Financial Performance - The group achieved a revenue of approximately RMB 48.945 billion for the six months ended June 30, 2022, representing a decrease of about 7.21% compared to the same period in 2021[4]. - The profit attributable to equity holders of the company for the period was approximately RMB 1.580 billion, with basic earnings per share of approximately RMB 0.114[4]. - The group's revenue for the period was approximately RMB 48.945 billion, a decrease of 7.21% year-on-year, mainly due to reduced coal trading volume[27]. - The group reported a net profit attributable to equity holders of approximately RMB 1.580 billion, a decrease of 51.81% year-on-year[27]. - The company reported a net profit attributable to equity holders of RMB 1,126,250 thousand for the six months ended June 30, 2022, down 59.0% from RMB 2,751,154 thousand in the same period of 2021[108]. - Basic earnings per share decreased to RMB 0.114, compared to RMB 0.279 for the same period in 2021[108]. - The company reported a significant increase in fuel costs, which rose to RMB (37,793,593) from RMB (28,344,341) in the previous year, representing a 33.4% increase[70]. - The company incurred a total depreciation and amortization expense of RMB 5,059,441 thousand, down from RMB 6,014,890 thousand in the same period of 2021[103]. - The company reported a tax expense of RMB 141,668 thousand for the six months ended June 30, 2022, compared to a tax expense of RMB 674,498 thousand in the same period of 2021[106]. Operational Capacity and Strategy - The group operates a total of 42 power plants with a total installed capacity of 53,413.04 MW, including approximately 42,360 MW of coal-fired power, 8,589.05 MW of gas-fired power, and 2,459 MW of hydropower[5]. - Clean energy generation capacity, including gas and hydropower, accounts for approximately 20.69% of the total installed capacity[5]. - The group continues to focus on expanding its clean energy portfolio and enhancing operational efficiency through advanced technologies[5]. - Future strategies include potential market expansion and investment in new technologies to improve sustainability and operational performance[5]. - The company has a significant presence in coal-fired and gas-fired power generation, with detailed operational data provided for various power plants[7][9][11]. Financial Position and Cash Flow - The group's total borrowings amounted to approximately RMB 89.448 billion, with a debt-to-asset ratio of 65.65%, a slight decrease from the previous year[37]. - As of June 30, 2022, the group had cash and cash equivalents of approximately RMB 5.547 billion[38]. - The net cash inflow from operating activities was approximately RMB 2.782 billion, a decrease of about 34.43% compared to the same period in 2021, primarily due to a reduction in coal trade volume and the impact of not consolidating wind and solar assets this year[40]. - The net cash outflow from investment activities was approximately RMB 2.812 billion, a decrease of about 65.68% compared to the same period in 2021, mainly due to the non-consolidation of wind and solar assets[40]. - The net cash outflow from financing activities was approximately RMB 368 million, compared to a net cash inflow of approximately RMB 5.803 billion in the first half of 2021, primarily due to an increase in debt repayment[40]. Corporate Governance and Compliance - The company has implemented a strict corporate governance code that exceeds the requirements of the Corporate Governance Code under the Hong Kong Listing Rules[59]. - The company has maintained compliance with environmental, social, and governance requirements as per the Hong Kong Listing Rules[59]. - The audit committee has reviewed the unaudited condensed consolidated financial statements prepared in accordance with International Accounting Standard 34[57]. - The company has established a strategic committee in addition to the audit, remuneration, and nomination committees[61]. Market and Economic Conditions - In the first half of 2022, China's GDP grew by 2.5% year-on-year, while total electricity consumption increased by 2.9% to 4,097.7 million MWh[25]. - The company's operations face risks from the COVID-19 pandemic, electricity market fluctuations, coal market conditions, and environmental regulations, which may impact macroeconomic recovery and electricity demand[43]. Employee and Management Information - The total number of employees in the group is 24,711 as of June 30, 2022[57]. - The company has adopted a performance-based compensation policy for employees, emphasizing meritocracy and competitive selection[57]. - The total remuneration for key management personnel decreased from RMB 2,687 thousand in 2021 to RMB 2,572 thousand in 2022, a decline of about 4.3%[193]. Investment and Asset Management - The company has initiated the process for public REITs in infrastructure, selecting natural gas cogeneration projects in Zhejiang Province as potential assets, with total assets of approximately RMB 2.805 billion and total liabilities of approximately RMB 1.690 billion as of December 31, 2021[49]. - The company reported a significant increase of approximately 589.42% in profit from joint ventures and associates to RMB 2.895 billion, attributed to increased earnings from invested new energy and coal companies[34]. - The company has a significant amount of deferred VAT and other taxes amounting to RMB 690,532,000 as of June 30, 2022, down from RMB 1,434,315,000 at the end of 2021[118].
华电国际电力股份(01071) - 2022 - 中期财报