南网储能(600995) - 2021 Q2 - 季度财报

Company Profile and Key Financial Indicators Overview of the company's basic information and key financial performance indicators Company Basic Information Wenshan Electric Power, listed on the Shanghai Stock Exchange (stock code 600995), is represented by Jiang Hongdong - The company's full name is Yunnan Wenshan Electric Power Co., Ltd., with stock abbreviation Wenshan Electric Power and stock code 600995[8][13] Key Accounting Data and Financial Indicators The company experienced a 9.79% increase in operating revenue but a 37.22% decline in net profit attributable to shareholders during the reporting period Key Accounting Data and Financial Indicators | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 1,046,811,580.21 | 953,425,576.45 | 9.79 | | Net Profit Attributable to Shareholders (CNY) | 122,720,587.00 | 195,466,218.22 | -37.22 | | Net Profit Attributable to Shareholders After Non-Recurring Items (CNY) | 118,811,677.01 | 172,277,713.73 | -31.03 | | Net Cash Flow from Operating Activities (CNY) | 269,515,383.23 | 261,374,494.88 | 3.11 | | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | Basic EPS (CNY/share) | 0.26 | 0.41 | -36.59 | | Weighted Average ROE (%) | 5.53 | 8.76 | Decrease of 3.23 percentage points | Non-Recurring Gains and Losses Items The company's non-recurring gains and losses totaled 3.91 million CNY, mainly from entrusted operation fees and other non-operating income and expenses Non-Recurring Gains and Losses Details | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Government grants recognized in current profit or loss | 487,892.77 | | Reversal of impairment provisions for receivables and contract assets subject to separate impairment testing | 500,000.00 | | Custody fee income from entrusted operations | 5,050,000.00 | | Other non-operating income and expenses beyond the above | -1,439,175.13 | | Income tax impact | -689,807.65 | | Total | 3,908,909.99 | Management Discussion and Analysis Analysis of the company's industry, core competencies, operating performance, and financial position Industry and Principal Business Overview The company's principal business is power supply in Wenshan Prefecture, facing challenges from tight power supply due to drought despite overall electricity consumption growth - The company provides direct power supply services to five cities and counties within Wenshan Prefecture, wholesale electricity to parts of Guangxi, and operates 110 MW of small hydropower generation[18] - In the first half of 2021, national electricity consumption increased by 16.2%, while Yunnan Province's electricity consumption grew by 20.9%[18][19] - Due to drought and water shortages in Yunnan, power supply remains tight, impacting heavy industrial production in Wenshan Prefecture since May due to staggered power cuts[20][21] Core Competitiveness Analysis The company's core strengths include a complete power industry chain, stable customer base, competitive advantages in incremental power distribution, and expanding design market capabilities - The company possesses technical advantages and service capabilities across the entire power industry chain, including generation, distribution, sales, design, and surveying[22] - The company maintains long-term stable customer resources and widespread brand recognition[22] - Wholly-owned subsidiary Wendian Design Company actively expands its market within and outside the prefecture, leveraging its 220 kV voltage level power design capabilities and experience[22] Operating Performance Discussion and Analysis In the first half of 2021, electricity sales increased by 2.81% and operating revenue by 9.79%, but a significant 21.68% rise in operating costs led to a 37.46% decrease in total profit and a 37.22% decrease in net profit Key Operating Indicators | Operating Indicator | H1 2021 | YoY Growth | Notes | | :--- | :--- | :--- | :--- | | Power Supply Volume (10,000 kWh) | 292,341 | 3.88% | Self-generated power supply decreased by 6.12%, purchased power increased by 4.51% | | Electricity Sales Volume (10,000 kWh) | 277,587 | 2.81% | Large industrial electricity consumption accounted for the highest proportion at 40.95% | | Operating Revenue (10,000 CNY) | 104,681.16 | 9.79% | - | | Total Profit (10,000 CNY) | 14,274.38 | -37.46% | - | | Net Profit (10,000 CNY) | 12,272.06 | -37.22% | - | Analysis of Key Operating Conditions The company's operating revenue and costs significantly increased due to the consolidation of Wenshan Pingyuan Power Supply, while expenses rose from performance bonuses and increased borrowings, and investing cash outflows surged for project construction Financial Statement Item Variation Analysis Operating revenue increased by 9.79% while operating costs rose by 21.68%, leading to a profit decline, with all expenses increasing over 20%, and investing cash outflows surging 474.74% due to increased projects and acquired construction in progress Financial Statement Item Variation Analysis Table | Item | Current Period (CNY) | Prior Period (CNY) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,046,811,580.21 | 953,425,576.45 | 9.79 | Impact of Wenshan