上海电力(600021) - 2022 Q2 - 季度财报

Section I Definitions Definitions of Common Terms This section defines core terms used in the report, including company name, controlling shareholder, power industry specific terms, and relevant laws and regulations, providing a foundation for understanding the report content - Defines core terms such as 'the Company/Shanghai Electric Power', 'SPIC Group/Controlling Shareholder', 'Installed Capacity', 'On-grid Power Generation', 'On-grid Tariff', 'Utilization Hours', and 'Coal Consumption for Power Supply'[11] Section II Company Profile and Key Financial Indicators Company Information This section introduces the company's basic registration information, including its Chinese name, abbreviation, foreign name and abbreviation, and identifies Lin Hua as the legal representative - Company Chinese Name: Shanghai Electric Power Co., Ltd.; Foreign Name: SHANGHAI ELECTRIC POWER CO.,LTD[12] - The company's legal representative is Lin Hua[12] Contact Persons and Information This section discloses detailed contact information for the company's Board Secretary Xia Meixing and Securities Affairs Representative Zou Yi, ensuring convenient communication for investors - Board Secretary: Xia Meixing; Securities Affairs Representative: Zou Yi[13] - Contact Address: 36th Floor, 268 Zhongshan South Road, Shanghai; Email: shanghaipower@spic.com.cn[13][14] Brief Introduction to Changes in Basic Information This section briefly introduces the historical changes in the company's registered address, which is currently located at 268 Zhongshan South Road, Huangpu District, Shanghai - The company's registered address historically changed from 1888 Pudong South Road, Pudong New Area, Shanghai (June 1998 - December 2004) to 268 Zhongshan South Road, Huangpu District, Shanghai (December 2004 to present)[15] - The company's office address is 268 Zhongshan South Road, Shanghai, postal code 200010[15] Brief Introduction to Changes in Information Disclosure and Document Custody Locations This section lists the company's designated newspapers for information disclosure, the website address for the semi-annual report, and the location for report custody, ensuring transparency and accessibility of information disclosure - The company's selected newspapers for information disclosure are China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily[16] - The website address for the semi-annual report is www.sse.com.cn; the company's semi-annual report custody location is 268 Zhongshan South Road, Shanghai[16] Overview of Company Shares This section briefly introduces the listing status of the company's A-shares, including share type, listing exchange, stock abbreviation, and stock code, for investor identification and trading convenience - The company's share type is A-shares, listed on the Shanghai Stock Exchange[17] - Stock Abbreviation: Shanghai Electric Power; Stock Code: 600021[17] Company's Key Accounting Data and Financial Indicators In the first half of 2022, the company's operating revenue increased by 12.80%, but net profit attributable to shareholders decreased by 106.52% due to high coal prices, resulting in a loss. Net cash flow from operating activities significantly increased by 127.95% Key Accounting Data (Reporting Period January-June) | Indicator | Current Period (Jan-Jun) | Prior Year (Adjusted) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 16,149,996,519.10 CNY | 14,317,192,692.58 CNY | 12.80 | | Net Profit Attributable to Shareholders | -47,376,535.22 CNY | 726,660,161.14 CNY | -106.52 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -174,487,956.68 CNY | 690,520,899.44 CNY | -125.27 | | Net Cash Flow from Operating Activities | 6,073,492,825.38 CNY | 2,664,446,968.83 CNY | 127.95 | | Net Assets Attributable to Shareholders (Period End) | 17,688,188,406.27 CNY | 17,725,898,195.60 CNY | -0.21 | | Total Assets (Period End) | 161,618,934,769.49 CNY | 156,941,737,530.40 CNY | 2.98 | Key Financial Indicators (Reporting Period January-June) | Indicator | Current Period (Jan-Jun) | Prior Year (Adjusted) | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | -0.0430 | 0.2528 | -117.01 | | Diluted Earnings Per Share (CNY/share) | -0.0430 | 0.2528 | -117.01 | | Basic EPS (Excluding Non-recurring Items) (CNY/share) | -0.0916 | 0.2390 | -138.33 | | Weighted Average Return on Net Assets (%) | -0.7782 | 3.9551 | Decrease of 4.73 percentage points | | Weighted Average RONAN (Excluding Non-recurring Items) (%) | -1.6574 | 3.7391 | Decrease of 5.4 percentage points | - The primary reason for the company's loss was persistently high coal prices, leading to operating losses in the coal power sector[31] - Net cash flow from operating activities increased by 127.95%, mainly due to increased collection of electricity fees and tax refunds compared to the prior year[32] Non-recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 127.11 million CNY, primarily from disposal gains/losses of non-current assets and government subsidies recognized in current profit or loss, positively impacting net profit Non-recurring Gains and Losses and Amounts | Non-recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains or losses from disposal of non-current assets | 104,003,308.15 | | Government subsidies recognized in current profit or loss | 50,695,703.97 | | Gains from investment cost of acquiring subsidiaries, associates, and joint ventures being less than the fair value of identifiable net assets of the investee at acquisition | 94,044.25 | | Gains or losses from entrusted loans | 4,888,280.25 | | Other non-operating income and expenses apart from the above | 2,676,953.08 | | Less: Income tax impact | 19,995,496.81 | | Minority interest impact (after tax) | 15,251,371.43 | | Total | 127,111,421.46 | Section III Management Discussion and Analysis Description of the Company's Industry and Main Business During the Reporting Period In the first half of 2022, national electricity consumption grew by 2.9%, with the power industry continuing its green and low-carbon transition. The company's main businesses include power generation, heating, and integrated smart energy, with clean energy accounting for 53.57% of installed capacity. Power generation decreased by 4.51% year-on-year, but on-grid tariffs increased by 15.68%. High coal prices pressured coal power operations - From January to June 2022, national electricity consumption increased by 2.9% year-on-year, with the power industry continuing its green and low-carbon transition[27] - The company primarily engages in the development, operation, and management of power plants, covering clean energy, renewable energy, and integrated smart energy sectors[28] Company's Controlled Installed Capacity Structure as of June 2022 | Energy Type | Installed Capacity (GW) | Share (%) | | :--- | :--- | :--- | | Total Controlled Installed Capacity | 19.7905 | 100.00 | | Clean Energy | - | 53.57 | | Coal Power | 9.1880 | 46.43 | | Gas Power | 2.8662 | 14.48 | | Wind Power | 3.7984 | 19.19 | | Photovoltaic Power | 3.9380 | 19.90 | Company's Power Generation, Coal Price, and Electricity Price Changes from January to June 2022 | Indicator | Jan-Jun 2022 | Year-on-Year Change (%) | | :--- | :--- | :--- | | Consolidated Power Generation | 27.453 billion kWh | -4.51 | | Coal Power Generation | 17.767 billion kWh | -11.72 | | Gas Power Generation | 2.668 billion kWh | +4.89 | | Wind Power Generation | 4.559 billion kWh | +8.84 | | Photovoltaic Power Generation | 2.459 billion kWh | +30.03 | | Standard Coal Price (incl. tax) | 1,409.73 CNY/ton | +48.66 | | Average On-grid Tariff (incl. tax) | 0.59 CNY/kWh | +15.68 | - The company's power plants in Shanghai account for approximately 58% of the total heating supply from public power plants in Shanghai[29] - The company actively develops emerging industries such as integrated smart energy, with the Changxing Island Power Plant CCUS innovation demonstration project commencing construction and the Caojing Power Plant sludge co-firing project completing trial operation, while urban building clean energy supply rapidly expands[29] Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in optimized power source structure, sustainable development capabilities, technological and management innovation, and strong financing ability, with increasing clean energy proportion, significant growth in new energy installed capacity, and maintaining the highest domestic AAA credit rating - Power Source Structure Advantage: As of June 2022, clean energy accounted for 53.57% of the company's installed capacity, an increase of 3.84 percentage points year-on-year[30] - Sustainable Development Advantage: Controlled installed capacity reached 19.7905 GW, a year-on-year increase of 16.66%; new energy controlled installed capacity reached 7.7363 GW, a year-on-year increase of 28.12%[30] - Technological and Management Innovation Advantage: Conducting research on "Thermal Power +" and "New Energy +" emerging industry technologies, with the Changxing Island Power Plant CCUS project commencing construction, and optimizing the listed company's governance system[30] - Financing Capability Advantage: Maintaining the highest domestic AAA credit rating, and Fitch assigning an "A-" issuer credit rating with a "Stable" outlook[30] Discussion and Analysis of Operating Performance In the first half of 2022, the company's operating revenue increased by 12.80%, but net profit and net profit attributable to the parent company significantly decreased due to high coal prices, resulting in a loss Operating Performance in the First Half of 2022 | Indicator | Amount (billion CNY) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 16.15 | +12.80 | | Net Profit | 0.552 | -64.45 | | Net Profit Attributable to Parent Company | -0.047 | -106.52 | | Basic Earnings Per Share | -0.0430 CNY | - | | Weighted Average Return on Net Assets | -0.7782% | - | - The primary reason for the company's loss was persistently high coal prices, leading to operating losses in the coal power sector[31] Major Operating Performance During the Reporting Period This section details the company's major operating performance during the reporting period, including financial changes in main business, changes in asset and liability structure, and investment status. Operating revenue growth was mainly driven by increased new energy and gas power installed capacity, but operating costs were significantly impacted by rising coal prices. The company's asset and liability structure remained stable, and overseas investments continued to advance Analysis of Main Business Operating revenue increased by 12.8%, primarily due to growth in new energy and gas power installed capacity and higher market-based transaction prices for coal power. Operating costs increased by 24.17%, mainly due to rising standard coal prices for power generation and increased depreciation for new energy assets. Financial expenses rose by 31.68% due to increased financing scale Analysis of Financial Statement Items (Current Period vs. Prior Year) | Item | Current Period Amount (CNY) | Prior Year Amount (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 16,149,996,519.10 | 14,317,192,692.58 | 12.80 | | Operating Cost | 13,047,595,030.20 | 10,508,141,839.23 | 24.17 | | Selling Expenses | 11,620.00 | 236,855.23 | -95.09 | | Administrative Expenses | 654,159,500.32 | 652,476,843.69 | 0.26 | | Financial Expenses | 2,007,218,223.44 | 1,524,264,498.57 | 31.68 | | R&D Expenses | 55,009,429.13 | 52,748,985.05 | 4.29 | | Net Cash Flow from Operating Activities | 6,073,492,825.38 | 2,664,446,968.83 | 127.95 | | Net Cash Flow from Investing Activities | -3,208,032,289.55 | -6,587,147,490.49 | -51.30 | | Net Cash Flow from Financing Activities | 1,429,602,580.13 | 2,730,485,794.32 | -47.64 | - Operating revenue growth was primarily due to increased new energy and gas power installed capacity, higher power generation, and increased market-based transaction prices for coal power[32] - Operating cost growth was mainly due to increased standard coal prices for power generation, increased capacity of wind and solar power generation equipment, and higher depreciation costs[32] - Financial expenses increased primarily due to higher interest expenses resulting from an increased financing scale[32] Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets increased by 2.98%. Monetary funds significantly grew by 72.92%, mainly due to increased collection of electricity fees and tax refunds. Construction in progress decreased by 47.1%, primarily due to the transfer of thermal power and wind power projects to fixed assets. Contract liabilities increased by 297.71%, mainly due to increased advance receipts for fuel. Overseas assets accounted for 14.73% of total assets Major Asset and Liability Changes (Current Period End vs. Prior Year End) | Item Name | Current Period End Amount (CNY) | % of Total Assets | Prior Year End Amount (CNY) | % of Total Assets | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 10,182,463,197.15 | 6.30 | 5,888,568,602.80 | 3.75 | 72.92 | | Accounts Receivable | 18,862,163,970.03 | 11.67 | 16,487,517,198.70 | 10.51 | 14.40 | | Inventories | 1,091,694,486.88 | 0.68 | 1,296,397,413.80 | 0.83 | -15.79 | | Fixed Assets | 90,908,807,086.49 | 56.25 | 82,153,675,346.74 | 52.35 | 10.66 | | Construction in Progress | 10,262,979,545.22 | 6.35 | 19,399,336,286.76 | 12.36 | -47.10 | | Short-term Borrowings | 19,102,011,275.54 | 11.82 | 17,237,013,969.70 | 10.98 | 10.82 | | Contract Liabilities | 359,485,895.03 | 0.22 | 90,389,041.61 | 0.06 | 297.71 | | Long-term Borrowings | 53,005,077,715.97 | 32.80 | 47,949,664,777.83 | 30.55 | 10.54 | - Monetary funds increased by 72.92%, mainly due to increased collection of electricity fees and tax refunds[34] - Construction in progress decreased by 47.1%, mainly due to the transfer of the Turkey EMBA thermal power project and Jiangsu Electric Power wind power project to fixed assets[34] - Contract liabilities increased by 297.71%, mainly due to increased advance receipts for fuel from the fuel company[34] - Overseas assets amounted to 23.802 billion CNY, accounting for 14.73% of total assets[35] Major Asset Restrictions as of the End of the Reporting Period | Item | Book Value at Period End (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Fixed Assets | 22,142,437,038.94 | Mortgage for loans | | Construction in Progress | 2,814,791,359.56 | Mortgage for loans | | Accounts Receivable | 5,864,149,443.69 | Pledge | | Intangible Assets | 1,130,213,546.36 | Mortgage for loans | | Right-of-use Assets | 221,148,337.09 | Finance lease | | Monetary Funds | 198,462,664.59 | Guarantee deposits, letter of credit margins, etc | | Total | 32,371,202,390.23 | — | Analysis of Investment Status During the reporting period, the company's equity investment decreased by 36.24% year-on-year. Major equity investments were concentrated in the power and new energy sectors, including investments in Shanghai Shangdian Power Investment Co., Ltd., Shanghai Electric Power Japan Co., Ltd., and others. In terms of non-equity investments, the Turkey Hunutlu Coal-fired Power Plant project and Shanghai Minhang Gas Turbine project have partially commenced operations and generated profits - Equity investment amounted to 678.867 million CNY in the current reporting period, a year-on-year decrease of 385.8762 million CNY, or 36.24%[37] Major Equity Investments (Partial) | Investee Company Name | Main Business | Shareholding Ratio (%) | Investment Amount (million CNY) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | | Shanghai Shangdian Power Investment Co., Ltd. | Investment, consulting, etc. | 100.00 | 20.00 | Own funds | | Turkey EMBA Power Generation Co., Ltd. | Thermal power generation, etc. | 78.21 | 179.6717 | Own funds | | Shanghai Electric Power Japan Co., Ltd. | Wind, photovoltaic power generation, etc. | 100.00 | 277.5090 | Own funds | | SPIC Yangtze Hydrogen Energy Technology Co., Ltd. | Hydrogen energy, etc. | 100.00 | 3.00 | Own funds | Major Non-Equity Investments (Partial) | Project Name | Total Project Investment | Project Progress | Amount Invested in Current Period (million CNY) | Cumulative Actual Investment (million CNY) | Project Revenue Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Turkey Hunutlu Coal-fired Power Plant Project | 1,802.53 million USD | Under construction | 574.95 | 7,712.30 | Project partially operational, generated 36.1203 million CNY profit from Jan-Jun | | Shanghai Minhang Gas Turbine Project | 3,684.63 million CNY | Under construction | 427.86 | 2,193.95 | Project partially operational, generated 11.7635 million CNY profit from Jan-Jun | | Jiangsu Rudong H4 Offshore Wind Power Project | 6,951.62 million CNY | Under construction | 0 | 7,278.38 | Not yet generating revenue | | Japan Fukushima Nishigo Village PV Project (Phase I) | 2,176.45 million CNY | Under construction | 334.47 | 1,337.58 | Not yet generating revenue | Financial Assets Measured at Fair Value (Period End Balance) | Project Name | Period End Balance (CNY) | | :--- | :--- | | Derivative Financial Assets | 181,680,158.72 | | Accounts Receivable Financing | 20,454,458.00 | | Other Non-current Financial Assets | 47,500,000.00 | | Other Equity Instrument Investments (Partial) | 1,095,708,707.27 | | Total | 1,345,343,323.99 | Other Disclosure Matters This section elaborates on various risks the company may face in its production and operations, including electricity market risks, coal market risks, safety and environmental risks, overseas investment risks, and exchange rate risks, along with corresponding mitigation measures Potential Risks The company faces multiple risks including electricity market, coal market, safety and environmental, overseas investment, and exchange rate fluctuations. The company has formulated corresponding countermeasures, such as optimizing procurement strategies, strengthening safety and environmental management, improving overseas investment due diligence, and utilizing financial instruments to mitigate exchange rate risks - Electricity Market Risk: Electricity price policies and power system reform policies increase market uncertainty. The company will strengthen market marketing, optimize unit operations, and actively participate in rule-making[47] - Coal Market Risk: Persistently high coal prices significantly impact the profitability of coal power enterprises. The company will optimize fuel procurement strategies, increase the proportion of domestic long-term coal contracts, and strengthen communication and coordination with government departments and coal enterprises[47] - Safety and Environmental Risk: The power generation industry has complex operating environments prone to safety accidents; green and low-carbon development demands higher energy saving and emission reduction standards. The company will enhance safety management, strictly implement safety production responsibility systems, and strengthen ecological and environmental management[48] - Overseas Investment Risk: Overseas investments face external environmental risks such as political, economic, cultural, and technological factors. The company will improve overseas investment due diligence and decision-making, closely monitor policy changes, and strengthen its risk prevention and control system[48] - Exchange Rate Risk: Overseas project expansion leads to exchange rate fluctuation risks. The company will adopt financial instruments and unified settlement currencies to prevent and reduce exchange rate risks[48] Section IV Corporate Governance Overview of Shareholder Meetings During the reporting period, the company held its 2021 Annual General Meeting and the First Extraordinary General Meeting in 2022, approving various proposals including the annual report, profit distribution, external guarantees, related party transactions, amendments to the Articles of Association, and a stock option incentive plan - The 2021 Annual General Meeting was held on May 26, 2022, approving 18 proposals including the annual report, profit distribution plan, external guarantees, related party transactions, amendments to the Articles of Association, and a stock option incentive plan[49] - The First Extraordinary General Meeting in 2022 was held on June 16, 2022, approving the