LEP(SH:600644)2019-03-27 16:00Financial Performance - In 2018, the company achieved a net profit attributable to shareholders of 80,894,636.38 yuan, while the cumulative undistributed profit at the end of the year was -668,110,470.83 yuan[6]. - The parent company reported a net profit of 43,772,523.67 yuan for 2018, with a cumulative undistributed profit of -1,071,490,461.36 yuan at year-end[6]. - The company did not allocate any statutory reserve or distribute profits for the year due to insufficient statutory reserves to cover previous losses[6]. - The company's operating revenue for 2018 was approximately CNY 2.17 billion, representing a 5.43% increase compared to 2017[21]. - Net profit attributable to shareholders was CNY 80.89 million, an increase of 88.76% from CNY 42.86 million in 2017[21]. - Basic earnings per share rose to CNY 0.1502, an 88.76% increase from CNY 0.0796 in the previous year[22]. - The company's total assets increased by 12.26% to CNY 3.35 billion compared to CNY 2.98 billion in 2017[21]. - Cash flow from operating activities decreased by 29.21% to CNY 167.72 million, down from CNY 236.94 million in 2017[21]. - The company reported a significant decline in net profit after deducting non-recurring gains, which fell by 76.81% to CNY 27.94 million[22]. - The total profit for 2018 was ¥127,567,000, up from ¥86,399,900 in the previous year, mainly due to a non-recurring gain of ¥50,375,100 from the bankruptcy liquidation of a subsidiary[56]. Audit and Compliance - The report includes a standard unqualified audit opinion from Zhongtian Yun Accounting Firm[5]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management team[5]. - The audit report indicates that the financial statements fairly present the financial position of Leshan Electric Company as of December 31, 2018[186]. - The audit firm confirmed that it obtained sufficient and appropriate audit evidence to support its opinion on the financial statements[183]. - The audit procedures included testing internal controls related to revenue, analyzing revenue, costs, and gross profit, and conducting site visits for significant installation projects[187]. Strategic Initiatives - The company’s strategic cooperation agreement with the local government aims to accelerate the construction of a smart green grid[11]. - The company is actively expanding its market presence and has implemented measures to enhance management and profitability[34]. - The company is focusing on high-quality development and resource integration to accelerate its transformation[34]. - The company is participating in a joint venture for a sewage treatment project, which will help expand its wastewater treatment business[37]. - The company plans to publicly transfer its 4.16% equity stake in Sichuan Yongfeng Paper Co. based on net asset evaluation, with the process currently underway[71]. Operational Metrics - The company’s electricity sales volume in Leshan accounted for 15.8% of the total, an increase of 0.3 percentage points year-on-year[27]. - The company achieved a total electricity generation of 496 million kWh in 2018, a decrease of 11.89% compared to 562 million kWh in the previous year[42]. - The company completed a gas sales volume of 15,722,000 cubic meters, marking a growth of 15.81% from 13,576,000 cubic meters in the previous year[42]. - The company reported a water sales volume of 3.372 million cubic meters, resulting in an operating revenue of 156.5857 million yuan and a net loss of 9.7149 million yuan[76]. - The company’s comprehensive line loss rate for electricity was 8.04%, a reduction of 0.46 percentage points year-on-year[43]. Market and Competitive Landscape - The company is facing challenges such as changes in the profitability model due to electricity system reforms and increasing operational pressures from environmental regulations[90]. - The company is focusing on enhancing its market competitiveness by adapting to the new business environment and increasing resource integration efforts[89]. - The company aims to control the comprehensive line loss of the power grid to below 9% during the "13th Five-Year Plan" period, down from 11.46% in 2010[81]. - The company anticipates that the national electricity consumption will reach between 6.8 to 7.2 trillion kWh in 2020, with an average annual growth of 3.6% to 4.8%[80]. Corporate Governance - The board of directors consists of 11 members, including 4 independent directors, ensuring a balanced governance structure[157]. - The company has established a comprehensive corporate governance structure, with a board of directors consisting of 11 members, including 4 independent directors[171]. - The independent board members have actively fulfilled their responsibilities, providing independent opinions on significant matters[176]. - The company has maintained effective internal financial reporting controls as of December 31, 2018, according to the internal control audit report[179]. Social Responsibility and Community Engagement - The company donated RMB 1.16 million for poverty alleviation projects, focusing on ecological agriculture and rural tourism[129]. - The poverty alleviation efforts led to the recognition of the targeted village as a "provincial-level four-good village" and received multiple awards for its initiatives[130]. - The company provided vocational skills training with an investment of 5 million, benefiting 1,202 individuals and helping 15 registered impoverished households to achieve employment[133]. - The company is committed to developing rural tourism and enhancing local attractions to create sustainable income sources for the community[136]. Related Party Transactions - The company reported a total of 61,988.79 million CNY in related party transactions, accounting for 77.85% of similar transaction amounts[118]. - The company purchased electricity from State Grid Sichuan Electric Power Company, with a transaction amount of 59,330.97 million CNY, representing 74.51% of the total related party transactions[118]. - The company has ongoing litigation matters, including a case involving a claim of 42 million CNY for breach of contract, which has been concluded[116]. Employee and Management Structure - The total number of employees in the parent company is 1,117, while the total number of employees in major subsidiaries is 2,184, resulting in a combined total of 3,301 employees[163]. - The company organized training for various personnel totaling 4,112 person-times, with training expenses amounting to approximately 3.54 million yuan[166]. - The company has established a performance-based salary system linked to annual economic performance, ensuring that salary totals are adjusted according to the company's economic benefits[164].