Pingyuan Power Supply Company's electricity volume inclusion | | Operating Cost | 864,751,950.64 | 710,694,232.74 | 21.68 | Inclusion of Wenshan Pingyuan electricity purchase costs and performance bonus distribution | | Administrative Expenses | 48,388,569.67 | 40,242,850.13 | 20.24 | Impact of 2020 annual organizational performance bonus distribution | | Net Cash Flow from Investing Activities | -131,454,843.11 | -22,872,097.09 | 474.74 | Increase in engineering projects, impact of receiving construction in progress | | Operating Profit | 144,182,975.31 | 206,984,411.35 | -30.34 | Decrease in profit due to increased cost and expense expenditures | Assets and Liabilities Analysis Total assets increased by 3.30% from the beginning of the period, with significant increases in inventory, construction in progress, notes payable, and prepayments, while long-term equity investments and short-term borrowings substantially decreased Assets and Liabilities Status | Item Name | Current Period End (CNY) | Prior Period End (CNY) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Inventory | 17,445,499.26 | 8,331,784.54 | 109.38 | Increase in inventory materials | | Long-term Equity Investments | 74,942,526.42 | 188,886,693.55 | -60.32 | Liquidation and deregistration of Wenshan Pingyuan Power Supply Company | | Construction in Progress | 295,778,004.11 | 189,860,348.43 | 55.79 | Increase in engineering projects and receipt of construction in progress | | Short-term Borrowings | 20,076,638.89 | 90,094,989.59 | -77.72 | Repayment of bank short-term borrowings | | Notes Payable | 101,212,319.71 | 47,575,832.86 | 112.74 | Increase in commercial acceptance bills issued | Analysis of Major Controlled and Associate Companies Equity investment income primarily derived from associate companies, with Wenshan Pingyuan Power Supply Company contributing 17.84 million CNY before its liquidation, and Shenzhen Qianhai Shekou Free Trade Zone Power Supply Company contributing 4.02 million CNY - Wenshan Pingyuan Power Supply Co., Ltd. completed liquidation and deregistration on April 30, 2021, contributing 17.84 million CNY in investment income from January to March[35][37] - Investment in Shenzhen Qianhai Shekou Free Trade Zone Power Supply Co., Ltd. (8% stake) yielded 4.02 million CNY in investment income during the first half[34] Other Disclosures The company's primary risk stems from the uncertain power supply situation in Yunnan Province, where staggered power cuts could impact production and operations - The company faces primary risks from tight power supply and staggered power cut policies in Yunnan Province, which may introduce uncertainties to its production and operations[39] Corporate Governance Details on changes in the board, supervisors, and senior management, along with profit distribution plans Changes in Directors, Supervisors, and Senior Management During the reporting period, Mr. Wang Yanxiang was appointed General Manager and elected Director, Mr. Wang Bin was appointed Deputy General Manager, while former General Manager Mr. Luo Dong and Deputy General Manager Mr. Wang Wenxi resigned - In June 2021, Wang Yanxiang was appointed General Manager and Wang Bin was appointed Deputy General Manager[43] Profit Distribution Plan The Board of Directors resolved not to distribute profits or convert capital reserves into share capital for the first half of 2021 - No profit distribution or capital reserve to share capital conversion plan was proposed for the current reporting period[44] Environmental and Social Responsibility Measures taken for carbon emission reduction and the company's social responsibility initiatives Carbon Reduction and Social Responsibility The company actively supports new energy development, promotes electrification, strengthens demand-side management for carbon reduction, and contributes to rural revitalization through team deployment and grid upgrades - The company supports carbon peaking and carbon neutrality goals through new energy development, deeper electricity substitution, energy-saving services, and demand-side management[47] - The company actively promotes rural power grid upgrades, implements rural electrification enhancement projects, and plans to complete 225 charging piles/guns within the year[48][49] - The company dispatched 24 rural revitalization village-stationed team members to serve 9 village committees, aiding in the effective connection of poverty alleviation achievements with rural revitalization[49] Significant Matters Key information regarding major related party transactions and significant contracts Major Related Party Transactions The company's routine related party transactions involve electricity purchase/sale, engineering services, and insurance with Yunnan Power Grid Company and its subsidiaries, all duly approved and executed - The company's routine related party transactions primarily involve Yunnan Power Grid Company and its subsidiaries, and Wenshan Panlong River Basin Hydropower Development Co., Ltd., with all necessary approval procedures completed[55] Significant Contracts and Their Performance During the reporting period, the company performed