RNS Number:3252J
Zhejiang Southeast Elec Power Co Ld
28 March 2003
Zhejiang Southeast Electric Power Company Limited
(a joint stock company incorporated in the People's Republic of China)
Annual Results 2002
I. Particulars of the Company
Abbreviation of Share Name ZSEPC B Shares Global Depository Receipts
GDR
Code of Share 900949 0949QLT
Listing Place Shanghai Stock Exchange London Stock Exchange
Registered Address Biao Li Tower, 528 Yan'an Road, Hangzhou, Zhejiang Province
and Office Address
Postcode 310006
II. Summary of Accounting Figures and Financial Indicators
1. Main Accounting Figures
Unit: RMB yuan
Year 2002 Year 2001 Increase/ decrease Year 2000
in Current Year
Compared with
Preceding Year
%
Principal Operating 3,320,944,888.62 3,370,277,286.61 -1.46 3,400,222,722.54
Income
Gross Profit 812,753,137.31 958,949,587.73 -15.25 1,015,361,571.82
Net Profit 545,515,105.11 707,945,727.20 -22.94 621,708,729.65
Net Profit after 551,797,237.70 712,085,858.46 -22.51 768,880,353.25
deducting
non-recurring gains/
losses
2. Main Financial Indicators
Unit: RMB yuan/share
Year 2002 Year 2001 Increase/ decrease Year 2000
in Current Year
Compared with
Preceding Year
%
Earning per Share 0.27 0.35 -22.86 0.31
Yield on Net Assets % 10.13 13.26 -23.60 12.08
Yield on Net Assets % 10.24 13.34 -23.24 14.94
Based on Net Profit
after deducting non-recurring
gains/losses
3. Differences between Domestic Accounting Standards and International
Accounting Standards
Unit: RMB'000 yuan
Domestic Accounting Standards International
Accounting Standards
Net Profit 545,515 551,523
Explanation for Differences 1.Offset against retroactive adjustment (22,007)
of corporate income tax
2. Prepaid corporate income tax 12,490
3. Deferred income tax 19,630
4.Offset against other retroactive (4,105)
adjustment
III. Analysis of Reasons for Significant Changes in Operating Results and Profit
Composition in Comparison with Those of the Preceding Year
In 2002 the net profit realized by the Company amounted to RMB 545,515,105.11
yuan decreasing by RMB 162,430,622.09 yuan compared with that of RMB
707,945,727.20 yuan in 2001.
(1) The principal operating income decreased by RMB 49.33 million yuan in the
current reporting period compared with that of the preceding year as a result of
the decrease in the amount of electricity sale. In 2002, the electricity sale of
the Company amounted to 9,904 million kwh (including 53 million kwh from
Zhejiang Changxing Power Generation Co. Ltd); in 2001, the electricity sale of
the Company amounted to 10,116 million kwh.
(2) The generation cost increased by RMB 34.18 million yuan because the price of
standard coal bought by the Company in 2002 increased by 9.68 yuan/ton compared
with that of 2001.
(3) The administrative expenses increased, mainly because
a. the lump-sum housing subsidy and the service length subsidy totalling RMB
50.44 million yuan were recorded as current administrative expenses in the
current period.
b. Zhejiang Changxing Power Generation Company's start-up cost of RMB 53.22
million yuan was recorded as current administrative expenses in the current
period.
(4) The non-operating cost increased by RMB 22.37 million yuan in the current
reporting period compared with that of the preceding year, which is mainly
attributable to the net losses on retirement and transfer of fixed assets.
(5) The increase in income tax payment is due to the fact that from 2002
onwards, the Company no longer enjoys the preferential treatment of the local
income tax refund in accordance with the relevant stipulations of the Ministry
of Finance.
