CC GAS(SH:600333)2018-04-13 16:00Financial Performance - The company's operating revenue for 2017 was CNY 1,462,821,920.06, representing a 12.37% increase compared to CNY 1,301,847,533.24 in 2016[23] - The net profit attributable to shareholders of the listed company decreased by 30.13% to CNY 38,914,648.49 from CNY 55,697,900.15 in the previous year[23] - The basic earnings per share for 2017 was CNY 0.10, down 16.67% from CNY 0.12 in 2016[24] - The weighted average return on equity decreased by 1.04 percentage points to 2.90% from 3.94% in 2016[24] - The company reported a significant increase in net assets attributable to shareholders, rising by 35.15% to CNY 2,177,789,932.66 from CNY 1,611,438,426.35 in 2016[23] - The company reported a non-recurring profit of RMB 17,498,442.59 in 2017, a significant increase from RMB 7,057,755.22 in 2016[27] - The company achieved gas sales of 398 million cubic meters, an increase of 64 million cubic meters or 20% year-over-year[38] - The company reported a net profit of CNY 423,019,805.78, compared to CNY 370,771,023.56, representing a year-over-year increase of about 14.06%[167] Cash Flow and Investments - The net cash flow from operating activities significantly dropped by 83.97% to CNY 22,146,837.80 from CNY 138,191,355.07 in 2016[23] - Cash flow from operating activities decreased significantly by 83.97% to 22.15 million yuan[42] - The total cash inflow from operating activities was CNY 1,653,990,354.65, an increase from CNY 1,399,635,093.60 in the previous year, reflecting a growth of approximately 18.2%[179] - The net cash flow from financing activities was CNY 341,393,262.45, up from CNY 114,680,402.31, indicating an increase of about 197.5%[180] - The company reported a cash interest coverage ratio of 1.96 in 2017, down from 3.22 in 2016, a decrease of 39.13%, due to reduced net cash inflow from operating activities[143] - The company reported a significant decrease in accounts payable by 56.97% to ¥54,900,000 from ¥127,600,000, due to reduced payments using notes payable[52] Assets and Liabilities - Total assets increased by 5.36% to CNY 5,403,927,170.47 from CNY 5,129,069,859.19 in 2016[23] - Total liabilities decreased to CNY 3,029,898,181.30 from CNY 3,334,567,964.23 in 2016[171] - Owner's equity rose to ¥2,053,632,987.62, an increase of 37.25% from ¥1,495,232,739.45 in the previous year[171] - The debt-to-asset ratio decreased to 59.55% in 2017 from 68.15% in 2016, a reduction of 12.62%, mainly due to the impact of a private placement of shares[143] - The total liabilities to equity ratio improved to 1.47 from 2.14, indicating a stronger financial position[166] Market and Operational Insights - The company operates in nine cities with a monopoly on urban pipeline gas supply, relying entirely on natural gas sourced from PetroChina and Sinopec[30] - The clean energy business aims to provide comprehensive energy solutions using natural gas, with future investments planned in distributed energy supply projects[31] - The market for vehicle gas is expanding, particularly for LNG-powered logistics vehicles, driven by increasing urbanization and environmental concerns[32] - The overall profit level in the urban pipeline gas industry is expected to continue stable growth due to urbanization and economic development[31] - The company is positioned to benefit from government initiatives promoting clean energy and urban development, particularly in the Changchun area[35] Challenges and Risks - The company faced challenges due to upstream gas supply shortages and government supply restrictions, impacting annual gas sales volume[37] - The company expects to face challenges in 2018 due to a slowdown in the overall economic growth in Northeast China and increased competition from alternative energy sources[65] - Increased competition from alternative energy sources and upstream companies implementing direct supply methods may impact market development[68] Corporate Governance and Social Responsibility - The company has integrated social responsibility into its corporate culture, emphasizing accountability to shareholders, customers, employees, and society[92] - The company is committed to promoting clean energy and enhancing the proportion of natural gas in urban energy consumption[93] - The company conducted training sessions totaling 8,437 hours, with 45,447 participants, resulting in an average of 68 hours of training per employee[127] - The company invested CNY 0.403 million in poverty alleviation projects, benefiting 108 registered impoverished individuals[90] Future Outlook - The company anticipates a 20% increase in natural gas sales for 2018, driven by ongoing market development efforts[62] - The company aims for a natural gas market growth of no less than 20% in 2018 compared to the previous year[67] - The company plans to expand its market presence and invest in new technologies to drive future growth[168]