multiple asset and business custody agreements with its controlling shareholder, Yunnan Power Grid Company, managing county-level power supply enterprises and receiving custody fees - The company manages the assets and operations of Guangnan County Electric Power Company under entrustment from Yunnan Power Grid Company, receiving an annual custody fee of 5.1 million CNY[57] - The company also manages the assets and operations of Wenshan Maguan and Malipo county power supply bureaus, with the annual custody fee adjusted to 15.7 million CNY starting March 2021[58] Share Changes and Shareholder Information Overview of the company's shareholder structure and major shareholders Shareholder Information As of the reporting period end, the company had 39,961 shareholders, with Yunnan Power Grid Co., Ltd. as the largest shareholder at 30.66% - As of the end of the reporting period, the company had 39,961 common stock shareholders[61] Top Shareholders | Shareholder Name | Shares Held at Period End | Proportion (%) | | :--- | :--- | :--- | | Yunnan Power Grid Co., Ltd. | 146,719,000 | 30.66 | | Wang Chengping | 10,016,415 | 2.09 | | Yunnan Provincial Local Electric Power Industrial Development Co., Ltd. | 6,480,000 | 1.35 | Financial Report Summary of financial statements, significant accounting policies, and detailed notes on key financial items Financial Statement Summary As of June 30, 2021, total assets were 2.97 billion CNY, net assets attributable to shareholders were 2.24 billion CNY, with an asset-liability ratio of 24.32%, and first-half operating revenue reached 1.05 billion CNY, though net profit declined by 37.22% to 122.72 million CNY Consolidated Financial Statement Summary | Consolidated Balance Sheet Summary | Amount (CNY) | | :--- | :--- | | Total Assets (as of 2021-06-30) | 2,965,742,502.90 | | Total Liabilities (as of 2021-06-30) | 721,260,152.58 | | Net Assets Attributable to Shareholders (as of 2021-06-30) | 2,244,482,350.32 | | Consolidated Income Statement Summary | Amount (CNY) | | Operating Revenue (Jan-Jun 2021) | 1,046,811,580.21 | | Operating Cost (Jan-Jun 2021) | 864,751,950.64 | | Net Profit Attributable to Shareholders (Jan-Jun 2021) | 122,720,587.00 | Significant Accounting Policies and Estimates The company's financial statements adhere to accounting standards under a going concern assumption, with a key policy change being the adoption of new lease standards from January 1, 2021, and revenue from electricity sales recognized over time based on performance progress - The company adopted new lease standards effective January 1, 2021, adjusting opening financial statements for cumulative impact, primarily affecting right-of-use assets and lease liabilities[167] - Revenue from electricity product sales, as a performance obligation satisfied over time, is recognized based on the progress of performance (monthly settlement statements)[157] - Accounts receivable impairment provisions are measured at the amount of expected credit losses over the entire lifetime using a simplified model[125] Notes to Major Items in Consolidated Financial Statements At period-end, notes receivable significantly increased to 109 million CNY, accounts receivable top five customers accounted for 23.16%, long-term equity investments decreased due to associate company deregistration, and construction in progress rose by 55.79% from infrastructure and technical upgrade projects - Accounts receivable balance at period-end was 209 million CNY, with approximately 98.28% being less than one year old, and the top five debtors accounting for 23.16% of the total[184][190][191] - Long-term equity investments decreased at period-end due to the liquidation and deregistration of associate company Wenshan Pingyuan Power Supply Company, while investments in Shenzhen Qianhai and Wenshan Muddihe associate companies are accounted for using the equity method[211][212] - Construction in progress book value was 277 million CNY at period-end, a significant increase from 180 million CNY at the beginning of the period, primarily due to investments in infrastructure and technical upgrade projects[219][220] Related Parties and Related Party Transactions The company's ultimate controlling party is China Southern Power Grid Co., Ltd., with Yunnan Power Grid Co., Ltd. as its parent company, and related party transactions primarily involve electricity purchase/sale, engineering services, insurance, and asset custody with the parent company and its controlled entities, all based on market or agreed-upon fair prices - The company's parent company is Yunnan Power Grid Co., Ltd., holding 30.66% of shares, and its ultimate controlling party is China Southern Power Grid Co., Ltd[301] Major Related Party Transactions | Related Party | Related Transaction Content | Amount (CNY) | | :--- | :--- | :--- | | Yunnan Power Grid Co., Ltd. | Electricity Purchase | 361,764,651.84 | | Guangxi Power Grid Co., Ltd. Baise Power Supply Bureau | Electricity Sales | 106,538,472.94 | | Yunnan Fenghui Electric Power Engineering Co., Ltd. | Services Received | 22,645,907.31 | | Yunnan Power Grid Co., Ltd. | Asset Custody Received | 5,050,000.00 |