哈尔滨电气(01133) - 2025 - 中期业绩

General Information This announcement discloses the unaudited operating results for the six months ended June 30, 2025, with RMB as the reporting currency Announcement Details The announcement details the unaudited but reviewed operating performance of Harbin Electric Company Limited and its subsidiaries for the first half of 2025 - This announcement discloses the unaudited but reviewed operating results of Harbin Electric Company Limited and its subsidiaries for the six months ended June 30, 2025[3] - All currencies discussed in the report are in RMB, unless otherwise specified[4] Consolidated Financial Statements This section presents the consolidated financial statements, including the balance sheet, income statement, cash flow statement, and statement of changes in equity Consolidated Balance Sheet As of June 30, 2025, total assets increased by 11.76% to RMB 80.41 billion, with liabilities rising 14.05% to RMB 63.59 billion, and an asset-liability ratio of 79.08% Consolidated Balance Sheet Key Data (As of June 30, 2025) | Metric | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 80,410,032,989.42 | 71,946,155,154.17 | +8,463,877,835.25 | +11.76% | | Total Current Assets | 67,682,918,516.57 | 60,208,795,230.03 | +7,474,123,286.54 | +12.41% | | Total Non-current Assets | 12,727,114,472.85 | 11,737,359,924.14 | +989,754,548.71 | +8.43% | | Total Liabilities | 63,588,484,622.91 | 55,756,293,925.45 | +7,832,190,697.46 | +14.05% | | Total Current Liabilities | 61,406,117,639.53 | 53,192,396,798.99 | +8,213,720,840.54 | +15.44% | | Total Non-current Liabilities | 2,182,366,983.38 | 2,563,897,126.46 | -381,530,143.08 | -14.88% | | Total Shareholders' Equity | 16,821,548,366.51 | 16,189,861,228.72 | +631,687,137.79 | +3.90% | | Total Equity Attributable to Owners of the Parent Company | 16,122,704,764.35 | 15,482,762,134.00 | +639,942,630.35 | +4.13% | | Asset-Liability Ratio | 79.08% | 77.49% | +1.59% | - | - The increase in total liabilities is primarily due to business growth and increases in bills payable, accounts payable, and contract liabilities (advances from customers)[81] Consolidated Income Statement For the six months ended June 30, 2025, total operating revenue grew 31.49% to RMB 22.70 billion, with net profit attributable to the parent company increasing 101.06% to RMB 1.05 billion Consolidated Income Statement Key Data (January-June 2025) | Metric | January-June 2025 (RMB) | January-June 2024 (RMB) | Change | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 22,696,104,178.47 | 17,260,636,497.03 | +5,435,467,681.44 | +31.49% | | Total Operating Costs | 21,442,004,500.37 | 16,640,870,337.70 | +4,801,134,162.67 | +28.85% | | Operating Profit | 1,222,779,847.09 | 694,868,031.09 | +527,911,816.00 | +76.09% | | Total Profit | 1,227,435,715.46 | 690,481,328.01 | +536,954,387.45 | +77.77% | | Net Profit | 1,056,332,627.14 | 541,073,632.84 | +515,258,994.30 | +95.23% | | Net Profit Attributable to Owners of the Parent Company | 1,050,891,055.16 | 522,667,422.32 | +528,223,632.84 | +101.06% | | Basic Earnings Per Share (RMB) | 0.47 | 0.23 | +0.24 | +104.35% | | Diluted Earnings Per Share (RMB) | 0.47 | 0.23 | +0.24 | +104.35% | - Net after-tax other comprehensive income shifted from a negative value in the prior period to a positive value, indicating a significant increase in total comprehensive income[12][13][14] Consolidated Cash Flow Statement For the six months ended June 30, 2025, net cash flow from operating activities significantly improved to RMB 3.19 billion, driven by stronger collections Consolidated Cash Flow Statement Key Data (January-June 2025) | Metric | January-June 2025 (RMB) | January-June 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,192,093,533.31 | -1,430,147,768.73 | +4,622,241,302.04 | | Net Cash Flow from Investing Activities | -1,051,156,166.95 | -2,326,470.95 | -1,048,829,696.00 | | Net Cash Flow from Financing Activities | -398,946,560.54 | -676,024,063.22 | +277,077,502.68 | | Net Increase in Cash and Cash Equivalents | 1,668,743,579.33 | -2,165,912,507.45 | +3,834,656,086.78 | | Cash and Cash Equivalents at Period End | 16,842,496,950.52 | 15,198,319,600.90 | +1,644,177,349.62 | - Net cash flow from operating activities significantly