165]. - The company has established a rigorous training plan to improve the skills of its workforce, focusing on critical positions and urgent needs[168]. - The company plans to enhance training for management and technical staff to support its development goals[168]. - A minimum of 10 skill competitions or job training activities will be organized throughout the year to enhance practical skills[170]. Risk Management and Compliance - The company has committed to strict safety and environmental standards, implementing a "one-vote veto" system for safety and environmental issues, and increasing accountability measures[77]. - The company is focused on complying with regulations regarding related party transactions to protect the interests of minority shareholders[89]. - The company has not experienced any significant accounting errors requiring retrospective restatement during the reporting period[99]. - The company has not changed its accounting policies, estimates, or methods compared to the previous financial report[98]. - The company has no outstanding bonds that are due or unable to be fully redeemed as of the annual report approval date[193].