ZZEPC(SH:600023)2019-04-15 16:00Financial Performance - In 2018, the company achieved a net profit of CNY 4,507,204,032.34, with a cash dividend of CNY 1.80 per 10 shares distributed to shareholders [4]. - The company's operating revenue for 2018 was CNY 56,633,636,514.17, representing a year-on-year increase of 10.63% compared to CNY 51,190,754,896.92 in 2017 [14]. - The net profit attributable to shareholders decreased by 6.89% to CNY 4,035,710,030.53 in 2018 from CNY 4,334,460,539.61 in 2017 [14]. - The net cash flow from operating activities was CNY 6,774,212,687.19, down 32.48% from CNY 10,033,062,905.50 in the previous year [14]. - The basic earnings per share for 2018 was CNY 0.30, down 6.25% from CNY 0.32 in 2017 [15]. - The weighted average return on equity decreased to 6.64% in 2018 from 7.24% in 2017, a reduction of 0.60 percentage points [15]. - The net profit after deducting non-recurring gains and losses for 2018 was CNY 3,712,943,492.28, a decrease of 12.88% from CNY 4,261,827,547.64 in 2017 [14]. - The total profit amounted to 5.012 billion yuan, with a net profit attributable to shareholders of 4.036 billion yuan [25]. - The total comprehensive income for 2018 was CNY 3.40 billion, down from CNY 5.85 billion in 2017, reflecting a decrease of about 41.9% [156]. Assets and Liabilities - The company's total assets at the end of 2018 were CNY 109,696,343,858.16, a decrease of 2.82% from CNY 112,883,378,083.96 at the end of 2017 [14]. - The company's net assets attributable to shareholders increased slightly by 0.69% to CNY 61,195,455,409.35 at the end of 2018 from CNY 60,778,143,031.59 at the end of 2017 [14]. - The company's total liabilities decreased to ¥40.54 billion from ¥44.09 billion, a decline of approximately 8.0% [149]. - Shareholders' equity increased to ¥69.15 billion from ¥68.80 billion, a growth of approximately 0.5% [149]. - The total liabilities at the end of the period amount to 68,798,212,712.83 RMB [165]. Revenue and Costs - The total operating costs for 2018 amounted to RMB 54,656,769,259.04, up from RMB 48,175,960,558.48, reflecting a growth of 13.5% [152]. - The company's revenue from electricity production reached ¥43,325,816,326.46, with a year-over-year increase of 6.25% [28]. - The total cash inflow from investment activities was 3,222,311,224.33 RMB, an increase of 35.9% from 2,368,999,371.08 RMB in the previous year [158]. - The cash outflow for purchasing goods and services was 2,850,636,822.58 RMB, an increase of 14.8% from 2,482,218,512.59 RMB in the previous year [159]. Research and Development - The company’s R&D expenses increased by 94.71% to 124.41 million yuan, indicating a strong focus on innovation [26]. - The capitalized proportion of R&D investment was 18.72%, reflecting a strategic focus on long-term innovation [34]. - The company is investing in R&D for new technologies, with an allocated budget of 100 million yuan for the upcoming year [121]. Market Position and Strategy - The company holds approximately 50% of the total regulated installed capacity in Zhejiang Province, positioning it as a leading local power generation enterprise [20]. - The company aims to reduce coal consumption by over 5% compared to 2015 levels, targeting a total coal consumption of no more than 131 million tons by 2020 [21]. - The company plans to maintain a balanced power supply and demand in 2019, with an expected electricity consumption growth of around 5.5% [20]. - The company is actively pursuing opportunities in the clean energy sector as part of the national energy revolution strategy [50]. Environmental and Social Responsibility - The company has achieved ultra-low emissions for major air pollutants, complying with national standards, except for the Zhenhai Power Plant, which is scheduled for shutdown [103]. - The company has invested 1,665.1 million in poverty alleviation projects, including the construction of a 0.24 MW photovoltaic project [99]. - The company has provided financial assistance of 5.82 million to 31 impoverished students as part of its educational poverty alleviation efforts [101]. Related Party Transactions - The total amount of related party transactions for the year reached approximately ¥2.56 billion, with natural gas purchases accounting for 91.87% of this total [73]. - The company engaged in purchasing goods and services from its subsidiaries, with the largest purchase being CNY 849,389,846.96 for equipment and materials, accounting for 29.84% [74]. - The company’s related party transactions are priced based on market rates, ensuring that transaction conditions are not less favorable than those offered by independent third parties [82]. Audit and Compliance - The audit report confirmed that the financial statements fairly reflect the financial position and operating results of the company for the year ended December 31, 2018 [142]. - The internal control audit report issued by Tianjian Accounting Firm confirmed that the company maintained effective financial reporting internal controls as of December 31, 2018 [139]. - The company engaged PwC Zhongtian as the financial auditor for the 2018 fiscal year, with an audit fee of ¥3.5 million [69]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 182,877, an increase from 182,842 in the previous month [109]. - Zhejiang Energy Group Co., Ltd. holds 9,512,667,001 shares, representing 69.94% of total shares, with 2,130,000,000 shares pledged [110]. - The company has no changes in the total number of ordinary shares or share capital structure during the reporting period [107].