通宝能源(600780) - 2025 Q2 - 季度财报

Important Notice This semi-annual report has not been audited, and all directors guarantee its truthfulness, accuracy, and completeness - This semi-annual report has not been audited[5] - All company directors attended the board meeting and guaranteed the truthfulness, accuracy, and completeness of the report content[3][4] - Forward-looking statements regarding the company's future development strategy and business plans do not constitute substantial commitments to investors; investors should be aware of investment risks[6] - There are no instances of non-operational fund occupation by controlling shareholders or other related parties, nor any external guarantees provided in violation of prescribed decision-making procedures[7] - Potential risks are described in Section III, 'Management Discussion and Analysis'[7] Section I Definitions This section provides definitions for key terms used throughout the report, including company names and currency units - In this report, 'Company' and 'Tongbao Energy' both refer to Shanxi Tongbao Energy Co., Ltd[12] - Definitions are provided for common terms including Shanxi International Power, Jinneng Holding Power Group, Yangguang Company, Local Power Company, Asset Company, and China Securities Regulatory Commission[12] - Currency units 'Yuan', 'Ten Thousand Yuan', and 'Hundred Million Yuan' refer to RMB Yuan, RMB Ten Thousand Yuan, and RMB Hundred Million Yuan, respectively[12] Section II Company Profile and Key Financial Indicators This section presents the company's fundamental information and a summary of its key financial performance and indicators for the reporting period I. Company Information This section outlines the company's basic registration details, including its Chinese name, abbreviation, foreign name and its abbreviation, and legal representative - The company's Chinese name is Shanxi Tongbao Energy Co., Ltd., abbreviated as Tongbao Energy[14] - The company's legal representative is Li Xin[14] II. Contact Persons and Information This section provides detailed contact information for the company's Board Secretary and Securities Affairs Representative to facilitate investor communication - The Board Secretary is Li Zhibing, contact number 0351-7021857, email teclzb@163.com[15] - The Securities Affairs Representative is Xue Tao, contact number 0351-7031995, email tecxue@163.com[15] III. Changes in Basic Information This section states that the company's registered address, office address, postal code, website, and email address remained unchanged during the reporting period - The company's registered and office addresses are both 272 Changzhi Road, Taiyuan City, Shanxi Province[16] - No changes occurred in the company's basic information during the reporting period[16] IV. Overview of Changes in Information Disclosure and Document Custody Locations This section lists the company's designated newspapers for information disclosure and the website for semi-annual reports, confirming no changes in disclosure or custody locations during the reporting period - The company's selected newspapers for information disclosure are Shanghai Securities News, China Securities Journal, Securities Daily, and Securities Times[17] - The website address for publishing semi-annual reports is www.sse.com.cn[17](index=17&type=chunk) - No changes occurred in the company's information disclosure and document custody locations during the reporting period[17] V. Company Stock Profile This section briefly introduces the company's stock listing information, including stock type, listing exchange, stock abbreviation, and code - The company's stock is A-shares, listed on the Shanghai Stock Exchange[18] - The stock abbreviation is Tongbao Energy, and the stock code is 600780[18] VII. Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue increased by 5.65%, while total profit and net profit attributable to parent company shareholders grew by 25.87% and 24.87% respectively, primarily due to lower thermal power fuel costs, increased power distribution sales, and higher output from equity-invested coal enterprises Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (RMB Yuan) | Prior Period (RMB Yuan) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,560,608,087.87 | 5,263,209,652.00 | 5.65 | | Total Profit | 398,841,746.69 | 316,880,157.56 | 25.87 | | Net Profit Attributable to Parent Company Shareholders | 314,203,282.91 | 251,630,360.34 | 24.87 | | Net Profit Attributable to Parent Company Shareholders Excluding Non-Recurring Gains/Losses | 312,610,704.80 | 246,131,640.60 | 27.01 | | Net Cash Flow from Operating Activities | 715,242,538.97 | 692,535,744.41 | 3.28 | | Net Assets Attributable to Parent Company Shareholders (Period End) | 8,031,847,483.97 | 7,691,509,462.35 | 4.42 | | Total Assets (Period End) | 10,823,340,753.58 | 10,536,170,282.47 | 2.73 | Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB Yuan/share) | 0.2741 | 0.2195 | 24.87 | | Diluted Earnings Per Share (RMB Yuan/share) | 0.2741 | 0.2195 | 24.87 | | Basic Earnings Per Share Excluding Non-Recurring Gains/Losses (RMB Yuan/share) | 0.2727 | 0.2147 | 27.01 | | Weighted Average Return on Net Assets (%) | 4.00 | 3.41 | Increased by 0.59 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains/Losses (%) | 3.98 | 3.33 | Increased by 0.65 percentage points | - Net profit attributable to shareholders of the listed company increased by 24.87% year-on-year, primarily due to lower fuel procurement costs for thermal power enterprises, increased electricity sales by power distribution companies, and higher output from equity-invested coal enterprises[20] IX. Non-Recurring Gains and Losses Items and Amounts This section details non-recurring gains and losses items and amounts for the reporting period, totaling RMB 1,592,578.11, primarily comprising government subsidies and fair value change gains/losses Non-Recurring Gains and Losses Items for H1 2025 | Non-Recurring Gain/Loss Item | Amount (RMB Yuan) | | :--- | :--- | | Government grants recognized in profit or loss for the current period | 8,861,446.55 | | Fair value change gains/losses from financial assets and liabilities held by non-financial enterprises, and gains/losses from disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | 160,153.37 | | Other non-operating income and expenses apart from the above items | -7,589,893.26 | | Other gain/loss items that meet the definition of non-recurring gains/losses | 638,346.36 | | Less: Income tax impact | 477,474.91 | | Total | 1,592,578.11 | Section III Management Discussion and Analysis This section provides an in-depth discussion and analysis of the company's operational performance, industry trends, core competitiveness, and risk factors during the reporting period I. Industry and Principal Business