wsdl(SH:600995)2022-10-30 16:00Key Financial and Operating Performance Key Accounting Data and Financial Indicators In the first three quarters of 2022, the company reported operating revenue of RMB 6.39 billion, a 5.66% year-on-year increase, and net profit attributable to shareholders of RMB 1.32 billion, up 33.17%, driven by major asset restructuring and retrospective adjustments Key Financial Indicators for Q1-Q3 2022 | Indicator | Year-to-Date (RMB) | YoY Change (%) | Current Period (Q3) (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 6,391,632,054.37 | 5.66% | 2,241,137,978.75 | 18.88% | | Net Profit Attributable to Shareholders | 1,318,379,907.03 | 33.17% | 378,607,624.89 | 21.18% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | 70,989,883.24 | -49.27% | -22,642,047.13 | N/A | | Net Cash Flow from Operating Activities | 3,935,177,693.40 | 41.03% | N/A | N/A | | Basic Earnings Per Share (RMB/share) | 0.51 | 30.77% | 0.15 | 21.18% | | Total Assets (Period End) | 37,085,062,439.71 | 0.24% (vs. prior year-end) | - | - | | Equity Attributable to Shareholders (Period End) | 11,607,815,415.82 | -14.44% (vs. prior year-end) | - | - | - The company completed a business combination under common control with Southern Grid Peak-Shaving and Frequency-Modulation Power Generation Co., Ltd. in September 2022, leading to retrospective adjustments of opening balances and prior-year comparative figures in the consolidated financial statements to reflect the combined entity's ongoing operations5 Non-Recurring Gains and Losses Year-to-date non-recurring gains and losses totaled RMB 1.25 billion, primarily driven by RMB 1.59 billion from the net profit of the acquired peak-shaving and frequency-modulation company from the beginning of the period to the merger date Key Non-Recurring Gains and Losses Items for Q1-Q3 2022 | Item | Year-to-Date Amount (RMB) | | :--- | :--- | | Net profit of subsidiaries from the beginning of the period to the merger date arising from business combination under common control | 1,589,114,600.48 | | Impact on minority interests (after tax) | -349,116,191.80 | | Custody fee income from entrusted operations | 13,081,761.00 | | Other non-operating income and expenses | -5,671,082.73 | | Total | 1,247,390,023.79 | - The core component of non-recurring gains and losses stems from the major asset restructuring, which includes the net profit of the acquired peak-shaving and frequency-modulation company prior to the merger date, reflecting the profitability of the newly integrated assets6 Analysis of Key Financial Indicator Changes Significant growth in net profit attributable to shareholders and operating cash flow was driven by increased electricity sales from Western peak-shaving hydropower plants and the full operation of Meixu and Yangxu projects, while non-recurring net profit declined due to accounting treatment of restructured assets Reasons for Changes in Key Financial Indicators Year-to-Date | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Net Profit Attributable to Shareholders | 33.17 | Favorable water conditions at Western peak-shaving hydropower plants led to increased electricity sales; Meixu and Yangxu projects fully commissioned | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | -49.27 | Accounting standards classify the profit/loss from assets acquired in the current period as non-recurring, thus excluded | | Net Cash Flow from Operating Activities | 41.03 | All units of Meixu and Yangxu projects commenced commercial operation, increasing cash inflows | Shareholder Information Shareholding Structure As of the reporting period end, China Southern Power Grid Co., Ltd. is the controlling shareholder with 81.35% stake, and its wholly-owned subsidiary, Yunnan Power Grid Co., Ltd., holds 5.72%, making the top two shareholders collectively own nearly 87.1% Top Five Shareholders' Holdings | Shareholder Name | Shareholder Type | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | :--- | | China Southern Power Grid Co., Ltd. | State-owned Legal Person | 2,086,904,162 | 81.35 | | Yunnan Power Grid Co., Ltd. | State-owned Legal Person | 146,719,000 | 5.72 | | Wan Zhonghua | Unknown | 11,000,065 | 0.43 | | Cai Yudong | Unknown | 9,763,600 | 0.38 | | Wang Chengping | Unknown | 6,747,215 | 0.26 | - Yunnan Power Grid Co., Ltd. is a wholly-owned subsidiary of the controlling shareholder, China Southern Power Grid Co., Ltd., and they constitute parties acting in concert11 Significant Matters and Business Outlook Major Asset Restructuring and Principal Business Change In September 2022, the company completed a major asset restructuring, divesting traditional power businesses to acquire Southern Grid Peak-Shaving and Frequency-Modulation Power Generation Co., Ltd., transforming its principal