国网信通(600131) - 2021 Q2 - 季度财报

Glossary This section provides definitions of key terms used throughout the report Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and key financial performance metrics Company Information This chapter provides the company's basic business registration information, including names, legal representative, and contact details - The company's Chinese abbreviation is 'State Grid Information & Telecommunication', stock code is 600131, formerly known as 'Minjiang Hydropower'[9][13] Key Accounting Data and Financial Indicators In H1 2021, the company achieved operating revenue of RMB 2.88 billion, a 6.79% increase, and net profit attributable to shareholders of RMB 217 million, up 29.57%, with net cash outflow from operating activities expanding to RMB 955 million Key Accounting Data for H1 2021 | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 2.88 billion RMB | 2.70 billion RMB | 6.79% | | Net Profit Attributable to Shareholders (RMB) | 217.14 million RMB | 167.58 million RMB | 29.57% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) (RMB) | 205.89 million RMB | 164.78 million RMB | 24.95% | | Net Cash Flow from Operating Activities (RMB) | -954.75 million RMB | -575.17 million RMB | N/A | | Asset Status | End of Current Period | End of Prior Year | YoY Change (%) | | Net Assets Attributable to Shareholders (RMB) | 4.86 billion RMB | 4.64 billion RMB | 4.68% | | Total Assets (RMB) | 10.91 billion RMB | 11.03 billion RMB | -1.12% | Key Financial Indicators for H1 2021 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic EPS (RMB/share) | 0.18 | 0.15 | 20.00% | | Diluted EPS (RMB/share) | 0.18 | 0.15 | 20.00% | | Weighted Average ROE (%) | 4.57% | 5.07% | Decrease of 0.5 percentage points | | Weighted Average ROE (Excl. Non-recurring Items) (%) | 4.34% | 4.99% | Decrease of 0.65 percentage points | - During the reporting period, the company's non-recurring gains and losses totaled RMB 11.25 million, primarily from government subsidies and other defined items[17] Management Discussion and Analysis This section provides an in-depth analysis of the company's operations, financial performance, and future outlook Industry and Main Business Overview The company's main business spans cloud-network infrastructure, enterprise general digital applications, and power digital applications, benefiting from national digital economy strategies like 'East Data West Computing' and 'Dual Carbon' goals - The company's main business is divided into three segments: - Cloud-Network Infrastructure: Provides communication, computing infrastructure construction, operation, and cloud platform services - Enterprise General Digital Applications: Offers general digital products and services like ERP, enterprise portals, and operational visualization - Power Digital Applications: Delivers software and hardware products and solutions in areas such as power marketing and energy trading[18] - Industry growth is driven by the national 'East Data West Computing' strategy, promoting data center development, and the deep integration of energy and digital revolutions under 'Dual Carbon' goals, creating significant opportunities for the company in energy digitalization[20][21] Core Competitiveness Analysis The company's core competitiveness stems from its complete cloud-network integration capabilities, first-mover advantage, extensive communication and data center resources, robust technology with over a thousand patents, comprehensive business qualifications, and strong brand influence in the energy sector - The company possesses full-chain 'cloud-network integration' service capabilities, covering underlying computing resources and upper-layer application services, demonstrating a significant competitive advantage[22] - As one of the earliest enterprises in power industry information and communication, the company has deep industry understanding, strong customer stickiness, and a clear first-mover advantage[22] - The company holds over a thousand patents and software copyrights, forming a series of core technologies and products with independent intellectual property rights, including cloud data centers and energy trading platforms[22] Discussion and Analysis of Operations In H1 2021, the company achieved operating revenue of RMB 2.88 billion (up 6.79%) and net profit attributable to parent of RMB 217 million (up 29.57%), optimizing business for 'Dual Carbon' goals and expanding into grid digitalization and external markets H1 2021 Operating Performance | Indicator | Amount | YoY Growth | | :--- | :--- | :--- | | Operating Revenue (RMB) | 2.88 billion RMB | 6.79% | | Net Profit Attributable to Shareholders (RMB) | 217.00 million RMB | 29.57% | - To support 'Dual Carbon' goals, the company established an Energy (Carbon Asset) Management and Operations Center, developing dual-carbon digital products and optimizing its 'Cloud-Network Integration 2.0' business layout with a 'digital foundation + energy application' core[24] - In grid digitalization, the company supported the launch of Marketing 2.0 in Jiangsu, with online State Grid registered users exceeding 160 million; in