Overview During the Reporting Period In the first half of 2025, the national power industry maintained stable growth with significant increases in new energy installed capacity; the company's principal businesses remain thermal power generation and power distribution, actively expanding into clean energy with no major changes in its operating model (I) Industry Development During the Reporting Period In the first half of 2025, national power generation installed capacity increased by 18.7% year-on-year, with solar and wind power growing by 54.2% and 22.7% respectively; national electricity consumption rose by 3.7%, and grid investment by 14.6%; Shanxi Province's total power generation decreased by 0.8%, with thermal power down 5%, while wind and solar power generation increased by 22.7% and 12.4% respectively - As of the end of June, national cumulative power generation installed capacity reached 3.65 billion kW, a 18.7% year-on-year increase; of this, solar power installed capacity was 1.10 billion kW, up 54.2%, and wind power installed capacity was 0.57 billion kW, up 22.7%[26] - From January to June, national electricity consumption totaled 4.84 trillion kWh, a 3.7% year-on-year increase; national power grid project construction investment completed RMB 291.1 billion, up 14.6%[26] - From January to June 2025, Shanxi Province's total power generation was 214.73 billion kWh, a 0.8% year-on-year decrease; thermal power generation decreased by 5%, while wind power generation increased by 22.7%, and solar power generation increased by 12.4%[27] (II) Principal Business Operations The company's principal businesses are thermal power generation and power distribution, with no significant changes in its operating model; power generation revenue is settled with State Grid Shanxi Electric Power Company through market transactions, while power distribution charges end-users based on classified or market-traded electricity prices; performance growth is driven by increased generation, cost control, and expansion of high-quality customers - The company's principal businesses are thermal power generation and power distribution, with key performance drivers being increased power generation and control over generation and other management costs[27][28] - Power generation enterprises settle revenue with State Grid Shanxi Electric Power Company after electricity products are traded at market prices through the Shanxi Provincial Power Trading Center[28] - Power distribution enterprises settle with State Grid Shanxi Electric Power Company for classified users based on wholesale and market-based electricity prices, and charge end-users for electricity sales[28] II. Discussion and Analysis of Operations In the first half of 2025, Tongbao Energy achieved operating revenue of RMB 5.561 billion, total profit of RMB 399 million, net profit of RMB 314 million, and earnings per share of RMB 0.2741, with all indicators showing significant growth; the company strengthened Party leadership, maintained stable safety, continuously improved operational efficiency, accelerated industrial transformation, and optimized corporate governance - From January to June 2025, power generation reached 2.597 billion kWh, and electricity sales reached 10.118 billion kWh[28] - Operating revenue reached RMB 5.561 billion, total profit RMB 399 million, net profit RMB 314 million, and earnings per share RMB 0.2741[28] - Operating revenue increased by 5.65% year-on-year, total profit by 25.87%, net profit by 24.87%, and earnings per share by 24.87%[30] - The Ningwu Pandaoliang Phase II 50MW wind power project has achieved full capacity grid connection, construction has commenced for projects like Shuozhou Pinglu Gaojiayan Phase IV 100MW wind power, and preliminary work for Wuxiang 200MW photovoltaic power generation projects is progressing orderly, gradually forming a green, low-carbon, clean, and efficient integrated energy industry structure[30] - The corporate governance model has been further optimized and improved, including full implementation of the new Company Law, deepening state-owned enterprise reform, implementing supervisory board reform, strict compliance with information disclosure, continuously strengthening control over related-party transactions, and conducting multi-dimensional investor relations management and maintenance[31] III. Analysis of Core Competitiveness During the Reporting Period During the reporting period, the company's core competitiveness remained stable, primarily reflected in operational advantages (electricity and heat sales, clean energy expansion), equipment advantages (continuous technological transformation investment), management advantages (compliant operations, customer service, talent development), and industrial development advantages (leveraging controlling shareholder resources to build an integrated energy landscape) - In terms of operational advantages, the company's power generation business serves the North China Power Grid and Shanxi Province, undertaking heating supply tasks for Yangquan City and Pingding County; new investments in wind and solar projects have expanded the company's clean energy generation business; power distribution enterprises possess independent power supply service areas[32] - Regarding equipment advantages, the company prioritizes continuously improving equipment safety management, increasing investment in major technological transformation projects, and strengthening power grid investment and construction, resulting in overall high-quality assets[32] - In terms of management advantages, the company consistently adheres to the principles of legality, compliance, and integrity in operations, continuously improves internal management mechanisms, is committed to building a modern enterprise with green and sustainable development, and possesses an experienced professional management team[33] - Regarding industrial development advantages, the company is based on the strategic direction of 'coal power and clean energy integration,' leveraging the industrial resource advantages of its indirect controlling shareholder, Jinneng Holding Group, to fully build an integrated energy industry structure encompassing efficient coal power, clean green electricity, and local power grids[33] IV. Key Operating Performance During the Reporting Period This section provides a detailed analysis of the company's key operating performance during the reporting period, including changes in financial statement items, asset and liability status, and investment activities; the company achieved growth in both operating revenue and total profit, optimized its asset structure, and made significant investments in clean energy projects (I) Analysis of Principal Business During the reporting period, the company's operating