RNS Number:2579K
Zhejiang Southeast Elec Power Co Ld
23 April 2003
Zhejiang Southeast Electric Power Company Limited
First Quarterly Report 2003
I. Important Remarks
1. The Board of Directors and the directors of Zhejiang Southeast Electric Power
Company Limited ("the Company") warrant that there are no false representations,
misleading statements or material omissions in this Report, and they shall be
jointly and severally liable for the authenticity, accuracy and completeness of
the information contained herein.
2. This quarterly report has been examined and adopted at the 25th meeting of
the second board of directors of the Company. Director Zhu Changrong is unable
to attend the meeting due to a business trip.
3. Chairman of the Company Mr. Hu Jiangchao who is in charge of the Company,
general manager Mr. Shou Desheng and chief accountant Mr. Hu Senjian who are in
charge of the accounting work of the Company, and deputy manager of the finance
department Mr. Yang Xiaodong issued a statement to confirm the authenticity and
completeness of the financial report in the Annual Report of the Company.
4. The financial statements attached to this Report have not been audited.
II. Particulars of the Company
1. Brief Particulars of the Company
Abbreviation of B shares ZSEPC B shares Abbreviation before
change (if any)
Code of B shares 900949
Secretary to Board Representative of
of Directors Security Affairs
Name Dai Jiancheng
Address 22-23 Floor, Biaoli Tower,
528 Yan'an Road, Hangzhou.
Telephone 0571-85774566
Fax 0571-85774321
E-mail address djc@zsepc.com
2. Financial Information
(1) Major Financial Data and Indicators
Unit: RMB yuan
End of the End of the Increase or
reporting period preceding year decrease
(%) at the end of
this reporting
period as
compared to the
end of the
preceding year
Total Assets 8,595,279,161.81 8,602,419,267.42 -0.08
Shareholders'
interests
(excluding minority
shareholders' interests) 5,543,298,330.49 5,386,781,727.00 2.91
Net assets per share 2.76 2.68 2.99
Adjusted net assets per share 2.75 2.67 2.99
Reporting period From beginning of Increase or
the year to the end decrease (%)
of the reporting compared to
period the same
period of the
preceding
year
Net cash flow from
operating activities 223,204,722.85 223,204,722.85 -
Earnings per share 0.078 0.078 -2.50
Yield on net assets (%) 2.82 2.82 -2.76
Yield on net assets
after deducting
non-recurring profits
& losses (calculated
according to the
weighted average
method) 2.87 2.87 -5.59
Item of non-recurring
profits & losses Amount
(1) Net loss on disposal
of fixed assets -342,386.32
(2) Donation outlay -30,000.00
(3) Penalties outlay -1010.00
(4) Others 184,350.00
Total -189,046.32
(2) Statement of Profit (as attached)
3. Total Number of Shareholders as at the End of the Reporting Period
As at the end of the reporting period, the total number of shareholders of the
Company amounted to 86,534.
III. Discussions and Analyses of the Management Team
1. Brief analyses of the overall operational activities of the Company during
the reporting period.
(1) Principal operating industry or product representing more than 10% of
principal operating income or profits from principal operating activities
Industry or product Income from principal Costs of principal Gross
operating activities operating activities profit
(yuan) ratio
(%)
Electric power generation 904,087,305.00 603,658,400.80 33.23
Including: connected transactions 0.00 0.00 0.00
(2) Seasonal or periodical characteristics of the operation of the Company
not applicable
(3) Composition of profit during the reporting period (significant changes in
the proportion of profit from principal operating activities, profit from other
activities, expenses during the period, investment income, subsidy income and
net non-operating income in the total amount of profit if compared to the
previous reporting period and the reasons for such changes)
The Company is mainly engaged in investment, development and operation of the
electric power business. The principal operating income of the Company comes
entirely from electric power generation activities.
(1) Unit 1 of a controlling subsidiary of the Company Zhejiang Changxing
Electric Power Generation Company Limited has been put into commercial operation
at the end of 2002 and made profits for the Company. The profit from the
principal operating activities of the Company during the reporting period
increased by 15,860,800 yuan in comparison with that of the same period of the
preceding year.
(2) Expenses during the period of the Company increased by 21,950,700 yuan in
comparison with that of the same period of the preceding year because of the
increase of 7,942,800 yuan of administrative expenses and the decrease in
deposit interest income and the increase in borrowing interest expenditure that
resulted in the increase of 14,007,900 yuan of financial expenses.
