惠天热电(000692) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions Important Notice The company's board, supervisory board, and senior management guarantee the semi-annual report's truthfulness, accuracy, and completeness, with no plans for cash dividends or bonus shares - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents The report's clear table of contents outlines nine main chapters, providing a comprehensive overview of the company's semi-annual performance - The report contains nine main chapters with a clear structure[7] Definitions This section defines key terms and company-related entities used in the report, ensuring accurate understanding of the content - The reporting period refers to January 1, 2025, to June 30, 2025[10] - Shenyang Huitian Thermal Power Co., Ltd. is abbreviated as 'Huitian Thermal Power'[10] - Several names of controlling shareholders and subsidiaries are listed, such as Rundian Thermal Power, Erre Company, and Jinlang Thermal Power[10] Part II Company Profile and Key Financial Indicators Company Profile Shenyang Huitian Thermal Power Co., Ltd. (stock code: 000692) is listed on the Shenzhen Stock Exchange, with Hao Jie as its legal representative - The company's stock abbreviation is 'Huitian Thermal Power', stock code '000692', listed on the Shenzhen Stock Exchange[13] - The company's legal representative is Hao Jie[13] Contact Persons and Information The company's Board Secretary is Li Zhi and Securities Affairs Representative is Liu Bin, both located at No. 47 Renao Road, Shenhe District, Shenyang City, with contact phone and email provided - The Board Secretary is Li Zhi, and the Securities Affairs Representative is Liu Bin[14] - The company's contact address is No. 47 Renao Road, Shenhe District, Shenyang City[14] Other Information During the reporting period, the company's registered address, office address, website, email, information disclosure, and document storage locations remained unchanged, with details available in the 2024 annual report - The company's registered address, office address, website, and email remained unchanged during the reporting period[15] - Information disclosure and storage locations remained unchanged during the reporting period[16] Key Accounting Data and Financial Indicators The company's H1 2025 operating revenue slightly increased, net loss attributable to shareholders decreased by 51.05%, and total assets and net assets attributable to shareholders both declined Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,210,197,821.61 | 1,209,573,238.76 | 0.05% | | Net Profit Attributable to Shareholders of Listed Company | -143,903,926.59 | -293,958,769.51 | 51.05% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | -146,603,405.32 | -301,687,196.85 | 51.41% | | Net Cash Flow from Operating Activities | -690,449,312.70 | -894,727,241.79 | 22.83% | | Basic Earnings Per Share (RMB/share) | -0.2701 | -0.5517 | 51.04% | | Diluted Earnings Per Share (RMB/share) | -0.2701 | -0.5517 | 51.04% | | Weighted Average Return on Net Assets | -128.99% | -1,074.96% | 945.97% | | Period-End Indicators | Current Period-End (RMB) | Prior Year-End (RMB) | Change (%) | | Total Assets | 5,278,298,972.34 | 5,727,163,852.25 | -7.84% | | Net Assets Attributable to Shareholders of Listed Company | 43,801,125.61 | 183,515,645.44 | -76.13% | Differences in Accounting Data Under Domestic and International Accounting Standards The company reported no differences in net profit and net assets between financial statements disclosed under international or overseas accounting standards and Chinese accounting standards during the reporting period - During the reporting period, the company reported no differences in net profit and net assets between financial statements disclosed under International Accounting Standards and Chinese Accounting Standards[19] - During the reporting period, the company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and Chinese Accounting Standards[20] Non-Recurring Gains and Losses and Their Amounts The company's total non-recurring gains and losses for the reporting period amounted to RMB 2.70 million, primarily from government subsidies recognized in current profit or loss Non-Recurring Gains and Losses for H1 2025 | Item | Amount (RMB) | | :--- | :--- | | Government subsidies recognized in current profit or loss (excluding those closely related to normal business operations, compliant with national policies, enjoyed by fixed standards, and with a continuous impact on company profit or loss) | 2,813,051.88 | | Other non-operating income and expenses apart from the above | -83,532.24 | | Other profit and loss items meeting the definition of non-recurring gains and losses | 12,998.19 | | Impact on minority interests (after tax) | 43,039.10 | | Total | 2,699,478.73 | Part III Management Discussion and Analysis Company's Main Business Activities During the Reporting Period The company's core business is heating services, accounting for over 90% of main business revenue, operating through coal-fired boilers and combined heat and power, and achieved a RMB 150 million year-on-year reduction in net loss Industry Development Shenyang's heating industry is transforming towards green, low-carbon, and intelligent efficiency through upgrades and clean energy, facing