revenue increased by 5.65% and operating costs by 4.87%; administrative expenses and financial expenses decreased by 23.64% and 168.22% respectively, with the latter primarily due to reduced interest expenses; R&D expenses were zero; net cash flow from financing activities turned positive, mainly due to new project loans Analysis Table of Changes in Financial Statement Items (H1 2025) | Item | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,560,608,087.87 | 5,263,209,652.00 | 5.65 | | Operating Cost | 5,082,379,364.35 | 4,846,512,257.25 | 4.87 | | Administrative Expenses | 153,278,737.38 | 200,734,631.40 | -23.64 | | Financial Expenses | -1,764,672.92 | 2,586,797.74 | -168.22 | | R&D Expenses | | 737,802.00 | -100.00 | | Net Cash Flow from Operating Activities | 715,242,538.97 | 692,535,744.41 | 3.28 | | Net Cash Flow from Investing Activities | -369,209,915.82 | -333,352,629.86 | / | | Net Cash Flow from Financing Activities | 41,031,090.32 | -115,650,742.28 | 135.48 | - The change in financial expenses was primarily due to a decrease in interest expenses during the current reporting period compared to the same period last year[35] - The change in R&D expenses was primarily due to no R&D projects being undertaken during the current reporting period[35] - The change in net cash flow from financing activities was primarily due to new project loans obtained during the current reporting period[35] (III) Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets increased by 2.73% year-on-year; construction in progress increased by 38.46% from the beginning of the period, mainly due to increased project progress by subsidiaries; right-of-use assets decreased by 50% due to depreciation; other payables increased by 112.10% due to receipt of photovoltaic subsidies; long-term borrowings increased by 182.04% due to new project loans Changes in Assets and Liabilities (H1 2025) | Item | Current Period End Amount (RMB Yuan) | % of Total Assets at Period End | Prior Year End Amount (RMB Yuan) | % of Total Assets at Prior Year End | % Change from Prior Year End | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 2,857,225,843.13 | 26.40 | 2,470,162,129.66 | 23.44 | 15.67 | | Accounts Receivable | 749,370,058.72 | 6.92 | 944,429,703.38 | 8.96 | -20.65 | | Inventories | 124,429,355.14 | 1.15 | 158,859,879.63 | 1.51 | -21.67 | | Long-Term Equity Investments | 1,253,248,787.75 | 11.58 | 1,173,257,470.84 | 11.14 | 6.82 | | Fixed Assets | 4,079,780,884.78 | 37.69 | 4,157,169,500.13 | 39.46 | -1.86 | | Construction in Progress | 495,884,315.39 | 4.58 | 358,149,658.34 | 3.40 | 38.46 | | Right-of-Use Assets | 62,108,713.14 | 0.57 | 124,217,426.06 | 1.18 | -50.00 | | Accounts Payable | 1,026,592,125.86 | 9.48 | 1,220,380,809.93 | 11.58 | -15.88 | | Contract Liabilities | 402,262,261.83 | 3.72 | 402,146,824.16 | 3.82 | 0.03 | | Other Payables | 190,444,615.37 | 1.76 | 89,789,324.68 | 0.85 | 112.10 | | Long-Term Borrowings | 352,552,254.40 | 3.26 | 125,000,000.00 | 1.19 | 182.04 | | Long-Term Payables | 18,980,425.00 | 0.18 | 29,980,425.00 | 0.28 | -36.69 | - Construction in progress increased by 38.46% from the beginning of the period, primarily due to increased project progress by subsidiaries[36] - Other payables increased by 112.10% from the beginning of the period, primarily due to the company receiving photovoltaic subsidies collected and paid on behalf of others during the current reporting period[37] - Long-term borrowings increased by 182.04% from the beginning of the period, primarily due to new project loans obtained by the company during the current reporting period[37] (IV) Analysis of Investment Status The company made significant equity investments during the reporting period, primarily in clean energy, with projects like the Ningwu Pandaoliang Phase II 50MW wind power project achieving full capacity grid connection; concurrently, fair value changes in financial assets measured at fair value (e.g., Bank of Communications shares) generated gains or losses - The Ningwu Pandaoliang Phase II 50MW wind power project, invested and constructed by Tongbao Ningwu Clean Energy Co., Ltd., has achieved full capacity grid connection[40] Significant Equity Investment Status (RMB Ten Thousand Yuan) | Investee Company Name | Principal Business | Investment Method | Investment Amount | Shareholding Ratio | Progress | Impact on Current Period P&L | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tongbao Ningwu Clean Energy Co., Ltd. | Wind Power Generation | Capital Increase | 1,600 | 100% | Reached intended usable condition | 73.62 | | Tongbao Shuozhou Pinglu Clean Energy Co., Ltd. | Wind Power Generation | Capital Increase | 1,500 | 100% | Project under construction | 0.31 | | Tongbao Yuanping Clean Energy Co., Ltd. | Photovoltaic Power Generation | Capital Increase | 2,200 | 100% | Project under construction | 0 | | Total | / | / | 5,300 | / | / | 73.93 | Financial Assets Measured at Fair Value (H1 2025) | Asset Category | Beginning Balance (RMB Yuan) | Fair Value Change Gain/Loss for Current Period (RMB Yuan) | Ending Balance (RMB Yuan) | | :--- | :--- | :--- | :--- | | Shares (Bank of Communications) | 5,410,398.63 | 160,153.37 | 5,570,552.00 | | Total | 5,410,398.63 | 160,153.37 | 5,570,552.00 | (VI) Analysis of Major Holding and Equity-Invested Companies This section analyzes the operating performance of the company's major holding and equity-invested companies, including Shanxi Yangguang Power Generation Co., Ltd., Shanxi Local Electric Power Co., Ltd., and Shanxi Ningwu Yushupo Coal Industry Co., Ltd.; Shanxi Local Electric Power Co., Ltd. is the company's largest subsidiary, with significant contributions to operating revenue and net profit Major Subsidiaries and Equity-Invested Companies with Over 10% Impact on Company's Net Profit (RMB Ten Thousand Yuan) | Company Name | Company Type | Principal Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanxi Yangguang Power Generation Co., Ltd. | Subsidiary | Thermal Power Generation | 110,000.00 | 205,658.79 | 150,317.37 | 88,620.23 | 1,947.60 | 1,433.87 | | Shanxi Local Electric Power Co., Ltd. | Subsidiary | Power Supply (Distribution) | 60,000.00 | 684,478.85 | 484,056.88 | 467,346.56 | 31,513.57 | 22,746.79 | | Shanxi Ningwu Yushupo Coal Industry Co., Ltd. | Associate | Coal Production | 38,111.48 | 547,954.14 | 480,570.27 | 101,071.59 | 43,591.35 | 32,412.25 | V. Other Disclosure Matters This section discloses potential risks the company may face, such as policy, environmental, energy structure adjustment, and project construction risks, and outlines the company's strategies to address them for sustainable development (I) Potential Risks The company faces uncertainties in power supply and demand, volatile spot market prices, stricter environmental requirements, competition