Financial Performance - The company's operating revenue for 2018 was ¥419.42 million, a decrease of 5.78% compared to ¥445.13 million in 2017[21]. - The net profit attributable to shareholders for 2018 was ¥93.88 million, down 2.79% from ¥96.57 million in 2017[21]. - Basic earnings per share for 2018 were ¥0.69, a decline of 13.75% from ¥0.80 in 2017[22]. - The weighted average return on equity decreased to 12.03% in 2018 from 18.83% in 2017, a drop of 6.8 percentage points[22]. - The total assets at the end of 2018 reached ¥1.34 billion, an increase of 69.97% from ¥790.22 million at the end of 2017[21]. - The net cash flow from operating activities for 2018 was ¥94.40 million, a significant decrease of 43.95% compared to ¥168.42 million in 2017[21]. - Non-recurring gains and losses for 2018 amounted to ¥18.39 million, compared to ¥5.47 million in 2017[26]. - The company achieved a gas supply volume of 174 million cubic meters and generated operating revenue of 419.42 million yuan, a year-on-year decrease of 5.78%[54]. - The net profit for the year was 93.88 million yuan, reflecting a decline of 2.79% compared to the previous year[54]. - The company reported a 16.04% decrease in main business income, totaling CNY 130.4 million, compared to CNY 155.3 million in the previous year[77]. - The company’s main business profit decreased by 23.32%, amounting to CNY 59.3 million, down from CNY 77.3 million[77]. Dividend Policy - The company plans to distribute a cash dividend of 3.5 RMB per 10 shares to all shareholders, based on a total share capital of 160,000,000 shares as of December 31, 2018[5]. - The company has established a cash dividend policy, ensuring that cash dividends will not be less than 10% of the distributable profits each year[108]. - The company aims for a minimum cash dividend ratio of 80% for mature stages without major capital expenditures, and 40% if there are significant expenditures[109]. - The cash dividend for 2018 was set at RMB 3.5 per 10 shares, totaling RMB 56 million distributed to shareholders[114]. - The company reported a net profit attributable to ordinary shareholders of approximately RMB 93.88 million for 2018, with a profit distribution ratio of 59.65%[114]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[8]. - The company has not violated decision-making procedures for external guarantees[7]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders and their related parties[7]. - The company has established a comprehensive safety management system to ensure stable gas supply and user safety[53]. - The company has implemented changes in financial reporting formats as per regulatory requirements, affecting the presentation of various financial items[130]. - The company has introduced a separate line item for R&D expenses in the profit statement, enhancing transparency in financial reporting[131]. - The company has maintained clear communication with previous accounting firms, ensuring compliance and transparency in financial practices[133]. Market and Industry Position - The company operates primarily in urban gas supply, including CNG vehicle refueling and residential gas supply, within the Changji city administrative area[28]. - The company holds a gas supply franchise in Changji City, benefiting from a competitive advantage in the local market[42]. - The company is positioned in a key economic development area in Xinjiang, which is expected to drive rapid business growth[46]. - The company is expected to enhance its gas supply capabilities through long-term contracts and flexible pricing strategies to meet winter peak demand[89]. - The company faces competition from alternative energy sources, which could impact its market share and profitability[100]. - The urbanization rate in China is expected to rise to 60% by 2020 and 70% by 2030, increasing the demand for clean natural gas[92]. Investments and Financial Management - The company made external investments totaling CNY 30.2 million in 2018, a 168% increase compared to CNY 11.25 million in 2017[73]. - The company has invested CNY 400 million in bank wealth management products sourced from raised funds, with no overdue amounts[140]. - The company also invested CNY 197.07 million in bank wealth management products from its own funds, with a remaining balance of CNY 178.7 million[140]. - The company has a structured wealth management agreement with Shanghai Pudong Development Bank, with an investment of CNY 70 million and an annualized return of 4.55%[142]. - The company has a structured wealth management agreement with China Communications Bank, investing CNY 350 million with an annualized return of 4.30%[142]. Safety and Environmental Compliance - The company conducted 21 internal safety training sessions in 2018, training a total of 1,714 employees[150]. - The company achieved a 100% certification rate for safety management personnel and special operation personnel in 2018[151]. - The company has equipped all stations and business locations with over 80 dedicated security personnel to enhance safety measures[152]. - The company has engaged a third-party qualified institution for the treatment of hazardous waste, ensuring compliance with environmental laws[154]. - The company reported no production process wastewater, maintaining environmental cleanliness and compliance with local regulations[155]. Governance and Shareholder Structure - The company has a lock-up period of 36 months for the shares held by Li Ming and Xinjiang Dongfang Huanyu Investment[168]. - The company’s actual controllers are Li Ming and Li Weiwei, who are father and son, and they are considered acting in concert[169]. - The company has no record of penalties from securities regulatory agencies in the past three years[187]. - The company maintains independence from its controlling shareholder in terms of assets, personnel, finance, and operations[193]. - The company has a total of 8 board members, with 5 being non-independent directors and 3 independent directors[180]. Future Outlook - The expected natural gas sales volume for 2019 is 205 million cubic meters, with an anticipated revenue of 500 million yuan and a net profit of 98 million yuan[96]. - The company aims to expand its business scope from urban gas supply to comprehensive urban public utility services, enhancing its operational capabilities[95]. - The company is in the process of developing new projects, with its IPO application currently under review by the China Securities Regulatory Commission[113]. - The company is focusing on enhancing the interconnectivity of gas infrastructure, with significant efforts in pipeline connectivity to improve resource distribution and regulation capabilities[88].

