Yangtze Business Daily News ● Yangtze Business Daily reporter Wei Du
After more than 5 years of industrial transformation, Shenzhen South Electric Power A (000037.SZ) has turned from profit to loss.
According to the annual report, in 2021, Shenzhen South Electric A achieved operating income of 757 million yuan, a year-on-year decrease of more than 20%. The net profit attributable to shareholders of listed companies (hereinafter referred to as net profit) was a loss of 439 million yuan. Last year, the company achieved net profit of 64 million yuan, a year-on-year profit turning into a loss.
According to Shenzhen South Electric A, the operating losses were caused. On the one hand, the fuel prices of gas power generation companies were seriously inverted with the on-grid electricity prices. On the other hand, the company's asset impairment was set aside more than 400 million yuan, which had a great impact on net profit.
In fact, it is not just 2021. As a veteran power and thermal power manufacturer, Shenzhen South Electric A's operating performance has changed a bit bad since 2005. Overall, the net profit after deducting non-recurring gains and losses (hereinafter referred to as non-net profit) is either a small profit or a loss.
The financial operation of Shenzhen South Electric Power A is also puzzled. On the one hand, the company is continuing to increase its debts, but on the other hand, it invests nearly 900 million yuan in financial management.
reporters from the Yangtze Business Daily found that as early as 2017, Shenzhen South Electric Power A proposed the "1+5" strategic roadmap for industrial transformation, but the transformation has not yet been achieved.
net profit after deducting non-net profits exceed 500 million
No surprise, Shenzhen South Electric A suffered an operating loss.
On the evening of March 24, Shenzhen South Electric A disclosed its 2021 annual report. The company's operating performance was relatively poor and the fundamentals showed no signs of improvement.
operating data shows that in 2021, the company achieved operating income of 757 million yuan, a year-on-year decrease of 23.15%; net profit was -439 million yuan, a year-on-year decrease of 786.38%; net profit excluding non-network was -514 million yuan, a year-on-year decrease of 6864.10%.
Shennan Electric Power A's operating income began to decline in 2018. From 2018 to 2020, the company achieved operating income of 1.885 billion yuan, 1.223 billion yuan and 985 million yuan, respectively, with year-on-year decreases of 7.86%, 35.14%, and 19.41%. In addition, in 2021, the company's operating income has declined for four consecutive years.
During the above-mentioned period, the company achieved net profits of RMB 19 million, RMB 25 million and RMB 64 million, respectively, an increase of 21.06%, 29.33%, and 157.12% year-on-year, and growth for three consecutive years. The corresponding non-net profits were -14 million yuan, 15 million yuan and 8 million yuan, with year-on-year changes of -218.41%, 208.66%, and -48.24%.
In 2021, Shenzhen Nandian A's net profit and non-net profit both turned into losses.
In fact, the market already has expectations that Shenzhen South Electric Power A will suffer losses, but it did not expect the losses to be so large.
Last year's third quarter report showed that in the first three quarters, the company's net profit and non-net profit achieved losses of 44 million yuan and 84 million yuan respectively. At that time, the company explained that the cost of natural gas procurement increased significantly compared with the same period last year, the income from market-oriented trading of electricity decreased by about 33.53 million yuan compared with the same period last year.
The losses in the first three quarters did not exceed market expectations, but why did they suffer a significant loss throughout the year?
annual report disclosed that in 2021, although the demand for electricity increased significantly, the natural gas prices during the same period have been rising and always high, resulting in a serious inversion of fuel prices of gas-fired power companies with on-grid electricity prices, and serious losses in power generation.
In fact, the main reason for the huge losses of Shenzhen South Power A is not the main power generation business, but the asset impairment.