proposal to extend the validity period of the company's non-public issuance of shares resolution and the authorization for the Board of Directors to handle related matters[51] Changes in Company Directors, Supervisors, and Senior Management During the reporting period, there were changes in the company's senior management, with Mr. Chen Xiaoyu appointed as Deputy General Manager, and former Deputy General Manager and Board Secretary Mr. Xia Meixing transitioning to Deputy Chief Supervisor while continuing as Board Secretary - The company appointed Mr. Chen Xiaoyu as Deputy General Manager[52][53] - Mr. Xia Meixing, former Deputy General Manager and Board Secretary, transitioned to Deputy Chief Supervisor and continues to serve as Board Secretary, no longer holding the position of Deputy General Manager[52][53] Profit Distribution or Capital Reserve Conversion Plan During the reporting period, the profit distribution plan or capital reserve conversion to share capital plan approved by the company's board of directors was "None", indicating no planned profit distribution or share capital conversion for this period - The profit distribution plan or capital reserve conversion to share capital plan for this reporting period was "None"[4][54] Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures and Their Impact On May 31, 2022, the company initially granted 20.72 million stock options to 152 incentive recipients, with an exercise price of 12.81 CNY/share, and completed registration on June 29, aiming to enhance employee motivation through equity incentives - On May 31, 2022, the company initially granted 21.12 million stock options to 154 eligible incentive recipients; subsequently, due to 2 recipients waiving their rights, 20.72 million stock options were actually granted to 152 recipients[55] - The exercise price for the stock options is 12.81 CNY/share[55] - The company completed the initial grant registration of its first phase stock option incentive plan on June 29, 2022[55] Section V Environmental and Social Responsibility Environmental Information The company adheres to a green development philosophy, continuously optimizing its energy structure and promoting energy conservation and emission reduction. During the reporting period, neither the company nor its key pollutant-discharging units experienced environmental incidents or major environmental issues, with all environmental facilities operating stably and emissions meeting standards - The company adheres to its commitment of "dedicating green energy and serving the public," aiming for high-quality sustainable development through energy conservation, emission reduction, and carbon reduction[58] - The company's key pollutant-discharging units are primarily coal-fired and gas-fired power plants, with main pollutants being soot, sulfur dioxide, and nitrogen oxides, all emissions meeting ultra-low emission limits or national standards[58] - In the first half of 2022, neither the company nor its affiliated units experienced environmental incidents or major environmental issues[58] Company and Affiliated Units' Major Pollutant Emissions in the First Half of 2022 | Pollutant | Emissions (tons) | | :--- | :--- | | Soot | 109.88 | | Sulfur Dioxide | 1125.03 | | Nitrogen Oxides | 2280.62 | - All coal-fired power plants affiliated with the company have completed ultra-low emission retrofits for flue gas, with all environmental facilities operating stably; dust removal facilities operate at 100%, denitrification at 99.99%, and desulfurization at 100%[61] - The company actively implements national decisions on carbon peaking and carbon neutrality, increasing new energy project development; as of the end of June, controlled renewable energy installed capacity reached 7.7363 GW, with cumulative power generation of 7.018 billion kWh in the first half of the year[70] - The Changxing Island Power Plant carbon capture project has commenced construction, and carbon online monitoring pilot projects are underway at Caojing Power Plant and Waigaoqiao Power Plant[70] Specifics of Consolidating Poverty Alleviation Achievements and Rural Revitalization Efforts The company actively contributes to the national "Rural Revitalization" strategy through diversified measures such as project-based poverty alleviation, county-level development, and educational assistance. It currently operates 12 photovoltaic poverty alleviation projects and has engaged in discussions for county-level development with over 100 counties or towns, with multiple projects included in the pilot list for county-wide rooftop distributed photovoltaic development - In terms of project-based poverty alleviation, the company has 12 projects with a total capacity of 327.2 MW, all photovoltaic projects, distributed in Shandong, Hebei, Hunan, Yunnan, and Jiangsu[71] - In terms of county-level development, discussions have been held with over 100 counties or towns, and 88 development agreements have been signed, with multiple projects included in the National Energy Administration's pilot list for county-wide rooftop distributed photovoltaic development[71] - In terms of educational assistance, the company actively carries out public welfare activities such as "Yingshanhong" events and donation of essential items, caring for left-behind children in rural areas[71] Section VI Important Matters Fulfillment of Commitments The controlling shareholder, State Power Investment Corporation Limited, has made multiple long-term commitments regarding resolving horizontal competition, standardizing related party transactions, ensuring the company's independence, and guaranteeing asset value and compensation, all of which were timely and strictly fulfilled during the reporting period - The controlling shareholder, State Power Investment Corporation Limited (SPIC), committed to making Shanghai Electric Power its sole domestic listing platform for conventional energy power generation businesses in Shanghai, Jiangsu, and Zhejiang, and to dispose of existing competing businesses within five years when conditions are met[73] - SPIC Group committed to completing the injection of Qingyun Photovoltaic into Shanghai Electric Power within one year after meeting the asset injection conditions[73][77] - SPIC Group committed not to add new businesses that would form substantial competition with Shanghai Electric Power's main business beyond its existing operations, and that all future power business investments or developments in Shanghai and Jiangsu will be uniformly invested, developed, and operated by Shanghai Electric Power[75] - SPIC Group committed to reducing and avoiding related party transactions with Shanghai Electric Power by promoting adjustments to Shanghai Electric Power's asset and business