中国电建(601669) - 2019 Q2 - 季度财报

Section I: Definitions This chapter defines professional terms and abbreviations used in the report, such as BOT (Build-Operate-Transfer), EPC (Engineering-Procurement-Construction), and PPP (Public-Private Partnership), providing a basis for understanding the report content - This chapter primarily defines professional terms and abbreviations used in the report, such as BOT (Build-Operate-Transfer), EPC (Engineering-Procurement-Construction), and PPP (Public-Private Partnership), providing a basis for understanding the report content[9][11] Section II: Company Profile and Key Financial Indicators This chapter provides the company's basic information, contact details, and core financial data for the first half of 2019, reporting operating revenue of 147.28 billion yuan with a 16.34% increase, while net profit attributable to shareholders slightly decreased by 2.42% to 3.96 billion yuan, and total assets grew by 9.71% to 782.54 billion yuan Company Information This section provides the company's basic business and contact information, including its Chinese and English names, legal representative, registered address, website, and information disclosure channels Company Basic Information | Project | Content | | :--- | :--- | | Chinese Name | 中国电力建设股份有限公司 | | Chinese Abbreviation | 中国电建 | | English Name | Power Construction Corporation of China,Ltd | | Legal Representative | Yan Zhiyong | | Stock Code | 601669 | Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue increased by 16.34% year-on-year, but net profit attributable to shareholders and net profit attributable to shareholders excluding non-recurring gains and losses decreased by 2.42% and 5.08% respectively, while net cash flow from operating activities improved by 20.32% and total assets expanded by 9.71% 2019 H1 Key Accounting Data (Unit: Yuan) | Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 147,284,245,902.52 | 126,603,321,874.08 | 16.34 | | Net Profit Attributable to Shareholders | 3,959,180,994.29 | 4,057,301,976.00 | -2.42 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Gains/Losses) | 3,615,809,299.92 | 3,809,172,598.08 | -5.08 | | Net Cash Flow from Operating Activities | -10,714,558,930.53 | -13,447,541,512.49 | 20.32 | | Indicator | End of Current Period | End of Prior Year | Period-end vs Prior Year-end Change (%) | | Net Assets Attributable to Shareholders | 88,712,751,003.27 | 86,126,443,285.15 | 3.00 | | Total Assets | 782,544,143,090.85 | 713,253,143,812.11 | 9.71 | 2019 H1 Key Financial Indicators | Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.2588 | 0.2652 | -2.42 | | Weighted Average Return on Net Assets (%) | 4.86 | 5.38 | Decreased by 0.52 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains/Losses) (%) | 4.44 | 5.08 | Decreased by 0.64 percentage points | Non-recurring Gains and Losses and Amounts In the first half of 2019, the company's total non-recurring gains and losses amounted to 343.37 million yuan, primarily comprising gains/losses from disposal of non-current assets, income from entrusted loans, and government grants 2019 H1 Key Non-recurring Gains and Losses (Unit: Yuan) | Non-recurring Gains and Losses Item | Amount | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 138,874,189.80 | | Government Grants Included in Current Profit/Loss | 82,815,973.17 | | Gains/Losses from Entrusted Loans | 168,963,319.03 | | Gains/Losses from Debt Restructuring | 17,534,542.84 | | Net Other Non-operating Income and Expenses | -22,350,919.21 | | Total | 343,371,694.37 | Section III: Company Business Overview This chapter details the company's five major business segments, highlighting its world-class technology and market position in hydropower engineering, significant asset growth due to expanded operations, and core competitiveness in serving national strategies, industry leadership, technological innovation, international operations, green development, and industry-finance integration Main Businesses, Operating Models, and Industry Overview The company's core business is hydropower engineering contracting and survey & design, holding over 65% of domestic construction tasks and over 50% of the global market share, complemented by power investment and operation with 13.89 million kW controlled installed capacity, real estate development, and equipment manufacturing and leasing - Hydropower engineering is the company's traditional core business, undertaking over 65% of domestic construction tasks and over 80% of planning and design tasks, occupying over 50% of the global market for large and medium-sized hydropower construction[23] - As of the end of the reporting period, the company's cumulative controlled operational installed capacity