GGEP(SH:600236)2019-04-26 16:00Financial Performance - In 2018, the company achieved a net profit attributable to shareholders of CNY 2,384,726,304.83, a decrease of 3.38% compared to 2017[4]. - The total operating revenue for 2018 was CNY 9,514,343,398.70, reflecting a decline of 1.31% from the previous year[16]. - The company's net cash flow from operating activities was CNY 6,512,431,966.84, showing a slight increase of 0.76% year-on-year[16]. - The basic earnings per share for 2018 was CNY 0.3933, down 3.39% from CNY 0.4071 in 2017[18]. - The company's total assets at the end of 2018 were CNY 45,951,940,347.25, a decrease of 4.41% compared to the previous year[16]. - The net assets attributable to shareholders decreased by 5.53% to CNY 14,076,719,885.02 at the end of 2018[16]. - The company reported a decrease in net profit after deducting non-recurring gains and losses, amounting to CNY 2,303,166,275.65, a decline of 8.46% from the previous year[16]. - The company achieved operating revenue of 951.434 million yuan in 2018, a decrease of 1.31% from the previous year, while total profit was 334.623 million yuan, down 0.07%[35]. - The company reported a weighted average return on equity of 16.57% for the year[35]. - The company achieved a total profit of 334,623,000 RMB in 2018, completing 95.61% of the budget target, primarily due to a decrease in average on-grid electricity prices and a goodwill impairment loss of 42,590,000 RMB[41]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.5 per 10 shares, totaling an estimated cash distribution of CNY 1,515,841,885[4]. - The company will issue 3 bonus shares for every 10 shares held, with an estimated total of 1,819,010,262 shares to be distributed[4]. - The cash dividend for 2018 was 2.5 RMB per 10 shares, with a total cash dividend amounting to 1,515,841,885 RMB[86]. - The company’s net profit attributable to ordinary shareholders for 2018 was approximately 2,384.73 million RMB, representing 63.56% of the consolidated net profit[86]. Operational Highlights - The average utilization hours for power generation equipment in 2018 were 3,862 hours, an increase of 73 hours compared to the previous year[27]. - The total installed capacity of the company as of the end of 2018 was 11,839,100 kW, with hydropower accounting for 86.38% of this capacity[27]. - The company completed the acquisition of 100% equity in Guangxi Juyuan Electric Power Co., Ltd. for CNY 1,333,148,000, which was finalized in May 2018[29]. - The total electricity generation was 41.335 billion kWh, an increase of 11.49% year-on-year, with hydropower contributing 38.37 billion kWh, up 10.7%[35]. - The company’s installed capacity is primarily composed of clean energy, with hydropower and wind power accounting for 86.38% of the total, and hydropower capacity reaching 10.2276 million kW[30]. Cost Management and Efficiency - The company successfully reduced controllable expenses by 101 million yuan and financial expenses by 65.06 million yuan in 2018[36]. - The company's operating costs increased by 1.72% to 4,554,155,570.68 RMB, mainly due to increased power generation and fuel costs[43]. - The average on-grid electricity price for hydropower decreased due to price reductions during the abundant water period, impacting revenue from hydropower, which fell by 3.46% to 824.733 million yuan[40]. - The gross profit margin for hydropower was 58.32%, a decrease of 2.63 percentage points compared to the previous year[47]. Strategic Initiatives - The company is actively participating in the electricity sales reform to adapt to the changes in the electricity system, focusing on the sale of electricity as a core business[26]. - The company established a fully-owned subsidiary for electricity marketing, enhancing its participation in the electricity sales reform and extending its industry chain[32]. - The company is actively engaged in asset integration and mergers to optimize its asset structure and reduce costs[33]. - The company plans to focus on developing hydropower while steadily expanding into wind, solar, and gas power generation[83]. Market and Competitive Position - The company plans to further expand its market presence and enhance operational efficiency through strategic acquisitions and technology investments[75]. - The company anticipates that coal prices will remain high, which may increase operational pressure on thermal power enterprises[82]. - The company is expanding its market presence by entering two new provinces, aiming to increase market share by 10%[160]. - A strategic acquisition of a smaller competitor was completed, which is anticipated to enhance operational efficiency and increase market competitiveness[159]. Social Responsibility and Community Engagement - The company allocated 9.29 million yuan for poverty alleviation efforts in 2018, focusing on infrastructure, education, and public services[124]. - A total of 18 villages and 15,612 individuals were lifted out of poverty in Dahu County, reducing the poverty incidence to 14.38%[130]. - The company has established a poverty alleviation leadership group to ensure quarterly evaluations and direct engagement in poverty-stricken areas[123]. - The company plans to increase the number of poverty alleviation personnel to 7, enhancing its support for local communities[124]. Governance and Compliance - The company has established a comprehensive corporate governance structure in compliance with relevant laws and regulations[173]. - The board of directors held a total of 6 meetings during the year, with 1 in-person meeting and 5 conducted via communication methods[178]. - The company has not faced any penalties from securities regulatory agencies in the past three years[165]. - The company maintains independence in business, personnel, assets, institutions, and finance from its controlling shareholder[179]. Future Outlook - The company has set a future outlook with a revenue guidance of 12 billion CNY for the next fiscal year, indicating a projected growth of 20%[154]. - The management highlighted a focus on sustainability, aiming for a 30% reduction in carbon emissions by 2025[155]. - The company aims for a total power generation of 431.3 billion kWh and projected revenue of 9.932 billion RMB for the upcoming year[83].