external markets, it built a charging operation network service platform, connecting 141 charging stations[24][25] Analysis of Main Business During the reporting period, operating revenue grew by 6.79% due to increased sales, while financial expenses decreased by 108.55% due to reduced loans and increased interest income; R&D expenses rose by 12.43%, and net cash outflow from operating activities expanded to RMB 955 million due to increased procurement payments Analysis of Key Financial Statement Items | Item | Current Period Amount | Prior Period Amount | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 2.88 billion RMB | 2.70 billion RMB | 6.79% | Increased Sales | | Financial Expenses (RMB) | -1.29 million RMB | 15.12 million RMB | -108.55% | Lower Interest Expense, Higher Interest Income | | R&D Expenses (RMB) | 80.75 million RMB | 71.83 million RMB | 12.43% | Increased R&D Investment | | Net Cash Flow from Operating Activities (RMB) | -955.00 million RMB | -575.00 million RMB | N/A | Increased Procurement Payments | Analysis of Assets and Liabilities As of the reporting period end, total assets were RMB 10.91 billion (down 1.12% from year-start); cash decreased by 47.88% due to procurement payments, inventory increased by 129.17% due to work-in-progress, while notes payable decreased by 58.98% and contract liabilities grew by 53.30% due to increased sales Changes in Key Asset and Liability Items | Item | Amount at End of Current Period | Change from Prior Year-End (%) | Explanation | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents (RMB) | 1.34 billion RMB | -47.88% | Increased Procurement Payments | | Inventories (RMB) | 461.04 million RMB | 129.17% | Due to Increase in Work-in-Progress | | Notes Payable (RMB) | 444.07 million RMB | -58.98% | Notes Matured and Accepted | | Contract Liabilities (RMB) | 226.00 million RMB | 53.30% | Due to Increased Sales in Current Year | Analysis of Major Holding and Participating Companies The company's four wholly-owned subsidiaries are key profit contributors; in H1 2021, Beijing Zhongdian Puhua, Anhui Jiyuan Software, Beijing Zhongdian Feihua, and Sichuan Zhongdian Qimingxing contributed RMB 58.65 million, RMB 39.17 million, RMB 49.08 million, and RMB 24.83 million in net profit respectively, while associate Sichuan Futang Hydropower achieved RMB 119 million in net profit Operating Performance of Major Subsidiaries in H1 2021 | Company Name | Net Profit (RMB) | Operating Revenue (RMB) | | :--- | :--- | :--- | | Beijing Zhongdian Puhua Information Technology Co., Ltd. | 58.65 million RMB | 901.24 million RMB | | Anhui Jiyuan Software Co., Ltd. | 39.17 million RMB | 702.49 million RMB | | Beijing Zhongdian Feihua Communication Co., Ltd. | 49.08 million RMB | 914.53 million RMB | | Sichuan Zhongdian Qimingxing Information Technology Co., Ltd. | 24.83 million RMB | 372.00 million RMB | Potential Risks The company faces significant risks including high dependence on State Grid Corporation, talent loss in its human and technology-intensive operations, infringement of core intellectual property, and rapid technological innovation in the information and communication industry - The company's primary revenue is from State Grid Corporation, posing a significant dependence risk on a single major customer[35] - As a talent and technology-intensive enterprise, the company faces intense talent competition and the challenge of losing core personnel[35] - The information and communication industry is rapidly evolving; if the company fails to maintain its technological edge, its competitive advantage may be eroded[35] Corporate Governance This section details the company's governance structure, including changes in its board of directors and senior management Changes in Directors, Supervisors, and Senior Management During the reporting period, the company experienced changes in its board and senior management, including the resignation of two directors and one deputy general manager, and the election of two new directors and appointment of one new deputy general manager - During the reporting period, the company's board and senior management underwent multiple changes, including the departure of two directors, election of two new directors, and the departure and appointment of one deputy general manager respectively[38] Environmental and Social Responsibility This section outlines the company's initiatives and performance in environmental protection and social responsibility Environmental Information The company and its subsidiaries are not major polluters; in response to 'Dual Carbon' goals, the company established an Energy (Carbon Asset) Management and Operations Center and developed the 'Dianxiangjia' digital energy service platform, providing energy-saving and carbon reduction services to over 400 industrial and commercial users - To reduce carbon emissions, the company established an Energy (Carbon Asset) Management and Operations Center and developed the 'Dianxiangjia' digital energy service platform, providing carbon emission and energy consumption online monitoring services to over 400 industrial and commercial users and 30 controlled