reached 13.89 million kW, with 2.10 million kW of power stations under construction[24] - The company is one of the 16 central state-owned enterprises approved by SASAC to engage in real estate as a primary business, primarily through its subsidiary "PowerChina Real Estate"[24] Significant Changes in Major Assets At the end of the reporting period, the company's accounts receivable increased by 25.47%, inventories by 15.74% (due to project payments and real estate costs), and intangible assets by 8.81% (from BOT/PPP concession rights), with overseas assets accounting for 18.08% of total assets Major Asset Changes (vs. Beginning of Year) | Asset Item | Period-end Book Value (Billion Yuan) | % of Total Assets | YoY Growth Rate | | :--- | :--- | :--- | :--- | | Accounts Receivable | 55.01 | 7.03% | 25.47% | | Inventories | 155.43 | 19.86% | 15.74% | | Intangible Assets | 153.73 | 19.64% | 8.81% | - As of the end of the reporting period, the company's overseas assets reached 141.48 billion yuan, accounting for 18.08% of total assets[26] Analysis of Core Competitiveness The company's core competitiveness is demonstrated by its ability to serve national strategies, its leading industry position, continuous technological innovation, global international operations across 113 countries, active promotion of green development, and strong industry-finance integration capabilities - The company possesses a full industry chain advantage of "understanding water and electricity, excelling in planning and design, skilled in construction, and capable of investment and operation," making it a crucial force in serving national strategies like the "Belt and Road" initiative[28] - The company's brands, POWERCHINA and its subsidiaries like SINOHYDRO, have strong international influence, establishing high-end brands in water resources and environment, and infrastructure sectors[29] - International business has achieved global development, with 287 overseas offices in 113 countries, and actively engages in "third-party market cooperation" with developed countries' enterprises[31] - A comprehensive financial service system has been initially established, with platforms including a finance company, leasing company, fund company, and factoring company, promoting industry-finance integration[34] Section IV: Discussion and Analysis of Operations In the first half of 2019, the company achieved steady growth with new contract value of 302.70 billion yuan and operating revenue of 147.28 billion yuan, both increasing by over 15%, driven by balanced development across energy, infrastructure, and water resource businesses, strong international performance, and record real estate sales, while actively managing risks related to accounts receivable, international operations, investment, and market competition Discussion and Analysis of Operations During the reporting period, the company's production and operations grew steadily, with both new contract value and operating revenue achieving double-digit growth, driven by balanced development across energy and power, infrastructure, and water environment management, significant international business results, steady power investment, and record real estate sales 2019 H1 Operating Performance | Indicator | Amount (Billion Yuan) | YoY Growth Rate | | :--- | :--- | :--- | | New Contract Value | 302.70 | 15.80% | | Operating Revenue | 147.28 | 16.34% | | Total Profit | 6.82 | 8.19% | - The three core main businesses developed in a balanced manner: energy and power business signed new contracts worth 84.42 billion yuan, infrastructure business signed 121.13 billion yuan, and water environment management business won bids totaling 54.94 billion yuan[36] - International business signed new contracts worth 84.80 billion yuan, a year-on-year increase of 7.96%; overseas main business revenue was 34.17 billion yuan, a year-on-year increase of 17.45%[38] - Real estate business accumulated signed sales contracts worth 15.43 billion yuan, a year-on-year increase of 34.54%[40] Analysis of Main Business The company's main business maintained overall growth, with total revenue increasing by 16.50% and gross profit margin slightly increasing to 14.68%, driven by stable engineering contracting and high growth in power investment, real estate, and equipment manufacturing, with both domestic and overseas revenues showing double-digit growth and improved overseas gross profit margin 2019 H1 Main Business by Industry (Unit: Million Yuan) | By Industry | Operating Revenue | YoY Change in Operating Revenue (%) | Gross Profit Margin (%) | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Engineering Contracting and Survey & Design | 11,685,401.39 | 13.25 | 11.63 | Increased