challenges from energy prices and cost control - Shenyang's heating industry is in a critical phase of structural optimization, technological upgrading, and service improvement, leveraging 'winter disease, summer treatment' to drive its transformation towards green, low-carbon, intelligent, and efficient operations[24] - The industry faces multiple challenges including energy price fluctuations, cost control, and technological innovation[24] Company's Main Business Operations The company's main business remains heating services, accounting for over 90% of revenue, provided via coal-fired boilers and combined heat and power, with government-set prices and market-driven coal costs - The company's main business is heating services, accounting for over 90% of main business revenue[25] - Heating business primarily operates in two modes: coal-fired boilers generating heat from coal combustion and purchasing heat from power plants[25] - Heating prices are determined by local government departments, while purchased coal prices fluctuate with the market[25] Company's Market Position As a state-owned heating enterprise, the company holds a dominant position in Shenyang's regional heating market, serving over 1 million households with 91.7 million square meters of heating area - As a state-owned heating enterprise, the company possesses strong market competitiveness in Shenyang's heating industry[26] - As of the 2024-2025 heating season, the heating area (on-grid area) reached 91.7 million square meters, serving over 1 million heating households[26] Company's Operating Performance The company achieved a RMB 150 million year-on-year reduction in net loss in H1 2025 by optimizing operations, implementing refined management, and improving efficiency and cash flow - In the first half of 2025, net profit achieved a year-on-year reduction in loss of RMB 150 million[27] - Heat consumption decreased by 5% year-on-year, electricity consumption by 9%, and water consumption by 13%[27] - Complaint volume (provincial level, Minxinwang) decreased by 42% year-on-year[27] - Accumulated collection of overdue payments reached RMB 22.15 million, an increase of RMB 5.44 million year-on-year[27] - The collection rate increased by 1.74% year-on-year in the first half[28] - Accumulated procurement of coal and pulverized coal reached 280,000 tons, with an ex-tax standard unit price decrease of 9% year-on-year[29] Analysis of Core Competencies The company's core competencies include stable user resources, extensive heating networks, 45 years of technical expertise, efficient management, talent development, and government policy support due to its state-owned background - Possesses a growing base of stable heating users and a heating pipeline network spanning major urban areas and development zones in Shenyang City[30] - The company is one of the earliest professional heating companies established in Shenyang City, with 45 years of history, holding Grade A design qualifications and general engineering contracting qualifications[30] - Established efficient management procedures and a rational talent acquisition and development strategy[31] - As a state-owned heating company in the region, it receives attention and support from government departments, benefiting from policies such as the 'Blue Sky Project' and 'Warm House Project'[31] Analysis of Main Business Operations Operating revenue remained flat, but operating costs decreased due to lower coal prices, leading to a 51.05% reduction in net loss attributable to shareholders, despite increased management and income tax expenses Year-on-Year Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,210,197,821.61 | 1,209,573,238.76 | 0.05% | Largely flat | | Operating Cost | 1,246,731,047.57 | 1,388,175,086.56 | -10.19% | Lower coal prices | | Selling Expenses | 4,419,882.06 | 4,542,122.08 | -2.69% | Fewer sales personnel | | Administrative Expenses | 44,329,712.96 | 39,654,992.80 | 11.79% | More administrative personnel | | Financial Expenses | 74,403,432.48 | 80,352,182.05 | -7.40% | Lower borrowing interest rates | | Income Tax Expense | 4,784,359.12 | 726,683.93 | 558.38% | Increased total profit of holding subsidiaries | | Net Cash Flow from Operating Activities | -690,449,312.70 | -894,727,241.79 | 22.83% | Reduced payment for fuel and heating fees | | Net Cash Flow from Investing Activities | -102,230,270.40 | -131,094,672.40 | 22.02% | Received proceeds from equity disposal | | Net Cash Flow from Financing Activities | 690,024,189.68 | 669,293,216.68 | 3.10% | New financing leases | | Net Profit Attributable to Shareholders of Listed Company | -143,903,926.59 | -293,958,769.51 | 51.05% | Lower coal procurement costs | | Total Assets | 5,278,298,972.34 | 4,723,569,465.43 | 11.74% | New fixed asset investments | | Net Assets Attributable to Shareholders of Listed Company | 43,801,125.61 | -118,660,901.75 | 136.91% | Reduced operating losses | Composition of Operating Revenue | Category | Current Period Amount (RMB) | Proportion of Operating Revenue (%) | Prior Period Amount (RMB) | Proportion of Operating Revenue (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,210,197,821.61 | 100% | 1,209,573,238.76 | 100% | 0.05% | | By Industry | | | | | | | Main Business | 1,206,912,969.52 | 99.73% | 1,208,082,007.58 | 