structure, and to ensure the fairness of related party transaction prices[77] - SPIC Group committed to ensuring Shanghai Electric Power's independence in personnel, finance, organization, assets, and business[77][79] - SPIC Group made full cash compensation commitments regarding Jiangsu Company and its subsidiaries' project land and property without title registration, and uncompleted name changes for sea area use rights certificates[79][81] - SPIC committed not to transfer the newly acquired Shanghai Electric Power shares from this issuance from the end of the issuance date until 36 months thereafter, and to comply with automatic extension provisions for the lock-up period[83] - All company directors and senior management committed not to transfer benefits to other entities or individuals without compensation or under unfair conditions, not to harm the company's interests, and to constrain their job-related consumption behaviors[83][84] Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties During the Reporting Period During the reporting period, the company was not subject to non-operating fund occupation by its controlling shareholder or related parties, indicating standardized fund management and no illegal fund occupation - During the reporting period, the company was not subject to non-operating fund occupation by its controlling shareholder or related parties[5] Irregular Guarantees During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures, demonstrating strict adherence to relevant regulations regarding external guarantees - During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures[5] Semi-Annual Report Audit Status This semi-annual report is unaudited, and investors should note this information when reading it - This semi-annual report is unaudited[4] Changes and Handling of Matters Involving Non-Standard Audit Opinions in the Prior Year's Annual Report During the reporting period, there were no changes or handling of matters involving non-standard audit opinions in the prior year's annual report, indicating the continuity and stability of the company's financial reporting - During the reporting period, there were no changes or handling of matters involving non-standard audit opinions in the prior year's annual report[86] Bankruptcy and Reorganization Matters During the reporting period, the company had no bankruptcy and reorganization matters, indicating stable operating conditions and no risk of bankruptcy or reorganization - During the reporting period, the company had no bankruptcy and reorganization matters[87] Major Litigation and Arbitration Matters During the reporting period, the company had no major litigation or arbitration matters, indicating a stable operating environment and low legal risk - The company had no major litigation or arbitration matters in this reporting period[87] Alleged Violations, Penalties, and Rectification of Listed Company, its Directors, Supervisors, Senior Management, Controlling Shareholder, and Actual Controller During the reporting period, the company, its directors, supervisors, senior management, controlling shareholder, and actual controller were not involved in alleged violations, penalties, or rectification, demonstrating good compliance operations - During the reporting period, the company, its directors, supervisors, senior management, controlling shareholder, and actual controller were not involved in alleged violations, penalties, or rectification[87] Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled effective court judgments or large debts due but unpaid, indicating good integrity status - During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled effective court judgments or large debts due but unpaid[88] Major Related Party Transactions The company engages in daily related party transactions with its controlling shareholder and its subsidiaries in financial services, commodity procurement and sales, engineering and technical services, and electricity trading. At period-end, deposits with SPIC Group Finance Co., Ltd. totaled 7.325 billion CNY, and loans totaled 1.502 billion CNY. The company previously planned a major asset restructuring with Huainan Mining, but it was terminated due to adverse changes in the target assets Related Party Transactions Related to Daily Operations The company engages in daily related party transactions with its controlling shareholder and its subsidiaries in financial services, commodity procurement and sales, engineering and technical services, and electricity trading. Deposits with SPIC Group Finance Co., Ltd. totaled 7.325 billion CNY, and loans totaled 1.502 billion CNY Daily Related Party Transactions in 2022 (Partial) | Related Party | Related Transaction Type | Estimated Amount in 2022 | Actual Amount as of June 2022 | | :--- | :--- | :--- | :--- | | SPIC Group Finance Co., Ltd. | Financial services (daily maximum deposit) | Not exceeding 8 billion CNY | 7.325 billion CNY | | SPIC Group Finance Co., Ltd. | Financial services (loan facility) | Not exceeding 17 billion CNY | 1.502 billion CNY | | SPIC Hong Kong Treasury Management Co., Ltd. | Financial services (loan facility) | Not exceeding 10 billion CNY | 3.821 billion CNY | | SPIC Ronghe Financial Leasing Co., Ltd. | Financial leasing | Not exceeding 20.5 billion CNY | 9.105 billion CNY | | SPIC Group and its subsidiaries | Fuel procurement | Not exceeding 0.7 billion CNY | 0.109 billion CNY | | SPIC Group and its subsidiaries | Fuel sales | Not exceeding 0.8 billion CNY | 0.057 billion CNY | Major Related Party Transactions for Joint External Investments The company previously invested 200 million CNY to participate in the capital increase of Huainan Mining and intended to exchange its Huainan Mining equity for shares in Huaihe Energy. However, due to significant adverse changes in the target assets, Huaihe Energy plans to terminate this major asset restructuring - The company previously invested 200 million CNY to participate in the capital increase of Huainan Mining (Group) Co., Ltd., holding a 0.57% stake[93] - The company's board of directors approved the exchange of its 0.57% equity in Huainan Mining for 89.6611 million shares of Huaihe Energy[93] - On August 22, 2022, Huaihe Energy announced its intention to terminate this major asset restructuring due to significant adverse changes in the important target assets[93] Financial Services Between the Company and Related Financial Companies, and Between the Company's Controlled Financial Companies and Related Parties The company has deposit and loan business dealings with related parties such as SPIC Group Finance Co., Ltd. and SPIC Hong Kong Treasury Management Co., Ltd. At period-end, deposits with SPIC Group Finance Co., Ltd. totaled 7.325 billion