by 0.21 percentage points | | Power Investment and Operation | 822,515.05 | 23.80 | 45.75 | Decreased by 2.64 percentage points | | Real Estate Development | 1,065,290.69 | 35.04 | 24.84 | Decreased by 2.16 percentage points | | Equipment Manufacturing and Leasing | 90,091.52 | 20.00 | 21.01 | Increased by 3.26 percentage points | | Other | 984,338.90 | 35.46 | 13.33 | Increased by 0.85 percentage points | | Total | 14,647,637.55 | 16.50 | 14.68 | Increased by 0.23 percentage points | 2019 H1 Main Business by Region (Unit: Million Yuan) | By Region | Operating Revenue | YoY Change in Operating Revenue (%) | Gross Profit Margin (%) | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Domestic | 11,230,858.83 | 16.21 | 14.69 | Decreased by 0.15 percentage points | | Overseas | 3,416,778.72 | 17.45 | 14.63 | Increased by 1.49 percentage points | | Total | 14,647,637.55 | 16.50 | 14.68 | Increased by 0.23 percentage points | Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets reached 782.54 billion yuan, with significant increases in accounts receivable, inventories, long-term receivables, and intangible assets due to expanded operations and PPP/BOT investments, while short-term and long-term borrowings also rose, and 122.30 billion yuan of assets were restricted for loan collateral Major Asset and Liability Changes (vs. Beginning of Period) | Item Name | Period-end Amount (Million Yuan) | % of Total Assets | % Change from Prior Period-end | | :--- | :--- | :--- | :--- | | Accounts Receivable | 5,501,444.02 | 7.03 | 25.47 | | Inventories | 15,542,566.37 | 19.86 | 15.74 | | Long-term Receivables | 9,822,983.47 | 12.55 | 8.83 | | Intangible Assets | 15,372,723.04 | 19.64 | 8.81 | | Short-term Borrowings | 6,756,511.14 | 8.63 | 16.37 | | Long-term Borrowings | 21,721,010.87 | 27.76 | 21.06 | - As of the end of the reporting period, the company's total restricted assets amounted to 122.30 billion yuan, primarily including fixed assets (43.50 billion yuan), intangible assets (56.39 billion yuan), and inventories (14.57 billion yuan) used as collateral for borrowings[51] Analysis of Investment Status During the reporting period, the company actively advanced major non-equity investment projects, including the Chizhou Shanshan Limestone Quarry, Qasim Coal-fired Power Plant, Nam Ou River Phase II Hydropower Project, Zhongshan to Kaiping Expressway, and Chengdu Rail Transit Line 18 PPP project, all progressing as planned with the Qasim project achieving expected returns Major Non-equity Investment Project Progress | Project Name | Estimated Total Investment (Million Yuan) | Cumulative Actual Investment (Million Yuan) | Project Progress | Estimated ROI | | :--- | :--- | :--- | :--- | :--- | | Anhui Chizhou Shenshan Limestone Quarry Project | 903,840.27 | 481,473.03 | Construction Phase | 12% | | Pakistan Qasim Coal-fired Power Plant Project | 1,417,800.00 | 1,275,708.10 | Operation Phase | 14.6% | | Laos Nam Ou River Phase II Hydropower Project | 1,154,640.00 | 777,128.60 | Construction Phase | 9.5% | | Zhongshan to Kaiping Expressway Project | 2,651,722.43 | 688,137.70 | Construction Phase | 8.93% | | Chengdu Rail Transit Line 18 PPP Project | 3,470,000.00 | 1,825,695.50 | Construction Phase | 6.00% | Analysis of Major Holding and Participating Companies This section discloses the financial status of the company's major holding subsidiaries, with PowerChina Real Estate Group Co., Ltd. and PowerChina Overseas Investment Co., Ltd. significantly contributing to net profit, and several subsidiaries, including PowerChina Eco-Environment Group, experiencing over 30% year-on-year performance changes due to business expansion and increased investment income - PowerChina Real Estate Group Co., Ltd. and PowerChina Overseas Investment Co., Ltd. are the two subsidiaries with the largest profit contributions, with net profits of 728 million yuan and 674 million yuan respectively in the first half of the year[58] - Some subsidiaries experienced rapid performance growth, with PowerChina Eco-Environment Group's net profit increasing by 886.57% year-on-year, primarily due to a significant increase in new contracts and operating scale in the water resources and environment business[59] Potential Risks The company identified major risks for the second half of 2019, including accounts receivable, international operations, investment, and market competition, and outlined countermeasures such as strengthening accounts receivable management, accelerating international localization, enhancing investment risk analysis, and consolidating market position by serving national strategies - The company faces major risks including accounts receivable, international operations, investment, and market