increased, primarily due to the company's enhanced efforts in accounts receivable collection[83] Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to owners of the parent company increased by RMB 0.64 billion, driven by higher comprehensive income Changes in Equity Attributable to Owners of the Parent Company (January-June 2025) | Metric | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Parent Company | 16,122,704,764.35 | 15,482,762,134.00 | +639,942,630.35 | | Other Comprehensive Income | -17,522,025.30 | -102,281,657.96 | +84,759,632.66 | | Retained Earnings | 7,364,157,846.98 | 6,823,254,033.56 | +540,903,813.42 | | Total Comprehensive Income (Attributable to Parent Company) | 1,133,298,098.08 | 504,875,133.08 | +628,422,965.00 | - Net after-tax other comprehensive income for the current period was RMB 85,272,494.20, compared to RMB -17,792,289.24 in the prior period, indicating significant improvement[12] Consolidated Financial Summary This section provides a summary of the company's information, financial statement preparation basis, accounting policies, segment information, and key financial notes Company Information Harbin Electric Company Limited, incorporated in 1994, specializes in power generation equipment and EPC, with Harbin Electric Group Co., Ltd. as its ultimate controlling entity - The company was incorporated in Harbin on October 6, 1994, and restructured as a Hong Kong-listed joint-stock company on November 5, 1994[34] - The company's parent company and ultimate controlling party is Harbin Electric Group Co., Ltd[35] - The company's main business involves the production and sale of power generation equipment and undertaking EPC projects for power plants, operating in the generator and generator set manufacturing industry[35] Basis of Preparation and Compliance Financial statements are prepared on a going concern basis, adhering to Chinese Enterprise Accounting Standards and relevant regulatory disclosure requirements - The financial statements are prepared on a going concern basis, in accordance with Chinese Enterprise Accounting Standards and relevant regulations from the CSRC and HKEX[36] - The company declares that the prepared financial statements comply with Enterprise Accounting Standards, truly and completely reflecting the financial position, operating results, and cash flows[37] - Chinese mainland Enterprise Accounting Standards are equivalent to Hong Kong Financial Reporting Standards, allowing Hong Kong-listed companies to prepare financial reports using Chinese mainland standards[37] Significant Accounting Policies and Estimates The fiscal year runs from January 1 to December 31, with RMB as the primary functional currency, and specific accounting policies for business combinations are detailed - The accounting period is from January 1 to December 31 of the Gregorian calendar[38] - The company and most of its subsidiaries use RMB as their functional currency, while some Hong Kong subsidiaries use USD[39] - Detailed provisions are made for the measurement of assets and liabilities in business combinations under common control, and the criteria for identifying the acquisition date and treatment of merger costs in business combinations not under common control[40][43][44][45] - Intermediary fees such as audit, legal services, and appraisal consulting incurred for business combinations are recognized as current period expenses when incurred[46] Segment Information and Accounting Policy Changes The company's main business is segmented into four areas, with New Power Systems being the largest contributor, and new accounting standards for warranty provisions were adopted with no material profit impact - The company's main business is divided into three systems: New Power Systems (primarily new energy), Clean and Efficient Industrial Systems, Green and Low-Carbon Drive Systems, with the finance company and other non-core businesses as a separate segment[47][51] - Inter-segment transfer prices are determined by actual transaction prices, and indirect expenses are allocated based on revenue proportion[48][53] - Effective January 1, 2024, the company adopted Interpretation No. 18 of Enterprise Accounting Standards, accounting for provisions arising from warranty-type quality assurance, with