IV. Profit Distribution Proposal or Proposal for Conversion of Capital Reserve
into Bonus Shares Made by the Board
According to the financial statements of the Company for year 2002 audited by
domestic and international accountants, following the principle of "whichever is
lower" of the amounts by the different accounting standards, taking the after-
tax profit of the parent company totalling RMB 545,474,480.11 yuan audited by
the domestic accountant as the base of distribution, after allocating 10% to the
statutory common reserve fund and 10% to the statutory welfare fund totalling
RMB 109,094,896.02 yuan, together with the undistributed profit of the parent
company at the beginning of the year totalling RMB 812,457,756.14 yuan, the
profit distributable to the shareholders of the Company for year 2002 amounted
to RMB1,248,837,340.23 yuan. Taking the 2.01 billion shares in the aggregate
share capital of the Company at the end of 2002 as the base number, a cash
dividend of RMB 2.48 yuan (inclusive of tax) will be distributed per 10 shares,
totalling RMB 498,480,000.00 yuan.
V. Financial Statements
1. The Financial Statements 2002 of the Company were audited by Zhejiang
Pan-China Certified Public Accountants and PricewaterhouseCoopers Zhong Tian
CPAs Co., Ltd. Both issued Auditor's Reports without reservations.
2. Statement of Profit (consolidated and Parent Company) (attached
hereafter)
3. Statement on Significant Accounting Errors
Pursuant to Document Ji Bian Han (2002) No.11 Notice on Certain Issues relating
to Self-examination of Tax Payment by Province-owned Enterprises issued by the
Inspection Office of the State Taxation Bureau Zhejiang Branch, the Company has
conducted self-examination of its tax payment for 2001.
(1) The overhaul cost of RMB 47,310,582.22 yuan for Unit 1 of Taizhou Power
Plant under the Company is not permitted to be accounted for as a lump-sum cost
before tax because it has complied with the conditions of fixed assets
improvement expenses, thus resulting in additional payment for corporate income
tax of RMB 15,612,492.13 yuan. With the consent of the taxation authorities, the
overhaul cost will be deducted before tax over 5 years from 2002; the Company's
payment for the supplementary pension for 2001 and the pre-construction cost for
Xiaoshan Power Plant Phase II totalling RMB 15,650,345.95 yuan is not permitted
to be accounted for before tax according to the stipulations of the tax laws,
thus resulting in the additional payment for corporate income tax of RMB
5,164,614.17 yuan; the Company made surplus allocation of RMB 3,725,853.19 yuan
for unemployment insurance premium and retiree management expense, which was
reversed upon self-examination, thus resulting in additional payment for
corporate income tax of RMB 1,229,531.55 yuan. Accordingly, the Company has made
additional payment for corporate income tax totalling RMB 22,006,637.85 yuan for
2001.
(2) The input tax on special equipment of RMB 340,699.82 yuan stated as
overhaul cost by the Company was transferred out, thus resulting in additional
payment of value-added tax amounting to RMB 340,699.82 yuan.
In addition, pursuant to Document Ji Chu Zi (2002) No.0057 Document on Taxation
Treatment Decision issued by the Inspection Office of the State Taxation Bureau
Zhejiang Branch, an input tax amounting to RMB 7,490,632.69 yuan was offset by
the material delivery for overhaul of Unit 1 of Taizhou Power Plant under the
Company and other taxable purchases, thus resulting in additional payment of
value-added tax in the sum of RMB 7,490,632.69 yuan.
The Company has treated the above as significant accounting errors, and the same
have been corrected by making a retroactive deduction of RMB 26,112,117.17 yuan
in the net profit for 2001, a corresponding deduction of RMB 5,222,423.44 yuan
in surplus common reserve fund and a corresponding deduction of RMB
20,889,693.73 in undistributed profit at the beginning of the year for 2002 as
well as other corresponding adjustments in the relevant amounts of the balance
sheet at the beginning of the year and the amounts stated in the Statement of
Profit and Profit Distribution for the same period of the preceding year.
