MXEP(SH:600101)2019-03-28 16:00Financial Performance - In 2018, the company achieved operating revenue of CNY 1,599,933,132.65, representing a year-on-year increase of 5.74% compared to CNY 1,513,128,678.40 in 2017[23]. - The net profit attributable to shareholders of the listed company for 2018 was CNY 101,781,013.51, up 3.75% from CNY 98,103,612.95 in 2017[23]. - The net profit after deducting non-recurring gains and losses was CNY 84,460,835.40, a decrease of 5.34% from CNY 89,229,003.97 in the previous year[23]. - The total operating revenue for the year was CNY 1,582,495,478.96, representing a year-on-year increase of 13.39%[53]. - The operating cost for the year was CNY 1,370,621,125.87, with a year-on-year increase of 5.58%[53]. - The revenue from electricity sales was CNY 1,313,916,729.51, with a year-on-year increase of 10.38%[53]. - The total electricity sales volume increased by 11.52% year-on-year, reaching 216,866.64 million kWh[45]. - The company reported a total revenue of 1.2 billion CNY for the fiscal year 2018, representing a year-over-year increase of 15%[168]. Cash Flow and Investments - The net cash flow from operating activities decreased by 74.05% to CNY 79,541,702.76, primarily due to a slight decrease in self-generated electricity and increased cash payments for electricity purchases[23]. - The company invested heavily in information technology and grid construction, leading to a 30.16% decrease in cash flow from investment activities[49]. - The company plans to enhance its information technology and grid construction investments, contributing to future growth[67]. - The company’s capital expenditure in 2018 was 238.545 million yuan, with a completion rate of 71.63%[76]. Market Position and Strategy - The company maintained a 100% market share in the local electricity supply and over 90% in the water supply market within its jurisdiction[33]. - The company aims to enhance its competitive advantage by investing in profitable sectors while gradually exiting less profitable and high-risk industries[93]. - The company plans to enhance its market expansion and product development strategies in response to competitive pressures in the construction sector[54]. - The company is focusing on expanding its market presence and exploring new investment channels due to limited local hydropower resources[112]. Operational Efficiency - The gross profit margin for the main business decreased by 0.37 percentage points, attributed to a smaller growth rate in revenue compared to costs[50]. - The company reported a decrease in self-generated electricity volume by 5.78% to 53,857.31 million kWh[45]. - The average utilization hours for hydropower generation in Suining reached 4,731 hours, exceeding the national average by 30.94%[69]. - Operational costs were reduced by 5% due to improved efficiency measures implemented in 2018[168]. Customer and Service Quality - The company has been focusing on enhancing its service quality and customer satisfaction through various initiatives, including the promotion of mobile payment options[36]. - The user payment rate through mobile applications and WeChat has reached 86%[142]. - The company is committed to improving service quality and optimizing the customer experience through digital solutions and enhanced service platforms[109]. Risk Management - The company does not foresee any significant risks that could impact its operations in the near future[8]. - The company faces external risks from economic fluctuations and regulatory changes in the energy sector, which may impact electricity demand[111]. - The company is committed to controlling its debt levels and asset-liability ratios to effectively reduce financial risk[114]. Corporate Governance - The company has implemented a rigorous process for managing related party transactions, ensuring independence from the controlling shareholder[184]. - The company’s management compensation is linked to operational responsibilities and performance, with evaluations conducted by the remuneration and assessment committee[190]. - The company maintains independence from its controlling shareholder in operations, finance, and decision-making[181]. Community Engagement and Environmental Responsibility - The company has actively participated in poverty alleviation efforts, focusing on seven major action plans to improve power supply in impoverished areas[136]. - The company has established an emergency response plan for environmental incidents, ensuring preparedness for potential environmental emergencies[146]. - The company has committed to continuous improvement in environmental monitoring and compliance with pollution discharge standards[146]. Future Outlook - The company provided a future outlook, projecting a revenue growth of 10% for the next fiscal year, targeting 1.32 billion CNY[168]. - The company plans to complete a sales volume of 2.3 billion kWh and water sales of 4 million tons in 2019, with a projected main business revenue of 1.65 billion yuan[105]. - A strategic acquisition of a local energy firm is in progress, which is expected to add 200 million CNY in annual revenue[168].