(3) The net non-operating income of the Company is -312,900 yuan representing a
decrease of 7,551,900 yuan in comparison with that of the same period of the
preceding year, which is mainly due to the decrease in net loss on disposal of
fixed assets during the reporting period of the Company.
(4) Significant changes in principal operating activities and its structure in
comparison with that of the preceding reporting period and the reasons for such
changes.
not applicable
(5) Significant changes in profitability of principal operating activities
(gross profit margin) in comparison with that of the preceding reporting period
and the reasons for such changes.
not applicable
2. Analyses of important matters and their effects and the solution plans
(1) Pursuant to the Notice on Issues relating to Regulating the Electricity
Tariff Management and the Notice on Expediting the Implementation of Same
Electricity Tariffs for Urban and Rural Use by the State Planning Commission,
and upon verification by Document Zhejiashang (2003) No.36 of Zhejiang
Provincial Commodity Pricing Bureau, the contractual electricity tariff of
Taizhou Power Plant of the Company was adjusted to 0.35242 yuan/kwh (tax
exclusive) from 1st January 2003, and the contractual electricity tariff of
Xiaoshan Power Plant of the Company remained the same. As the contractual
electricity tariff of Taizhou Power Plant was reduced by 0.005 yuan/kwh in
comparison with that of 2002, the income from the principal operating activities
of the Company decreased by 7,954,900 yuan during this reporting period.
However, as compared with that of the same period of the preceding year, as Unit
1 of a controlling subsidiary of the Company - Zhejiang Changxing Electric Power
Generation Company Limited (65% of the shares being held by the Company) was put
into commercial operation at the end of 2002 and gained profit for the Company,
the net profit of the Company after consolidation of statements increased by
6,020,100 yuan during this reporting period thus offsetting the effect of the
reduction in electricity tariff on the operating results of the Company. (2)
Pursuant to the Resolutions on Increasing the Registered Capital passed at the
Shareholders' General Meeting of 2002 convened by Zhejiang Jiahua Electric Power
Generation Company Limited (24% of the shares being held by the Company) on 28th
November 2002, all the shareholders unanimously agreed to increase the
registered capital of Zhejiang Jiahua Electric Power Generation Company Limited
to 1,555,190,000 yuan (as at 31st December 2002, the registered capital of
Zhejiang Jiahua Electric Power Generation Company Limited was 555,190,000 yuan.
The accumulative contribution of the Company amounted to 133,250,000 yuan), and
the registered capital will be contributed in 4 instalments in 2003 according to
the respective capital contribution proportions of the shareholders and the
Capital Contribution Plan for 2003 of Zhejiang Jiahua Electric Power Generation
Company Limited. Pursuant to the above resolutions, the Company will increase
capital contribution of 240,000,000 yuan in Zhejiang Jiahua Electric Power
Generation Company Limited in 2003. On 17th March 2003, the Company paid its
investment amount of 60,000,000 yuan according to the above resolutions. (3) In
order to enhance the capital use efficiency, the Company entrusted Industrial &
Commercial Bank of China, Hangzhou Qingchunlu Branch on 27th January, 29th
January and 4th March 2003 respectively to grant loans to the Company's
controlling subsidiary Zhejiang Changxing Electric Power Generation Company
Limited totalling RMB 150 million yuan with 50,000,000 yuan for each instalment
at an annual interest rate of 5.31% for a term of 1 year with an annual
commission charge rate of 0.03%. (4) In line with the resolution of the Board of
Directors of the Company authorizing the management team to invest in state
treasury bonds and other securities with an amount less than RMB 300 million
yuan, the Company continued to entrust Zhejiang Provincial International Trust
Investment Corporation to conduct fund management in 2003. The two parties
entered into the Agreement on Trusted Fund Management on 22nd January 2003. As
at the end of this reporting period, the Company has entrusted accumulative fund
totalling 150 million yuan. Pursuant to the agreement, the term of trust shall
commence from the date on which the entrusted fund is deposited into the
designated account of Zhejiang Provincial International Trust Investment
Corporation until 21st January 2004. The two parties have not made any specific
agreement on the gains of the trusted fund management. (5) According to Document
Jijichu (2002) No.2704 Approval of the State Development and Planning Commission
in relation to the Proposal on the Reorganization and Allocation of the Electric
Generation Assets of the State Electric Power Company, during this reporting
period, Zhejiang Provincial Electric Power Company ("ZPEPC") entered into a
Share Transfer Agreement of Zhejiang Southeast Electric Power Company Limited
with China Huaneng Group Corporation ("CHGC"). Pursuant to this agreement,
25.57% of the state-owned legal person shares held by ZPEPC shall be transferred
to CHGC without compensation. The basis date for the shareholding transfer shall
be 1st January 2003.
