Baota Industry(SZ:000595) Zheng Quan Zhi Xing·2025-06-06 14:23Core Viewpoint - The report provides a detailed examination of the financial performance and operational integrity of Ningxia Electric Power Investment Group Co., Ltd.'s subsidiary, Ningxia Electric Power Investment New Energy Co., Ltd., in the context of a significant asset swap and share issuance by Baota Industrial Co., Ltd. [1] Group 1: Company Overview - Ningxia Electric Power Investment New Energy Co., Ltd. is primarily engaged in the investment, development, and operation of photovoltaic, wind power, and energy storage projects, with a total grid-connected capacity of approximately 680 MW for solar and wind power, and 300 MW/600 MWh for energy storage [2][3] - The company is located in the Sun Mountain Development Zone of Wuzhong City, Ningxia, and was established on July 2, 2010, with a registered capital of 680.51 million yuan [2][3] Group 2: Financial Performance - For the reporting period, the company's operating revenue was 39,094.63 million yuan in 2024, up from 33,085.51 million yuan in 2023, indicating a growth of approximately 18.2% [3][4] - The net profit for 2024 was reported at 6,023.85 million yuan, compared to 8,203.71 million yuan in 2023, reflecting a decrease of about 26.6% [3][4] - The gross profit margin for the company's wind power business was 56.56% in 2024, while the photovoltaic and energy storage businesses had gross profit margins of 28.87% and 28.72%, respectively [4][5] Group 3: Revenue and Cost Verification - The audit confirmed that the revenue recognition policies of the company were reasonable and in line with industry standards, with a significant portion of revenue derived from major clients [6][12] - The audit also included a thorough examination of the company's cost structure, confirming that the operating costs were accurately recorded and aligned with the revenue generated [10][11] - The total expenses for the reporting period were 9,627.23 million yuan in 2024, with financial expenses constituting a significant portion of the total [10][11]