99.88% | -0.10% | | Other Businesses | 3,284,852.09 | 0.27% | 1,491,231.18 | 0.12% | 120.28% | | By Product | | | | | | | Heating and Gas Supply | 1,166,057,701.09 | 96.35% | 1,183,226,558.36 | 97.82% | -1.45% | | Heating Engineering | 7,266.06 | 0.00% | 1,461,103.88 | 0.12% | -99.50% | | Material Sales | 38,038,283.32 | 3.14% | 21,115,511.43 | 1.75% | 80.14% | | Other | 6,094,571.14 | 0.51% | 3,770,065.09 | 0.31% | 61.66% | | By Region | | | | | | | Liaoning Region | 1,210,197,821.61 | 100.00% | 1,209,573,238.76 | 100.00% | 0.05% | Industry, Product, or Region Accounting for Over 10% of Company's Operating Revenue or Profit | Category | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | Operating Revenue Year-on-Year Change | Operating Cost Year-on-Year Change | Gross Margin Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | | Heating | 1,210,197,821.61 | 1,246,731,047.57 | -3.02% | 0.05% | -10.19% | 11.75% | | By Product | | | | | | | | Heating and Gas Supply | 1,166,057,701.09 | 1,203,308,754.08 | -3.19% | -1.45% | -11.58% | 11.83% | | By Region | | | | | | | | Liaoning Region | 1,210,197,821.61 | 1,246,731,047.57 | -3.02% | 0.05% | -10.19% | 11.75% | Analysis of Non-Main Business Operations Non-main business operations had a minor, unsustainable impact on total profit, primarily from non-operating income and legal litigation losses Impact of Non-Main Business Operations on Total Profit | Item | Amount (RMB) | Proportion of Total Profit (%) | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Non-Operating Income | 756,070.08 | 0.43% | Other income | No | | Non-Operating Expenses | 839,602.32 | 0.48% | Payment for legal litigation losses | No | Analysis of Assets and Liabilities At period-end, total assets and net assets attributable to shareholders decreased, with fixed assets and borrowings increasing, contract liabilities decreasing, and some assets, primarily heating fee collection rights, remaining restricted Significant Changes in Asset Composition | Item | Current Period-End Amount (RMB) | Proportion of Total Assets (%) | Prior Year-End Amount (RMB) | Proportion of Total Assets (%) | Proportion Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 450,104,914.20 | 8.53% | 559,262,256.65 | 9.77% | -1.24% | | Accounts Receivable | 610,088,766.45 | 11.56% | 410,623,107.04 | 7.17% | 4.39% | | Inventories | 306,340,820.33 | 5.80% | 487,663,129.41 | 8.51% | -2.71% | | Fixed Assets | 3,445,518,684.58 | 65.28% | 2,928,775,626.58 | 51.14% | 14.14% | | Construction in Progress | 16,147,245.59 | 0.31% | 426,037,159.04 | 7.44% | -7.13% | | Right-of-Use Assets | 6,561,144.16 | 0.12% | 227,434,090.90 | 3.97% | -3.85% | | Short-Term Borrowings | 2,697,163,774.60 | 51.10% | 2,123,118,717.75 | 37.07% | 14.03% | | Contract Liabilities | 113,278,008.50 | 2.15% | 995,405,916.47 | 17.38% | -15.23% | | Long-Term Borrowings | 253,344,386.48 | 4.80% | 184,094,367.05 | 3.21% | 1.59% | - As of the end of the reporting period, the company had multiple restricted assets, primarily the pledging of heating fee collection rights by subsidiaries, involving amounts of RMB 200 million, RMB 60 million, RMB 50 million, and RMB 65 million[42] Analysis of Investment Activities The company's investment increased by 9.92% year-on-year, primarily for new pipeline construction and the Quansheng 2350MW combined heat and power project, with cumulative actual investment exceeding RMB 460 million, and no securities or derivatives investments Investment Amount During the Reporting Period | Current Period Investment (RMB) | Prior Period Investment (RMB) | Change (%) | | :--- | :--- | :--- | | 35,340,501.54 | 32,152,388.65 | 9.92% | Significant Non-Equity Investments in Progress During the Reporting Period | Project Name | Investment Method | Industry Involved | Amount Invested in Current Period (RMB) | Cumulative Actual Investment as of Period-End (RMB) | | :--- | :--- | :--- | :--- | :--- | | New Pipeline Construction | Self-built | Heating | 34,250,881.29 | 457,019,504.33 | | Quansheng 2350MW Combined Heat and Power Project | Self-built | Heating | 1,089,620.25 | 3,370,001.05 | | Total | -- | -- | 35,340,501.54 | 460,389,505.38 | - During the reporting period, the company had no securities investments, derivative investments, or use of raised funds[47][48] Significant Asset and Equity Disposals The company did not engage in any significant asset or equity disposals during the reporting period - The company did not dispose of significant assets during the reporting period[50] - The company did not dispose of significant equity during the reporting period[51] Analysis of Major Holding and Associate Companies The company's major holding subsidiaries include Shenyang Second Thermal Power Heating Company, Shenyang Huitian Qipanshan Heating Co., Ltd., and Shenyang Jinlang Thermal Power Co., Ltd., with the first two reporting negative net profits during the period Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (ten thousand RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenyang Second Thermal Power Heating Company | Subsidiary | Heating | 521 | 1,906,315,083.28 | -123,099,583.49 | 485,958,518.61 | -98,999,045.51 | -99,571,312.20 | | Shenyang Huitian Qipanshan Heating Co., Ltd. | Subsidiary | Heating | 3000 | 243,760,512.58 | -359,423,375.06 | 47,889,194.86 | -32,602,917.74 | -32,651,600.62 | | Shenyang Jinlang Thermal Power Co., Ltd. | Subsidiary | Heating | 1000 | 494,518,131.79 | 131,244,436.11 | 230,442,408.79 | 27,478,575.94 | 22,710,965.00 | - During the reporting period, the company neither acquired nor disposed of any subsidiaries[52] Information on Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[53] Risks Faced by the Company and Countermeasures The company faces key risks including raw material price fluctuations, stricter environmental policies, and customer dependency, which are addressed through specialized procurement, long-term agreements, equipment upgrades, clean energy adoption, enhanced peak-shaving heat source construction, and emergency plans - Raw material price fluctuation risk: Fluctuations in coal and purchased heat prices impact profitability[53] - Countermeasures: Establish a specialized company for coal procurement management, implement long-term agreement pricing mechanisms, broaden procurement channels, strengthen equipment upgrades, and reduce coal consumption[53] - Environmental risk: Stricter atmospheric emission standards lead to increased investment in environmental facility construction and renovation[53] - Countermeasures: Explore the adoption of new materials and technologies, and efficient, energy-saving, and environmentally friendly heating methods to replace traditional high-energy-consuming coal-fired boilers[53] - Customer dependency risk: The heating quality and cost of Shenhai Heating Network largely depend on Shenyang CR Power Thermal Power Co., Ltd[54] - Countermeasures: Increase the construction and production capacity of Shenhai Heating Network's peak-shaving heat sources, and formulate emergency response plans[55] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company has not formulated a market value management system[56] - The company has not disclosed a valuation enhancement plan[56] Implementation of "Quality and Return Dual Improvement" Action Plan The company did not disclose any "Quality and Return Dual Improvement" action plan announcements during the reporting period - The company has not disclosed any 'Quality and Return Dual Improvement' action plan announcements[56] Part IV Corporate Governance, Environment, and Society Changes in Company Directors, Supervisors, and Senior Management During the reporting period, the company experienced multiple changes in its directors, supervisors, and senior management, including Zheng Yun's election as Chairman and appointment as General Manager, Yang Hui's appointment as Deputy General Manager and CFO, and the departures of Chen Weiguo and Ma Jingli, primarily due to work transfers Changes in Company Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Zheng Yun | Chairman | Elected | April 02, 2025 | Work Transfer | | Zheng Yun | General Manager | Appointed | March 17, 2025 | Work Transfer | | Chen Weiguo | Chairman, General Manager | Resigned | March 14, 2025 | Work Transfer | | Yang Hui | Deputy General Manager, CFO | Appointed | March 17, 2025 | Work Transfer | | Ma Jingli | CFO | Dismissed | March 14, 2025 | Work Transfer | | Yang Lin | Deputy General Manager | Appointed | April 27, 2025 | Work Transfer | Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[59] Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place or implemented during the reporting period - During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures or their implementation details[60] Environmental Information Disclosure The company and its five major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with corresponding query indexes provided for their environmental information disclosure reports - The listed company and its major subsidiaries (total of 5) are included in the list of enterprises required to disclose environmental information by law[61] Enterprises Included in the List for Legal Environmental Information Disclosure | No. | Enterprise Name | Query Index for Legal Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Shenyang Huitian Thermal Power Co., Ltd. | https://sthj.deing.cn:8180/home/enters/沈阳惠天热电股份有限公司 | | 2 | Shenyang Second Thermal Power Heating Co., Ltd. | https://sthj.deing.cn:8180/home/enters/ | | 3 | Shenyang Huitian Qipanshan Heating Co., Ltd. | https://sthj.deing.cn:8180/home/enters/沈阳惠天棋盘山供热有限责任公司 | | 4 | Shenyang Huitian Environmental Heating Co., Ltd. | https://sthj.deing.cn:8180/home/enters/沈阳惠天环保供热有限责任公司 | | 5 | Shenyang Jinlang Thermal Power Co., Ltd. | https://sthj.deing.cn:8180/home/enters/沈阳金廊热力有限公司 | Social Responsibility The company actively fulfills its social responsibilities by protecting shareholder and employee rights, fostering supplier and customer relationships, investing in environmental protection, and contributing to social welfare through legal operations and taxation - The company strictly adheres to laws and regulations, disclosing information truthfully, accurately, completely, timely, and fairly to protect investors' right to know[62] - The company respects and safeguards employees' individual rights, fully implements employee welfare policies, ensures benefits, and carries out organizational reforms to enhance employee income and career development opportunities[64] - The company adheres to the principles of 'voluntariness, equality, and