Financial Performance - Operating revenue decreased by 13.92% year-on-year, totaling CNY 281,754,771.44 for the period[6] - Net profit attributable to shareholders decreased by 22.46% year-on-year, amounting to CNY 63,123,754.28[6] - Basic earnings per share decreased by 27.94% year-on-year, reported at CNY 0.49 per share[6] - The weighted average return on equity decreased by 4.87 percentage points to 11.17%[6] - Net profit for the third quarter was ¥13,650,888.17, a decrease of 56.4% compared to ¥31,328,687.12 in the same period last year[36] - Operating profit for the first nine months was ¥72,339,698.49, down 17.8% from ¥88,008,094.95 year-over-year[36] - The company reported a total profit of CNY 12,360,310.53 for Q3 2018, a decrease of 1.8% from CNY 12,581,285.83 in the same period last year[39] - The company’s total comprehensive income for the first nine months of 2018 was CNY 36,242,447.34, down from CNY 44,619,927.70 in the same period last year[40] Asset and Equity Growth - Total assets increased by 62.34% year-on-year, reaching CNY 1,282,864,085.33 at the end of the reporting period[6] - Net assets attributable to shareholders increased by 101.88% year-on-year, amounting to CNY 1,077,129,827.62[6] - The company's equity increased to ¥1,086,337,975.08, compared to ¥570,385,876.30 last year, reflecting a growth of 90.0%[33] - The equity attributable to the parent company increased from RMB 533,558,919.74 to RMB 1,077,129,827.62, indicating strong retained earnings and capital growth[29] Cash Flow and Investment Activities - Cash flow from operating activities decreased significantly by 74.39% year-on-year, totaling CNY 10,209,928.30[6] - Cash received from operating activities increased by 46.38% from CNY 20,672,690.61 to CNY 30,261,170.16[20] - Cash outflow from investment activities reached CNY 706,144,686.71, significantly higher than CNY 177,957,602.20 in the same period last year[43] - The net cash flow from financing activities was CNY 480,712,080.00, compared to a net outflow of CNY 31,283,456.34 in the previous year[44] - The ending cash and cash equivalents balance was CNY 90,970,511.46, up from CNY 22,689,264.59 at the end of the previous year[44] Shareholder Information - The total number of shareholders at the end of the reporting period was 25,540[10] - The largest shareholder, Li Ming, holds 32.81% of the shares, totaling 52,500,000 shares[10] Receivables and Inventory Changes - Accounts receivable increased by 250% from CNY 200,000 to CNY 700,000[13] - Prepayments rose by 312.61% from CNY 2,703,220.90 to CNY 11,153,809.65[14] - Other receivables surged by 588.85% from CNY 13,107,170.30 to CNY 90,288,812.22[14] - Inventory increased by 59.93% from CNY 25,236,258.01 to CNY 40,361,104.82[14] - The company reported an increase in accounts receivable from RMB 57,155,649.92 to RMB 60,546,534.02, indicating growth in sales or services provided[26] - The company’s inventory rose from RMB 25,236,258.01 to RMB 40,361,104.82, suggesting an increase in stock levels, possibly in anticipation of higher demand[26] Future Plans and Investments - The company plans to invest RMB 20 million to establish a wholly-owned subsidiary in Hutu County, which was registered on August 3, 2018[22] - The company has signed an asset acquisition agreement with the Changji City Housing and Urban-Rural Development Bureau for assets valued at RMB 2,831.12 thousand and RMB 5,065.30 thousand for two gas source companies[22] - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[34]

Financial Performance - The company reported a significant increase in revenue, with total revenue reaching 1.2 billion RMB, representing a 15% growth compared to the previous year[18]. - The company's operating revenue for the first half of the year was ¥197,666,652.45, a decrease of 18.05% compared to ¥241,194,656.04 in the same period last year[20]. - The net profit attributable to shareholders was ¥49,472,866.11, down 1.21% from ¥50,080,859.72 year-on-year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥42,111,472.68, a decrease of 7.47% from ¥45,509,106.4 in the previous year[20]. - The company's basic earnings per share decreased by 2.38% to ¥0.41 from ¥0.42 in the same period last year[19]. - The weighted average return on equity decreased to 8.86%, down 1.08 percentage points from 9.94% year-on-year[19]. - The net cash flow from operating activities was negative at -¥13,640,856.28, compared to a positive ¥5,009,897.58 in the same period last year[20]. - The total operating revenue decreased by 18.05% to ¥197,666,652.45 compared to the same period last year[48]. - The company reported a total comprehensive income of ¥33,915,803.39 for the current period[141]. Market Expansion and Strategy - The company has outlined a positive outlook for the next quarter, projecting a revenue growth of 10% to 1.32 billion RMB[18]. - The company plans to expand its market presence by entering two new provinces, aiming for a 25% increase in market share within the next year[18]. - A strategic acquisition of a local competitor is in progress, which is anticipated to increase the company's customer base by 30%[18]. - The management team emphasizes the importance of innovation and technology in driving future growth, with a dedicated budget of 100 million RMB for R&D