Financial Performance - For the year ended March 31, 2021, the Group recorded turnover of approximately RMB 7,189 million, representing an increase of 11.5% compared to RMB 6,447 million in 2020[6]. - The profit after tax for the year was approximately RMB 52 million, a turnaround from a loss of approximately RMB 44 million in the previous year[6]. - The Group produced approximately 526 million cubic meters of LNG, an increase of approximately 73 million cubic meters or 16.2% compared to the last year[16]. - Revenue from LNG sales was approximately RMB 1,173 million, a decrease of approximately RMB 92 million or 7.3% compared to the previous year, contributing approximately 16.3% of total turnover[16]. - Gross profit from LNG sales increased by approximately RMB 102 million to approximately RMB 163 million, with gross profit margin rising from approximately 4.8% to approximately 13.9%[16]. - Revenue from piped gas sales and related services increased to approximately RMB 493 million from approximately RMB 404 million, representing an increase of approximately RMB 89 million or 22.1%[21]. - Gross profit from piped gas sales increased to approximately RMB 59 million from approximately RMB 57 million, but the gross profit margin decreased from approximately 14.1% to 12% due to rising raw material costs[21]. - Total gross amounts of oil and gas sales contracts increased to approximately RMB 5,418 million from approximately RMB 4,750 million, representing an increase of approximately RMB 668 million or 14.1%[22]. - Gross profit from oil and gas sales increased to approximately RMB 68 million from approximately RMB 40 million, with the gross profit margin rising from approximately 0.8% to 1.2%[22]. - Gross profit for the year ended March 31, 2021, was approximately RMB 303 million, up from approximately RMB 135 million, with the gross profit margin increasing from approximately 2.1% to 4.2%[32]. Cost Management and Financial Position - The Group aims to optimize cost and business structures while exploring LNG distribution channels through collaborations with industry players and state-owned enterprises[6]. - Finance costs decreased to approximately RMB 97 million from approximately RMB 100 million, representing a decrease of approximately 3.7% due to reduced borrowings[43]. - As of March 31, 2021, the Group maintained bank balances and cash of approximately RMB 46 million, an increase of 58.6% from approximately RMB 29 million in 2020[48]. - The net current assets of the Group as of March 31, 2021, were approximately RMB 799 million, up 25.7% from approximately RMB 636 million in 2020, with a current ratio of approximately 1.41 compared to 1.22 in 2020[48]. - The Group's borrowings as of March 31, 2021, were approximately RMB 1,000 million, with a gearing ratio of approximately 0.85, down from 1.1 in the previous year[48]. - Capital expenditure on property, plant, and equipment for the year was approximately RMB 16 million, up from RMB 10 million in 2020[51]. Governance and Board Structure - The Board held twelve meetings during the year, with Mr. Wang Jianqing attending 11 out of 12 meetings as Chairman and CEO[69]. - All independent non-executive directors, including Dr. Leung Hoi Ming, Mr. Wong Chi Keung, and Mr. Tom Xie, attended all meetings, demonstrating full engagement[69]. - The Company has received annual confirmations of independence from all independent non-executive directors, ensuring compliance with Listing Rules[72]. - The Board is responsible for overseeing the Group's business, strategic decisions, and financial performance, ensuring sound internal control and risk management systems are in place[72]. - The Company considers the current structure of having the same individual as Chairman and CEO suitable for promoting efficient strategy formulation and implementation[84]. - The independent non-executive directors have served for over nine years, and their continued appointment will require separate resolutions for shareholder approval[77]. - The Company maintains that all directors are subject to retirement by rotation and re-election at the annual general meeting[72]. - The Board has assessed the independence of its directors and confirmed that they meet the independence guidelines set out in the Listing Rules[75]. - The Company Secretary keeps detailed minutes of all meetings, which are available for inspection by directors[70]. - The Board's structure is designed to ensure a balance of power and authority, with no immediate need for changes[84]. Audit and Risk Management - The Audit Committee held two meetings during the year to discuss and approve the remuneration for directors and management, with full attendance from members[99]. - The Audit Committee is responsible for reviewing the adequacy of the group's internal controls, risk management systems, and financial reporting[101]. - The Company aims to ensure compliance with accounting and auditing standards, as well as Listing Rules and legal requirements related to financial reporting[101]. - The Audit Committee will review the Company's financial controls and risk management systems unless addressed by a separate board risk committee[104]. - The Company is committed to ensuring that management has effective systems in place, including adequate resources and staff qualifications[104]. - The Audit Committee will consider significant findings on risk management and internal control matters, as well as management's responses[104]. - The Company will ensure coordination between internal and external auditors to enhance the effectiveness of the audit process[104]. - The Audit Committee will review the external auditor's management letter and any material queries raised by the auditor[104]. - The Company has established arrangements for employees to confidentially raise concerns about financial reporting and internal control issues[104]. Strategic Development and Market Position - The Group is focused on developing its natural gas business and exploring new opportunities to create value for shareholders[10]. - The increase in LNG demand since the fourth quarter of 2020 has led to a seller's market, significantly raising average selling prices of LNG[17]. - The Group's performance improvement is attributed to effective COVID-19 control measures by the PRC government, allowing economic activities to resume in an orderly manner[15]. - The Company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[180]. - Research and development investments increased by 30%, totaling $15 million, focusing on sustainable energy technologies[180]. - The company completed a strategic acquisition of a local competitor for $100 million, enhancing its market position[180]. - A new partnership was established with a leading technology firm to develop advanced energy management systems[180]. - The company plans to enhance its operational efficiency, aiming for a 5% reduction in costs over the next year[180]. - Customer satisfaction ratings improved to 90%, reflecting the effectiveness of recent service enhancements[180]. Shareholder Communication and Compliance - The company maintains ongoing communication with shareholders through financial reports and general meetings to enhance transparency[151]. - The current company secretary was appointed via a written resolution in September 2013, following individual consultations with all Directors[150]. - The company ensures confidentiality of inside information before public disclosure, complying with the Securities and Futures Ordinance[148]. - The attendance of directors at the 2020 AGM and SGM was notably low, with key executives unable to attend due to COVID-19 travel restrictions[152]. - The company has a website for direct communication with shareholders and investors, providing contact details for inquiries[151]. - There were no significant changes in the company's constitutional documents during the year ended March 31, 2021[160]. - The company does not have a predetermined dividend payout ratio, and the Board will consider various factors, including performance and financial position, when declaring dividends[159].
元亨燃气(00332) - 2021 - 年度财报