ZZEPC(SH:600023)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was approximately RMB 51.68 billion, a decrease of 4.94% compared to RMB 54.37 billion in 2019[14]. - Net profit attributable to shareholders for 2020 was approximately RMB 6.09 billion, an increase of 41.76% from RMB 4.29 billion in 2019[14]. - The net cash flow from operating activities for 2020 was approximately RMB 10.13 billion, representing a 12.19% increase from RMB 9.03 billion in 2019[14]. - The basic earnings per share for 2020 was RMB 0.45, up 40.63% from RMB 0.32 in 2019[15]. - The total assets at the end of 2020 were approximately RMB 114.51 billion, an increase of 3.19% from RMB 110.97 billion at the end of 2019[14]. - The weighted average return on equity for 2020 was 9.22%, an increase of 2.35 percentage points from 6.87% in 2019[15]. - The net profit after deducting non-recurring gains and losses for 2020 was approximately RMB 5.91 billion, a 39.81% increase from RMB 4.23 billion in 2019[14]. - The company reported a net asset attributable to shareholders of approximately RMB 67.85 billion at the end of 2020, a 5.74% increase from RMB 64.17 billion at the end of 2019[14]. - The total power generation for the year was 113.72 billion kWh, a decline of 3.21% compared to the previous year, while the cumulative heating supply reached approximately 26 million tons, an increase of about 240,000 tons[24]. - The company’s average equivalent availability factor for managed units was 93.01%, with an average forced outage rate of 0.09%[24]. Market and Industry Insights - In 2020, the total electricity consumption in China reached 7.51 trillion kWh, representing a year-on-year growth of 3.1%[21]. - The installed power generation capacity in China increased by 9.5% year-on-year, reaching 2.2 billion kW by the end of 2020[21]. - The expected growth rate for national electricity consumption in 2021 is projected to be between 6% and 7%[21]. - By the end of 2021, the total installed power generation capacity in China is anticipated to reach 2.37 billion kW, a year-on-year increase of approximately 7.7%[21]. - The proportion of non-fossil energy power generation capacity is expected to rise to 47.3% of the total installed capacity by the end of 2021, up from 44.8% in 2020[21]. - The company holds a significant market share in the Zhejiang electricity market, managing approximately half of the province's thermal power generation capacity[22]. - The company is actively involved in the nuclear power sector, with investments in multiple nuclear power companies, enhancing its competitive edge[22]. Research and Development - The company’s research and development expenses rose by 56.02% to CNY 285.77 million, reflecting a commitment to innovation[25]. - The total R&D investment amounted to 347,019,799.34 RMB, representing 0.67% of operating revenue[33]. - Research and development expenses increased significantly to ¥26.51 million in 2020, compared to ¥7.43 million in 2019, marking a rise of 256.5%[138]. Cash Flow and Investments - The company’s cash flow from operating activities increased by 12.19% to CNY 10.13 billion, while cash flow from investment activities saw a significant decline of 232.03%[25]. - The company’s cash dividend policy has been strictly adhered to, ensuring the protection of minority shareholders' rights[55]. - The company reported a total of 115,000,000 RMB in entrusted loans for project construction with a maturity date of November 15, 2024, at an annualized return rate of 4.275%[77]. - The company has a total of 193,000,000 RMB in entrusted loans for operational purposes, with a maturity date of April 10, 2025, also at an annualized return rate of 4.275%[77]. Environmental and Social Responsibility - The company has implemented pollution control facilities including dust removal, limestone-gypsum wet desulfurization, low-nitrogen burners, and wastewater treatment systems, all of which are operating normally[87]. - All power generation enterprises have obtained environmental impact assessment approvals and completion acceptance documents for major construction projects such as desulfurization and denitrification projects[88]. - The company has committed 445.8812 million RMB towards poverty alleviation initiatives, including e-commerce and tourism[82]. - The company provided financial assistance of 8.55 million RMB to support 36 impoverished students[84]. Corporate Governance - The company has no controlling shareholder or actual controller[101]. - The board of directors held 10 meetings during the year, with 7 conducted via communication methods[119]. - The independent directors participated in all board meetings, with no absences reported[118]. - The company has established emergency response plans for sudden environmental pollution incidents, which have been filed with local environmental protection bureaus[90]. Audit and Compliance - The company received a standard unqualified opinion from PwC on its financial statements, indicating that they fairly reflect its financial position and operating results for the year 2020[123]. - The audit report emphasizes the importance of understanding internal controls related to the audit process[127]. - The company has maintained compliance with related party transaction disclosure obligations[63]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[136]. - The company aims to enhance its competitiveness as a comprehensive energy service provider by integrating traditional thermal power with renewable energy sources[51]. - The company plans to prioritize the development of non-fossil energy sources as a key strategy for green energy transition, aligning with national policies[50].