from rapid new energy development, and technical, financial, and policy risks in project construction; the company will address these through strengthened marketing, green transformation, diversified development, and full-chain project management - Policy Risk: Intertwined factors in power supply and demand will further expand electricity market transaction scale, with downward and intensified volatile spot market prices, coupled with supply guarantee and peak shaving responsibilities, carbon tax, and coal price risks, leading to sustained pressure on thermal power profitability[48] - Environmental Risk: Increasing environmental requirements place greater pressure on the thermal power industry, potentially raising operating costs; the company will continue to promote green transformation and increase environmental investments[48] - Energy Structure Adjustment Risk: Rapid development of new energy alters the competitive landscape and energy structure of the electricity market, leading to continuous divergence in profitability between thermal power and new energy; the company will continue to advance clean energy photovoltaic and wind power projects to achieve diversified development[48] - Project Construction Risk: New energy generation projects require government approval and compliance with environmental, land policy, and other regulatory requirements; technical and equipment risks exist during the construction period, and operating period revenues are affected by factors such as electricity market demand and pricing policies; the company will strengthen compliant lean management and establish full-chain project control for projects[49] Section IV Corporate Governance, Environment, and Society This section details changes in the company's governance structure, including board and management personnel, and outlines its contributions to environmental protection and rural revitalization efforts I. Changes in Directors and Senior Management During the reporting period, independent director Yao Xiaomin resigned due to the expiration of his term; the company convened an extraordinary general meeting to elect new board members and reappointed some senior management; additionally, the company resolved to abolish the supervisory board, with its functions to be exercised by the Board's Audit Committee - Independent director Yao Xiaomin resigned from his independent director and other positions upon the expiration of his 6-year continuous term[52] - The company's first extraordinary general meeting in 2025 approved the election of new board members and reappointed Liu Haiting as Deputy General Manager, Li Zhibing as Deputy General Manager and Board Secretary, and Zhang Jianlin as Chief Accountant[53] - The company's first extraordinary general meeting in 2025 approved the 'Proposal on Amending the Articles of Association,' whereby the company will no longer establish a supervisory board, and its functions will be exercised by the Board's Audit Committee[54] II. Profit Distribution or Capital Reserve Conversion Plan This semi-annual report does not propose any profit distribution or capital reserve to share capital conversion plan - No distribution or conversion is proposed in this semi-annual report[55] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information One of the company's subsidiaries, Shanxi Yangguang Power Generation Co., Ltd., is included in the list of enterprises required to disclose environmental information, and its environmental information disclosure report can be accessed on the designated system - The number of enterprises included in the list of enterprises required to disclose environmental information is 1, namely Shanxi Yangguang Power Generation Co., Ltd[57] - Shanxi Yangguang Power Generation Co., Ltd.'s environmental information disclosure report can be queried on the Enterprise Environmental Information Disclosure System (Shanxi)[57] V. Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization In the first half of 2025, Tongbao Energy actively responded to the national rural revitalization strategy by implementing rural grid upgrade projects, supporting new energy development, promoting rural electrification, implementing electricity bill reduction policies for low-income and 'five-guarantee' households, and conducting multi-dimensional assistance activities, thereby contributing to rural economic development and livelihood improvement - In the first half of the year, 5 rural grid consolidation and upgrade projects were completed, achieving a rural grid power supply reliability rate of 99.8216% and an overall voltage qualification rate of 99.922% within the supply area[58] - Green channels were established for photovoltaic poverty alleviation projects, supporting the development of new energy sources such as distributed photovoltaic, decentralized wind power, and biomass power generation in rural areas[58] - The company actively implemented electricity bill reduction policies for low-income and 'five-guarantee' households, with cumulative reductions of RMB 3.7087 million in the first half of the year, benefiting 86,419 households[58] - Actively carried out 'five assistance' initiatives including Party building, education, and industry, diligently conducted 'warm-heart activities,' and implemented renovation projects for roads and drinking water[58] Section V Significant Matters This section covers the company's fulfillment of commitments, absence of major litigation, and details of significant related-party transactions during the reporting period I. Fulfillment of Commitments The company's actual controller, shareholders, and related parties strictly fulfilled various commitments during the reporting period, including resolving land title defects, avoiding horizontal competition, reducing related-party transactions, ensuring company independence, and refraining from illegal fund occupation - Shanxi International Power and Asset Company committed to resolving property title defects, including land, and bearing losses caused to the listed company by defective properties[60] - Shanxi International Power committed to designating Tongbao Energy as the ultimate integration platform for thermal power generation business, prioritizing support for Tongbao Energy in power generation project development, capital operations, and asset acquisitions to avoid horizontal competition[60] - Shanxi International Power committed to ensuring fair operations based on market principles and fair prices for necessary and unavoidable related-party transactions, and to fulfilling transaction procedures and information disclosure obligations according to relevant regulations[60][61] - Shanxi International Power and Asset Company committed to ensuring the listed company's independence in personnel, assets, business, finance, and