competition[62] - Countermeasures include: strengthening dynamic management and assessment of accounts receivable; promoting the "three-step strategy" for international business (group-level, localization, globalization); adhering to the principle of "total control, efficiency first" for investments; consolidating its position in the energy, power, and water conservancy industries, and expanding into emerging businesses like water environment management[62] Other Disclosures Macro policy, particularly infrastructure investment and "Belt and Road" initiatives, provides favorable development prospects for the company, which increased its total interest-bearing debt by 17.72% to 354.46 billion yuan to support business growth, optimized its financing structure by issuing 7.5 billion yuan and 800 million USD in new bonds, and maintained stable quality management and safety production without major accidents - Macro industry analysis indicates that continuous national investment in infrastructure, clean energy, water resources and environmental governance, along with the advancement of the "Belt and Road" initiative, provide favorable development prospects for the company[63] - During the reporting period, the company's total interest-bearing debt increased by 53.37 billion yuan from the beginning of the year to 354.46 billion yuan, a 17.72% increase, primarily to support business development[65] - The company and its subsidiaries issued new bonds totaling 7.5 billion yuan and 800 million USD, effectively optimizing the financing structure and reducing financing costs[65] Section V: Significant Matters This chapter discloses significant corporate governance and operational matters, including shareholder meetings, no semi-annual profit distribution, the controlling shareholder's fulfillment of asset restructuring commitments, a change in audit firm, a favorable arbitration outcome, and details on related party transactions, external guarantees, poverty alleviation, environmental information, and accounting policy changes Fulfillment of Commitments The company's controlling shareholder, PowerChina Group, continued to fulfill its major asset restructuring commitments, including resolving horizontal competition by injecting or disposing of eligible power grid auxiliary and power investment businesses within 8 years from August 30, 2014, and strictly adhering to share lock-up commitments - Controlling shareholder PowerChina Group committed to injecting eligible power grid auxiliary businesses with good prospects and clear ownership into the listed company within 8 years from August 30, 2014; other enterprises will be disposed of through closure, merger, or transfer[75] - PowerChina Group committed that the 4.155 billion shares subscribed through asset restructuring would remain locked up for an additional 12 months after the lock-up period expired on June 19, 2019, until June 18, 2020[73] Major Litigation and Arbitration Matters During the reporting period, there were no new major litigation or arbitration matters, and a previously disclosed construction contract dispute with Vinh Son-Song Hinh Hydropower JSC in Vietnam concluded with a final award from the Vietnam International Arbitration Centre, ruling that the Vietnamese owner pay the company's joint venture approximately 568 million yuan in project payments and related fees, safeguarding the company's legitimate rights Arbitration Result for Vietnam Upper Kon Tum Hydropower Project | Applicant | Respondent | Litigation/Arbitration Type | Amount Involved (Yuan) | Ruling | | :--- | :--- | :--- | :--- | :--- | | Company Joint Venture | Vinh Son-Song Hinh Hydropower JSC | Construction Contract Dispute | 551,574,159.95 | Ruled that the respondent pay approximately 568 million yuan and related fees, rejecting the counter-claim | Major Related Party Transactions The company's daily related party transactions with PowerChina Group and its subsidiaries, primarily involving mutual engineering and financial services, were within annual planned limits, with actual mutual engineering services totaling 7.94 billion yuan, and the company also utilized 4 billion yuan in funds from the controlling shareholder, resulting in financial expense savings - The company's daily related party transactions with controlling shareholder PowerChina Group were conducted within the annual planned limits; as of June 30, 2019, the actual amount of mutual engineering survey, design, and contracting services was 7.94 billion yuan[82][83] - The company accepted and utilized funds provided by controlling shareholder PowerChina Group, with a balance of 4 billion yuan at the end of the reporting period; the cost of using these funds was lower than market