Xinjiang Xintai Natural Gas (SH:603393)2021-03-26 16:00Financial Performance - The company's operating revenue for 2020 was RMB 2,112,295,988.64, representing a decrease of 8.01% compared to RMB 2,296,274,568.00 in 2019[23]. - The net profit attributable to shareholders of the listed company for 2020 was approximately ¥358.98 million, a decrease of 15.02% compared to ¥422.43 million in 2019[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥334.49 million, down 20.63% from ¥421.46 million in the previous year[26]. - The net cash flow from operating activities was approximately ¥954.07 million, a decline of 20.51% from ¥1.20 billion in 2019[26]. - Basic earnings per share for 2020 were ¥1.14, down 15.56% from ¥1.35 in 2019[27]. - The weighted average return on equity decreased to 13.75%, down 3.98 percentage points from 17.73% in 2019[27]. - The total operating revenue for the year was approximately CNY 2.11 billion, a decrease of 8.01% year-on-year[54]. - The net profit attributable to the parent company was approximately CNY 359 million, down 15.02% compared to the previous year[54]. - The net cash flow from operating activities was approximately CNY 954 million, reflecting a decline of 20.51% year-on-year[54]. Shareholder Information - As of December 31, 2020, the company's distributable profit was RMB 408,415,445.83, with a proposed cash dividend of RMB 6 per 10 shares and a capital reserve conversion of 2 shares for every 10 shares[6]. - The cash dividend distribution ratio for 2020 is 52.25% of the net profit attributable to ordinary shareholders, which is RMB 358,981,109.90[101]. - The company has a profit distribution policy that mandates at least 30% of the cumulative distributable profits over three consecutive years to be distributed[96]. - The company’s profit distribution policy emphasizes a minimum cash dividend ratio of 80% for mature companies without significant capital expenditure plans[96]. - The company will maintain communication with minority shareholders regarding the profit distribution policy and any changes[96]. Corporate Governance - The company has established a complete governance structure and independent operational capabilities, ensuring that it can conduct business activities autonomously[109]. - The actual controller and major shareholders have made commitments regarding competition and related transactions, ensuring compliance with regulations and maintaining independence in operations[106]. - The commitments made by the actual controller include measures to avoid conflicts of interest and ensure that the company operates independently from other controlled enterprises[109]. - The company has committed to maintaining a transparent decision-making process for any unavoidable related transactions[109]. - The company has implemented a comprehensive internal control system, including a 2020 internal control manual[192]. Market Operations - The company primarily operates in the urban gas business in Xinjiang, focusing on natural gas sales and installation services for residential and commercial users[36]. - The company has established long-term operating rights in eight cities and regions for natural gas markets, enhancing its competitive advantage[48]. - The company achieved a natural gas sales volume of 563 million cubic meters and completed the installation for 37,944 users during the reporting period[53]. - The company has expanded its market presence by acquiring a 51% stake in five companies and a 49% stake in another five companies from Kunlun Gas, totaling approximately RMB 27.36 million and RMB 7.50 million respectively[43]. - The strategic partnership with Kunlun Gas is expected to positively impact the company's operating performance by increasing investment income and expanding the customer base[44]. Risks and Challenges - The company faces risks related to government policy dependence, particularly in pricing and licensing, which could impact market development[91]. - The company anticipates increased competition in the urban gas sector, which may challenge its market share and profitability[91]. - The company is subject to price control risks due to government regulations on natural gas pricing, which may affect its cost structure and profit margins[91]. - The company is exposed to supply chain risks, particularly regarding gas source allocation from upstream suppliers like PetroChina and Sinopec[91]. - The company is at risk of fluctuating coalbed methane reserves, which could impact its financial performance if estimates are reduced[91]. Operational Efficiency - The company has implemented centralized management for subsidiaries, improving resource utilization efficiency[51]. - The company reported a significant increase in other receivables, which rose by 65.31% to approximately ¥660.07 million, due to pending financial subsidies and VAT refunds[70]. - Operating costs in the Xinjiang region decreased by 44.57% year-over-year, primarily due to lower natural gas purchase costs[59]. - Operating costs in the Shanxi region increased by 96.36% year-over-year, with a gross margin decrease of 37.56%, attributed to the reclassification of pipeline transportation fees to operating costs[59]. - The company has developed advanced coalbed methane extraction technologies, maintaining a leading position in the industry[48]. Social Responsibility - The company established the "Love Education Poverty Alleviation Scholarship" to support impoverished students who were admitted to higher education institutions, with a 100% visit rate to families of reported students[137]. - A total of 44 students met the criteria for assistance, with the company investing 440,000 RMB in educational poverty alleviation efforts[143]. - The company plans to continue its educational poverty alleviation initiatives in collaboration with local government departments to support more impoverished students[144]. Audit and Compliance - The company has maintained a standard unqualified audit opinion from its accounting firm, Zhongshun Zhonghuan[5]. - The company reported no major litigation or arbitration matters for the year[129]. - There were no significant integrity issues reported for the company or its major stakeholders during the reporting period[129]. - The internal control audit report was disclosed, providing a standard unqualified opinion[200].