Datang Power(SH:601991)2022-03-29 16:00Financial Performance - The company's operating revenue for 2021 was CNY 103.41 billion, an increase of 8.16% compared to CNY 95.61 billion in 2020[19]. - The net profit attributable to shareholders of the listed company was a loss of CNY 9.26 billion, a decrease of 404.71% from a profit of CNY 3.04 billion in 2020[19]. - The net cash flow from operating activities was CNY 8.25 billion, down 69.18% from CNY 26.75 billion in the previous year[19]. - The total assets at the end of 2021 were CNY 295.97 billion, an increase of 5.58% from CNY 280.33 billion at the end of 2020[19]. - The net assets attributable to shareholders of the listed company decreased by 14.91% to CNY 62.14 billion from CNY 73.02 billion in 2020[19]. - The basic earnings per share for 2021 was -CNY 0.5782, compared to CNY 0.1017 in 2020, reflecting a significant decline[20]. - The weighted average return on net assets was -30.14% in 2021, a decrease of 34.64 percentage points from 4.50% in 2020[22]. - The company reported a total of 24,756,397 thousand yuan in restricted assets, including cash and fixed assets, due to various borrowing arrangements[53]. - The company reported a significant decrease in cash flow from operating activities, with a net cash flow of RMB 8.245 billion, down 69.18% year-on-year[37]. Revenue and Costs - Operating revenue for the year was approximately RMB 103.412 billion, an increase of 8.16% compared to the previous year[36]. - Operating costs rose to approximately RMB 104.362 billion, marking a significant increase of 33.87% year-on-year[36]. - Power sales revenue was approximately CNY 88.74 billion, up about 6.91% year-on-year, accounting for 87.46% of total revenue[41]. - Operating costs increased by approximately CNY 26.02 billion, a growth rate of about 33.49%, with fuel costs accounting for 63.05% of total operating costs[43]. Operational Highlights - The company achieved a total electricity generation of approximately 272.925 billion kWh in 2021, representing a year-on-year increase of about 1.54%[35]. - The company achieved a total installed capacity of 774.15 MW in 2021, comprising 446.05 MW from wind power and 328.10 MW from solar power[30]. - The company approved 85 power projects with a total capacity of 7,367.16 MW during the reporting period, including 1,862 MW from wind projects and 4,585.16 MW from solar projects[30]. - The total installed capacity reached 68,770.03 MW by the end of 2021, with a total asset value of approximately RMB 295.968 billion[32]. Strategic Initiatives - The company implemented a quality and efficiency improvement initiative, focusing on cost reduction and optimizing procurement strategies to stabilize operations[30]. - The company has made significant progress in its green transformation strategy, aligning with the "dual carbon" goals and enhancing its renewable energy project portfolio[30]. - The company plans to enhance its electricity sales business by increasing customer engagement and expanding service offerings in 2022[65]. - The company aims to enhance safety management capabilities and ensure compliance with safety production standards while maintaining operational stability[77]. Risks and Challenges - The company faces risks related to electricity demand and supply, with a slowdown in growth expected due to economic pressures and increased competition from renewable energy sources[79]. - Electricity price risks are heightened due to ongoing market reforms and increased competition, leading to downward pressure on prices[79]. - The coal market is expected to remain tight in 2022, with domestic coal prices fluctuating at relatively high levels, impacting the cost structure for thermal power companies[79]. Governance and Compliance - The company has established specialized committees, including a Strategic Development and Risk Control Committee and an Audit Committee, to enhance governance[114]. - The board of directors had a total of 10 members, with 3 independent directors participating in meetings[110]. - The company has a cash dividend policy that states that the profit distributed in cash will generally be 50% of the net profit of the parent company for the year under Chinese accounting standards[125]. - The company has implemented a performance evaluation system that links employee income to job value and performance contributions, ensuring that income can increase or decrease based on performance[122]. Future Outlook - The company expects a 5%-6% year-on-year growth in total electricity consumption for 2022, with quarterly growth rates projected to increase sequentially[75]. - The installed capacity of non-fossil energy power generation is expected to reach 50% of the total installed capacity by the end of 2022, with 18 million kilowatts of new non-fossil energy capacity projected to be put into operation[75]. - The company plans to improve market competitiveness by optimizing coal procurement strategies and enhancing cost control measures[78]. - The management emphasized a focus on sustainability initiatives, aiming for a 20% reduction in carbon emissions by 2025[90].