emission enterprises[43] Social Responsibility Through major asset restructuring, the company replaced traditional hydropower with high-growth cloud-network information and communication industries, promoting industrial upgrading in Aba Prefecture, Sichuan, contributing RMB 6.64 million in new taxes in H1 2021, and actively supporting rural revitalization with its technological expertise - Through asset restructuring, the company promoted industrial upgrading in Aba Prefecture, contributing RMB 6.64 million in new taxes in H1 2021, and leveraging its digital advantages to conduct systematic research and formulate rural revitalization plans[44] Significant Matters This section covers important events and commitments, including litigation, related party transactions, and compliance with undertakings Fulfillment of Commitments During the reporting period, all commitments made by the company's actual controller, shareholders, and related parties in the major asset restructuring, including performance compensation, share lock-up, and resolution of horizontal competition and related-party transactions, were being fulfilled without any breaches - Xinchan Group committed that the injected assets would achieve specific net profits for 2019-2022, and this commitment is currently being fulfilled[49] - State Grid Corporation committed to reducing the proportion of related-party transactions for the listed company to below 50% within five years after the restructuring, and this commitment is currently being fulfilled[51] Major Litigation and Arbitration Matters The company and its subsidiaries are involved in several major contract disputes, including ongoing lawsuits between subsidiary Yangjiawan Company and Huiyuan Company regarding hydropower station construction, the company's re-trial application for a share transfer payment recovery case against Chongqing Bosai Mining was rejected, and subsidiary Jiyuan Software's contract dispute with Zhisheng Company was terminated due to lack of executable asset clues, pending resumption upon new information - Subsidiary Yangjiawan Company is involved in ongoing entrusted contract disputes with Huiyuan Company and Huiyuan Group regarding hydropower station project quality and leakage incidents, with the impact on financial statements currently unpredictable[63][342] - The company's lawsuit against Chongqing Bosai Mining (Group) Co., Ltd. to recover RMB 24.95 million in share transfer payments was dismissed by the final judgment, and the re-trial application was also rejected[63][346] Major Related Party Transactions The company engages in significant related-party transactions with its ultimate controlling party, State Grid Corporation, and its subsidiaries; in H1 2021, sales to related parties totaled approximately RMB 2.01 billion, purchases from related parties totaled approximately RMB 217 million, and the company received a RMB 350 million short-term entrusted loan from its controlling shareholder Xinchan Group Major Related Party Sales in H1 2021 | Related Party | Related Party Transaction Content | Related Party Transaction Amount (RMB) | | :--- | :--- | :--- | | Other Entities within State Grid Corporation System | Sales of Goods and Provision of Services | 1.15 billion RMB | | State Grid Corporation of China | Sales of Goods and Provision of Services | 221.00 million RMB | | State Grid Information & Telecommunication Industry Group Co., Ltd. | Sales of Goods and Provision of Services | 123.00 million RMB | | State Grid Jiangsu Electric Power Co., Ltd. | Sales of Goods and Provision of Services | 102.00 million RMB | Major Related Party Purchases in H1 2021 | Related Party | Related Party Transaction Content | Related Party Transaction Amount (RMB) | | :--- | :--- | :--- | | Other Entities within State Grid Corporation System | Purchases of Goods, Acceptance of Services | 78.61 million RMB | | Xuchang Xuji Delishier Electric Co., Ltd. | Purchases of Goods, Acceptance of Services | 47.52 million RMB | | Jiangsu Ruizhong Data Co., Ltd. | Purchases of Goods, Acceptance of Services | 21.28 million RMB | - During the reporting period, controlling shareholder Xinchan Group provided the company with a RMB 350 million short-term entrusted loan for working capital, with a 1-year term and 3.85% interest rate, and the loan balance at period-end was RMB 350 million[73] Share Changes and Shareholder Information This section details changes in the company's share capital and information regarding its shareholders Share Capital Changes During the reporting period, there were no changes in the company's total share capital or share structure Shareholder Information As of the reporting period end, the company had 39,099 common shareholders; controlling shareholder State Grid Information & Telecommunication Industry Group Co., Ltd. holds 48.85% and, through a voting rights entrustment agreement with State Grid Sichuan Electric Power Company, collectively controls 56.83% of voting rights Top Ten Shareholders' Holdings | Shareholder Name | Shares Held at Period-End | Percentage (%) | | :--- | :--- | :--- | | State Grid Information & Telecommunication Industry