HDECL(SH:900937)2022-04-27 16:00Financial Performance - The total operating revenue for 2021 was CNY 9.80 billion, a decrease of 8.14% compared to 2020[18]. - The net profit attributable to shareholders was a loss of CNY 2.94 billion, compared to a loss of CNY 1.11 billion in 2020[18]. - The company plans not to distribute profits for 2021 due to the negative retained earnings of CNY -5.29 billion at the end of the year[6]. - The net cash flow from operating activities was CNY 87.07 million, a decrease of 93.34% from the previous year[18]. - The total assets at the end of 2021 were CNY 22.63 billion, a slight decrease of 0.40% from 2020[18]. - The basic earnings per share for 2021 was -CNY 1.49, compared to -CNY 0.56 in 2020[20]. - The weighted average return on net assets was not applicable due to significant losses in 2021[20]. - The decline in net profit was primarily due to tight coal supply and rising prices, leading to increased fuel costs and significant losses in the main business[20]. - The company’s net assets attributable to shareholders decreased to CNY -2.11 billion, a decline of 450.05% from the previous year[18]. - The company’s investment income decreased due to the decline in profits from its main associate, Jinshan Co., impacting overall financial performance[20]. - The company reported a net profit attributable to shareholders of -1.469 billion RMB in Q4 2021, with a total annual net profit of -2.938 billion RMB[9]. - The company’s net profit for 2021 was CNY -3.126 billion, a decline of 167.41% compared to CNY -1.169 billion in 2020[35]. Operational Performance - In 2021, the company's total electricity generation reached 23.326 billion kWh, with grid-connected electricity generation at 20.792 billion kWh, and an average utilization hours of 3,596 hours[28]. - The company produced 653,700 tons of coal during the reporting period, with a total heating supply of 55.3956 million GJ[28]. - The company's installed power generation capacity was 6.487 million kW by the end of 2021, with a total heating area of 119 million square meters[28]. - The average utilization hours for power plants above 6,000 kW nationwide increased by 60 hours year-on-year to 3,817 hours, with coal-fired power generation utilization hours increasing by 263 hours to 4,586 hours[30]. - The company faced significant operational challenges due to a tight coal supply and low utilization hours of thermal power units, with an average of 3,094 hours in 2021[34]. Revenue and Costs - The company's main business revenue for 2021 was CNY 9.802 billion, achieving 92.22% of the board's target of CNY 10.628 billion, and a decrease of 8.14% from CNY 10.671 billion in 2020[35][37]. - The company's operating costs for 2021 were CNY 11.408 billion, an increase of 5.56% year-on-year, primarily due to rising coal prices[36][37]. - The company's electricity sales revenue was CNY 6.887 billion, a decrease of 7.34% year-on-year[40]. - The company's heat sales revenue was CNY 2.547 billion, with a gross margin decrease of 46.44% compared to the previous year[40]. - The company's coal sales revenue was CNY 20.304 million, with a gross margin decrease of 136.13% compared to the previous year[40]. Cash Flow and Assets - The company's cash flow from operating activities was CNY 87.07 million, a significant decrease of 93.34% from CNY 1.307 billion in the previous year[36]. - Cash inflow from operating activities decreased by CNY 1.22 billion year-on-year, primarily due to reduced cash receipts from sales[51]. - Total assets increased significantly, with inventory rising by 90.06% to CNY 1,207,175,505.75, mainly due to increased coal stock[53]. - Accounts payable increased by 32.41% to CNY 1,902,365,394.71, attributed to higher fuel payments[53]. - The company's long-term payables increased by 129.23% to approximately ¥2.60 billion, primarily due to the recognition of increased sale-leaseback amounts during the reporting period[54]. Strategic Initiatives - The company is adapting to the new energy market reforms and policies aimed at optimizing the electricity market and ensuring energy supply stability[31]. - The company plans to complete a power generation volume of 23.087 billion kWh and a heating volume of 64.71 million GJ in 2022, with projected revenue of 11.2 billion yuan[80]. - The company aims to strengthen safety and supply guarantees, ensuring coal source availability and maintaining a healthy state of power generation units and heating networks[81]. - The company plans to sign long-term coal supply contracts to achieve full coverage for 2022, targeting 1.2 million tons of low-quality coal procurement[83]. - The company is focusing on enhancing the quality and competitiveness of its existing assets while expanding direct heating markets[84]. Environmental and Compliance - The company has established a comprehensive environmental protection system, ensuring compliance with national standards for pollutant discharge[132]. - The company plans to phase out outdated coal power capacity to reduce carbon emissions, with a peak carbon emission target set for 2022[139]. - The company has implemented emergency response plans for environmental incidents across all nine key pollutant discharge units, enhancing their emergency response capabilities[136]. - The company has received environmental impact assessment approvals for heating network projects in Qiqihar City, indicating ongoing infrastructure development[135]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[138]. Governance and Management - The company has established a supervisory board consisting of three supervisors, ensuring compliance with financial regulations and protecting shareholder rights[95]. - The company maintains complete independence from its controlling shareholder in terms of personnel, assets, finance, organization, and business operations[96]. - The company has implemented a performance evaluation and incentive mechanism for senior management, enhancing corporate vitality[124]. - The company has established a systematic employee compensation distribution system to incentivize and ensure alignment with corporate goals[118]. - The company has appointed a new general manager, Lang Guomin, who has a tenure starting from December 22, 2021[102]. Legal and Financial Challenges - The company is currently facing a lawsuit from Harbin Green Wave Bay Agricultural Co., Ltd., which has been formally filed but not yet heard in court[164]. - The company has been involved in a series of legal actions related to contract disputes and overdue payments, indicating ongoing financial management challenges[165]. - The company reported a negative net asset value at the end of 2021, leading to a risk warning for delisting according to the Shanghai Stock Exchange regulations[157]. - The company is actively seeking policy support to reduce losses in coal and electricity enterprises, including aligning coal prices with electricity prices and ensuring the implementation of high energy consumption electricity pricing policies[158]. - The company has provided entrusted loans totaling CNY 1,008,000 (CNY 340.45 million, CNY 295 million, CNY 172 million, and CNY 210.45 million) to Heilongjiang New Century Energy Co., Ltd., all of which are currently overdue.[188].