mutual benefit' to build strategic partnerships with suppliers and customers, protecting the legitimate rights and interests of all parties[65] - The company strictly enforces environmental protection standards, actively invests in environmental facility construction, and focuses on controlling emissions of exhaust gas, wastewater, and solid waste[66] - The company actively participates in social welfare initiatives, adheres to legal operations and tax compliance, and promotes local economic development and social progress[67] Part V Significant Matters Commitments Fulfilled or Overdue by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period During the reporting period, there were no commitments fulfilled or overdue by the company's controlling shareholder, shareholders, related parties, acquirers, or the company itself - During the reporting period, there were no commitments fulfilled or overdue by the company's actual controller, shareholders, related parties, acquirers, or the company itself[69] Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company During the reporting period, there were no non-operating funds occupied by the controlling shareholder or other related parties from the listed company - During the reporting period, the company had no non-operating funds occupied by the controlling shareholder or other related parties from the listed company[70] Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[71] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited, and the company changed its 2024 audit firm, appointing Pengsheng Accounting Firm - The company's semi-annual report was unaudited[72] - The company has appointed Pengsheng Accounting Firm as the audit institution for its 2024 financial report and internal control[93] Board of Directors' and Supervisory Board's Explanation on the Accounting Firm's "Non-Standard Audit Report" for the Current Period The company's semi-annual report was unaudited, rendering an explanation on a "non-standard audit report" from the accounting firm for the current period inapplicable - The company's semi-annual report was unaudited, so this explanation is not applicable[73] Board of Directors' Explanation on Matters Related to the "Non-Standard Audit Report" for the Prior Year The company's explanation on matters related to the "non-standard audit report" for the prior year is not applicable for the reporting period - The company's explanation on matters related to the 'non-standard audit report' for the prior year is not applicable for the reporting period[73] Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[73] Litigation Matters The company faced several significant litigation and arbitration cases, including contract disputes, heating load transfer disputes, and coal payment disputes, with some cases already in the execution phase Significant Litigation and Arbitration Matters | Basic Information of Litigation (Arbitration) | Amount Involved (ten thousand RMB) | Whether Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Litigation (Arbitration) Judgment Execution Status | | :--- | :--- | :--- | :--- | :--- | :--- | | JiaHui Company (defendant) purchased coal from Baogang Mining, resulting in a contract dispute | 19,185.26 | Provision for liabilities of RMB 13.21 million has been converted to accounts payable | In judgment execution | Ruled JiaHui Company to pay the plaintiff RMB 177.80 million in goods payment, interest, and litigation fees | RMB 145 million has been paid to Baogang Mining according to the repayment plan | | Erre Company (plaintiff) and Shengtian Heating (defendant) heating operation load transfer dispute | 3,745.51 | No | In judgment execution | Ruled Erre Company to pay Shengtian Heating RMB 0.78 million in maintenance fees and interest. Second instance changed to rule Shengtian Heating to pay Erre Company RMB 37.45 million in heating fees and interest; Erre Company to pay Shengtian Heating RMB 26,000 in utility fees | RMB 13.97 million has been collected | | Shenyang Dadong District Housing Administration Bureau (plaintiff) and Huitian Thermal Power (defendant) advance coal payment dispute | 3,120.7 | No | In judgment execution | Ruled the company to pay the plaintiff RMB 30 million and interest; litigation acceptance fee of RMB 0.20 million to be borne by the company | RMB 20 million has been paid | | Wang Mingjun, Zhang Zhong, Hua Zhengfeng (plaintiffs) sued Erre Company (defendant 3) for engineering contract dispute | 3,500 | No | First instance hearing held, no judgment yet | Erre Company has paid all engineering progress payments to defendant 1 (plaintiff's partner) as per contract, with no outstanding engineering payments. Based on actual payments, Erre Company should not bear joint liability in this case | No judgment yet | - A summary of other non-significant litigation cases not meeting disclosure standards shows that in closed cases where the company was a defendant, our party's liability of RMB 23.52 million has been fully paid[75] - For cases where the company is a defendant with judgments pending execution, the amount involved is RMB 45.76 million, with RMB 14.01 million to be paid[75] Penalties and Rectification The company and several directors and senior management received warning letters from the Liaoning Securities