no significant impact on profit[49] Segment Financial Information (January-June 2025) | Item | New Power Systems | Green and Low-Carbon Drive Systems | Clean and Efficient Industrial Systems | Other Businesses | Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (Million RMB) | 15,900.85 | 170.76 | 2,287.26 | 6,099.17 | -1,761.94 | 22,696.10 | | Net Profit (Million RMB) | 1,129.01 | 12.12 | 162.40 | 433.06 | -680.26 | 1,056.33 | | Total Assets (Million RMB) | 79,265.51 | 851.22 | 11,401.98 | 30,404.29 | -41,512.97 | 80,410.03 | | Total Liabilities (Million RMB) | 61,110.91 | 656.26 | 8,790.53 | 23,440.64 | -30,409.85 | 63,588.48 | Notes to Consolidated Financial Statements This section details management expenses, impairment losses, dividends, EPS, income tax, and accounts receivable/payable, noting increases in expenses and receivables, and a significant rise in EPS Management Expenses Details (January-June 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Staff Remuneration | 381,714,576.48 | 325,677,609.51 | +56,036,966.97 | +17.21% | | Depreciation and Amortization | 109,964,713.77 | 97,759,883.59 | +12,204,830.18 | +12.48% | | Total | 758,385,864.32 | 658,448,508.09 | +99,937,356.23 | +15.18% | Credit Impairment Losses (January-June 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Bad Debt Losses | -164,647,350.97 | 15,629,160.48 | -180,276,511.45 | | Impairment Losses on Other Debt Investments | -31,838,347.50 | 0.00 | -31,838,347.50 | | Total | -196,485,698.47 | 15,629,160.48 | -212,114,858.95 | Asset Impairment Losses (January-June 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Inventory Impairment Losses | -30,870,653.12 | -7,373,314.31 | -23,497,338.81 | | Contract Asset Impairment Losses | -62,094,275.36 | -74,578,741.05 | +12,484,465.69 | | Fixed Asset Impairment Losses | -309,873.46 | 0.00 | -309,873.46 | | Total | -93,274,801.94 | -81,952,055.36 | -11,322,746.58 | - The Board of Directors does not recommend the distribution of an interim dividend for the six months ended June 30, 2025[56][97] - The company and some subsidiaries enjoy a 15% preferential income tax rate as high-tech enterprises, while other Chinese subsidiaries pay 25%[58][90] - As of June 30, 2025, total accounts receivable amounted to RMB 9.39 billion, with bad debt provisions of RMB 4.05 billion, resulting in a net amount of RMB 5.34 billion[61][62] - The net amount of bad debt provisions accrued, reversed, or recovered in the current period was RMB 0.102 billion, with no actual write-offs of accounts receivable during the period[65][66] - As of June 30, 2025, total accounts payable amounted to RMB 19.51 billion, representing a 17.75% increase from the beginning of the period[68] Industry Development and Business Review In H1 2025, the company achieved significant performance growth, with substantial increases in revenue, net profit, contract signings, and export orders, driven by accelerated green energy transition and increased R&D investment - In H1 2025, national newly installed power generation capacity reached 293.32 million kilowatts, with wind and solar power accounting for 89.9% of the total new capacity[70] H1 2025 Operating Performance Overview | Metric | H1 2025 (RMB) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 22.474 billion | +31.86% | | Net Profit Attributable to Owners of Parent Company | 1.051 billion | +101.06% | | Earnings Per Share | 0.47 | +0.24 | | Formal Contract Signing Amount | 35.561 billion | +36.64% | | Export Orders | 11.874 billion | +945.25% | - Formal contract signing amounts for EPC and trade and export orders significantly increased, primarily due to the official commencement of a large-scale EPC project in the Saudi Arabia region[74] - The company produced 20.12 million kilowatts of power generation equipment, a 39.05% year-on-year increase[75] - Export revenue was RMB 4.01 billion, accounting for 17.83% of operating revenue, primarily to Asian regions[76] - Gross profit margin was 12.05%, an increase of 0.70 percentage points year-on-year, mainly due to higher gross profit margins for nuclear and hydropower products[78][79] - Total period expenses amounted to RMB 1.58 billion, an increase of RMB 0.12 billion year-on-year, with increases in management and R&D