benchmark interest rates, saving financial expenses[87][88] Major Contracts and Their Performance This section primarily discloses the company's external guarantees, totaling 19.46 billion yuan (excluding guarantees to wholly-owned subsidiaries), representing 21.94% of net assets, with 18.77 billion yuan to subsidiaries and 68.59 million yuan to other parties, all performing normally without overdue situations Summary of External Guarantees (Unit: Million Yuan) | Guarantee Item | Amount | | :--- | :--- | | Period-end Guarantee Balance to Subsidiaries (B) | 1,877,402.81 | | Period-end Guarantee Balance to Other Parties (A) | 68,593.18 | | Total Guarantees (A+B) | 1,945,995.99 | | Total Guarantees as % of Company's Net Assets | 21.94% | Listed Company's Poverty Alleviation Work In the first half of 2019, the company invested 51.31 million yuan in targeted poverty alleviation funds and materials, dispatched 6 seconded cadres, and achieved significant results in industrial development, employment, education, and health, earning commendations from the State Council Leading Group Office of Poverty Alleviation and Development and local governments 2019 H1 Targeted Poverty Alleviation Achievements | Indicator | Quantity and Progress | | :--- | :--- | | Fund Investment | 50.31 Million Yuan | | Material Value | 1.00 Million Yuan | | Number of Registered Poor People Helped to Escape Poverty | 7,951 People | | Investment in Industrial Poverty Alleviation Projects | 14.25 Million Yuan | | Vocational Skills Training Investment | 0.66 Million Yuan | - The company received an overall evaluation of "Good" in the 2018 central government unit targeted poverty alleviation performance assessment organized by the State Council Leading Group Office of Poverty Alleviation and Development[96] Environmental Information The company's two thermal power subsidiaries, Huating Power Generation and Chongxin Power Generation, as key national pollution monitoring units, maintained major pollutant emissions far below national standards and permit limits during the reporting period, with efficient pollution control facilities and ongoing ultra-low emission upgrades, ensuring stable environmental facility operation and no illegal discharge incidents - The two key polluting subsidiaries (Huating Power Generation, Chongxin Power Generation) met the "Emission Standard of Air Pollutants for Thermal Power Plants" for sulfur dioxide, nitrogen oxides, and particulate matter emissions[100][101] - Chongxin Power Generation completed ultra-low emission upgrades for two units half a year ahead of schedule, while Huating Power Generation is implementing high-load dust and nitrogen reduction upgrades[102] Explanation of Changes in Accounting Policies, Estimates, and Methods Effective January 1, 2019, the company adopted new Ministry of Finance regulations, including a revised financial statement format and new financial instrument recognition and measurement standards, which led to retrospective adjustments to the balance sheet and impacted the classification and measurement of financial assets at the beginning of the period - Effective January 1, 2019, the company adopted the newly revised financial statement format issued by the Ministry of Finance, disaggregating "Notes Receivable and Accounts Receivable" into "Notes Receivable" and "Accounts Receivable," and separately presenting "Research and Development Expenses" which were originally included in administrative expenses[108][109] - Effective January 1, 2019, the company implemented new financial instrument standards, adjusting the opening retained earnings and other related items based on the cumulative impact, without adjusting comparable period information[110] Major Impacts of New Financial Instrument Standards on Consolidated Balance Sheet as of January 1, 2019 (Unit: Yuan) | Affected Statement Item | Impact Amount | | :--- | :--- | | Financial Assets Held for Trading | +4,145,437.75 | | Available-for-sale Financial Assets | -3,249,385,624.30 | | Other Equity Instruments Investment | +3,225,842,612.09 | | Other Receivables | -1,012,164,044.35 | | Undistributed Profits | -443,364,591.48 | | Minority Interests | +67,723,151.80 | Section VI: Changes in Ordinary Shares and Shareholder Information During the reporting period, the company's total share capital structure remained unchanged, with 269,264 ordinary shareholders and the controlling shareholder, Power Construction Corporation of China, Ltd., holding 58.34% of shares, while a share repurchase plan was completed by July 16, 2019, repurchasing 153 million shares, accounting for 1% of total share capital Changes in Shares The company's total share capital and share structure remained unchanged during