Regulatory Bureau for failing to timely disclose significant litigation Penalties and Rectification Status | Name | Type | Reason | Investigation and Penalty Type | Conclusion (if any) | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huitian Thermal Power | Other | Failure to timely disclose significant litigation | Administrative regulatory measures taken by China Securities Regulatory Commission | Liaoning Securities Regulatory Bureau issued a warning letter | May 17, 2025 | "Announcement on Receiving a Warning Letter from Liaoning Securities Regulatory Bureau" (Announcement No.: 2025-31) | | Zheng Yun | Director | Failure to timely disclose significant litigation | Administrative regulatory measures taken by China Securities Regulatory Commission | Liaoning Securities Regulatory Bureau issued a warning letter | May 17, 2025 | "Announcement on Receiving a Warning Letter from Liaoning Securities Regulatory Bureau" (Announcement No.: 2025-31) | | Chen Weiguo | Other | Failure to timely disclose significant litigation | Administrative regulatory measures taken by China Securities Regulatory Commission | Liaoning Securities Regulatory Bureau issued a warning letter | May 17, 2025 | "Announcement on Receiving a Warning Letter from Liaoning Securities Regulatory Bureau" (Announcement No.: 2025-31) | | Hao Jie | Director | Failure to timely disclose significant litigation | Administrative regulatory measures taken by China Securities Regulatory Commission | Liaoning Securities Regulatory Bureau issued a warning letter | May 17, 2025 | "Announcement on Receiving a Warning Letter from Liaoning Securities Regulatory Bureau" (Announcement No.: 2025-31) | | Li Zhi | Senior Management | Failure to timely disclose significant litigation | Administrative regulatory measures taken by China Securities Regulatory Commission | Liaoning Securities Regulatory Bureau issued a warning letter | May 17, 2025 | "Announcement on Receiving a Warning Letter from Liaoning Securities Regulatory Bureau" (Announcement No.: 2025-31) | Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company had no integrity status information requiring disclosure during the reporting period - The company had no integrity status information requiring disclosure during the reporting period[77] Significant Related Party Transactions During the reporting period, the company engaged in multiple significant related party transactions, including purchasing heat from and selling coal and heat to related parties, providing guarantees for subsidiaries, and intercompany fund transfers and asset disposals Related Party Transactions Related to Daily Operations (Purchase of Goods/Acceptance of Services) | Related Party | Related Transaction Content | Related Transaction Amount (ten thousand RMB) | Proportion of Similar Transactions (%) | Approved Transaction Limit (ten thousand RMB) | | :--- | :--- | :--- | :--- | :--- | | Shenyang CR Power Thermal Power Co., Ltd. | Purchase of Heat | 13,054.74 | 40.35% | 67,000 | | CR Power (Shenyang) Co., Ltd. | Purchase of Heat | 19,302.8 | 59.65% | 67,000 | Related Party Transactions Related to Daily Operations (Sale of Goods) | Related Party | Related Transaction Content | Related Transaction Amount (ten thousand RMB) | Proportion of Similar Transactions (%) | Approved Transaction Limit (ten thousand RMB) | | :--- | :--- | :--- | :--- | :--- | | Shenyang Huiyong Heating Co., Ltd. | Sale of Coal | 2,102.22 | 48.91% | 23,000 | | Shenyang Shengda Thermal Power Heating Co., Ltd. | Sale of Coal, Pulverized Coal | 1,987.43 | 46.24% | 23,000 | | Shenyang Shendong Thermal Power Co., Ltd. | Sale of Pulverized Coal | 208.68 | 4.85% | 5,000 | | Shenyang Huiyong Heating Co., Ltd. | Sale of Heat | 1,722 | 84.65% | 3,500 | | Shenyang Shendong Thermal Power Co., Ltd. | Sale of Heat | 312.31 | 15.35% | 330 | | Total | -- | 38,690.18 | -- | 188,830 | - During the reporting period, the company had no non-operating related party receivables or payables[81] - The company has no deposits, loans, credit lines, or other financial transactions with affiliated finance companies[82][84] Significant Contracts and Their Performance During the reporting period, the company had several significant entrustment and lease contracts, including Jinlang Thermal Power's entrustment of State Grid power heating assets and Erre Company's heating load to Jinlang Thermal Power, the controlling shareholder's entrustment of operating rights to Huitian Thermal Power, and the lease of Minfu Boiler Room heating assets - Jinlang Thermal Power gratuitously uses heating assets belonging to the employee residential areas of State Grid Liaoning Electric Power Co., Ltd., and assumes operational responsibility[86] - Erre Company entrusted the heating load management of Wulihe Heat Source and Quanyuan No. 1 Heat Source related areas to Jinlang Thermal Power for a 10-year period, with operating profits split 50:50[86] - Controlling shareholder Rundian Thermal Power entrusted the operating rights of wholly-owned subsidiaries such as Huiyong Company, Shengda Company, Huisheng Company, Shendong Thermal Power, and Shengjing Energy to Huitian Thermal Power for a 3-year period, with an annual entrustment operating fee of approximately RMB 9.5 million[87] - The company leases heating assets of Minfu Boiler Room