NMHD(600863)2015-04-27 16:00Financial Performance - The company's operating revenue for 2014 was approximately ¥13.63 billion, a decrease of 0.70% compared to ¥13.73 billion in 2013 [24]. - The net profit attributable to shareholders for 2014 was approximately ¥1.36 billion, down 1.25% from ¥1.38 billion in 2013 [24]. - The net profit after deducting non-recurring gains and losses decreased by 16.40% to approximately ¥1.19 billion in 2014 from ¥1.42 billion in 2013 [24]. - Cash flow from operating activities for 2014 was approximately ¥4.34 billion, a decline of 18.01% compared to ¥5.30 billion in 2013 [24]. - The total assets at the end of 2014 were approximately ¥38.77 billion, an increase of 1.42% from ¥38.23 billion at the end of 2013 [24]. - The net assets attributable to shareholders decreased by 8.01% to approximately ¥10.64 billion at the end of 2014 from ¥11.56 billion at the end of 2013 [24]. - Basic earnings per share for 2014 were ¥0.23, a decrease of 1.25% from ¥0.24 in 2013 [25]. - The company's electricity revenue was CNY 1,241,633.48 million, a decrease of 0.84% year-on-year, primarily due to a reduction in average on-grid electricity prices by CNY 7.20 per kWh [56]. - The company's coal sales reached 630.66 million tons, generating revenue of CNY 99,584.63 million, a decline of 8.87% year-on-year due to low market prices [57]. - The company's investment income was 748.8 million yuan, down 6.1% from the previous year [36]. Dividend Distribution - The company plans to distribute a cash dividend of 1.80 yuan (including tax) for every 10 shares based on a total share capital of 580,774.5 million shares, amounting to a total distribution of 1,045,394,100.00 yuan [2]. - The company implemented a cash dividend policy, distributing 1.80 RMB per 10 shares in 2014, with a payout totaling 1,045,394,100 RMB, representing 76.73% of the net profit attributable to shareholders [97]. Acquisitions and Investments - The company completed the acquisition of a 43% stake in Mengda Company and the 5 and 6 units of Fengzhen Power Plant in December 2014 [26]. - The company completed the acquisition of a 43% stake in the Monda Company and the Fengzhen Power Plant units 5 and 6 in December 2014 [34]. - The company completed the asset injection from Northern Power Company, transferring 43% equity in Monda Company and the 5 and 6 units of Fengzhen Power Plant for a total of 1.047 billion yuan [111]. - The company has ongoing non-fundraising projects with a total investment of ¥148.17 million, including the Wei Jia Mao Power Plant and the first phase of Hohhot Power Plant [77]. Operational Strategies and Market Conditions - The company has emphasized the importance of strengthening its internal control system to mitigate risks related to the electricity market, coal market, environmental regulations, and interest rates [9]. - The company is actively addressing the risks associated with the electricity market and is committed to enhancing its operational strategies [9]. - The company's operational strategies will be influenced by the ongoing electricity market reforms in Inner Mongolia, which are expected to create development opportunities [8]. - The company aims for an average utilization of its power generation units to reach 5,300 hours, targeting a total electricity generation of 49.338 billion kWh in 2015 [86]. - The company will enhance competitiveness by optimizing unit operation, improving system efficiency, and accelerating new unit construction due to intense competition in the Inner Mongolia power market [89]. Environmental and Safety Initiatives - The company has undertaken significant environmental upgrades, including desulfurization and dust removal projects, to comply with stricter environmental regulations [99]. - The company has implemented noise control measures in compliance with national standards, ensuring all facilities meet the required noise emission limits [102]. - The company has completed various environmental protection projects, including desulfurization, denitrification, and dust removal upgrades, contributing to significant emissions reductions [106]. - The company is committed to maintaining safety performance targets, aiming for zero fatalities and major accidents in production safety [86]. Governance and Management - The company has retained Beijing Zhongzheng Tiantong Accounting Firm for auditing services, with an audit fee of CNY 1.16 million for the year [128]. - The company has made progress in enhancing its governance structure by revising key internal regulations and management systems [188]. - The company has a significant number of directors and managers holding positions in various subsidiaries, indicating a strong interconnected management structure within the North China United Power Co., Ltd. [175][176]. - The company has not reported any stock incentive plans for the current period, indicating a focus on traditional management structures rather than equity-based incentives [173]. Related Party Transactions - The company reported related party transactions with Northern Company, with sales of products and materials amounting to 1.004 billion yuan and procurement of raw materials totaling 2.598 billion yuan, both within the expected limits [112]. - The total amount of related party transactions exceeded the 2014 estimated amount approved at the 2013 annual general meeting by 239.47 million RMB, which does not exceed 5% of the company's net assets [117]. - The company confirmed that the related party transactions do not harm the interests of the company and its shareholders [115]. Future Outlook - The overall electricity market growth rate is expected to be around 4% to 5% in 2015, with a stable supply-demand balance anticipated nationwide [78]. - The financial outlook for the upcoming year includes a projected revenue increase of 15% [170]. - The company plans to focus on the development of large-capacity, high-parameter, low-energy-consumption thermal power generation units, alongside clean energy projects [85].