CNY, and loans totaled 1.502 billion CNY Deposit Business (Current Period Amount) | Related Party | Daily Maximum Deposit Limit (CNY) | Deposit Interest Rate Range | Period End Balance (CNY) | | :--- | :--- | :--- | :--- | | SPIC Group Finance Co., Ltd. | 8,000,000,000.00 | 0.35%-3.45% | 7,325,162,348.28 | Loan Business (Current Period Amount) | Related Party | Loan Facility (CNY) | Loan Interest Rate Range | Period End Balance (CNY) | | :--- | :--- | :--- | :--- | | SPIC Hong Kong Treasury Management Co., Ltd. | 10,000,000,000.00 | 1.10%-3.92% | 7,197,511,551.15 | | SPIC Group Finance Co., Ltd. | 17,000,000,000.00 | 2.20%-4.30% | 1,502,270,000.00 | | SPIC (Hainan) Treasury Management Co., Ltd. | 200,000,000.00 | 4.35% | 200,000,000.00 | | Total | - | - | 8,899,781,551.15 | Major Contracts and Their Fulfillment This section discloses the company's major guarantees performed and unfulfilled during the reporting period. As of the end of the reporting period, the company's total external guarantees amounted to 1.342 billion CNY, representing 7.59% of its net assets, with guarantees to subsidiaries totaling 1.238 billion CNY [Major Guarantees Performed and Unfulfilled During the Reporting Period](index=39&type=section&id=6.11.1%20Major%20Guarantees%20Perfor med%20and%20Unfulfilled%20During%20the%20Reporting%20Period) At the end of the reporting period, the company's total external guarantees amounted to 1.342 billion CNY, representing 7.59% of its net assets. Guarantees to subsidiaries totaled 1.238 billion CNY Company's External Guarantees (Excluding Guarantees to Subsidiaries) | Guarantor | Guaranteed Party | Guarantee Amount (CNY) | Guarantee Start Date | Guarantee End Date | Guarantee Type | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Electric Power Co., Ltd. | Shanghai Youhao Shipping Co., Ltd. | 15,000,000.00 | 2021/11/01 | 2022/10/31 | Joint and several liability guarantee | No | | Shanghai Electric Power Co., Ltd. | Shanghai Youhao Shipping Co., Ltd. | 20,000,000.00 | 2021/08/06 | 2022/07/14 | Joint and several liability guarantee | No | | Shanghai Electric Power Co., Ltd. | Shanghai Youhao Shipping Co., Ltd. | 20,000,000.00 | 2021/12/10 | 2022/12/09 | Joint and several liability guarantee | No | | SPIC Zhejiang New Energy Co., Ltd. | SPIC Zhoushan Smart Ocean Technology Co., Ltd. | 48,638,127.42 | 2021/08/13 | 2029/08/12 | Joint and several liability guarantee | No | Company's Total Guarantee Amount (Including Guarantees to Subsidiaries) | Indicator | Amount (CNY) | % of Company's Net Assets | | :--- | :--- | :--- | | Total Guarantee Amount (A+B) | 1,342,119,727.42 | 7.59 | | Debt Guarantees Provided Directly or Indirectly to Guaranteed Parties with Asset-Liability Ratio Exceeding 70% (D) | 1,238,481,600.00 | - | | Total of the Above Three Guarantee Amounts (C+D+E) | 1,238,481,600.00 | - | Explanation of Other Major Matters In July 2022, the company completed a non-public offering of A-shares, with the controlling shareholder, State Power Investment Corporation Limited, subscribing for 199.58 million shares, raising 1.231 billion CNY. Additionally, the company plans to acquire a 66.40% stake in Pakistan's KE Company for 1.77 billion USD in cash - In July 2022, the company completed a non-public offering of A-shares, issuing 199,579,448 shares, all subscribed by the controlling shareholder, State Power Investment Corporation Limited, raising a total of 1,231,405,194.16 CNY[100] - The company plans to acquire a 66.40% stake in KE Company from Pakistan KES Energy Company for a payable consideration of 1.77 billion USD, with potential incentive payments to the counterparty or its designated party totaling no more than 27 million USD, depending on the target company's operating performance[100] Section VII Changes in Shares and Shareholder Information Changes in Share Capital During the reporting period, there were no changes in the company's total share capital or share structure. However, after the reporting period and up to the semi-annual report disclosure date, the total share capital increased due to a non-public offering, which will dilute financial indicators such as earnings per share and net assets per share - During the reporting period, there were no changes in the company's total share capital or share structure[101] - After the reporting period, due to the non-public offering of 199,579,448 new shares, the company's total share capital increased from 2,617,164,197 shares to 2,816,743,645 shares[102] - The increase in total share capital will lead to a dilution of financial indicators such as earnings per share and net assets per share[102] Shareholder Information As of the end of the reporting period, the company had 172,411 common shareholders. Among the top ten shareholders, State Power Investment Corporation Limited held 40.20% and China Power International Development Limited held 13.88%, indicating a relatively concentrated equity structure - Total number of common shareholders as of the end of the reporting period: 172,411 households[104] Top Ten Shareholders' Shareholding as of the End of the Reporting Period | Shareholder Name | Shares Held at Period End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | State Power Investment Corporation Limited | 1,052,008,626 | 40.20 | State-owned Legal Person | | China Power International Development Limited | 363,292,165 | 13.88 | State-owned Legal Person | | China Three Gorges Corporation | 160,852,800 | 6.15 | State-owned Legal Person | | China Yangtze Power Co., Ltd. | 80,580,762 | 3.08 | State-owned Legal Person | | Central Huijin Asset Management Co., Ltd. | 33,874,600 | 1.29 | State-owned Legal Person | | Dacheng Fund - Agricultural Bank - Dacheng CSI Financial Asset Management Plan | 13,989,100 | 0.53 | Other | | GF Fund - Agricultural Bank - GF CSI Financial Asset Management Plan | 13,989,100 | 0.53 | Other | | Southern Fund - Agricultural Bank - Southern CSI Financial Asset Management Plan | 13,989,100 | 0.53 | Other | | Hong Kong Securities Clearing Company Limited | 12,412,869 | 0.47 | Other | | ICBC Credit Suisse Fund - Agricultural Bank - ICBC Credit Suisse CSI Financial Asset Management Plan | 12,251,800 | 0.47 | Other | - State Power Investment Corporation Limited is the company's controlling shareholder; China Power International Development Limited and the company are affiliated companies under the same actual controller[106] Information on Directors, Supervisors, and Senior Management During the reporting period, company director Wei Juliang and senior management Huang Chen, Xia Meixing, Zhai Deshuang, Chen Wenhao, and Li Feng were granted stock options, holding a total of 1.12 million stock options at period-end, reflecting the company's incentive measures for its core management team Equity