Statement of Profit and Profit Distribution
Year 2002
Prepared by: Zhejiang Southeast Electric Power Company Limited Unit: RMB Yuan
Item Amount of the Amount of the Preceding Year
Current Period After Adjustment Before Adjustment
Parent Company Consolidated Parent Company Consolidated Parent Company Consolidated
1. Income
from principal
operating
activities 3,303,121,784.34 3,320,944,888.62 3,370,277,286.61 3,370,277,286.61 3,370,277,286.61 3,370,277,286.61
Less:
Principal
operating
cost 2,197,760,669.91 2,208,191,596.44 2,192,944,444.73 2,192,944,444.73 2,188,838,965.41 2,188,838,965.41
Principal
operating
tax and
surtax 29,518,549.61 29,631,064.15 41,567,109.68 41,567,109.68 41,567,109.68 41,567,109.68
2. Profit
from
principal
operating
activities 1,075,842,564.82 1,083,122,228.03 1,135,765,732.20 1,135,765,732.20 1,139,871,211.52 1,139,871,211.52
(loss
indicated
by "-")
Add:
Profit
from
other
activities 489,090.01 489,090.01 1,667,567.06 1,667,567.06 1,667,567.06 1,667,567.06
(loss
indicated
by "-")
Less:
Operating
expenses
Administrative
expenses 173,026,072.79 229,175,442.48 157,078,901.50 157,078,901.50 157,078,901.50 157,078,901.50
Financial
expenses 40,081,923.83 41,228,922.57 30,624,012.03 30,624,012.03 30,624,012.03 30,624,012.03
3.Operating
profit 863,223,658.21 813,206,952.99 949,730,385.73 949,730,385.73 953,835,865.05 953,835,865.05
(loss
indicated
by
"-")
Add:
Investment
income 2,552,849.05 33,459,111.29 21,118,780.44 21,078,155.44 21,118,780.44 21,078,155.44
(loss
indicated
by
"-")
Subsidy
income
Non-
operating
income 399,756.67 399,756.67 87,637.90 87,637.90 87,637.90 87,637.90
Less:
Non-
operating
expenses 34,295,269.99 34,312,683.64 11,946,591.34 11,946,591.34 11,946,591.34 11,946,591.34
4.Gross
profit 831,880,993.94 812,753,137.31 958,990,212.73 958,949,587.73 963,095,692.05 963,055,067.05
(loss
indicated
by "-")
Less:
Income
tax 286,406,513.83 287,355,874.26 251,003,860.53 251,003,860.53 228,997,222.68 228,997,222.68
Minority
shareholders'
gains
and
losses -20,117,842.06
5.Net
profit 545,474,480.11 545,515,105.11 707,986,352.20 707,945,727.20 734,098,469.37 734,057,844.37
(loss
indicated
by
"-")
Add:
Undistributed
profit
at
beginning
of
year 812,457,756.14 812,417,131.14 748,568,674.38 748,568,674.38 748,568,674.38 748,568,674.38
Profit
transferred
from
others
6.Distributable
profit 1,357,932,236.25 1,357,932,236.25 1,456,555,026.58 1,456,514,401.58 1,482,667,143.75 1,482,626,518.75
Less:
Allocation
of
statutory
surplus
common
reserve
fund 54,547,448.01 54,547,448.01 70,798,635.22 70,798,635.22 73,409,846.94 73,409,846.94
Allocation
of
statutory
welfare
fund 54,547,448.01 54,547,448.01 70,798,635.22 70,798,635.22 73,409,846.94 73,409,846.94
Allocation
of
employee
bonus
and
welfare
fund
Allocation
of
reserve
fund
Allocation
of
corporate
development
fund
Profit
payback
to
investments
7.Profit
Distributable to 1,248,837,340.23 1,248,837,340.23 1,314,957,756.14 1,314,917,131.14 1,335,847,449.87 1,335,806,824.87
shareholders
Less:
Preference
share
dividends
payable
Allocation
of
discretionary
surplus
common
reserve
fund
Ordinary
share 498,480,000.00 498,480,000.00 502,500,000.00 502,500,000.00 502,500,000.00 502,500,000.00
dividends
payable
Dividends
of
ordinary
shares
transferred
to
share
capital
8.Undistributed
profit 750,357,340.23 750,357,340.23 812,457,756.14 812,417,131.14 833,347,449.87 833,306,824.87
This information is provided by RNS
The company news service from the London Stock Exchange
END
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