the reporting period, but a share repurchase plan was completed by July 16, 2019, with a cumulative repurchase of 152,999,901 shares, accounting for 1% of total share capital, at a total cost of approximately 788.28 million yuan - The company implemented a share repurchase, cumulatively repurchasing 152,999,901 shares (1% of total share capital), with a total payment of 788,277,794.16 yuan[115] Shareholder Information As of the end of the reporting period, the company had 269,264 ordinary shareholders, with the controlling shareholder, Power Construction Corporation of China, Ltd., holding 58.34% of shares, and other top ten shareholders including state-owned legal entities such as Beijing Chengtong Financial Holdings, China Securities Finance, and Guoxin Investment Top Ten Shareholders' Shareholding | Shareholder Name | Period-end Shareholding (Shares) | % | | :--- | :--- | :--- | | Power Construction Corporation of China, Ltd. | 8,925,803,976 | 58.34 | | Beijing Chengtong Financial Holdings Co., Ltd. | 471,975,230 | 3.08 | | China Securities Finance Corporation Limited | 457,441,779 | 2.99 | | Guoxin Investment Co., Ltd. | 455,388,752 | 2.98 | | Zhongyuan Equity Investment Management Co., Ltd. | 309,129,808 | 2.02 | Section VII: Preferred Shares Information This chapter discloses information regarding the company's issued preferred shares, "PowerChina Preferred 1," totaling 20 million shares issued in 2015 with a par dividend rate of 5.00%, which are classified as other equity instruments due to their non-convertible nature and lack of cash settlement requirement, with 4 preferred shareholders at the end of the reporting period Issuance and Listing of Preferred Shares The company issued "PowerChina Preferred 1" preferred shares on September 17, 2015, with an issuance quantity of 20 million shares, an issuance price of 100 yuan/share, and a par dividend rate of 5.00%, with all raised funds fully utilized to supplement working capital and operating funds "PowerChina Preferred 1" Preferred Share Basic Information | Preferred Share Code | Preferred Share Abbreviation | Issuance Date | Issuance Price (Yuan) | Par Dividend Rate (%) | Issuance Quantity | | :--- | :--- | :--- | :--- | :--- | :--- | | 360016 | PowerChina Preferred 1 | 2015.09.17 | 100 | 5.00 | 20,000,000 | Preferred Shareholder Information As of the end of the reporting period, the company had 4 preferred shareholders, all institutional investors, including asset management plans or trust products established by Bosera Funds, Bank of Communications International Trust, CCB Trust, and COFCO Trust, holding 30%, 30%, 20%, and 20% respectively - As of the end of the reporting period, there were 4 preferred shareholders, all institutional investors[120] Section VIII: Information on Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the shareholdings or positions of the company's directors, supervisors, and senior management Changes in Shareholdings During the reporting period, there were no changes in the shareholdings of the company's current and former directors, supervisors, and senior management - During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management[124] Section IX: Corporate Bonds Information This chapter outlines the company's outstanding corporate bonds, with two bonds, "12 Zhongshui 01" and "12 Zhongshui 02," totaling 5 billion yuan, issued in 2012 with funds used as stipulated, and Dagong Global Credit Rating maintaining the company's and related bond credit ratings at AAA, while the company's current ratio and quick ratio both improved, and the asset-liability ratio was 80.52%, indicating stable debt repayment indicators Basic Information on Corporate Bonds The company has two outstanding corporate bonds, "12 Zhongshui 01" and "12 Zhongshui 02," issued on October 29, 2012, with bond balances of 2 billion yuan and 3 billion yuan respectively, and coupon rates of 5.03% and 5.20% Corporate Bond Basic Information | Bond Abbreviation | Code | Issuance Date | Maturity Date | Bond Balance (Yuan) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | 12 Zhongshui 01 | 122193 | 2012.10.29 | 2019.10.29 | 2,000,000,000 | 5.03 | | 12 Zhongshui 02 | 122194 | 2012.10.29 | 2022.10.29 | 3,000,000,000 | 5.20 | Corporate Bond Rating Information On May 28, 2019, Dagong Global Credit Rating Co., Ltd. conducted a follow-up rating on the company and its issued bonds, maintaining the company's corporate credit rating at AAA, and the credit ratings for "12 Zhongshui 01" and "12 Zhongshui 02" bonds at AAA - Dagong Global Credit Rating Co., Ltd. maintained the company's corporate credit rating and related bond credit ratings at AAA[128] Accounting Data and Financial Indicators As of the end of the reporting