business to pumped-hydro storage and grid-side independent energy storage operations - Through asset swap, the company achieved a strategic transformation of its principal business, evolving from a traditional regional power company into a specialized entity focused on energy storage operations12 - Post-restructuring, the company's business covers five provinces (Guangdong, Guangxi, Yunnan, Guizhou, Hainan), with a total operational installed capacity of 12,340 MW, including 10,280 MW of pumped-hydro storage, positioning it as a leading enterprise in China's energy storage sector12 Projects Under Construction and Early-Stage Development The company is actively advancing energy storage projects, with 16 pumped-hydro storage power stations (totaling 18,600 MW) and 3 new energy storage power stations (totaling 375 MW) under construction or in early-stage development, establishing a solid foundation for future growth Overview of Projects Under Construction and Early-Stage Development | Project Type | Number of Projects | Estimated Total Installed Capacity (MW) | | :--- | :--- | :--- | | Pumped-Hydro Storage Power Stations | 16 | 18600 | | New Energy Storage Power Stations | 3 | 375 | - The total installed capacity of projects under construction and in early-stage development exceeds current operational capacity, indicating the company's strong expansion plans and future growth potential, with Guangdong and Guangxi as key development regions1314 - The company advises investors that early-stage projects carry risks of non-construction due to restrictive factors or force majeure, and specific installed capacities are subject to final government approval14 Quarterly Financial Statements Consolidated Balance Sheet As of September 30, 2022, total assets were RMB 37.09 billion, a slight 0.24% increase from year-end, with total liabilities at RMB 22.19 billion and equity attributable to shareholders at RMB 11.61 billion, characterized by a heavy reliance on non-current assets like fixed assets and projects under construction Key Items from Consolidated Balance Sheet (September 30, 2022) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 37,085,062,439.71 | | Total Current Assets | 4,471,962,078.43 | | Total Non-Current Assets | 32,613,100,361.28 | | Total Liabilities | 22,184,815,511.45 | | Total Current Liabilities | 4,959,755,115.83 | | Total Non-Current Liabilities | 17,225,060,395.62 | | Total Owners' Equity | 14,900,246,928.26 | | Equity Attributable to Parent Company Owners | 11,607,815,415.82 | Consolidated Income Statement In the first three quarters of 2022, the company achieved total operating revenue of RMB 6.39 billion, up 5.66%, with total operating costs of RMB 4.29 billion, down 4.59%, resulting in net profit attributable to shareholders of RMB 1.32 billion, a 33.17% increase, and basic EPS of RMB 0.51 Key Items from Consolidated Income Statement (Q1-Q3 2022) | Item | Amount (RMB) | YoY Change | | :--- | :--- | :--- | | Total Operating Revenue | 6,391,632,054.37 | 5.66% | | Total Operating Costs | 4,294,151,573.48 | -4.59% | | Operating Profit | 2,122,030,983.31 | 34.16% | | Total Profit | 2,113,062,172.57 | 33.60% | | Net Profit | 1,667,496,098.83 | 29.84% | | Net Profit Attributable to Parent Company Shareholders | 1,318,379,907.03 | 33.17% | Consolidated Cash Flow Statement In the first three quarters of 2022, net cash flow from operating activities was RMB 3.94 billion, a strong 41.03% year-on-year increase, driven by stable cash inflows from Meixu and Yangxu projects, while net cash outflow from investing activities was RMB 2.57 billion, and from financing activities was RMB 811 million, with cash and cash equivalents totaling RMB 3.35 billion at period-end Key Items from Consolidated Cash Flow Statement (Q1-Q3 2022) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | 3,935,177,693.40 | | Net Cash Flow from Investing Activities | -2,569,830,382.23 | | Net Cash Flow from Financing Activities | -811,397,652.76 | | Net Increase in Cash and Cash Equivalents | 556,391,503.26 | | Cash and Cash Equivalents at Period End | 3,354,825,922.02 | Parent Company Financial Statements As of September 30, 2022, the parent company's total assets were RMB 11.85 billion, with long-term equity investments (in the peak-shaving and frequency-modulation company) accounting for RMB 11.36 billion; Q1-Q3 operating revenue was RMB 1.65 billion, and net profit was RMB 90 million, a 57.43% year-on-year decrease, reflecting pre-restructuring and transitional operations Key Financial Data of Parent Company (Q1-Q3 2022) | Indicator | Amount | | :--- | :--- | | Total Assets (Period End) | 11,853,935,082.74 RMB | | Total Liabilities (Period End) | 246,119,666.92 RMB | | Operating Revenue | 1,648,782,122.93 RMB | | Net Profit | 89,845,716.80 RMB |