3. Changes in accounting policies, accounting estimates, consolidation scope and
material accounting errors and the reasons.
v not applicable
4. If a "non-standard opinion" is issued upon auditing, the relevant statements
issued by the Board of Directors and the Supervisory Committee of the Company.
v not applicable
5. Warning that the accumulative net profit from the beginning of the year to
the end of the next reporting period may be loss or significant changes in
comparison with that of the same period of the preceding year and the reasons.
v not applicable
6. Rolling adjustment of the disclosed annual operating plan or budget of the
Company.
v not applicable
Board of Directors
Zhejiang Southeast Electric Power Company Limited
23rd April 2003
Statement of Profit
January to March 2003
Prepared by: Zhejiang Southeast Electric Power Company Limited Unit: RMB Yuan
Item January to March 2003 January to March 2003
Parent Company Consolidated Parent Company Consolidated
1. Income from principal 780,906,734.38 904,087,305.00 802,228,393.10 802,228,393.10
operating activities
Less: Principal operating 508,791,530.15 603,658,400.80 515,340,670.57 515,340,670.57
costs
Principal operating 9,038,430.50 10,359,714.47 12,679,346.95 12,679,346.95
tax and surtax
2. Profit from principal 263,076,773.73 290,069,189.73 274,208,375.58 274,208,375.58
operating activities
(loss indicated by "-")
Add: Profit from other -18,311.67 -18,311.67 223,354.85 223,354.85
activities
(loss indicated by "-")
Less: Operating expenses
Administrative expenses 32,086,898.55 36,553,342.21 28,610,524.97 28,610,524.97
Financial expenses 5,917,795.59 13,085,140.46 -922,791.47 -922,791.47
3.Operating profit 225,053,767.92 240,412,395.39 246,743,996.93 246,743,996.93
(loss indicated by "-")
Add: Investment income 8,742,149.28
(loss indicated by "-)
Subsidy income
Non-operating income 360,520.68 360,520.68 130,167.06 130,167.06
Less: Non-operating 549,567.00 673,452.02 7,994,966.04 7,994,966.04
expenses
4.Gross profit 233,606,870.88 240,099,464.05 238,879,197.95 238,879,197.95
(loss indicated by "-")
Less: Income tax 77,090,267.39 80,341,246.84 78,830,135.33 78,830,135.33
Minority shareholder's 3,241,613.72
gain and loss
5.Net profit 156,516,603.49 156,516,603.49 160,049,062.62 160,049,062.62
(loss indicated by "-")
Balance Sheet
31 March 2003
Prepared by: Zhejiang Southeast Electric Power Company Limited Unit: RMB Yuan
Assets 31 March 2003 1 January 2003
Parent Company Consolidated Parent Company Consolidated
Current assets
Monetary assets 1,057,466,723.17 1,114,946,568.34 1,275,444,909.15 1,316,602,765.12
Short term investments 494,481,100.00 194,481,100.00 245,339,100.00 45,066,100.00
Bills receivable
Share dividends receivable
Interests receivable
Accounts receivable 117,987,492.01 177,963,580.88 101,911,910.02 189,310,963.44
Other receivables 72,542,572.15 73,605,071.16 34,336,919.77 34,892,310.31
Prepayments 35,153,922.00 34,979,422.00 12,461,180.00 12,461,180.00
Subsidy receivable
Inventories 79,801,566.16 88,424,570.61 89,186,432.87 109,881,758.45
Deferred expenses
Long term debt investments due
within 1 year
Other current assets
Total current assets 1,857,433,375.49 1,684,400,312.99 1,758,680,451.81 1,708,215,077.32
Long term investments:
Long term equity investments 1,633,708,433.11 1,268,550,000.00 1,567,688,293.33 1,208,550,000.00
Long term debt investments
Total long term investments 1,633,708,433.11 1,268,550,000.00 1,567,688,293.33 1,208,550,000.00
Including: consolidated price
difference
Including: equity investment
balance
Fixed assets:
Costs of fixed assets 6,704,069,013.71 8,304,948,829.55 6,663,381,995.97 8,262,163,609.22
Less: Accumulated 3,412,777,441.02 3,446,464,542.76 3,313,017,453.44 3,315,214,904.61
depreciation
