新奥能源(02688) - 2020 - 年度财报

Company Information The report provides core company information including board members, committees, registered office, and key advisors - The report provides core company information including board members, committee members, registered office, principal place of business, company secretary, auditor, legal counsel, and principal bankers[7] Company Overview Xinao Energy positions itself as a leading clean energy distributor and service provider in China, aiming for sustainable returns and a low-carbon future - Xinao Energy is positioned as a leading clean energy distributor and energy service provider in China, aiming to create a safe, convenient, and low-carbon future for customers and sustainable returns for shareholders[9] 2020 Key Performance Highlights | Category | Indicator | 2019 | 2020 | Change | | :--- | :--- | :--- | :--- | :--- | | Business Growth | City Gas Projects (units) | 217 | 235 | +18 | | | Natural Gas Sales (million cubic meters) | 26,963 | 29,569 | +9.7% | | | Integrated Energy Projects (units) | 98 | 119 | +21 | | | Integrated Energy Sales (million kWh) | 6,847 | 12,042 | +75.9% | | Carbon Reduction Performance | Carbon Emission Reduction for Society and Users (million tons) | 35.11 | 42.11 | +19.9% | | | Carbon Emission Intensity (tons CO2e/billion m³) | 9,751 | 7,092 | -27.3% | | Operational Performance | Customer Satisfaction | 93.0% | 94.1% | +1.1 ppt | [9] - The company received multiple industry honors and ratings, including Platts Energy Information's "Excellent Downstream Enterprise Award," and was included in the Hang Seng ESG 50 Index and Hang Seng Corporate Sustainability Index. In terms of financial ratings, it received investment-grade ratings of BBB from S&P, Baa2 from Moody's, and BBB from Fitch[12] Shareholder Value The company maintains an annual dividend distribution policy to share profits while ensuring financial stability for business growth - The company adopts an annual dividend distribution policy, aiming to share profits with shareholders while ensuring financial stability to support business growth. Since 2004, dividend amounts have steadily increased in most years[14] 2020 Share Price Performance | Indicator | Value | | :--- | :--- | | Highest Closing Price (2020/12/30) | 115.00 HKD | | Average Closing Price | 90.42 HKD | | 2020 Share Price Change | +33.6% | | Total Investment Return | 36.5% | [16] Business Footprint As of year-end 2020, the company's operations span 20 provinces and municipalities in China, managing 235 city gas projects and 119 integrated energy projects - As of the end of 2020, the company's business footprint covered 20 provinces, municipalities, and autonomous regions in China, operating 235 city gas projects and 119 integrated energy projects[17][18][25] Operating and Financial Highlights This section presents key operational and financial data for 2020, highlighting growth in projects, users, sales volumes, and improved profitability and financial health 2020 Key Operating Data | Indicator | 2019 | 2020 | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Number of City Gas Projects | 217 | 235 | +8.3% | | Cumulative Household Users (thousand households) | 20,920 | 23,213 | +11.0% | | Cumulative Industrial & Commercial Users (locations) | 148,761 | 177,128 | +19.1% | | Natural Gas Retail Sales Volume (million cubic meters) | 19,924 | 21,953 | +10.2% | | Gas Wholesale Sales Volume (million cubic meters) | 7,039 | 7,616 | +8.2% | | Cumulative Integrated Energy Projects in Operation | 98 | 119 | +21.4% | | Integrated Energy Sales Volume (million kWh) | 6,847 | 12,042 | +75.9% | [29] 2020 Key Financial Data (RMB million) | Indicator | 2019 | 2020 | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 70,183 | 71,617 | +2.0% | | Total Gross Profit | 11,265 | 12,332 | +9.5% | | Core Profit | 5,278 | 6,237 | +18.2% | | Free Cash Flow | 2,694 | 3,016 | +12.0% | | Total Assets | 81,245 | 90,043 | +10.8% | | Earnings Per Share (HKD) | 5.05 | 5.59 | +10.7% | | Dividend Per Share (HKD) | 1.67 | 2.42 | +44.9% | | Return on Equity | 21.9% | 20.5% | -1.4 ppt | | Net Gearing Ratio | 37.9% | 30.6% | -7.3 ppt | [30] Ten-Year Performance Comparison The company achieved sustained high growth over the past decade, with significant increases in revenue, profit, and key operational metrics - The company achieved sustained high growth over the past decade. Revenue grew from RMB 15.1 billion in 2011 to RMB 71.6 billion in 2020, with a compound annual growth rate of approximately 19%[40]. Profit attributable to owners increased from RMB 1.25 billion to RMB 6.28 billion, with a compound annual growth rate of approximately 19.6%[43] Key Operating Indicators Ten-Year Growth (2011 vs 2020) | Indicator | 2011 | 2020 | Growth Multiple | | :--- | :--- | :--- | :--- | | Number of Connected Household Users (thousand households) | 6,815 | 23,213 | 3.4x | | Daily Designed Gas Supply Capacity for Industrial & Commercial Users (thousand cubic meters) | 25,767 | 141,787 | 5.5x | | Total Piped Gas Sales Volume (thousand cubic meters) | 5,112,616 | 21,989,245 | 4.3x | | Existing Pipeline Length (kilometers) | 18,854 | 63,096 | 3.3x | [32][33][34][35][36][38] Strategic Report Chairman's Report The Chairman's Report highlights the company's strong performance in 2020 despite the pandemic, driven by robust growth in natural gas retail and integrated energy businesses 2020 Performance Highlights | Indicator | 2020 Value | Year-on-Year Change | | :--- | :--- | :--- | | Revenue | RMB 71.617 billion | +2.0% | | Profit Attributable to Owners | RMB 6.278 billion | +10.7% | | Core Profit | RMB 6.237 billion | +18.2% | | Basic Earnings Per Share | RMB 5.59 | +10.7% | | Proposed Dividend Payment | 2.42 HKD/share | +44.9% | [57] - Natural gas retail sales volume recorded a 10.2% increase for the full year, outperforming the national average. Integrated energy sales volume surged by 75.9% to 12.042 billion kWh, with 30% of projects incorporating renewable energy applications[57] - The company actively seized industry consolidation opportunities, acquiring operating rights for 20 city gas projects during the year, which are expected to drive over 2.8 billion cubic meters of natural gas sales in the next three years. Concurrently, the company invested RMB 181 million to enhance digitalization and smart management, with online gas purchases exceeding 50%[59][61] - The company places high importance on ESG governance, linking management remuneration to ESG indicators and successfully issuing USD 750 million in offshore green bonds. MSCI ESG rating improved to BBB[65][67] Management Discussion and Analysis This section details the operational performance of each business segment, including steady growth in natural gas retail and significant expansion in integrated energy Natural Gas Retail Business In 2020, natural gas retail sales volume grew by 10.2%, with industrial and commercial users driving the increase, while revenue saw a slight rise due to lower gas prices Natural Gas Retail Sales Volume Analysis (billion cubic meters) | User Type | 2020 Sales Volume | Year-on-Year Growth | Proportion | | :--- | :--- | :--- | :--- | | Industrial & Commercial Users | 16.878 | +13.5% | 76.9% | | Residential Users | 4.185 | +10.1% | 19.1% | | Total | 21.953 | +10.2% | - | [72] New User Development The company successfully developed 28,367 new industrial and commercial users and 2.29 million new household users in 2020, increasing the overall gasification rate - Among new household users developed in 2020, new housing, old housing, and "coal-to-gas" users in rural areas accounted for 74%, 5%, and 21% respectively[78] Integrated Energy Business The integrated energy business achieved rapid growth, adding 21 new projects and significantly increasing energy sales volume, while also initiating hydrogen production projects - Upon full production, the integrated energy demand from projects under construction and already in operation is expected to reach 31.861 billion kWh[79][80] - The company began construction of its first hydrogen production project in Huludao, Liaoning, and invested in a hydrogen refueling station in Shanghai, serving as a demonstration for promoting hydrogen energy supply[82] Value-Added Services Despite a revenue decline due to the pandemic, value-added services significantly improved gross margin by promoting high-end and smart products, indicating substantial growth potential - Value-added services gross margin increased from 62.2% (2019) to 77.9% (2020)[88] Business Expansion The company expanded its operational footprint by acquiring exclusive operating rights for 20 city gas projects, bringing the total to 235 across 20 provinces and municipalities - The company secured a 30-year exclusive operating right for the Sino-German Tianjin Daqiuzhuang Eco-City through bidding, a region with a strong industrial base, presenting development opportunities for gas sales and integrated energy services[90][91] Energy Trading Business Energy trading (gas wholesale) volume increased by 8.2%, and despite a revenue decrease due to lower LNG prices, gross profit more than doubled - Energy trading business gross margin increased from 0.9% (2019) to 2.0% (2020)[93][94] Financial Review This section reviews the company's 2020 financial performance, highlighting revenue growth, improved gross margin, strong cash flow, and optimized financial structure 2020 Financial Performance Overview | Indicator | 2020 Value | Year-on-Year Change | | :--- | :--- | :--- | | Revenue | RMB 71.617 billion | +2.0% | | Overall Gross Margin | 17.2% | +1.1 ppt | | Profit Attributable to Owners | RMB 6.278 billion | +10.7% | | Core Profit | RMB 6.237 billion | +18.2% | | Finance Costs | RMB 609 million | -16.2% | [94][95] Financial Resources and Liquidity (as of year-end) | Indicator | 2019 | 2020 | Change | | :--- | :--- | :--- | :--- | | Bank Balances and Cash (RMB million) | 7,373 | 8,630 | +1,257 | | Total Borrowings (RMB million) | 19,145 | 19,684 | +539 | | Net Gearing Ratio | 37.9% | 30.6% | -7.3 ppt | | Unutilized Credit Facilities (RMB million) | 13,448 | 12,001 | -1,447 | [97] - The company successfully issued USD 750 million in ten-year green senior notes in September 2020, to support green projects such as renewable energy and energy efficiency[99][231] - Capital expenditure was RMB 6.741 billion, a 24.4% year-on-year decrease, primarily for piped gas and integrated energy projects[108] Governance Directors and Senior Management This section provides detailed biographies of the company's executive, non-executive, and independent non-executive directors, along with senior management - Mr. Wang Yusuo, the Chairman of the Board, is the Group's founder with over 30 years of experience in China's energy industry[114] - The senior management team comprises the Chief Human Resources Officer, Chief Financial Officer, Chief Digital Officer, Executive Vice President, and several Senior Vice Presidents, responsible for core functions such as human resources, finance, digitalization, safety and