initiatives[18]. - The company has shifted its focus from heat energy sales to providing integrated gas supply solutions, including CNG vehicle refueling and residential gas supply[24]. - The company has expanded its CNG market through targeted marketing and has developed the decentralized heating market in response to the "coal-to-gas" policy[45]. - The company plans to invest raised funds into projects aimed at expanding gas supply capacity and operational scale, which may enhance profitability[65]. Financial Position and Assets - The company has maintained a strong financial position, with total assets reported at 3 billion RMB, reflecting a 5% increase from the previous period[18]. - The total assets at the end of the reporting period were ¥799,200,741.15, an increase of 1.14% from ¥790,223,542.09 at the end of the previous year[20]. - The net assets attributable to shareholders increased by 9.34% to ¥583,418,247.41 from ¥533,558,919.74 at the end of the previous year[20]. - Total current assets increased to ¥363,875,079.29 from ¥290,091,699.04, representing a growth of approximately 25.3%[116]. - Total non-current assets decreased to ¥435,325,661.86 from ¥500,131,843.05, a decline of about 12.9%[117]. - Total liabilities decreased to ¥215,782,493.74 from ¥256,664,622.35, showing a reduction of approximately 16%[118]. - Total equity attributable to shareholders increased to ¥583,418,247.41 from ¥533,558,919.74, marking an increase of about 9.3%[118]. Risks and Challenges - The company has identified potential risks, including regulatory changes that could impact pricing strategies, and is actively monitoring these developments[5]. - The company faces risks related to the pricing mechanism of natural gas, which could impact profit margins if procurement prices rise without corresponding increases in sales prices[57]. - The company's operations are highly concentrated in Changji City, making it vulnerable to local economic fluctuations[58]. - The company relies solely on China National Petroleum Corporation for natural gas procurement, posing a risk if supply does not meet demand[60]. - The company is exposed to competition from alternative energy sources, which could affect its market position[61]. - Future changes in tax policies could impact the company's financial performance, as it currently benefits from a 15% corporate tax rate until the end of 2020[63]. Shareholder Commitments and Governance - The actual controller and shareholders have committed to not transferring or entrusting the management of their shares for 36 months from the date of the company's stock listing[71]. - If the company's stock price falls below the initial public offering price for 20 consecutive trading days within six months post-listing, the lock-up period will automatically extend by six months[72]. - Shareholders and senior management have committed to not transferring their shares for 12 months from the date of the company's initial public offering[73]. - The company has established a long-term commitment to maintain shareholding stability among major shareholders[71]. - The commitments made by shareholders are in accordance with the regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange[72]. - The company has committed to repurchase shares within 10 trading days after triggering price stabilization measures, with a maximum repurchase amount not exceeding 3% of total shares[78]. Related Party Transactions and Legal Compliance - The company reported a total revenue of 14,016,550.20 RMB from related party transactions during the reporting period[96]. - The company engaged in various related party transactions, including labor services and utility expenses, with amounts ranging from 5,177,700.59 RMB to 315,315.32 RMB[96][97]. - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal environment[94]. - The integrity status of the company and its controlling shareholders is good, with no unfulfilled court judgments or overdue large debts reported[95]. - The company has committed to compensating investors for any losses resulting from false statements in the prospectus, ensuring accountability[92]. Operational Efficiency and Management - The company implemented new internal management measures, including the "Outdoor Gas Pipeline Classification Management Measures," leading to improved service capabilities and safety management[45]. - The company has strengthened its talent pool by recruiting over 20 new employees and is implementing a talent ladder system to enhance operational efficiency[45]. - The company achieved zero accidents in safety production during the reporting period, reflecting its commitment to maintaining a stable operational environment[45]. Accounting and Financial Reporting - The company’s financial statements comply with the requirements of the enterprise accounting standards, reflecting true and complete financial conditions[154]. - The company has not made any changes to its accounting firm during the audit period, maintaining consistency in financial reporting[94]. - The company has not disclosed any significant changes in its operational strategies or market expansion plans during this period[94]. - The company’s consolidated financial statements include all subsidiaries under its control, ensuring comprehensive financial reporting[149].