HDECL(SH:900937)2021-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥5.23 billion, a decrease of 4.20% compared to the same period last year[17]. - The net profit attributable to shareholders of the listed company was approximately -¥522.92 million, compared to -¥173.10 million in the previous year[17]. - The net cash flow from operating activities decreased by 72.82%, amounting to approximately ¥40.87 million[17]. - The total assets at the end of the reporting period were approximately ¥21.57 billion, a decrease of 5.06% from the previous year[17]. - The company's equity attributable to shareholders decreased by 79.12%, totaling approximately ¥125.78 million[17]. - The company's total power generation reached 12.229 billion kWh, a decrease of 5.29% year-on-year[25]. - The on-grid electricity volume was 10.917 billion kWh, down 5.43% year-on-year[25]. - The average on-grid electricity price was 368.66 RMB per MWh[25]. - The operating revenue for the period was 5.225 billion RMB, a decline of 4.20% compared to the previous year[27]. - The operating costs increased to 5.196 billion RMB, reflecting a rise of 1.60% year-on-year due to higher coal prices[28]. - The net profit for the period was -543 million RMB, indicating a loss[25]. - The company completed a heating supply of 34.01 million GJ during the reporting period[25]. Assets and Liabilities - Cash and cash equivalents at the end of the period amounted to ¥1,457,451,303.80, a decrease of 1.40% compared to the previous year[30]. - Accounts receivable increased by 16.06% to ¥1,489,748,946.80, primarily due to an increase in receivables from electric heating fees[30]. - Inventory decreased by 30.30% to ¥442,703,419.91, mainly due to a reduction in coal inventory during the reporting period[30]. - Contract assets decreased significantly by 84.83% to ¥6,881,621.92, as amounts that were conditionally collectible were transferred to accounts receivable[30]. - Long-term equity investments decreased by 2.04% to ¥1,515,602,349.14, primarily due to losses from the associate company Jinshan Co., Ltd.[30]. - Fixed assets decreased by 4.63% to ¥14,865,121,438.29, mainly due to depreciation during the reporting period[31]. - Short-term borrowings increased by 3.38% to ¥5,434,335,923.25, driven by increased operational funding needs[31]. - Contract liabilities decreased by 91.46% to ¥83,898,891.47, primarily due to the recognition of previously received heating fees as revenue[31]. - The total assets of the company amounted to 21.573 billion RMB, with shareholders' equity at 1.26 billion RMB[25]. - Total liabilities were reported at RMB 21,269,111,527.92, down from RMB 21,913,146,571.91, indicating a reduction of about 2.93%[105]. Environmental Compliance and Risks - The company faces risks related to potential localized outbreaks of COVID-19, which may impact macroeconomic conditions and operational activities[41]. - The company faces heightened environmental compliance requirements, with stricter regulations on air, water, and soil pollution, posing new challenges for operational safety and environmental protection[45]. - The company has completed ultra-low emission upgrades for its power generation units, ensuring compliance with national environmental standards[54]. - The company operates nine key pollutant discharge units, all of which are coal-fired power plants with a total installed capacity of 6,487 MW, equipped with advanced pollution control technologies[54]. - The company has established emergency response plans for environmental incidents across all nine key polluting coal-fired power plants[59]. - The company has received no administrative penalties for environmental issues during the reporting period[61]. Management and Governance - Recent management changes include the appointment of two new deputy general managers and the election of a new board member[51]. - The company does not plan to distribute profits or increase capital reserves during the reporting period[4]. - The report includes a risk statement regarding forward-looking statements, emphasizing the importance of investor caution[5]. - The financial statements are prepared based on the assumption of going concern, with no significant doubts regarding the company's ability to continue operations for the next 12 months[145]. - The company’s financial reports are approved by the board of directors, ensuring compliance and accuracy in reporting[143]. Strategic Initiatives - The company plans to sell certain idle properties in Heilongjiang Province to optimize its asset structure[35]. - The company aims to increase the proportion of clean energy and reduce carbon emissions intensity through technological upgrades and the development of renewable energy sources[63]. - The company is focused on maintaining its market position and exploring potential expansions or strategic partnerships to enhance its growth prospects[139]. - The company plans to shut down 6 outdated coal-fired units (total capacity of 685 MW) during the 14th Five-Year Plan, starting with 3 units of 25 MW at the Fularqi Thermal Power Plant in 2021[63]. Legal Matters - There are ongoing significant litigation matters involving the company's subsidiaries, including a lawsuit against Northern Intelligent Equipment Co., Ltd. by Heilongjiang Longdian Electric Co., Ltd.[71]. - The company’s subsidiary, Mudanjiang Second Power Plant, has initiated legal proceedings against a real estate development company, with the case currently in execution[71]. - Heilongjiang Longdian Electric Co., Ltd. has filed a lawsuit against Zhao Bing and Intelligent Company, with the first instance judgment rejecting the plaintiff's claim[71]. - The company is involved in a dispute related to asset transfer that may result in joint liability, with ongoing litigation against Henan Xinzhu Construction Engineering Co., Ltd.[71]. - The company has faced multiple court hearings regarding a debt-related dispute involving Beijing Longdian Hongtai Environmental Technology Co., Ltd.[71]. Financial Instruments and Accounting - The company adheres to the accounting standards for enterprises, ensuring that the financial statements reflect the true and complete financial status, operating results, changes in shareholders' equity, and cash flows[146]. - Financial instruments include financial assets, financial liabilities, and equity instruments[160]. - The company measures expected credit losses for financial assets based on a three-stage model, depending on the credit risk increase since initial recognition[175]. - The company applies a simplified model for expected credit losses on receivables without significant financing components, measuring losses over the entire lifetime[179]. - The company recognizes gains or losses on financial instruments based on their fair value changes, impacting profit or loss accordingly[167].