Net value of fixed assets 3,291,291,572.69 4,858,484,286.79 3,350,364,542.53 4,946,948,704.61
Less: Provision for fixed
assets devaluation
Net amount of fixed assets 3,291,291,572.69 4,858,484,286.79 3,350,364,542.53 4,946,948,704.61
Project materials 4,305,337.41 15,305,737.41 21,012,643.90 32,013,043.90
Construction in progress 68,785,795.00 517,711,320.16 80,280,204.67 458,328,216.40
Disposal of fixed assets 5,494,124.36 5,494,124.36
Total fixed assets 3,369,876,829.46 5,396,995,468.72 3,451,657,391.10 5,437,289,964.91
Intangible assets and other
assets:
Intangible assets 219,539,172.38 219,539,172.38 221,098,737.29 221,098,737.29
Long term deferred expenses 23,093,461.53 25,794,207.72 24,564,741.71 27,265,487.90
Other long term assets
Total intangible and other 242,632,633.91 245,333,380.10 245,663,479.00 248,364,225.19
assets
Deferred taxes:
Deferred tax debit
Total assets 7,103,651,271.97 8,595,279,161.81 7,023,689,615.24 8,602,419,267.42
Liabilities and owners'
interests
Current liabilities:
Short term borrowings 3,390,000.00 578,390,000.00 3,390,000.00 553,390,000.00
Bills payable 60,248,600.00 56,963,000.00
Accounts payable 149,810,158.03 300,385,507.95 144,452,442.30 456,384,684.26
Accounts received in advance
Wages payable 56,588,660.64 57,135,622.64 86,879,011.39 86,668,618.65
Welfare expenses payable 18,922,725.75 19,605,424.32 26,056,228.71 26,425,375.38
Dividends payable 498,471,730.86 498,471,730.86 498,480,000.00 498,480,000.00
Tax payable 138,444,233.79 149,859,903.44 108,557,056.55 116,153,980.49
Other payments due 7,488,572.67 7,860,509.84 1,320,983.85 1,584,804.17
Other payables 91,077,583.08 97,240,483.95 115,652,165.44 122,446,669.53
Accruals 25,554,276.66 25,554,276.66 934,800.00
Estimated liabilities
Long term liabilities due 244,545,000.00 244,545,000.00 326,060,000.00 326,060,000.00
within one year
Other current liabilities
Total current liabilities 1,234,292,941.48 2,039,297,059.66 1,310,847,888.24 2,245,491,932.48
Long term liabilities:
Long term borrowings 326,060,000.00 816,060,000.00 326,060,000.00 776,763,450.00
Bonds payable
Long term payables
Special payables
Other long term liabilities
Total long term liabilities 326,060,000.00 816,060,000.00 326,060,000.00 776,763,450.00
Deferred tax:
Deferred tax credit
Total liabilities 1,560,352,941.48 2,855,357,059.66 1,636,907,888.24 3,022,255,382.48
Minority shareholders' 196,623,771.66 193,382,157.94
interests
Shareholders' interests:
Share capital 2,010,000,000.00 2,010,000,000.00 2,010,000,000.00 2,010,000,000.00
Less: investments paid back
Net amount of share capital 2,010,000,000.00 1,863,272,079.51 2,010,000,000.00 2,010,000,000.00
Capital reserves 1,863,272,079.51 1,863,272,079.51 1,863,272,079.51 1,863,272,079.51
Surplus reserves 763,152,307.26 763,152,307.26 763,152,307.26 763,152,307.26
Including: statutory common 381,576,153.63 381,576,153.63 381,576,153.63 381,576,153.63
welfare reserves
Undistributed profits 906,873,943.72 906,873,943.72 750,357,340.23 750,357,340.23
Foreign currency statement
translation balance
Total shareholders' interests 5,543,298,330.49 5,543,298,330.49 5,386,781,727.00 5,386,781,727.00
Total liabilities and owners' 7,103,651,271.97 8,595,279,161.81 7,023,689,615.24 8,602,419,267.42
interests
Statement of Cash Flow
January to March 2003
Prepared by: Zhejiang Southeast Electric Power Company Limited Unit: RMB yuan
Item Parent Company Consolidated
1.Cash flow from operating activities
Cash received from sale of goods and provision for labour services 897,779,148.91 1,069,323,381.11
Cash received from refund taxes
Other cash received related to operating activities 38,494,011.45 38,607,469.15
Sub-total of cash inflow 936,273,160.36 1,107,930,850.26
Cash paid for purchased goods and labor services 380,087,703.23 458,264,776.77
