SDIC Power(SH:600886)2019-03-28 16:00Financial Performance - The company's operating revenue for 2018 was CNY 41,011,372,735.69, representing a 29.61% increase compared to 2017[17]. - The net profit attributable to shareholders for 2018 was CNY 4,364,098,425.70, reflecting a growth of 35.02% year-over-year[17]. - The net cash flow from operating activities for 2018 was CNY 19,218,801,114.38, an increase of 5.94% from the previous year[17]. - The total assets at the end of 2018 amounted to CNY 220,708,243,986.79, which is a 5.96% increase compared to the end of 2017[17]. - The basic earnings per share for 2018 was CNY 0.6256, up 31.35% from CNY 0.4763 in 2017[18]. - The company’s weighted average return on equity for 2018 was 12.44%, an increase of 1.53 percentage points from 2017[18]. - The company reported a total of CNY 178,792,284.18 in non-recurring gains and losses for 2018[21]. - The company's overall asset-liability ratio was reduced to 68.20% in 2018, achieving the annual control target[5]. - The average utilization hours of power generation equipment increased to 3,862 hours, up 73 hours year-on-year[6]. - The company’s capital expenditure for the year amounted to 1,539.20 million RMB, with a total actual investment of 1,053.25 million RMB[66]. Dividend Policy - The board of directors proposed a cash dividend of RMB 0.2250 per share, totaling approximately RMB 1,526,855,253.08, which accounts for 35% of the net profit attributable to the parent company for the year[4]. - The cash dividend per 10 shares for 2018 was CNY 2.25, an increase from CNY 1.667 in 2017[99]. - The company has a policy to distribute at least 30% of the average distributable profit over the last three years as cash dividends[98]. - In the case of a mature company without significant capital expenditure, the cash dividend proportion should be at least 80% of the profit distribution[98]. - The company has committed to maintaining a stable and continuous profit distribution policy, requiring communication with minority shareholders[98]. Operational Capacity and Growth - The company achieved a total installed capacity of 34,055 MW by the end of 2018, with hydropower accounting for 49.10% and thermal power for 46.27%[61]. - The company added 2,435 MW of new installed capacity during the year, including 2,000 MW from the North Xinjiang Phase II project[61]. - The company is actively expanding its business related to electricity to adapt to the power system reform[24]. - The company is actively involved in the development of new energy projects across multiple provinces, including Tianjin, Shaanxi, Inner Mongolia, Qinghai, and Guangxi[9]. - The company is focusing on increasing the proportion of clean energy in its power generation mix[84]. Risk Management - The company highlighted potential risks that could impact its operations and development, which are detailed in the report[6]. - The company emphasized the importance of investment risk awareness in its forward-looking statements regarding future strategies and operational plans[5]. - The company faces risks from electricity price adjustments, with a potential 10% reduction in industrial electricity prices[91]. - The company is addressing coal price risks by optimizing procurement strategies and expanding supply channels[92]. - The company is committed to complying with stricter environmental regulations to mitigate environmental risks[93]. Corporate Governance - The company has maintained a stable leadership structure with no changes in shareholding among key executives during the reporting period[155]. - The company has a diverse board with members having extensive experience in engineering, finance, and law, enhancing its strategic capabilities[156]. - The company has implemented a performance evaluation mechanism for senior management, linking short-term and long-term incentives to performance assessments[181]. - The company has implemented a system for managing insider information, ensuring compliance with regulatory requirements[170]. - The company revised several internal governance documents to align with regulatory requirements, protecting shareholder interests[170]. Social Responsibility - The company has actively participated in social responsibility initiatives, including targeted poverty alleviation strategies[126]. - The company invested a total of 177.4 million in poverty alleviation projects, helping 469 registered impoverished individuals to escape poverty[130]. - The company provided financial assistance of 54.61 million to support 5,852 impoverished students[130]. - The company allocated 100 million to improve educational resources in impoverished areas[130]. - The company has established a comprehensive coordination mechanism for poverty alleviation, ensuring effective communication with local governments[128]. Audit and Compliance - The company received a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial report[3]. - The financial report was confirmed to be true, accurate, and complete by the responsible executives, ensuring accountability[3]. - The internal control audit report for 2018 was issued by Lixin Accounting Firm, confirming the effectiveness of internal controls with a standard unqualified opinion[182]. - The company has not reported any significant changes in its financial condition or operational performance that would affect its goodwill impairment testing[104]. - The company has not faced any risks of suspension or termination of its listing[109].