organization, and pledged not to illegally occupy the listed company's funds[61] VII. Significant Litigation and Arbitration Matters During the reporting period, the company had no significant litigation or arbitration matters - The company had no significant litigation or arbitration matters during the current reporting period[62] X. Significant Related-Party Transactions In the first half of 2025, the company's actual daily related-party transactions amounted to RMB 804.3981 million, not exceeding the annual estimated amount, primarily involving purchases of fuel, sales of goods, and acceptance of services from related parties (I) Related-Party Transactions Related to Daily Operations In the first half of 2025, the company's actual related-party transactions related to daily operations amounted to RMB 804.3981 million, primarily including RMB 606.3719 million for coal purchases from Jinneng Holding Power Group Co., Ltd. Fuel Branch, RMB 56.6244 million for electricity sales to enterprises under Jinneng Holding Group Co., Ltd., and acceptance of freight, operation/maintenance, and property services from related parties - The company's 16th meeting of the Eleventh Board of Directors held on April 23, 2025, and the 2024 Annual General Meeting held on May 16, 2025, approved the '2025 Annual Daily Related-Party Transaction Proposal,' providing annual estimates for potential daily related-party transactions in 2025[62] Actual Daily Related-Party Transactions for H1 2025 (RMB Ten Thousand Yuan) | Related-Party Transaction Type | Related Party | Estimated Amount for This Period | Actual Amount for H1 2025 | | :--- | :--- | :--- | :--- | | Purchase of Fuel from Related Party | Jinneng Holding Power Group Co., Ltd. Fuel Branch | 160,000 | 60,637.19 | | Sale of Goods to Related Party | Enterprises under Jinneng Holding Group Co., Ltd. | 18,000 | 5,662.44 | | Purchase of Goods from Related Party | Enterprises under Jinneng Holding Group Co., Ltd. | 2,500 | 55.93 | | Acceptance of Services from Related Party | Pingding Deyunchang Logistics Co., Ltd. | 10,000 | 3,644.51 | | Acceptance of Services from Related Party | Enterprises under Jinneng Holding Group Co., Ltd. | 5,500 | 2,074.08 | | Acceptance of Services from Related Party | Enterprises under Jinneng Holding Group Co., Ltd. | 3,500 | 1,103.59 | | Other (Asset Lease) | Jinneng Power Group Electricity Sales Co., Ltd. | 14,565 | 6,797.66 | | Other (Building/Land Lease) | Enterprises under Jinneng Holding Group Co., Ltd. | 3,000 | 439.42 | | Other (Building Rental) | Enterprises under Jinneng Holding Group Co., Ltd. | 100 | 24.99 | | Total | / | 217,165 | 80,439.81 | Section VI Share Changes and Shareholder Information This section details the company's share capital stability and provides an overview of its shareholder structure, including the top ten shareholders and their ultimate controlling parties I. Share Capital Changes During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[68] II. Shareholder Information As of the end of the reporting period, the company had 33,193 common shareholders; among the top ten shareholders, Shanxi International Power Group Co., Ltd. held 57.33%, being the largest shareholder, and the actual controller of some top ten shareholders is also the Shanxi Provincial State-owned Assets Supervision and Administration Commission - As of the end of the reporting period, the total number of common shareholders was 33,193[69] Top Ten Shareholders' Shareholding as of the End of the Reporting Period | Shareholder Name | Number of Shares Held at Period End (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Shanxi International Power Group Co., Ltd. | 657,313,245 | 57.33 | State-owned Legal Person | | Taiyuan Iron & Steel (Group) Co., Ltd. | 35,861,574 | 3.13 | State-owned Legal Person | | Shanxi Tongpei Coal Marketing Co., Ltd. | 11,973,658 | 1.04 | Other | | Central Huijin Asset Management Co., Ltd. | 8,836,600 | 0.77 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 8,658,028 | 0.76 | Other | | Sun Ming | 5,685,300 | 0.50 | Domestic Natural Person | | Beijing Moming Asset Management Co., Ltd. - Moming Rongzhi Yangguang Fund Phase 12 | 5,367,000 | 0.47 | Other | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | 5,291,400 | 0.46 | Other | | Huayang New Materials Technology Group Co., Ltd. | 5,131,568 | 0.45 | State-owned Legal Person | | Southern Asset Management - Agricultural Bank of China - Southern CSI Financial Asset Management Plan | 4,203,300 | 0.37 | Other | - Among the company's top ten shareholders, the actual controller of Shanxi International Power Group Co., Ltd., Shanxi Tongpei Coal Marketing Co., Ltd., and Huayang New Materials Technology Group Co., Ltd. is the Shanxi Provincial State-owned Assets Supervision and Administration Commission[72] Section VII Bond-Related Information This section confirms that the company has no outstanding corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[75] - The company has no convertible corporate bonds[75] Section VIII Financial Report This section presents the company's unaudited financial statements for the first half of 2025, including balance sheets, income statements, cash flow statements, and detailed notes on accounting policies and financial items I. Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[77] II. Financial Statements This section includes 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 Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets amounted to RMB 10,823,340,753.58, total liabilities to RMB 2,828,399,881.71, and total owners' equity to RMB 7,994,940,871.87 Key Data from Consolidated Balance Sheet (June 30, 2025) | Item | Amount (RMB Yuan) | | :--- | :--- | | Total Assets | 10,823,340,753.58 | | Total Liabilities | 2,828,399,881.71 | | Total Owners' Equity | 7,994,940,871.87 | | Total Owners' Equity Attributable to Parent Company | 8,031,847,483.97 | Consolidated Income Statement From January to June 2025, the company's consolidated total operating revenue was RMB 5,560,608,087.87, net profit was RMB 313,585,717.09, net profit attributable to parent company shareholders was RMB 314,203,282.91, and basic earnings per share was RMB 0.2741 Key Data from Consolidated Income Statement (Jan-Jun 2025) | Item | Amount (RMB Yuan) | | :--- | :--- | | Total Operating Revenue | 5,560,608,087.87 | | Total Operating Costs | 5,261,739,015.75 | | Total Profit | 398,841,746.69 | | Net Profit | 313,585,717.09 | | Net Profit Attributable to Parent Company Shareholders | 314,203,282.91 | | Basic Earnings Per Share (RMB Yuan/share) | 0.2741 | Consolidated Cash Flow Statement From January to June 2025, the company's net cash flow from operating activities was RMB 715,242,538.97, net cash flow from investing activities was -RMB 369,209,915.82, and net cash