Incentive Granted to Directors, Supervisors, and Senior Management During the Reporting Period | Name | Position | Number of Stock Options Newly Granted in Current Period (shares) | Number of Stock Options Held at Period End (shares) | | :--- | :--- | :--- | :--- | | Wei Juliang | Director | 220,000 | 220,000 | | Huang Chen | Senior Management | 180,000 | 180,000 | | Xia Meixing | Senior Management | 180,000 | 180,000 | | Zhai Deshuang | Senior Management | 180,000 | 180,000 | | Chen Wenhao | Senior Management | 180,000 | 180,000 | | Li Feng | Senior Management | 180,000 | 180,000 | | Total | / | 1,120,000 | 1,120,000 | Section VIII Preferred Shares Preferred Share Information During the reporting period, the company had no preferred share-related information, indicating that the company has not issued preferred shares at present - During the reporting period, the company had no preferred share-related information[44] Section IX Bond Information Corporate Bonds, Company Bonds, and Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company issued multiple tranches of corporate bonds and non-financial enterprise debt financing instruments, including "22 Hudian 01", "22 Hudian 02", "22 Hudian 03" corporate bonds, as well as multiple tranches of medium-term notes and ultra-short-term financing bonds, with interest rates ranging from 1.55% to 4.15%. Key financial indicators such as net profit after deducting non-recurring items and interest coverage ratio decreased due to coal prices, but the cash interest coverage ratio increased due to higher cash flow Company Bond Basic Information (Partial) | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (billion CNY) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Electric Power Co., Ltd. Publicly Issued Corporate Bonds (Phase I) | 22 Hudian 01 | 185402.SH | 2022-02-21 | 2025-02-23 | 2.0 | 2.94 | | Shanghai Electric Power Co., Ltd. Publicly Issued Corporate Bonds (Phase II) | 22 Hudian 02 | 185469.SH | 2022-03-14 | 2025-03-16 | 1.4 | 3.08 | | Shanghai Electric Power Co., Ltd. Publicly Issued Corporate Bonds (Phase III) | 22 Hudian 03 | 185651.SH | 2022-04-18 | 2025-04-20 | 1.7 | 3.05 | Non-Financial Enterprise Debt Financing Instruments Basic Information (Partial) | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Bond Balance (billion CNY) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Electric Power Co., Ltd. 2019 First Medium-Term Note | 19 Hudian MTN001 | 101901530 | 2019-11-04 | Renewable | 1.6 | 4.15 | | Shanghai Electric Power Co., Ltd. 2019 Second Medium-Term Note | 19 Hudian MTN002 | 101901565 | 2019-11-14 | Renewable | 1.6 | 3.99 | | Shanghai Electric Power Co., Ltd. 2022 First Medium-Term Note | 22 Hudian MTN001 | 102280755 | 2022-04-11 | 2025-04-13 | 0.288 | - | | Shanghai Electric Power Co., Ltd. 2022 Seventh Ultra-Short-Term Financing Bond | 22 Hudian SCP007 | 012282773 | 2022-08-08 | 2022-11-11 | 0.168 | - | | Shanghai Electric Power Co., Ltd. 2022 Eighth Ultra-Short-Term Financing Bond | 22 Hudian SCP008 | 012282977 | 2022-08-22 | 2022-10-21 | 0.155 | - | Key Accounting Data and Financial Indicators (Bond Related) | Key Indicator | Current Period End | Prior Year End | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Current Ratio | 67.02% | 47.34% | 19.68 | - | | Quick Ratio | 61.67% | 43.11% | 18.56 | - | | Asset-Liability Ratio (%) | 76.22 | 75.76 | 0.46 | - | | Current Period (Jan-Jun) | Prior Year | Change (%) | Reason for Change | | | Net Profit After Non-recurring Items | -174,487,956.68 CNY | 690,520,899.44 CNY | -125.27 | Increased standard coal price for power generation led to reduced net profit | | EBITDA to Total Debt Ratio | 4.47% | 4.84% | -0.37 | - | | Interest Coverage Ratio | 1.38 | 2.05 | -32.68 | Increased standard coal price for power generation led to reduced net profit | | Cash Interest Coverage Ratio | 5.43 | 3.38 | 60.65 | Increased collection of electricity fees and tax refunds, leading to higher operating cash flow | | EBITDA Interest Coverage Ratio | 2.89 | 3.52 | -17.9 | - | | Loan Repayment Rate (%) | 100 | 100 | 0.00 | - | | Interest Payment Rate (%) | 100 | 100 | 0.00 | - | Section X Financial Report Audit Report This semi-annual report is unaudited, and investors should note this information when reading it - This semi-annual report is unaudited[4] 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, comprehensively presenting the company's financial position, operating results, and cash flows for the first half of 2022 - Includes consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[116][119][123][128][130][135][140][144] Company Basic Information This section details Shanghai Electric Power Co., Ltd.'s establishment, share capital changes, ultimate controlling party, and main business. As of June 30, 2022, the company's share capital was 2.617 billion CNY, with the State-owned Assets Supervision and Administration Commission of the State Council as the ultimate controlling party. The scope of consolidated financial statements includes 42 second-tier subsidiaries and numerous third- and fourth-tier subsidiaries - The company was registered with the Shanghai Administration for Industry and Commerce on June 4, 1998, with stock code 600021, and listed on the Shanghai Stock Exchange on October 29, 2003[147] - The ultimate controlling party of the company is the State-owned Assets Supervision and Administration Commission of the State Council[150] - As of June 30, 2022, the company's share capital was 2.617 billion CNY, with SPIC Group holding 40.20%[150] - The company belongs to the power industry, primarily engaged in power and heat production and sales, covering thermal power, wind power, and photovoltaic power generation[150] - The scope of consolidated financial statements includes 42 second-tier subsidiaries and numerous third- and fourth-tier subsidiaries[151][152][153][154][155][156][157][158][159][160][161] - During this period, 4 second-tier subsidiaries (Changjiang Hydrogen Energy, Songjiang Shangdian, Lüshan Ecology, Lügang Ecology) and 2 third-tier subsidiaries (Sembcorp Wuyi, Yiwu Guohua) were added due to establishment; 1 third-tier subsidiary (Changxing Zhiwang) and 1 fourth-tier subsidiary (GCL Photovoltaic) were added due to non-common control business combinations[161] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, complying with enterprise accounting standards, and accurately and completely reflecting the company's financial position, operating results, and other information - The company's financial statements are prepared on a going concern basis[162] - The Group has a recent history of profitable operations and financial resources to support it, making the preparation of financial statements on a going concern basis