NMHD(SH:600863)2020-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 7,295,715,171.16, representing a 7.99% increase compared to CNY 6,756,204,057.12 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was CNY 683,765,308.40, a decrease of 7.55% from CNY 739,584,948.51 in the previous year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 671,742,718.11, down 8.58% from CNY 734,824,253.98 year-on-year[16]. - The net cash flow from operating activities increased by 45.37% to CNY 2,200,117,183.00, compared to CNY 1,513,413,457.64 in the same period last year[16]. - Basic earnings per share for the reporting period (1-6 months) decreased to 0.11 CNY, down 8.33% from 0.12 CNY in the same period last year[17]. - Weighted average return on equity decreased to 5.29%, a reduction of 0.65 percentage points compared to 5.94% in the previous year[17]. - The company's financial performance is primarily driven by thermal power generation, wind power generation, coal sales, and investment income[21]. - The company reported a net profit of 27.22 million RMB from Beifang Weijia Coal Power Company, which is a significant contributor to overall profitability[41]. - The company reported a net loss from credit impairment of ¥54,854.69 in the first half of 2020, compared to a loss of ¥35,000 in the previous year[139]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 43,793,854,936.02, down 1.83% from CNY 44,609,324,444.10 at the end of the previous year[16]. - The net assets attributable to shareholders at the end of the reporting period were CNY 13,779,569,526.42, a decrease of 1.52% from CNY 13,992,398,100.63 at the end of the previous year[16]. - The total liabilities of the company amounted to 26.473 billion yuan, a decrease of 630 million yuan or 2.33% compared to the beginning of the year[78]. - The asset-liability ratio is 60.45%, which is a reduction of 0.31 percentage points from the beginning of the year, indicating a reasonable debt structure[78]. - The total owner's equity at the end of the reporting period is CNY 11,646,458,608.40, reflecting an increase of CNY 387,999,566.13 compared to the previous period[155]. Cash Flow - Operating cash inflow for the first half of 2020 was CNY 6,094,207,907.64, an increase of 7.98% compared to CNY 5,644,629,803.79 in the same period of 2019[142]. - Cash outflow from investing activities was CNY 307,373,343.51, significantly lower than CNY 1,301,926,942.59 in the previous year[143]. - Net cash flow from financing activities was negative at CNY -1,971,315,468.95, compared to a slight negative of CNY -99,096,598.10 in the same period last year[143]. - The total cash and cash equivalents at the end of the period stood at CNY 418,194,337.74, down from CNY 679,415,120.78 at the end of the previous year[142]. Market and Operational Insights - The company completed a total heat supply of 726.28 million GJ, an increase of 52 million GJ, representing a year-on-year growth of 7.76%[21]. - The company plans to enhance service quality and explore new markets in response to the evolving electricity market demands[21]. - The company anticipates a stable growth in electricity consumption, projecting a 4%-5% increase in national electricity usage compared to 2019[43]. - The company faces risks related to the electricity market, including increased competition and challenges in acquiring new project development rights due to the transition to a subsidy-free era for renewable energy[43]. Environmental Compliance - The company is committed to environmental protection, having completed ultra-low emission upgrades for all its units, and aims to further improve its clean energy and high-efficiency coal-fired power generation ratio[45]. - The company reported a total emission of 375.69 tons of nitrogen oxides with a concentration of 32.88 mg/Nm³, which is below the standard limit of <50 mg/Nm³[85]. - The total sulfur dioxide emissions were 261.42 tons at a concentration of 23.64 mg/Nm³, also compliant with the standard of <35 mg/Nm³[85]. - The company has implemented various environmental protection measures across its power generation facilities, including dust removal and wastewater treatment systems[83]. Shareholder and Governance Matters - The company held its 2019 annual shareholders' meeting on June 29, 2020, where 15 proposals were approved, including the annual work reports and the reappointment of the auditing firm[46]. - The company does not plan to distribute profits or increase capital reserves in the first half of 2020[47]. - The company has received a commitment from its controlling shareholder to increase their holdings by no less than RMB 200 million and no more than RMB 400 million, with a share price not exceeding RMB 3.6 per share[58]. - The company has not experienced any losses due to ownership defects during the reporting period and will assess the impact of related asset ownership proof on future operations[59]. Financial Instruments and Risk Management - The company recognizes expected credit losses for financial instruments classified at amortized cost and those measured at fair value through other comprehensive income, based on the present value of the difference between contractual cash flows and expected cash flows[177]. - The company assesses credit risk changes for financial instruments at each reporting date, measuring loss provisions based on whether credit risk has significantly increased since initial recognition[178]. - The company derecognizes financial assets when the contractual rights to cash flows expire or when it transfers the asset and retains almost all risks and rewards[180]. - The company engages in factoring and discounting of bank acceptance bills as part of its daily cash management[187].