DTPC(SH:600719) Zheng Quan Shi Bao Wang·2024-12-10 06:29Company Overview - Dalian Thermal Power is a leading combined heat and power (CHP) and centralized heating enterprise in Dalian, with all its business revenue coming from the Dalian region [1] - The company owns power plants such as Beihai Thermal Power Plant and Zhuanghe Thermal Power Plant, with an installed capacity of 100,000 kW, annual grid-connected electricity of 153 million kWh, and a heating area of 18.39 million square meters as of December 2023 [1] Industry Outlook - The CHP and centralized heating industry is expected to maintain stable and rapid growth due to increasing urbanization rates and long-term demand for electricity and heating [1] - The heating industry, as a key area for urban energy management and environmental pollution control, is rapidly transitioning towards specialization, low-carbonization, and large-scale development under the dual-carbon strategy and energy supply-side structural reform [1] - Large heating enterprises with CHP units as their main production form are expected to further expand their market share due to their green, safe, and efficient production systems, as well as professional management and service advantages [1] Financial Performance and Challenges - The company has been experiencing continuous non-GAAP net profit losses since 2021 due to the "market coal, planned electricity, planned heat" pricing mechanism, where raw materials are purchased at market prices while products are sold at government-guided prices [2] - The significant increase and sustained high levels of coal prices since 2021 have led to severe losses for the company [2] Strategic Measures - The company is actively seeking new profit growth points to improve its operating conditions and achieve sustainable development [2] - Measures include focusing on the main business, promoting breakthroughs in production-supply-sales coordination, improving the quality and quantity of operations in the main urban area, actively tracking long-term coal contract policies, and exploring market-oriented means to enhance profitability [2] Asset Restructuring - In September 2023, the company announced plans to sell all its assets and liabilities to Clean Energy Group and acquire 100% equity of Kanghui New Materials from Hengli Petrochemical and Hengli Chemical Fiber through a share issuance, with a total transaction value of 10.153 billion yuan [3] - The company also planned to raise up to 3 billion yuan through a private placement to no more than 35 specific investors [3] - However, in August 2024, the company decided to terminate the major asset sale, share issuance for asset purchase, and related fundraising transactions, and withdraw the application documents [3] - The company stated that it would explore integrating superior resources through the Dalian State-owned Assets Platform to enhance future development space, optimize business, and improve management to strengthen core competitiveness and profitability [3] Future Plans - The company has no definite plans for a new round of asset restructuring at present but will strictly follow laws and regulations and fulfill information disclosure obligations if such plans are made in the future [4]