1. The company's financial status in 2017
(1) The company's 2017 financial statements were audited by Lixin Certified Public Accountants, and a standard unqualified audit report was issued. The accountant’s audit opinion is that the company’s financial statements have been prepared in accordance with the Accounting Standards for Business Enterprises and fairly reflect the financial status of Suzhou Huadian Company as of December 31, 2017 and the operating results and cash flow of 2017 in all major aspects.
(2) In 2017, the company focused on expanding the market, striving to explore market demand, and achieved good results. The company realized operating income of 184,766,300 yuan, a year-on-year increase of -6.06%; realized net profit of 31,624,700 yuan, an increase of -15.47%; the company's net assets of 182,859,900 yuan, an increase of -10.40%, total assets of 295,978,800 yuan, an increase of -4.77%.
Project | Amount (RMB ten thousand) | ||
2017 . 12 . 31 | 2016 . 12 31 | Year-on-year increase and decrease | |
Operating income | 18,476.63 | 19,668.09 | -6.06% |
The total profit | 3,757.71 | 4,364.70 | -13.91% |
Net profit attributable to shareholders of the parent company | 3,161.87 | 3,741.44 | -15.49% |
Net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses | 3,078.06 | 3,649.33 | -15.65% |
Total assets
| 29,597.88 | 31,081.35 | -4.77% |
Total liabilities | 11,311.90 | 10,672.83 | 5.99% |
Net assets attributable to shareholders of the parent company | 18,125.38 | 20,408.51 | -11.19% |
2. Analysis of financial status, operating results and cash flow
(1) Assets:
Project | Amount (RMB ten thousand) | ||
2017 . 12 . 31 | 2016 . 12 . 31 | Year-on-year increase and decrease | |
Money funds | 6,056.06 | 10,564.69 | -42.68% |
bill receivable | 983.71 | 341.80 | 187.80% |
accounts receivable | 9,951.44 | 8,785.69 | 13.27% |
Prepayments | 535.20 | 977.60 | -45.25% |
Other receivables | 433.17 | 406.03 | 6.68% |
stock | 3,574.94 | 4,361.90 | -18.04% |
Other current assets | 151.59 | 20.04 | 656.32% |
net value of fixed assets | 3,088.97 | 3,350.50 | -7.81% |
Construction in progress | 2,943.72 | 334.99 | 778.76% |
Intangible assets | 1,412.07 | 1,445.32 | -2.30% |
Goodwill | 54.30 | 54.30 | 0.00% |
Long-term prepaid expenses | 115.73 | 165.33 | -30.00% |
Deferred income tax assets | 296.97 | 273.14 | 8.72% |
Total assets | 29,597.88 | 31,081.35 | -4.77% |
(2) Liabilities:
Project | Amount (RMB ten thousand) | ||
2017 . 12 .31 | 2016 . 12 . 31日日 | Year-on-year increase and decrease | |
short-term loan | 3,000.00 | 3,500.00 | -14.29% |
Bills payable | 1,039.65 | 962.13 | 8.06% |
accounts payable | 3,557.45 | 2,957.24 | 20.30% |
Advance receipt | 637.31 | 1,968.12 | -67.62% |
Employee compensation payable | 462.33 | 467.47 | -1.10% |
Taxes payable | 574.42 | 574.55 | -0.02% |
Other payables | 37.28 | 26.06 | 43.05% |
Long term loan | 1,837.40 | 0.00 | |
Estimated liabilities | 137.60 | 128.57 | 7.03% |
Deferred income | 28.00 | 88.00 | -68.18% |
Deferred income tax liabilities | 0.46 | 0.71 | -35.22% |
Total liabilities | 11,311.90 | 10,672.83 | 5.99% |
（3) Owner’s equity:
undistributed profit | Amount (RMB ten thousand) | ||
2017 . 12 . 31 | 2016 . 12 . 31 | Year-on-year increase and decrease | |
Equity | 6,050.00 | 6,050.00 | - |
Capital reserve | 581.63 | 581.63 | - |
Surplus reserve | 2,338.48 | 1,975.84 | 18.35% |
undistributed profit | 9,155.27 | 11,801.04 | -22.42% |
Total equity attributable to shareholders of the parent company | 18,125.38 | 20,408.51 | -11.19% |
Minority shareholder gains and losses | 160.60 | 0.00 | |