flow from financing activities was RMB 41,031,090.32 Key Data from Consolidated Cash Flow Statement (Jan-Jun 2025) | Item | Amount (RMB Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 715,242,538.97 | | Net Cash Flow from Investing Activities | -369,209,915.82 | | Net Cash Flow from Financing Activities | 41,031,090.32 | | Net Increase in Cash and Cash Equivalents | 387,063,713.47 | | Cash and Cash Equivalents at Period End | 2,857,225,843.13 | III. Company Basic Information The company is a joint-stock limited company established with the approval of Shanxi Provincial System Reform Commission, listed on the Shanghai Stock Exchange in December 1996; its registered capital is RMB 1,146,502,523.00, with principal businesses in thermal power generation and transmission/distribution, and its ultimate controlling party is the Shanxi Provincial State-owned Assets Supervision and Administration Commission - The company's registered capital is RMB 1,146,502,523.00, registered address is Taiyuan, Shanxi, and legal representative is Li Xin[103] - The company belongs to the power industry, primarily engaged in thermal power generation, transmission, and distribution businesses[103] - The ultimate controlling party of the company is the Shanxi Provincial State-owned Assets Supervision and Administration Commission[103] - These financial statements were approved by the company's Board of Directors on August 26, 2025[103] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, adhering to the Accounting Standards for Business Enterprises issued by the Ministry of Finance, primarily using the accrual basis and historical cost as measurement bases; the company has assessed its ability to continue as a going concern and found no significant doubts - The company's financial statements are prepared on a going concern basis[104] - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and their application guidance, interpretations of Accounting Standards for Business Enterprises, and other relevant regulations issued by the Ministry of Finance[104] - The company's accounting is based on the accrual method; except for certain financial instruments, these financial statements are measured at historical cost[104] - The company evaluated its ability to continue as a going concern for 12 months from the end of the reporting period and found no matters or circumstances that would cast significant doubt on its ability to continue as a going concern[105] V. Significant Accounting Policies and Estimates This section elaborates on the company's significant accounting policies and estimates, determined based on its thermal power generation and transmission/distribution business characteristics, covering key areas such as financial instruments, revenue recognition, government grants, and deferred income tax, ensuring that the financial statements truly and completely reflect the company's financial position - The company is engaged in thermal power generation and transmission/distribution businesses; based on its production and operation characteristics, the company determines specific accounting policies in accordance with relevant provisions of the Accounting Standards for Business Enterprises[106] - Upon initial recognition, the company classifies financial assets into three categories—measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss—based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets[123] - The company recognizes revenue when it satisfies a performance obligation in a contract, i.e., when the customer obtains control of the related goods or services, and specifically describes the revenue recognition methods for electricity sales, heat sales, power distribution sales, and construction and installation services[206][207][208] - Government grants are recognized when the conditions attached to the grant are met and the grants can be received, classified into government grants related to assets and government grants related to income, with detailed explanations of their accounting treatment methods[210] - The company recognizes deferred income tax using the balance sheet liability method based on temporary differences between the carrying amounts of assets and liabilities at the balance sheet date and their tax bases[212] VI. Taxation This section details the company's and its subsidiaries' main tax categories, rates, and tax preferential policies, including VAT, corporate income tax, and urban maintenance and construction tax; some subsidiaries enjoy VAT exemption for rural power grid maintenance fees, 'three-year exemption and three-year half reduction' corporate income tax benefits, and small and micro enterprise income tax benefits due to meeting eligibility criteria Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Income | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | Amount of Turnover Tax Payable | 7%, 5%, 1% | | Corporate Income Tax | Taxable Income | 25%, 20% | | Education Surcharge, Local Education Surcharge | Amount of Turnover Tax Payable | 3%, 2% | | Property Tax | 70% of Original Property Value (or Rental Income) | 1.2%, 12% | - Shanxi Local Electric Power Co., Ltd. enjoys VAT exemption for rural power grid maintenance fees, as well as the 'three-year exemption and three-year half reduction' corporate income tax preferential policy for new power grid projects that comply with the 'Catalogue of Corporate Income Tax Preferential Policies for Public Infrastructure Projects'[229] - Subsidiaries such as Shanxi Jinhe Electric Power Co., Ltd., Tongbao Yuanping Clean Energy Co., Ltd., Tongbao Ningwu Clean Energy Co., Ltd., and Tongbao Shuozhou Pinglu Clean Energy Co., Ltd. enjoy small and micro enterprise income tax preferential policies, with a portion of their taxable income subject to a 20% corporate income tax rate[229] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes for each item in the consolidated financial statements, including monetary funds, financial assets held for trading, accounts receivable, construction in progress, long-term borrowings, operating revenue, and costs; the significant growth in construction in progress and long-term borrowings reflects the company's investments in clean energy projects - The ending balance of monetary funds was RMB 2,857,225,843.13, primarily consisting of bank deposits[231] - The ending balance of financial assets held for trading was RMB 5,570,552.00, primarily equity instrument investments[233][234] - The ending carrying value of accounts receivable was RMB 749,370,058.72, a 20.65% decrease from the beginning of the period[238][36] - The ending carrying value of construction in progress was RMB 483,204,041.63, a 38.46% increase from the beginning of the period, primarily due to increased project progress by subsidiaries[296][36] - The ending balance of