CC GAS(SH:600333)2017-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2017 was approximately CNY 662.78 million, representing a 17.23% increase compared to CNY 565.35 million in the same period last year[16]. - The net profit attributable to shareholders for the first half of 2017 was approximately CNY 12.96 million, a significant increase of 847.85% from CNY 1.37 million in the previous year[16]. - The basic earnings per share for the first half of 2017 was CNY 0.02, up from CNY 0.003 in the same period last year[17]. - The weighted average return on equity increased to 0.80% from 0.09% in the previous year, marking an increase of 0.71 percentage points[17]. - The company achieved a sales revenue of 663 million RMB, representing a 17.23% increase compared to the same period last year[28]. - Natural gas sales volume increased by 21% year-on-year, with natural gas gross profit rising by 19%, accounting for 76% of total operating profit[27]. - The company reported a total profit of CNY 8,768,529.31, compared to a loss of CNY 1,334,339.33 in the same period last year[75]. - The net profit for the first half of 2017 reached CNY 11,730,501.88, a significant recovery from a net loss of CNY 1,498,100.60 in the previous year[77]. Cash Flow and Assets - The net cash flow from operating activities was negative CNY 14.55 million, a decrease of 136.60% compared to a positive cash flow of CNY 39.75 million in the same period last year[16]. - The company’s cash flow from financing activities increased significantly to 707 million RMB, a 2,270.51% increase compared to the previous year[28]. - The total assets at the end of the reporting period were approximately CNY 5.77 billion, an increase of 12.41% from CNY 5.13 billion at the end of the previous year[16]. - The total assets amounted to CNY 5,465,017,474.28, compared to CNY 4,829,800,703.68 in the previous year[74]. - Current assets increased to ¥1,218,922,382.78 from ¥668,911,931.62, representing an increase of approximately 82%[68]. - Cash and cash equivalents rose significantly to ¥656,618,421.68 from ¥146,671,874.43, marking an increase of about 348%[68]. - Total liabilities rose to ¥3,600,899,931.80 from ¥3,495,630,491.43, an increase of approximately 3%[69]. - Total equity increased to ¥2,164,500,112.62 from ¥1,633,439,367.76, reflecting a growth of approximately 32%[70]. Investments and Subsidiaries - The company has signed long-term supply contracts with major upstream suppliers, ensuring sufficient gas source security[24]. - The company has a diversified portfolio of subsidiaries engaged in gas distribution and installation services across multiple regions[33]. - The subsidiary Changchun Gas (Yanhui) Co., Ltd. reported total assets of CNY 204.16 million and a net profit of CNY 2.35 million[33]. - The company’s investment in external equity increased by 50% to 4.5 million RMB during the reporting period[32]. - The company completed a private placement of 79,410,876 shares, raising a total of RMB 525.7 million, with a net amount of RMB 516.76 million after deducting issuance costs[43]. Shareholder and Capital Structure - The registered capital of the company increased to RMB 1,021.9 million following a capital increase by its controlling shareholder, with the government holding 40.83% and other investors holding the remaining shares[44]. - The total number of shares after the issuance is 609,030,684, with 79,410,876 shares being subject to restrictions, representing 13.04% of the total[46]. - The largest shareholder, Changchun Changgang Gas Co., Ltd., holds 79,410,876 shares, representing 58.75% of the total shares[52]. - The company’s controlling shareholder committed not to transfer or sell 79,410,876 shares acquired during the non-public offering until July 2020[37]. Accounting and Financial Reporting - The financial statements are prepared based on the assumption of going concern, indicating the company has sufficient financial resources for at least the next 12 months[106]. - The company adheres to accounting standards, ensuring that financial reports accurately reflect its financial position and operating results[108]. - The company has a consolidated financial reporting method that includes all controlled subsidiaries[113]. - The company’s accounting policies include provisions for bad debts, inventory measurement, and depreciation methods for fixed assets[107]. Risk Management and Provisions - The company recognized a bad debt provision of CNY 938,688.99 during the period, with no recoveries or reversals reported[174]. - The provision for bad debts for accounts receivable is 89.94%, indicating a high level of risk associated with these receivables[182]. - The company conducts impairment tests on long-term assets, including equity investments and fixed assets, whenever there are signs of impairment, with the recoverable amount being the higher of fair value less costs to sell and present value of future cash flows[148]. Operational Highlights - The company operates in nine cities with a monopoly on urban pipeline gas supply, relying entirely on natural gas sourced from major suppliers like PetroChina and Sinopec[21]. - The company is focusing on the development of clean energy projects, targeting industrial clients for comprehensive energy supply solutions[21]. - The company has a complete industrial chain for municipal construction projects, including design, construction, and supervision capabilities[21].