Financial Performance - For the year ended March 31, 2019, the Group recorded consolidated turnover of approximately RMB 8,553 million, representing a year-on-year increase of 4.9% from RMB 8,150 million in 2018[4]. - The profit after tax for the year was approximately RMB 46 million, a significant decrease of 73.5% compared to RMB 173 million in 2018[4]. - The Group produced approximately 470 million cubic meters of LNG, an increase of approximately 23 million cubic meters or 5.1% compared to the previous year[13]. - Turnover from LNG sales was approximately RMB 1,240 million, representing an increase of approximately RMB 216 million or 21.1% compared to the last year, contributing approximately 14.5% of the total turnover[13]. - Revenue from oil and gas transactions increased to approximately RMB 6,976 million, a rise of approximately RMB 70 million or 1% compared to the previous year, contributing approximately 81.6% of the total turnover[14]. - Gross profit from LNG sales decreased by approximately RMB 27 million to approximately RMB 180 million, with gross profit margin decreasing from approximately 20.2% to approximately 14.5%[13]. - Gross profit from oil and gas transactions decreased to approximately RMB 17 million from approximately RMB 29 million, with gross profit margin decreasing from approximately 0.4% to approximately 0.2% due to international oil price volatility[14]. - Other income decreased to approximately RMB 48 million in 2019 from RMB 92 million in 2018, mainly due to the absence of non-recurring income from an arbitral award received in the previous year[23][27]. - Administrative expenses increased by approximately 4.6% to RMB 91 million in 2019 from RMB 87 million in 2018[29]. - Finance costs surged by approximately 273.1% to RMB 88 million in 2019 from RMB 23 million in 2018, primarily due to increased bank borrowings[29]. - Income tax expenses decreased to approximately RMB 25 million in 2019 from RMB 39 million in 2018, attributed to a reduction in taxable income[29]. - The net current assets as of 31 March 2019 were approximately RMB 908 million, compared to net current liabilities of approximately RMB 19 million in 2018, resulting in a current ratio improvement from 0.99 to 1.33[29]. - The Group's borrowings amounted to approximately RMB 1,038 million due within one year and RMB 78 million repayable after one year, with a gearing ratio of approximately 0.9 as of 31 March 2019, up from 0.4 in 2018[29]. - Pledged assets to banks for banking facilities increased to approximately RMB 877 million in 2019 from RMB 765 million in 2018[31][36]. Corporate Governance - The Company has complied with all applicable code provisions of the Code on Corporate Governance Practices for the year ended March 31, 2019[42]. - The Board is composed of six directors, including three executive directors and three independent non-executive directors[44]. - The Company received annual confirmations of independence from all independent non-executive directors, ensuring their independence[49]. - The Company is committed to maintaining good corporate governance standards to enhance shareholder value[42]. - The Board oversees the Group's business, strategic decisions, and financial performance, ensuring sound internal control and risk management systems[49]. - The Company has a policy for directors' securities transactions, confirming compliance with the Model Code throughout the year[42]. - The Company conducts regular reviews and improvements of its corporate governance practices to ensure prudent decision-making processes[42]. - The Board has established three committees with clearly defined written terms of reference to ensure proper control and high standards of corporate governance practices[63][67]. - The Remuneration Committee currently comprises three independent non-executive directors: Dr. Leung Hoi Ming, Mr. Wong Chi Keung, and Mr. Tom Xie[64][68]. - The audit committee comprises three independent non-executive directors, responsible for making recommendations on the appointment and remuneration of the external auditor[77]. - The Company aims to ensure that no director is involved in deciding their own remuneration[73]. - The Company is committed to developing and implementing policies for engaging external auditors for non-audit services, ensuring compliance with relevant regulations[79]. - The Company emphasizes the importance of maintaining the independence of external auditors and has policies in place to monitor compliance[86]. Risk Management - The Board is responsible for assessing and determining the nature and extent of risks acceptable for the Group in fulfilling its strategic goals[103]. - The Group has established a risk management organizational framework, including the Board, audit committee, and risk management group[103]. - The risk management group will identify risk exposures at least once a year and formulate a risk mitigation plan[104]. - The Board has conducted an annual review of the effectiveness of the risk management and internal control systems[106]. - The internal audit function helps monitor the risk management and internal control systems and identify defects[105]. - The Group's risk management report and internal audit report are submitted to the audit committee for review at least annually[108]. - The Group's risk management and internal control systems are designed to manage risks but do not eliminate them entirely[110]. Shareholder Engagement - The Company maintains a website for communication with shareholders and investors, providing contact details for inquiries[115]. - The attendance of directors at the annual general meeting and special general meeting was recorded, with some directors attending all meetings[114]. - The Group recognizes the importance of engaging employees, providing quality products and services to customers, and collaborating with business partners for corporate sustainability[159]. - The Company engages in ongoing dialogue with shareholders through financial reports and annual general meetings to enhance transparency[115]. Future Outlook - The management is focused on developing the natural gas sector and exploring new business opportunities to create value for shareholders[6]. - According to the "13th 5-Year Plan on Natural Gas Development," natural gas consumption is expected to rise to 10% by 2020, indicating a growing market for the Group[4]. - The Company has set an annual cap for connected transactions at RMB 300,000,000 for the period from April 1, 2019, to March 31, 2020[185]. - The Company has developed a dividend policy that does not have a pre-determined payout ratio, with decisions based on performance, financial position, and cash levels[117]. - The Board has the discretion to declare and distribute dividends while maintaining adequate cash reserves for working capital and future growth[117]. Employee and Management - As of March 31, 2019, the group had approximately 420 employees, a decrease from about 450 employees in 2018[40]. - The company has a strong management team with members holding advanced degrees in economics and business administration, enhancing its strategic decision-making capabilities[139][140]. - The management team has a diverse background in project investment, construction, and operational management, which supports the company's growth strategy[137]. - The independent non-executive directors bring a wealth of experience from various industries, contributing to robust governance and strategic direction[142].
元亨燃气(00332) - 2019 - 年度财报