long-term borrowings was RMB 352,552,254.40, a 182.04% increase from the beginning of the period, primarily due to new project loans obtained by the company during the current reporting period[345][37] - Operating revenue for the current period was RMB 5,560,608,087.87, and operating cost was RMB 5,082,379,364.35[369] VIII. Research and Development Expenses The company incurred no R&D expenses in the current reporting period, compared to RMB 737,802.00 in the same period last year - Current period R&D expenses were RMB 0, while the prior period amount was RMB 737,802.00[411] IX. Changes in Consolidation Scope During the reporting period, the company's consolidation scope did not change due to business combinations not under common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries - There were no business combinations not under common control in the current period[411] - There were no business combinations under common control in the current period[411] - There were no transactions or events resulting in the loss of control over subsidiaries in the current period[412] X. Interests in Other Entities This section details the company's interests in subsidiaries, joint ventures, and associates, including the composition of the enterprise group, and key financial information of significant non-wholly-owned subsidiaries and associates (1) Composition of the Enterprise Group The company owns 13 subsidiaries, including Shanxi Yangguang Power Generation Co., Ltd. and Shanxi Local Electric Power Co., Ltd., primarily engaged in power production and supply, with all subsidiaries being 100% directly or indirectly controlled - The company owns 13 subsidiaries, including Shanxi Yangguang Power Generation Co., Ltd., Shanxi Local Electric Power Co., Ltd., and Shanxi Xingguang Transmission Co., Ltd[412][413] - The principal business nature of the subsidiaries is power production and power supply (distribution/transmission)[412][413] - The company holds 100% direct or indirect equity in all subsidiaries[412][413] (2) Significant Non-Wholly-Owned Subsidiaries Shanxi Xingguang Transmission Co., Ltd. is a significant non-wholly-owned subsidiary of the company, with a minority shareholder stake of 20.00%, and the loss attributable to minority shareholders for the current period was -RMB 617,565.82 - Shanxi Xingguang Transmission Co., Ltd. is a significant non-wholly-owned subsidiary of the company, with a minority shareholder stake of 20.00%[415] - The loss attributable to minority shareholders for the current period was -RMB 617,565.82[415] (3) Key Financial Information of Significant Associates The company's significant associates include Shanxi Ningwu Yushupo Coal Industry Co., Ltd. and Jinneng Holding Jinbei Energy (Shanxi) Co., Ltd.; Shanxi Ningwu Yushupo Coal Industry Co., Ltd. achieved a net profit of RMB 324,122,476.15 in the current period, contributing significantly to the company's investment income - Shanxi Ningwu Yushupo Coal Industry Co., Ltd. has a 23.00% shareholding, with a net profit of RMB 324,122,476.15 for the current period[419] - Jinneng Holding Jinbei Energy (Shanxi) Co., Ltd. has a 33.33% shareholding, with a net profit of RMB 214,712.67 for the current period[419] - Dividends received from associates in the current year amounted to RMB 69,000,000.00[419] XI. Government Grants The total government grants recognized in profit or loss for the current reporting period amounted to RMB 10,208,371.45, with RMB 8,501,365.90 related to assets and RMB 1,707,005.55 related to income Government Grants Recognized in Profit or Loss (H1 2025) | Type | Amount for Current Period (RMB Yuan) | Amount for Prior Period (RMB Yuan) | | :--- | :--- | :--- | | Related to Assets | 8,501,365.90 | 6,505,909.60 | | Related to Income | 1,707,005.55 | 697,484.84 | | Total | 10,208,371.45 | 7,203,394.44 | XII. Risks Related to Financial Instruments The company balances risk and return by managing and monitoring market risks (foreign exchange, interest rate, other price risks), credit risk, and liquidity risk; the company has low foreign exchange risk, interest rate risk primarily relates to floating-rate borrowings, credit risk is mitigated through portfolio management and bad debt provisions, and liquidity risk is managed through sufficient cash and borrowing monitoring - The company's principal operations are located within China, with major businesses settled in RMB, thus it is less affected by foreign exchange risk[426] - The company's risk of financial instrument cash flow changes due to interest rate fluctuations is primarily related to floating-rate bank borrowings, and the company's policy is to maintain these borrowings at floating rates[426] - The company mitigates price risk for equity security investments by holding a diversified portfolio of equity securities[426] - The company manages credit risk by portfolio classification, with credit risk primarily arising from bank deposits, notes receivable, accounts receivable, other receivables, and long-term receivables[427] - The company's liquid funds are deposited in banks with higher credit ratings, thus the credit risk of liquid funds is low[427] XIII. Disclosure of Fair Value This section discloses the fair value of the company's assets and liabilities measured at fair value at the end of the period, categorized into three levels based on the observability of inputs; financial assets held for trading (equity instrument investments) are Level 1, notes receivable financing is Level 2, and other equity instrument investments (unlisted equity) are Level 3 Fair Value of Assets and Liabilities Measured at Fair Value at Period End (RMB Yuan) | Item | Level 1 Fair Value Measurement | Level 2 Fair Value Measurement | Level 3 Fair Value Measurement | Total | | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading (Equity Instrument Investments) | 5,570,552.00 | | | 5,570,552.00 | | Other Equity Instrument Investments | | | 577,556,943.93 | 577,556,943.93 | | Notes Receivable Financing | | 46,901,523.69 | | 46,901,523.69 | | Total Assets Continuously Measured at Fair Value | 5,570,552.00 | 46,901,523.69 | 577,556,943.93 | 630,029,019.62 | - The fair value of Level 1 fair value measurement items (Bank of Communications shares) is derived from the closing price of shares in active markets at the reporting date[433] - The remaining maturity of Level 2 fair value measurement items (notes receivable financing) is short, and their carrying amount is close to their fair value[434] - Level 3 fair value measurement items (other equity instrument investments) primarily consist of unlisted equity, for which the company uses valuation techniques to determine fair value, with key inputs including price-to-book ratio[435] XIV. Related Parties and Related-Party Transactions This section details the