at No. 8 Daqing Road, Heping District, Shenyang City, with an annual rent of RMB 4.1 million, and the lease term extended to May 31, 2028[87] - During the reporting period, the company had no entrustment or lease projects that generated profit or loss exceeding 10% of total profit[87] Company's Guarantees for Subsidiaries | Guaranteed Party | Guaranteed Amount (ten thousand RMB) | Guarantee Start Date | Guarantee End Date | | :--- | :--- | :--- | :--- | | Shenyang Second Thermal Power Heating Company | 57,362 | December 27, 2024 | December 09, 2025 | | Shenyang Second Thermal Power Heating Company | 8,000 | October 30, 2024 | October 30, 2025 | | Shenyang Second Thermal Power Heating Company | 14,200 | December 05, 2024 | December 02, 2025 | | Shenyang Second Thermal Power Heating Company | 3,240 | August 27, 2024 | August 26, 2025 | | Shenyang Second Thermal Power Heating Company | 1,156.12 | March 03, 2025 | March 02, 2026 | | Shenyang Second Thermal Power Heating Company | 603.88 | April 01, 2025 | March 31, 2026 | | Shenyang Second Thermal Power Heating Company | 64,000 | November 08, 2024 | November 07, 2037 | | Total Actual Guarantee Balance for Subsidiaries at Period-End | 148,562 | | | - The total actual guarantee amount accounts for 3,391.74% of the company's net assets[90] - During the reporting period, the company had no entrusted wealth management or other significant contracts[91][92] Explanation of Other Significant Matters The company undertook significant matters including investing in the Shenyang Quansheng 2×350MW thermal power project, changing its 2024 audit firm, engaging in financing leases, establishing a subsidiary, and securing a 700 MW wind power project - The company plans to invest in and construct the Shenyang Quansheng 2×350MW combined heat and power project[93] - The company appointed Pengsheng Accounting Firm as the audit institution for its 2024 financial report and internal control[93] - The company applied for RMB 300 million in financing from CR Financial Leasing Co., Ltd. through a sale-and-leaseback arrangement, with a 3-year term[94] - The company invested in and established a wholly-owned subsidiary, 'Shenyang Quansheng Thermal Power Co., Ltd.'[94] - The company obtained the owner qualification for Shenyang City's second batch of 700 MW wind power projects in 2025[94] Significant Matters of Company Subsidiaries The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters during the reporting period[95] Part VI Share Changes and Shareholder Information Share Change Status During the reporting period, the company's total share capital remained at 532,832,976 shares, all of which were unrestricted, with no changes in its share capital structure Share Change Status | Item | Quantity Before Change (shares) | Proportion Before Change (%) | Change in Current Period (＋，－) | Quantity After Change (shares) | Proportion After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | II. Unrestricted Shares | 532,832,976 | 100.00% | 0 | 532,832,976 | 100.00% | | 1. RMB Ordinary Shares | 532,832,976 | 100.00% | 0 | 532,832,976 | 100.00% | | III. Total Shares | 532,832,976 | 100.00% | 0 | 532,832,976 | 100.00% | - During the reporting period, the company's total share capital and share capital structure remained unchanged[98] Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[100] Number of Shareholders and Shareholding Status As of period-end, the company had 26,142 ordinary shareholders, with controlling shareholder Shenyang Rundian Thermal Power Co., Ltd. holding 29.99% of shares, some pledged, and the top ten included domestic and foreign entities - As of the end of the reporting period, the total number of ordinary shareholders was 26,142 households[101] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion (%) | Number of Shares Held at Period-End (shares) | Number of Unrestricted Shares Held (shares) | Pledge, Mark, or Freeze Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Shenyang Rundian Thermal Power Co., Ltd. | State-owned Legal Entity | 29.99% | 159,796,608 | 159,796,608 | Pledged 145,046,490 shares | | Wang Jidong | Domestic Natural Person | 1.95% | 10,380,000 | 10,380,000 | N/A | | Yang Ying | Domestic Natural Person | 0.94% | 5,010,000 | 5,010,000 | N/A | | Tian Jianjiang | Domestic Natural Person | 0.74% | 3,961,943 | 3,961,943 | N/A | | Zhong Zhenghao | Domestic Natural Person | 0.64% | 3,390,100 | 3,390,100 | N/A | | BARCLAYS BANK PLC | Foreign Legal Entity | 0.62% | 3,284,097 | 3,284,097 | N/A | | Song Yingchun | Domestic Natural Person | 0.54% | 2,871,800 | 2,871,800 | N/A | | China Merchants Fund Management Co., Ltd. - Social Security Fund 1503 Portfolio | Other | 0.54% | 2,863,000 | 2,863,000 | N/A | | MORGAN STANLEY & CO. INTERNATIONAL PLC. | Foreign Legal Entity | 0.50% | 2,643,633 | 2,643,633 | N/A | | Ding Guizhu | Domestic Natural Person | 0.43% | 2,300,000 | 2,300,000 | N/A | - The company is unaware of any related party relationships or concerted action relationships among the top 10 shareholders[101][102] Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[102] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[103] - The company's actual controller remained unchanged during the reporting period[103] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[104] Part VII