expenses[80] - Total assets were RMB 80.41 billion, an 11.76% increase; total liabilities were RMB 63.59 billion, a 14.05% increase, with an asset-liability ratio of 79.08%[81] - Monetary funds amounted to RMB 17.91 billion, an 11.62% increase[83] - Completed fixed asset investments of RMB 0.48 billion, primarily for enhancing nuclear power and pumped-storage hydropower capacity and technological upgrades[85] - The company entered into capital increase agreements with Jiadian Co., Ltd. and Dongzhuang Co., Ltd., increasing capital in Dongzhuang Co., Ltd., which resulted in a 9.58% reduction in the company's shareholding percentage[86] - To manage exchange rate fluctuation risks, the company signed forward foreign exchange settlement contracts for a portion of future foreign currency receivables from overseas projects[87] - All 2023 raised funds have been fully utilized according to their planned purposes and schedule[88][89] - R&D investment increased by 62.87% year-on-year in H1, with an R&D intensity of 4.41%, achieving significant technological breakthroughs in areas such as gas turbines, hydro turbines, nuclear steam turbine retrofits, waste incineration boilers, and compressed air energy storage power stations[92][93] - As of June 30, 2025, the company had 11,143 employees, with total remuneration of RMB 1.03 billion, and implemented a stock appreciation rights incentive plan[94] Outlook The company anticipates significant growth in new energy capacity in 2025 and plans to enhance profitability, innovation, and operational efficiency to deliver better shareholder returns - National newly installed power generation capacity is expected to exceed 500 million kilowatts in 2025, with new energy generation accounting for approximately 400 million kilowatts[98] - The company will focus on serving national strategies, prioritizing efficiency and effectiveness, deepening quality and efficiency improvements, and enhancing profitability and cost competitiveness[99] - The company will adhere to technological innovation to foster new productive forces, comprehensively enhance the overall effectiveness of its innovation system, continuously increase funding, and advance breakthroughs in key core technologies[99] - The company will deepen reforms, optimize resource allocation, and strategically plan investment scale and structure to enhance investment efficiency, focusing on technological innovation, industrial upgrading, and digital transformation[99] Shareholder and Governance Information As of June 30, 2025, total share capital was 2.24 billion shares, with Harbin Electric Group Co., Ltd. as the largest shareholder; the company adheres to governance codes, and recent board changes include a new Chairman Major Shareholders' Equity Interests (As of June 30, 2025) | Shareholder Name | Share Class | Number of Shares | Capacity | Percentage of Relevant Class of Share Capital | Percentage of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Harbin Electric Group Co., Ltd. | State-owned Legal Person Shares | 1,560,705,000 | Beneficial Owner | 100% | 69.79% | - As of June 30, 2025, none of the company's directors, supervisors, senior management, or their associates held any equity interests or short positions in the company or its associated corporations[102] - The company complies with the provisions of Appendix C3 'Model Code for Securities Transactions by Directors of Listed Issuers' and Appendix C1 'Corporate Governance Code' of the Listing Rules[103][107] - For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[104] - The company provided guarantees totaling RMB 0.303 billion to its subsidiaries, with no external guarantees provided to third parties[105] - The company has RMB 0.29 billion in pledged assets for working capital loans, a significant increase from RMB 84.88 million as of June 30, 2024[106] - On July 9, 2025, Mr. Cao Zhian resigned as Executive Director and Chairman, and Mr. Huang Wei was elected Chairman, also resigning from his position as President[107] - The Audit Committee has reviewed and approved the company's interim results report for the six months ended June 30, 2025[108] - ShineWing Certified Public Accountants (Special General Partnership), the auditor, has reviewed the interim results report[109]