HHI(SH:601226)2021-04-22 16:00Financial Performance - In 2020, the net profit of Huadian Heavy Industries Co., Ltd. was CNY 63.34 million, with a profit distribution plan proposing a cash dividend of CNY 0.26 per 10 shares, totaling CNY 30.03 million, which accounts for 31.05% of the net profit attributable to the parent company[6]. - As of December 31, 2020, the undistributed profits reached CNY 1.017 billion, an increase from CNY 995.11 million at the beginning of the year[6]. - The company's operating revenue for 2019 was CNY 7,175,673,469.09, representing a 24.12% increase compared to CNY 5,835,383,242.05 in 2018[23]. - The net profit attributable to shareholders for 2019 was CNY 82,231,686.03, a 17.60% increase from CNY 57,042,717.69 in 2018[23]. - The company's total share capital as of December 31, 2020, was 1.155 billion shares[6]. - The company reported a net profit of CNY 65,744,546.88 in Q4 2020, following net profits of CNY 55,435,597.28 in Q3 and CNY 42,989,767.32 in Q2[26]. - The total non-recurring gains and losses for 2020 amounted to CNY 28,254,721.85, compared to CNY 17,585,171.74 in 2019[27]. - The company's total revenue for 2020 reached ¥8,890,821,503.71, representing a growth rate of 25.81% compared to 2019[179]. - The total profit amounted to 1.26 billion RMB, with a year-on-year increase of 48.11%, while net profit was 970 million RMB, up 17.60% year-on-year[166]. Business Development and Strategy - The company is actively developing emerging businesses such as offshore wind power, hydrogen energy, and integrated power plant efficiency enhancement to adapt to national energy development trends[10]. - The company has committed to a sustainable development strategy by diversifying into new technologies and markets, including noise control and intelligent transportation[10]. - The company is focused on aligning with the national "new infrastructure" initiative, which is expected to create opportunities in the power sector[10]. - The company is actively expanding its business along the Belt and Road Initiative, targeting direct EPC projects with overseas clients[35]. - The company aims to become a leading provider of offshore wind power engineering solutions, leveraging over 20 years of European experience[57]. - The company has established a hydrogen energy division to focus on renewable energy utilization and carbon reduction, positioning itself as an energy service provider[114]. - The company is enhancing its technological innovation efforts by increasing resource investment in R&D and optimizing its R&D assessment system[114]. - The company is focusing on expanding its market presence through significant project contracts and ongoing execution of large-scale energy projects[188]. Market and Industry Trends - In 2020, China's GDP reached 1,015,986 billion yuan, growing by 2.3% compared to 2019, with the first, second, and third industries increasing by 3.0%, 2.6%, and 2.1% respectively[69]. - The total installed power generation capacity in China reached 2.2 billion kilowatts in 2020, a year-on-year growth of 9.5%[99]. - Non-fossil energy power generation capacity accounted for 43.42% of the total installed capacity, an increase of 2.6 percentage points year-on-year[99]. - The newly installed capacity of wind power in 2020 was 71.67 million kilowatts, a year-on-year increase of 178.7%[95]. - The port industry saw a total cargo throughput of 1.4549 billion tons in 2020, a year-on-year increase of 4%[109]. - The company is positioned to benefit from the growing emphasis on green development and environmental protection in China's industrial policies, particularly in the noise control sector[125]. Technological Innovation and R&D - The company has accumulated rich customer resources and established a strong market brand, with projects spanning across multiple regions and over ten countries[34]. - The company has developed a comprehensive noise control system for gas and coal-fired power plants, focusing on areas such as turbine rooms and cooling towers[65]. - The company holds 688 patents and has established four R&D centers, with R&D personnel accounting for 18.15% of total employees, indicating a strong focus on innovation and technology development[130]. - The company has successfully developed various energy-saving technologies, including long-distance curved belt conveyors and air cooling technology, contributing to environmental protection and energy conservation[135]. - The company achieved significant technological advancements with the "Intelligent Control System for Material Handling Machines," which was recognized as reaching international leading standards on December 6, 2020[147]. - The company has made advancements in the field of renewable energy and high-end equipment manufacturing, aligning with national industrial policies[147]. Contracts and Project Management - The company signed new sales contracts worth 9.782 billion yuan during the reporting period, a year-on-year decrease of 3.89%[114]. - The total amount of sales contracts executed at the beginning of the reporting period was CNY 21.731 billion, with revenue generated during the period amounting to CNY 6.949 billion[195]. - New sales contracts signed during the reporting period totaled CNY 9.782 billion, generating revenue of CNY 1.957 billion[195]. - The company has ongoing contracts such as the Henan Yubei belt conveyor project valued at 261.86 million RMB and the Tianjin Huadian Nankou thermal power project valued at 279.78 million RMB[188]. - The total contract value for the Fujian Huadian Fuzhou offshore wind farm project is approximately $1.43 billion, with a comprehensive cost of $307.27 million[200]. Environmental and Sustainability Efforts - The company is adopting an EPC model for its clean and efficient coal utilization projects, providing comprehensive services from design to operation[65]. - The company’s green mining system improves open-pit mining efficiency while reducing dust and energy consumption, aligning with national environmental goals[133]. - The company is exploring various contracting models to expand its noise control business, enhancing its competitive edge in the market[125]. - The company has developed an environmentally friendly spiral unloader, which is lightweight and capable of fully automated operation, reducing dust emissions effectively[38]. Governance and Compliance - The company’s board of directors and management confirmed the accuracy and completeness of the financial report, ensuring no significant omissions or misleading statements[4]. - The audit report for the fiscal year was issued by Tianzhi International Accounting Firm, confirming a standard unqualified opinion[5]. - The management team has undergone some adjustments, with new appointments made in March and December 2020, ensuring continuity in production and operations[135]. - The company integrated party leadership into its operations, promoting a strong governance framework and enhancing compliance awareness among its management[165].