Total owners' equity | 18,285.99 | 20,408.51 | -10.40% |
（4）Business conditions:
Project | Amount (RMB ten thousand) | ||
2017 年度 | 2016 年度 | Year-on-year increase and decrease | |
Operating income | 18,476.63 | 19,668.09 | -6.06% |
Operating costs | 9,415.72 | 9,988.17 | -5.73% |
Business tax and surcharges | 49.04% | 49.22% | -0.37% |
sales expense | 3,346.63 | 3,546.42 | -5.63% |
Management fees | 1,743.96 | 1,680.79 | 3.76% |
Financial expenses | 102.40 | 73.88 | 38.61% |
Asset impairment loss | 135.11 | -36.07 | -474.63% |
Asset disposal income | -0.22 | 1.92 | -111.36% |
Other income | 239.44 | 0.00 | |
Non-operating income | 0.03 | 189.61 | -99.98% |
Operating expenses | 33.76 | 15.00 | 125.09% |
The total profit | 3,757.71 | 4,364.70 | -13.91% |
Net profit | 3,162.47 | 3,741.44 | -15.47% |
the retained profits belong to the parent company's owner | 3,161.87 | 3,741.44 | -15.49% |
Minority shareholder gains and losses | 0.60 | 0.00 | |
（5）Cash flow analysis:
Index | 2017 year | 2016 year | Year-on-year increase and decrease |
Net cash flow from operating activities | 2,367.29 | 5,652.10 | -58.12% |
Net cash flows from investing activities | -2,700.04 | -233.09 | 1058.37% |
Net cash flow from financing activities | -4,097.92 | -2,761.53 | 48.39% |
Net increase in cash and cash equivalents | -4,430.68 | 2,657.48 | -266.72% |
(6) Main financial indicators:
project | 2017 year | 2016 year | Year-on-year increase and decrease |
Assets and liabilities | 41.48% | 38.86% | |
Current ratio | 2.33 | 2.43 | |
Quick ratio | 1.93 | 2.02 | |
Turnover rate of accounts receivable (times) | 1.74 | 2.03 | |
Inventory turnover rate (times) | 2.37 | 2.10 | |
Basic earnings per share (yuan) | 0.52 | 0.62 | -16.13% |
Basic earnings per share after deducting non-recurring gains and losses (yuan) | 0.51 | 0.60 | -15.00% |
Net assets per share attributable to shareholders of the parent company (yuan) | 3.00 | 3.37 | -10.98% |
Net cash flow per share (yuan) | -0.73 | 0.44 | -265.91% |
Net cash flow from operating activities per share (yuan) | 0.39 | 0.93 | -58.06% |
(7) Explanation of tax payment:
(1) Value-added tax: The parent company should pay 10.32 million yuan of value-added tax this year, but actually paid 10.32 million yuan.
(2) Income tax: The parent company should pay 5.01 million yuan in income tax this year, but actually paid 5.01 million yuan.
(3) Other taxes and fees: The parent company should pay 1.63 million yuan in other taxes and fees this year, which actually paid 1.63 million yuan.
(8) Explanation of profit distribution:
In 2017, the company distributed a cash dividend of 54.45 million yuan to all shareholders. The net profit attributable to the owners of the parent company this year was 311.6187 million yuan. After the statutory surplus reserve fund was drawn up at 10% of the parent company’s net profit, the company was able to distribute profits to shareholders in 2017. It was RMB 91,552,700.
In general, the company's operations and financial conditions were good in 2017. As of December 31, 2017, the company's book currency capital was 60,560,600 yuan, and operating cash flow was 23,672,900 yuan, which was attributable to shareholders' equity (net assets) of the parent company. 181,253,800 yuan, with a net asset of 3.00 yuan per share.
Suzhou Huadian Electric Co., Ltd.
April 18, 2018
No. 255, Shanpu Road, Hedong Industrial Park, Wuzhong Economic Development Zone, Suzhou City, Jiangsu Province
Tel：+86-512-67266386
Fax：+86-512-67167303
szhd@szhddq.com
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