company's related parties and transactions with them, including parent company, subsidiaries, associates, and other related parties; related-party transactions primarily involve purchase and sale of goods, provision and acceptance of services, related-party leasing, and collection/payment of funds on behalf of others 1. Information on the Company's Parent Company The company's parent company is Shanxi International Power Group Co., Ltd., with a 57.33% shareholding, and its ultimate controlling party is the Shanxi Provincial State-owned Assets Supervision and Administration Commission - The parent company's name is Shanxi International Power Group Co., Ltd., registered in Taiyuan, Shanxi, with a registered capital of RMB 6 billion[439] - The parent company's shareholding ratio and voting rights ratio in the company are both 57.33%[439] - The ultimate controlling party of the company is the Shanxi Provincial State-owned Assets Supervision and Administration Commission[439] 5. Related-Party Transactions The company engaged in multiple daily operating related-party transactions, including RMB 536.6123 million for coal purchases from Jinneng Holding Power Group Co., Ltd. Fuel Branch, and RMB 1,304.6726 million for electricity sales to Shanxi Zhonglv Huarun Co., Ltd.; additionally, related-party leasing and funds collected/paid on behalf of related parties were involved Related-Party Transactions for Purchase of Goods/Acceptance of Services (RMB Ten Thousand Yuan) | Related Party | Related-Party Transaction Content | Amount for Current Period | Approved Transaction Limit | | :--- | :--- | :--- | :--- | | Jinneng Holding Power Group Co., Ltd. Fuel Branch | Coal Payment | 53,661.23 | 160,000.00 | | Pingding Deyunchang Logistics Co., Ltd. | Freight | 3,343.59 | 10,000.00 | | Shouyang County Yuntongyuan Logistics Distribution Co., Ltd. | Freight | 1,686.34 | 2,912.00 | | Jinneng Environmental Protection Engineering Co., Ltd. | Operation and Maintenance Fee | 373.80 | 815.00 | | Shanxi Coal Construction Supervision and Consulting Co., Ltd. | Engineering Supervision, Budget Review | 217.58 | 426.66 | Related-Party Transactions for Sale of Goods/Provision of Services (RMB Ten Thousand Yuan) | Related Party | Related-Party Transaction Content | Amount for Current Period | | :--- | :--- | :--- | | Shanxi Zhonglv Huarun Co., Ltd. | Electricity Sales | 130,467.26 | | Shanxi Puxian Huasheng Coal Industry Co., Ltd. | Electricity Sales | 1,189.81 | | Shanxi Shenzhou Coal Industry Co., Ltd. | Electricity Sales | 1,084.31 | | Tongmei Zheneng Majialiang Coal Industry Co., Ltd. | Electricity Sales | 507.21 | | Shanxi Coal Marketing Group Xiayao Coal Industry Co., Ltd. | Electricity Sales | 469.97 | - As a lessee, the company leased land, buildings, and local power grid assets from related parties such as Shanxi International Power Group Co., Ltd. and Jinneng Power Group Electricity Sales Co., Ltd[448] - Shanxi Local Electric Power Co., Ltd. collected and paid on behalf of Shanxi International Power Group Co., Ltd. rural grid loan repayment funds totaling RMB 365.7695 million[452] - Shanxi International Power collected and paid on behalf of its wholly-owned subsidiary, Local Power Company, special loan interest for power grid construction projects totaling RMB 0.7211 million[453] 6. Unsettled Items with Related Parties, Including Receivables and Payables This section lists the company's unsettled receivable and payable items with related parties at period-end, including accounts receivable, prepayments, other receivables, accounts payable, contract liabilities, other payables, taxes payable, and long-term payables Receivables from Related Parties (RMB Ten Thousand Yuan) | Item | Related Party | Ending Carrying Balance | Bad Debt Provision | | :--- | :--- | :--- | :--- | | Accounts Receivable | Shanxi Zhonglv Huarun Co., Ltd. | 25,616.30 | 1,280.82 | | Accounts Receivable | Shanxi Dingzheng Environmental Protection Building Materials Co., Ltd. | 1,791.53 | 159.43 | | Accounts Receivable | Shanxi Yaoguang Coal Power Co., Ltd. | 1,418.17 | 1,418.17 | | Prepayments | Jinneng Holding Coal Industry Group Co., Ltd. | 464.68 | | | Other Receivables | Jinneng Holding Power Group Yangquan Power Generation Co., Ltd. | 14.30 | 2.15 | Payables to Related Parties (RMB Ten Thousand Yuan) | Item | Related Party | Ending Carrying Balance | | :--- | :--- | :--- | | Accounts Payable | Jinneng Holding Power Group Co., Ltd. Fuel Branch | 4,489.05 | | Accounts Payable | Pingding Deyunchang Logistics Co., Ltd. | 1,760.65 | | Other Payables | Shanxi International Power Group Co., Ltd. | 1,022.99 | | Long-Term Payables | Shanxi International Power Group Co., Ltd. | 1,200.00 | | Non-Current Liabilities Due Within One Year | Jinneng Power Group Electricity Sales Co., Ltd. | 5,941.41 | XVI. Commitments and Contingencies As of the balance sheet date, the company had no significant commitments or contingencies requiring disclosure - The company had no significant contingencies requiring disclosure[460] XVII. Events After the Balance Sheet Date As of the disclosure date of this report, the company had no significant non-adjusting events, profit distribution, or sales returns after the balance sheet date - The company had no significant non-adjusting events[461] - The company had no profit distribution[461] - The company had no sales returns[461] XVIII. Other Significant Matters This section discloses the company's segment information, with three reporting segments: thermal power generation, power grid distribution, and other; each segment is managed independently, and inter-segment transfer pricing is determined by reference to market prices 6. Segment Information The company identified three reporting segments—thermal power generation, power grid distribution, and other—based on internal organizational structure and management requirements; each segment is managed independently, with inter-segment transfer prices determined by market reference; in the first half of 2025, the power grid distribution segment contributed the highest operating revenue and net profit - The company has 3 reporting segments: thermal power generation segment, power grid distribution segment, and other segments[462] - Each reporting segment is a business unit providing different products and services, independently managing its production and operating activities, and evaluating its operating results separately[462] Financial Information of Reporting Segments (H1 2025) | Item | Thermal Power Generation (RMB Yuan) | Power Grid Distribution (RMB Yuan) | Other Segments (RMB Yuan) | Total (RMB Yuan) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 886,202,274.48 | 4,673,465,636.40 | 940,176.99 | 5,560,608,087.87 | | Operating Cost | 844,896,320.70 | 4,237,460,849.43 | 22,194.22 | 5,082,379,364