CFHI(SH:601106) Shang Hai Zheng Quan Bao·2026-01-16 19:28Core Viewpoint - China First Heavy Industries Co., Ltd. held its 63rd meeting of the fourth board of directors on January 16, 2026, where several key reports and proposals were approved, including the 2026 comprehensive budget report and various cost and investment plans [1][2][3][4][5][6]. Group 1: Board Meeting Resolutions - The board approved the 2026 comprehensive budget report, which was reviewed by the audit and risk committee [1]. - The board approved the proposal regarding the provision for related cost expenses, which was also reviewed by the audit and risk committee [2]. - The board approved the 2026 total salary budget report, reviewed by the compensation and assessment committee [3]. - The board approved the 2026 investment plan, reviewed by the strategy and investment committee [4]. - The board approved the proposal to establish a joint venture with China General Nuclear Power Group for the construction of the Longjiang Wind Power Project, reviewed by the strategy and investment committee [5]. - The board approved the proposal to establish a joint venture with China General Nuclear Power Group for the construction of the Yian Wind Power Project, reviewed by the strategy and investment committee [6]. Group 2: 2025 Performance Forecast - The company expects a net loss attributable to shareholders of the parent company for 2025 to be between -310 million and -460 million yuan, representing a reduction in losses of 3.276 billion to 3.426 billion yuan compared to the previous year [11][13]. - The expected net loss attributable to shareholders of the parent company, after deducting non-recurring gains and losses, is projected to be between -662 million and -812 million yuan, indicating a reduction in losses of 2.950 billion to 3.100 billion yuan compared to the previous year [11][13]. - The previous year's net loss attributable to shareholders of the parent company was -3.736 billion yuan, and the loss after deducting non-recurring gains and losses was -3.762 billion yuan [15]. Group 3: Reasons for Performance Forecast - The anticipated losses are attributed to operational losses from certain subsidiaries, one-time provisions for internal retirement benefits, and income tax payments from profitable subsidiaries, which resulted in a negative net profit [17]. - Despite the losses, the company has achieved significant loss reduction due to the good performance of the power station casting and forging segments, as well as investment gains from the sale of wind farms by its subsidiary [17]. Group 4: Cost Provision Announcement - The company announced a provision for related cost expenses to optimize employee structure and enhance internal vitality, which involves a one-time provision for retirement benefits [21][22]. - The provision is expected to reduce the net profit attributable to shareholders of the parent company by 170 million yuan for the 2025 fiscal year [23]. - The proposal for the cost provision was reviewed and approved by the audit and risk committee and subsequently by the board of directors [24].