Cash paid to and for the employees 135,402,286.31 143,149,506.83
Taxes paid 145,582,445.07 161,034,643.77
Other cash paid relating to operating activities 121,197,368.13 122,277,200.04
Sub-total of cash outflow 782,269,802.74 884,726,127.41
Net cash flow from operating activities 154,003,357.62 223,204,722.85
2.Cash flow from investment activities
Cash received from investment recovery 50,000,000.00
Cash received from investment income 2,722,009.50
Net cash received from disposal of fixed assets, intangible assets and other 110,522.01 110,522.01
long-term assets
Other cash received relating to investment activities 585,000.00 593,920.60
Sub-total of cash inflow 53,417,531.51 704,442.61
Cash paid for purchase and building of fixed assets, intangible assets and 31,996,540.32 225,095,322.32
other long-term assets
Cash paid for investment 300,000,000.00 150,000,000.00
Other cash paid relating to investment activities 7,147,928.33
Sub-total of cash outflow 331,996,540.32 382,243,250.65
Net cash flow from investment activities -278,579,008.81 -381,538,808.04
3. Cash flow from financing activities
Cash received by absorbing investment
Including: Cash received by subsidiaries absorbing minority shareholders'
equity investment
Cash received from borrowing 90,000,000.00
Other cash received relating to financing activities 117,393.70
Sub-total of cash inflow 90,117,393.70
Cash paid for repayment of debt 81,515,000.00 106,515,000.00
Cash paid for dividend or profit distribution or payment of interest 11,897,216.35 26,934,186.85
Including: Dividend paid by subsidiaries to minority shareholders
Other cash paid relating to financing activities
Sub-total of cash outflow 93,412,216.35 133,449,186.85
Net cash flow from financing activities -93,412,216.35 -43,331,793.15
4. Impact of foreign exchange fluctuation on cash 9,681.56 9,681.56
5. Net increase in cash and cash equivalents -217,978,185.98 -201,656,196.78
Supplementary Information
1. Operating cash flow converted from net profit
Net profit 156,516,603.49 156,516,603.49
Add: Gain and loss of minority shareholders 3,241,613.72
Allocated reserves for assets devaluation
Depreciation of fixed assets 107,483,149.46 138,972,800.03
Amortization of intangible assets 1,559,564.91 1,559,564.91
Amortization of long term deferred expenses 1,471,280.18 1,471,280.18
Decrease in deferred expenses (less: increase)
Increase in pre-allocated expenses (less: decrease) 25,554,276.66 24,346,476.66
Loss in disposal of fixed assets, intangible assets and other long-term -108,282.01 -108,282.01
assets (less: income)
Loss on retirement of fixed assets 518,407.00 518,407.00
Financial expenses 5,955,288.59 15,844,642.96
Loss on investment (less: income) -2,722,009.50
Deferred tax credit (less: debit)
Decrease in inventory (less: increase) 9,384,866.71 21,457,187.84
Decrease in operational receivable items (less: increase) -54,281,234.37 -27,365,378.29
Increase in operational payable items (less: decrease) -97,328,553.50 -113,250,193.64
Others
Net cash flow from operating activities 154,003,357.62 223,204,722.85
2. Investment and financing activities not involving cash income and
expenditure
Debt transferred to capital
Convertible company bonds due within 1 year
Fixed assets leased by financing lease
3. Net increase in cash and cash equivalents:
Balance of cash at the end of the period 1,057,466,723.17 1,114,946,568.34
Less: Balance of cash at the beginning of the period 1,275,444,909.15 1,316,602,765.12
Add: Balance of cash equivalents at the end of the period
Less: Balance of cash equivalents at the beginning of the period
Net increase in cash and cash equivalents -217,978,185.98 -201,656,196.78
END
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