period, the company's current ratio and quick ratio were 104.19% and 62.22% respectively, both improving from the end of the previous year, indicating enhanced short-term solvency, while the asset-liability ratio slightly increased to 80.52%, and the EBITDA interest coverage ratio decreased to 1.82 times Major Financial Indicator Changes | Major Indicator | End of Current Period | End of Prior Year | Reason for Change | | :--- | :--- | :--- | :--- | | Current Ratio | 104.19% | 96.39% | Increase in current assets higher than increase in current liabilities | | Quick Ratio | 62.22% | 58.35% | Increase in quick assets higher than increase in current liabilities | | Asset-Liability Ratio (%) | 80.52 | 79.97 | Increased financing scale | | Major Indicator | Current Period (Jan-Jun) | Prior Year Period | Reason for Change | | EBITDA Interest Coverage Ratio | 1.82 | 2.15 | Increase in interest expense higher than increase in EBITDA | Section X: Financial Report This chapter contains the company's unaudited 2019 semi-annual financial statements, including consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity, accompanied by detailed notes covering company overview, basis of financial statement preparation, significant accounting policies and estimates and their changes, and detailed explanations of major items in the consolidated financial statements Changes in Significant Accounting Policies and Estimates Effective January 1, 2019, the company adopted new Ministry of Finance regulations, including a revised financial statement format and new financial instrument standards, which led to retrospective adjustments to the balance sheet as of January 1, 2019, impacting the classification and measurement of financial assets and affecting items such as accounts receivable, other equity instrument investments, and undistributed profits - Effective January 1, 2019, the company adopted the newly revised financial statement format issued by the Ministry of Finance, disaggregating "Notes Receivable and Accounts Receivable" into "Notes Receivable" and "Accounts Receivable," and separately presenting "Research and Development Expenses" which were originally included in administrative expenses[271][273] Major Impacts of New Financial Instrument Standards on Consolidated Balance Sheet as of January 1, 2019 (Unit: Yuan) | Affected Statement Item | Impact Amount | | :--- | :--- | | Financial Assets Held for Trading | +4,145,437.75 | | Available-for-sale Financial Assets | -3,249,385,624.30 | | Other Equity Instruments Investment | +3,225,842,612.09 | | Other Receivables | -1,012,164,044.35 | | Undistributed Profits | -443,364,591.48 | | Minority Interests | +67,723,151.80 | Notes to Consolidated Financial Statement Items The notes provide detailed explanations for each major item in the consolidated financial statements, showing monetary funds of 95.92 billion yuan (with 3.31 billion yuan restricted), inventories of 155.43 billion yuan (mainly real estate and unsettled engineering), intangible assets of 153.73 billion yuan (primarily concession rights), short-term and long-term borrowings of 67.57 billion yuan and 217.21 billion yuan respectively, and main business revenue accounting for over 99% of total operating revenue - Period-end book value of inventories was 155.43 billion yuan, including 91.14 billion yuan for real estate development costs and development products, and 50.83 billion yuan for completed but unsettled assets from construction contracts[321][325] - Period-end book value of intangible assets was 153.73 billion yuan, with concession rights having an original book value of 147.28 billion yuan, representing the most significant component of intangible assets[355] - During the reporting period, investment income from long-term equity investments accounted for using the equity method was 231 million yuan, and the period-end book value of investments in associates and joint ventures reached 14.32 billion yuan[334][429] Section XI: Reference Documents This chapter lists the reference documents, including financial statements signed and sealed by the company's legal representative, chief accountant, and head of accounting department, as well as originals of all company documents and announcements publicly disclosed on media designated by the China Securities Regulatory Commission during the reporting period - This chapter lists the reference documents, including financial statements signed and sealed by the company's legal representative, chief accountant, and head of accounting department, as well as originals of all company documents and announcements publicly disclosed on media designated by the China Securities Regulatory Commission during the reporting period[537]