According to the announcement of various asset impairment provisions disclosed by Shenzhen South Electric Power A, it set aside approximately RMB 446 million in asset impairment provisions to the company and its holding subsidiaries, including inventory, fixed assets, projects under construction, etc. The specific project of the main impairment of
is that in 2018, Shenzhen Nandian A gradually completed the technical transformation of three gas engines DLN1.0+ low-nitrogen combustion systems. The spare parts of the technically modified machine have been idle. Due to the high repair cost and the transfer income, 11.9582 million yuan of inventory impairment provision were set aside.The energy consumption of 9E units is relatively high. Facing the multiple pressures of continuous decline in the price of natural gas power generation, high operating conditions of natural gas prices, and the power grid nodes located in "Wan Power", the economic benefits will not be optimistic in the future, and a fixed asset impairment provision of 202 million yuan is set aside. Influenced by the Shenzhen Municipal Government's vigorous promotion of new treatment process routes, environmental protection policies and other parties, the sludge drying production line of Shenzhen South Electric Environmental Protection Company has idle production capacity, and fixed assets impairment is set aside 51.3615 million yuan. Affected by factors such as government planning adjustments and path bridge construction and maintenance, the company's cogeneration thermal network project under construction may need to be demolished, and an impairment provision of 36.3365 million yuan was set aside.
annual report shows that in 2021, the impairment loss of Shenzhen South Electric A's assets was 327 million yuan.
Poor transformation while borrowing money while managing wealth
Shenzhen Nandian A's operating performance was poor, not only in 2021, but before that, the company's performance was not good. The industrial transformation promoted by the company has not allowed the market to see real results.
Shenzhen Electric Power A was established in 1990 and was listed on the Shenzhen Stock Exchange on July 1, 1994.
was listed from the beginning of its listing to 2004, and the company's operating performance was stable. In 1994, the company achieved a net profit of 100 million yuan, and in 2004 it reached 440 million yuan.
Since 2005, the company's operating performance has become unsightly. Except in 2016, its net profit is mostly low or losses. In 2016, the company achieved a net profit of 1.307 billion yuan, but the non-recurring gains and losses reached 1.436 billion yuan, mainly due to the investment income generated by the disposal of assets that year.
net profit excluding non-restrictions can truly reflect the profitability of Shenzhen South Electric A's main business. Since 2005, the company's non-net profit has been declining, and it started to suffer losses in an incidental manner. It has continued to suffer losses in the seven years from 2010 to 2016. From 2011 to 2020, the company's cumulative net profit excluding non-operating items was -1.866 billion yuan.
In August 2017, Shenzhen South Electric Power A seemed to be determined and planned well, trying to promote industrial transformation. At that time, the company stated that it would adhere to the "1+5" strategic roadmap as the guide, and on the basis of continuing to do a good job in the safety operation of the main business of power, it would actively promote transformation and development, strive to explore project opportunities through different channels, and strive toward the direction and business areas of innovative industrial projects such as advanced manufacturing, life and health, new generation information technology, and science and technology finance determined by the board of directors.
However, judging from the main business composition of Shenzhen South Power A, in 2021, the electricity sales revenue was 709 million yuan, accounting for 93.62%.
So, what are the layouts for the company's industrial transformation?
In the 2020 annual report, a reporter from the Yangtze Business Daily did not find Shenzhen South China Telecom A to introduce the content of industrial transformation.
2021 annual report disclosed that Shenzhen South Electric Power A, on the one hand, promoted the implementation of the project through Zhuozhi Fund, and completed a 5.6% equity investment of Zhongsheng Technology. On the other hand, through the inspection and research of Liaoyuan Environmental Protection, the company on the New Third Board, combined with multi-faceted demonstration, the project is in line with the company's future strategic layout. At present, the company has completed the process of purchasing some shares of Liaoyuan Environmental Protection in steps, and acquired a total of 4.0485 million shares of Liaoyuan Environmental Protection, accounting for 9.93% of Liaoyuan Environmental Protection's total share capital.
Based on this judgment, Shenzhen South Electric Power A is still on the road of industrial transformation and has not yet seen any effect affecting net profit.
In addition, Shennan Electric A's financial operations are a bit strange. As of the end of 2021, the company had 690 million yuan in cash and 633 million yuan in trading financial assets, and the trading financial assets were mainly financial products. The corresponding short-term loans were 858 million yuan, an increase of 182 million yuan from the beginning of last year. Among them, at the end of September last year, short-term loans were 481 million yuan. It can be seen that short-term loans increased by 377 million yuan in the fourth quarter. At the end of June last year, the company purchased financial products at 892 million yuan.
on the one hand uses large amounts of idle funds to manage finance, and on the other hand, it adds new debts. It is a bit surprising that Shenzhen South Electric A operates like this.