environmental protection, and regional market sales[119][120] Corporate Governance Report This report details the company's corporate governance structure and practices, confirming full compliance with the Corporate Governance Code and outlining board and committee functions - The Board of Directors consists of 10 directors, including 4 executive directors, 2 non-executive directors, and 4 independent non-executive directors, with independent non-executive directors accounting for 40%, exceeding the Listing Rules' requirement of one-third[141] - The company has established four Board committees: Audit, Remuneration, Nomination, and Risk Management, as well as four functional committees: Executive, ESG, Share Award, and Independent Directors, to streamline Board duties and enhance governance efficiency[151][170] - The Audit Committee, composed entirely of independent non-executive directors, held 4 meetings during the year, reviewing financial statements, continuing connected transactions, and the effectiveness of internal control systems[152][153] - The company has established a comprehensive risk management and internal control system covering four stages: risk identification, assessment, response, and monitoring and reporting, with the Board confirming the system's effectiveness and adequacy during the year[176][178] Directors' Report This report outlines the company's principal activities, business review, performance, dividend distribution, share capital changes, and related party transactions - The Board recommends a final dividend of HKD 2.10 per share and a special dividend of HKD 0.32 per share, totaling approximately RMB 2.302 billion[201] - As of the end of 2020, Chairman Mr. Wang Yusuo and his spouse, through controlled companies, collectively held approximately 32.84% of the company's share interests[209][225] - During the reporting period, the company engaged in continuing connected transactions with the controlling shareholder, the Wang family group, primarily involving equipment procurement, engineering construction, IT services, LNG procurement, and receiving station usage services, with annual transaction amounts within the approved limits[229] - Some of the company's loan agreements require the controlling shareholder, Mr. Wang Yusuo, to maintain a shareholding of no less than 20% or 25%[231] Financial Statements Independent Auditor's Report Deloitte Touche Tohmatsu issued an unqualified opinion on the consolidated financial statements, identifying goodwill impairment assessment and fair value measurement of commodity derivatives as key audit matters - The auditor issued a standard unqualified opinion, stating that the financial statements fairly and truly reflect the Group's financial position in accordance with Hong Kong Financial Reporting Standards[237] - Key audit matters include: - Goodwill impairment assessment for the integrated energy business: Due to the significant carrying amount of goodwill (RMB 2.028 billion) and the significant estimates involved in determining the recoverable amount - Fair value measurement of commodity derivative contracts: Due to the judgment and estimation required in establishing valuation methods and input data [240][241] Consolidated Financial Statements The consolidated financial statements show robust financial growth in 2020, with increased revenue, profit attributable to owners, expanding assets, and strong operating cash flow Consolidated Income Statement Summary (RMB million) | Indicator | 2019 | 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 70,183 | 71,617 | +2.0% | | Gross Profit | 11,265 | 12,332 | +9.5% | | Profit for the Year | 6,861 | 7,331 | +6.9% | | Profit Attributable to Owners of the Company | 5,670 | 6,278 | +10.7% | | Basic Earnings Per Share (RMB) | 5.05 | 5.59 | +10.7% | [247] Consolidated Statement of Financial Position Summary (RMB million) | Indicator | December 31, 2019 | December 31, 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Assets | 81,245 | 90,043 | +10.8% | | Total Liabilities | 50,225 | 53,871 | +7.3% | | Total Equity | 31,020 | 36,172 | +16.6% | [248][249] Consolidated Statement of Cash Flows Summary (RMB million) | Indicator | 2019 | 2020 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 11,690 | 9,696 | | Net Cash Used in Investing Activities | (6,696) | (6,491) | | Net Cash Used in Financing Activities | (5,547) | (1,901) | | Net Increase (Decrease) in Cash and Cash Equivalents | (553) | 1,304 | [253][254][255] Notes to the Consolidated Financial Statements These notes provide detailed explanations and supplementary information to the consolidated financial statements, covering accounting policies, segment information, and financial instrument risk management - Segment information shows that in 2020, the natural gas retail business contributed RMB 40.51 billion in revenue and RMB 6.49 billion in segment profit; the integrated energy business contributed RMB 5.04 billion in revenue and RMB 900 million in segment profit[334] - Goodwill impairment testing showed that the carrying amount of goodwill allocated to the integrated energy business was RMB 2.028 billion, and management assessed it based on a 5-year cash flow forecast and a 15.23% discount rate, finding no impairment[374][375] - The company hedges foreign exchange risk for its USD-denominated debt through foreign currency derivative contracts, with a total notional amount of USD 750 million. Concurrently, it hedges price risk for LNG procurement through commodity derivative contracts[398]