reasonable[162] - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, accurately and completely reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows[164] Significant Accounting Policies and Accounting Estimates This section details the company's accounting policies and estimates for accounting periods, functional currency, business combinations, consolidated financial statements, financial instruments, inventories, fixed assets, intangible assets, revenue recognition, government grants, and more. During the reporting period, the company retrospectively adjusted the accounting treatment for products or by-products sold before fixed assets reached their intended use, in accordance with Ministry of Finance Interpretation No. 15 - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, and its functional currency is RMB[165] - Detailed explanations are provided for the accounting treatment methods for business combinations under common control and non-common control[166] - The preparation methods for consolidated financial statements are described, including the scope of consolidation for subsidiaries, elimination of internal transactions, and presentation of minority interests[167][168] - Financial assets are classified as measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[173][174] - Financial asset impairment is based on expected credit losses, with loss provisions recognized for accounts receivable, other receivables, etc[179][180][181][182][183] - Fixed assets are depreciated using the straight-line method, and construction in progress is measured at actual costs incurred[200][202] - Revenue recognition is based on the fulfillment of performance obligations and the customer obtaining control of goods or services, primarily including electricity sales, heat sales, coal sales, and service revenue[222][223] - In accordance with Ministry of Finance "Interpretation No. 15 of Accounting Standards for Business Enterprises," effective January 1, 2022, the accounting treatment for products or by-products sold before fixed assets reach their intended use has been retrospectively adjusted, with related revenue and costs recognized in current profit or loss[233][234] Taxes The company's main taxes include value-added tax, urban maintenance and construction tax, enterprise income tax, and education surcharge. The company enjoys a "50% immediate refund" VAT preferential policy for wind power generation and a "three-year exemption, three-year half reduction" enterprise income tax preferential policy for photovoltaic and wind power projects. Overseas subsidiaries apply local tax rates Major Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable income calculated at applicable tax rates, and paid based on the difference after deducting deductible input VAT for the current period | 3%, 5%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 1%, 5%, 7% | | Enterprise Income Tax | Taxable income | 25% | | Education Surcharge | Amount of turnover tax payable | 3% | - The company's wind power generation enterprises enjoy a "50% immediate refund" VAT preferential policy[239] - The company's photovoltaic and wind power generation enterprises engaged in eligible public infrastructure projects enjoy a "three-year exemption, three-year half reduction" enterprise income tax preferential policy on their investment income[239] - Overseas subsidiaries apply local tax rates, such as Hong Kong profits tax at 16.5%, Turkey corporate income tax at 22%, and Malta corporate income tax at 35%[240][241] Notes to Consolidated Financial Statement Items This section provides detailed notes for each item in the consolidated financial statements, including monetary funds, notes receivable, accounts receivable, inventories, long-term equity investments, fixed assets, construction in progress, intangible assets, short-term borrowings, accounts payable, long-term borrowings, bonds payable, and owners' equity, with explanations for significant changes - Monetary funds balance at period-end was 10.182 billion CNY, of which 198 million CNY was restricted[243][244] - Notes receivable balance at period-end was 94.9453 million CNY, a significant decrease from the beginning of the period[246] - Accounts receivable balance at period-end was 15.788 billion CNY, including 10.057 billion CNY for renewable energy subsidies[253] - Inventories balance at period-end was 1.091 billion CNY, primarily fuel[278] - Long-term equity investments balance at period-end was 15.235 billion CNY, mainly investments in joint ventures and associates[285][287] - Fixed assets book value at period-end was 90.908 billion CNY, with 11.513 billion CNY transferred from construction in progress during the period[295] - Construction in progress balance at period-end was 10.262 billion CNY, a 47.10% decrease from the beginning of the period, mainly due to the transfer of the Turkey EMBA power generation project and Minhang gas turbine project to fixed assets[299][301] - Short-term borrowings balance at period-end was 19.102 billion CNY, and long-term borrowings balance was 53.005 billion CNY[324][348] - Bonds payable balance at period-end was 7 billion CNY, newly issued in this period[349] - Operating revenue was 16.149 billion CNY, and operating cost was 13.047 billion CNY[371] - Investment income was 467 million CNY, mainly from long-term equity investments accounted for using the equity method[382] Changes in Consolidation Scope During the reporting period, the company added two subsidiaries, Donghai GCL Photovoltaic Power Co., Ltd. and Changxing Zhiwang New Energy Technology Co., Ltd., through non-common control business combinations. Additionally, new second-tier subsidiaries such as Changjiang Hydrogen Energy, Songjiang Shangdian, Lüshan Ecology, Lügang Ecology, and third-tier subsidiaries like Sembcorp Wuyi and Yiwu Guohua were established - During this period, Donghai GCL Photovoltaic Power Co., Ltd. and Changxing Zhiwang New Energy Technology Co., Ltd. were added through non-common control business combinations[421] - The merger cost for Donghai GCL Photovoltaic Power Co., Ltd. was 72.48 million CNY, and the fair value share of identifiable net assets acquired was 72.574 million CNY, resulting in a negative difference of -0.094 million CNY (merger cost less than fair value share of identifiable net assets)[422] - During this period, 4 second-tier subsidiaries (Changjiang Hydrogen Energy, Songjiang Shangdian, Lüshan Ecology, Lügang Ecology) and 2 third-tier subsidiaries (Sembcorp Wuyi, Yiwu Guohua) were added due to establishment[426] Interests in Other Entities This section details the company's interests in subsidiaries, joint ventures, and associates, including the main operating locations, registered places, business nature, shareholding percentages, an