Group Co., Ltd. | 583,920,295 | 48.85 | | State Grid Sichuan Electric Power Company | 95,385,704 | 7.98 | | Xinhua Water Conservancy Holding Group Co., Ltd. | 59,849,416 | 5.01 | | Aba State-owned Assets Investment Management Co., Ltd. | 30,654,661 | 2.56 | | Beijing Xinhua Guotai Water Conservancy Asset Management Co., Ltd. | 26,011,299 | 2.18 | - Controlling shareholder State Grid Information & Telecommunication Industry Group Co., Ltd. and State Grid Sichuan Electric Power Company are parties acting in concert, with the latter entrusting its 95,385,704 shares' voting rights to the former[80] Preferred Shares Information This section confirms the absence of preferred shares for the company during the reporting period Preferred Shares Information During the reporting period, the company had no preferred shares - Not applicable[86] Bond Information This section confirms the absence of bond-related information for the company during the reporting period Bond Information During the reporting period, the company had no corporate bonds, company bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds - Not applicable[87] Financial Report This section presents the company's consolidated financial statements, including balance sheet, income statement, and cash flow statement Consolidated Balance Sheet As of June 30, 2021, total assets were RMB 10.91 billion (down 1.12% from year-start), total liabilities were RMB 6.05 billion (down 5.33%), and equity attributable to parent company owners was RMB 4.86 billion (up 4.68%), maintaining a stable asset-liability structure Key Items from Consolidated Balance Sheet | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Assets | | | | Cash and Cash Equivalents (RMB) | 1.34 billion RMB | 2.57 billion RMB | | Accounts Receivable (RMB) | 6.15 billion RMB | 5.47 billion RMB | | Inventories (RMB) | 461.04 million RMB | 201.18 million RMB | | Total Assets (RMB) | 10.91 billion RMB | 11.03 billion RMB | | Liabilities | | | | Short-term Borrowings (RMB) | 450.00 million RMB | 460.00 million RMB | | Notes Payable (RMB) | 444.07 million RMB | 1.08 billion RMB | | Accounts Payable (RMB) | 4.49 billion RMB | 4.26 billion RMB | | Total Liabilities (RMB) | 6.05 billion RMB | 6.39 billion RMB | | Shareholders' Equity | | | | Total Equity Attributable to Parent Company Owners (RMB) | 4.86 billion RMB | 4.64 billion RMB | | Total Shareholders' Equity (RMB) | 4.86 billion RMB | 4.64 billion RMB | Consolidated Income Statement In H1 2021, total operating revenue reached RMB 2.88 billion (up 6.79%), with operating costs at RMB 2.33 billion (up 5.06%), indicating improved gross margin; net profit attributable to parent company shareholders was RMB 217 million (up 29.57%), significantly enhancing profitability, with basic EPS at RMB 0.18 Key Items from Consolidated Income Statement | Item | Jan-Jun 2021 | Jan-Jun 2020 | | :--- | :--- | :--- | | Total Operating Revenue (RMB) | 2.88 billion RMB | 2.70 billion RMB | | Total Operating Costs (RMB) | 2.66 billion RMB | 2.57 billion RMB | | Of which: Operating Costs (RMB) | 2.33 billion RMB | 2.22 billion RMB | | R&D Expenses (RMB) | 80.75 million RMB | 71.83 million RMB | | Financial Expenses (RMB) | -1.29 million RMB | 15.12 million RMB | | Total Profit (RMB) | 236.55 million RMB | 189.90 million RMB | | Net Profit (RMB) | 217.14 million RMB | 167.58 million RMB | | Net Profit Attributable to Parent Company Shareholders (RMB) | 217.14 million RMB | 167.58 million RMB | | Basic EPS (RMB/share) | 0.18 | 0.15 | Consolidated Cash Flow Statement In H1 2021, net cash flow from operating activities was RMB -955 million, with increased outflow primarily due to higher payments for goods and services; net cash outflow from investing activities was RMB 154 million, mainly for fixed asset purchases; net cash inflow from financing activities was RMB 85 million, and period-end cash and cash equivalents totaled RMB 1.22 billion Key Items from Consolidated Cash Flow Statement | Item | Jan-Jun 2021 | Jan-Jun 2020 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities (RMB) | -954.75 million RMB | -575.17 million RMB | | Net Cash Flow from Investing Activities (RMB) | -153.88 million RMB | -63.58 million RMB | | Net Cash Flow from Financing Activities (RMB) | 85.38 million RMB | 1.09 billion RMB | | Net Increase in Cash and Cash Equivalents (RMB) | -1.02 billion RMB | 450.65 million RMB | | Cash and Cash Equivalents at Period-End (RMB) | 1.21 billion RMB | 1.82 billion RMB | Significant Accounting Policy Changes Effective January 1, 2021, the company adopted the revised Accounting Standard for Business Enterprises No. 21 — Leases, adjusting opening financial statement items for the cumulative impact, with right-of-use assets and lease liabilities each increasing by RMB 206 million, without restating comparable period information - The company adopted the new lease standard effective January 1, 2021[172] - Upon initial adoption of the new lease standard, the company adjusted its consolidated balance sheet as of January 1, 2021, increasing right-of-use assets by RMB 205.90 million and lease liabilities by RMB 205.90 million[174][175]