Bond-Related Information Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[106] Part VIII Financial Report Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[108] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, detailing its financial position, operating results, and cash flows Consolidated Balance Sheet As of June 30, 2025, consolidated total assets were RMB 5.28 billion, a 7.84% decrease, with total liabilities at RMB 5.24 billion and total owners' equity at RMB 34.05 million Key Data from Consolidated Balance Sheet | Item | Period-End Balance (RMB) | Period-Start Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 5,278,298,972.34 | 5,727,163,852.25 | | Total Liabilities | 5,244,246,705.92 | 5,516,082,007.92 | | Total Owners' Equity | 34,052,266.42 | 211,081,844.33 | | Total Owners' Equity Attributable to Parent Company | 43,801,125.61 | 183,515,645.44 | | Short-Term Borrowings | 2,697,163,774.60 | 2,123,118,717.75 | | Contract Liabilities | 113,278,008.50 | 995,405,916.47 | | Fixed Assets | 3,445,518,684.58 | 2,928,775,626.58 | Parent Company Balance Sheet As of June 30, 2025, parent company total assets were RMB 4.46 billion, a slight increase, with total liabilities at RMB 3.74 billion and total owners' equity at RMB 716.61 million Key Data from Parent Company Balance Sheet | Item | Period-End Balance (RMB) | Period-Start Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 4,461,273,390.96 | 4,390,389,115.06 | | Total Liabilities | 3,744,665,132.29 | 3,612,544,135.01 | | Total Owners' Equity | 716,608,258.67 | 777,844,980.05 | | Short-Term Borrowings | 1,786,565,935.64 | 1,398,061,619.97 | | Contract Liabilities | 30,601,760.47 | 333,766,624.61 | | Long-Term Equity Investments | 236,901,096.01 | 236,901,096.01 | Consolidated Income Statement In H1 2025, consolidated total operating revenue was RMB 1.21 billion, largely flat, with a net loss of RMB 181.22 million and a net loss attributable to parent company shareholders of RMB 143.90 million, showing reduced loss Key Data from Consolidated Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 1,210,197,821.61 | 1,209,573,238.76 | | Total Operating Costs | 1,384,006,594.23 | 1,524,246,108.38 | | Operating Profit | -176,351,093.31 | -308,652,441.26 | | Total Profit | -176,434,625.55 | -310,745,392.56 | | Net Profit | -181,218,984.67 | -311,472,076.49 | | Net Profit Attributable to Parent Company Shareholders | -143,903,926.59 | -293,958,769.51 | | Basic Earnings Per Share | -0.2701 | -0.5517 | Parent Company Income Statement In H1 2025, parent company operating revenue was RMB 543.94 million, an increase, with a net loss of RMB 62.99 million, representing a reduced loss compared to the prior year Key Data from Parent Company Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 543,941,342.35 | 489,571,014.12 | | Operating Cost | 523,420,606.13 | 537,667,002.45 | | Operating Profit | -63,548,939.30 | -137,290,355.13 | | Total Profit | -62,995,721.07 | -137,695,478.88 | | Net Profit | -62,995,721.07 | -137,695,478.88 | Consolidated Cash Flow Statement In H1 2025, net cash flow from operating activities was -RMB 690.45 million, from investing activities -RMB 102.23 million, and from financing activities RMB 690.02 million, resulting in a net decrease in cash and cash equivalents of -RMB 102.66 million Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -690,449,312.70 | -894,727,241.79 | | Net Cash Flow from Investing Activities | -102,230,270.40 | -131,094,672.40 | | Net Cash Flow from Financing Activities | 690,024,189.68 | 669,293,216.68 | | Net Increase in Cash and Cash Equivalents | -102,655,393.42 | -356,528,697.51 | | Period-End Balance of Cash and Cash Equivalents | 417,211,152.55 | 93,185,944.40 | Parent Company Cash Flow Statement In H1 2025, parent company net cash flow from operating activities was -RMB 432.68 million, from investing activities RMB 64.48 million, and from financing activities RMB 449.72 million, resulting in a net increase in cash and cash equivalents of RMB 81.53 million Key Data from Parent Company Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -432,675,517.30 | -894,727,241.79 | | Net Cash Flow from Investing Activities | 64,482,551.74 | -131,094,672.40 | | Net Cash Flow from Financing Activities | 449,723,123.41 | 669,293,216.68 | | Net Increase in Cash and Cash Equivalents | 81,530,157.85 | -356,528,697.51 | | Period-End Balance of Cash and Cash Equivalents | 300,080,222.94 | 93,185,944.40 | Consolidated Statement of Changes in Owners' Equity As of June 30, 2025, consolidated total owners' equity was RMB 34.05 million, a decrease of RMB 177.03 million, with total owners' equity attributable to the parent company at RMB 43.80 million, a decrease of RMB 139.71 million Key Data from Consolidated Statement of Changes in Owners' Equity | Item | H1 2025 Period-End Balance (RMB) | H1 2025 Period-Start Balance (RMB) | | :--- | :--- | :--- | | Share Capital | 532,832,976.00 | 532,832,976.00 | | Capital Reserve | 1,849,710,585.65 | 1,849,710,585.65 | | Special Reserve | 52,600,646.89 | 48,411,240.13 | | Surplus Reserve | 125,783,859.68 | 125,783,859.68 | | Retained Earnings | -2,517,126,942.61 | -2,373,223,016.02 | | Total Owners' Equity Attributable to Parent Company | 43,801,125.61 | 183,515,645.44 | | Minority Interests | -9,748,859.