SGC(SH:601139)2014-08-14 16:00Financial Performance - The company's operating revenue for the first half of 2014 was CNY 4,624,397,777.04, representing a 13.59% increase compared to CNY 4,071,100,724.97 in the same period last year[17]. - The net profit attributable to shareholders decreased by 11.88% to CNY 443,295,811.91 from CNY 503,044,007.59 year-on-year[17]. - The total profit amounted to 558 million yuan, a year-on-year decrease of 14.32%, while the net profit attributable to shareholders was 443 million yuan, down 11.88%[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 441 million yuan, an increase of 8.82% year-on-year, driven by the growth in pipeline natural gas sales[22]. - The basic earnings per share decreased by 12.00% to CNY 0.22 from CNY 0.25 in the same period last year[18]. - The weighted average return on net assets decreased by 2.82 percentage points to 8.59% compared to 11.41% in the previous year[18]. - The company reported a net profit of RMB 4,463 million, indicating a robust financial performance in the first half of 2014[188]. Cash Flow - The net cash flow from operating activities increased significantly by 79.54% to CNY 744,991,536.51 compared to CNY 414,936,872.60 in the previous year[17]. - The company's cash flow from operating activities increased by 79.54% to 744.99 million yuan, mainly due to increased sales revenue from pipeline natural gas[25]. - The net cash flow from operating activities for the first half of 2014 was CNY 218,652,283.94, an increase of 82.2% compared to CNY 119,960,201.34 in the same period last year[93]. - The company's cash and cash equivalents decreased to CNY 2,888,034,950.50 from CNY 2,981,047,245.20, a decline of about 3.11%[81]. - The ending cash and cash equivalents balance was CNY 1,450,425,560.36, compared to CNY 648,616,203.16 at the end of the previous period[93]. Assets and Liabilities - The total assets of the company at the end of the reporting period were CNY 12,787,376,623.41, a 5.85% increase from CNY 12,080,621,392.98 at the end of the previous year[17]. - Total liabilities reached CNY 7,309,348,023.11, compared to CNY 6,822,955,874.22 at the start of the year, representing a rise of approximately 7.14%[82]. - The company's total equity as of June 30, 2014, was CNY 5,478,028,600.30, up from CNY 5,257,665,518.76, representing an increase of about 4.18%[82]. - Current assets totaled CNY 4,107,724,405.58, up from CNY 3,860,483,343.36, indicating an increase of about 6.93%[81]. - The non-current assets totaled CNY 8,679,652,217.83, an increase from CNY 8,220,138,049.62, reflecting a growth of approximately 5.57%[81]. Market and Sales Performance - The company sold 719 million cubic meters of natural gas, achieving 46.39% of the annual target of 1.55 billion cubic meters, with a year-on-year increase of 7.63%[27]. - The company’s liquefied petroleum gas sales volume was 288,000 tons, achieving 72% of the annual target of 400,000 tons[27]. - The wholesale volume of liquefied petroleum gas (LPG) reached 241,100 tons, a year-on-year increase of 20.55%, with sales revenue of 1.404 billion yuan, up 25.02%[33]. - Revenue from operations in Guangdong Province was approximately 3.27 billion yuan, a slight increase of 0.01%, while revenue from outside Guangdong surged by 63.79% to approximately 812.61 million yuan[34]. - The apparent consumption of natural gas in China for the first half of 2014 was 88.7 billion cubic meters, a year-on-year increase of only 8.9%[21]. Investments and Projects - The company has initiated two new gas investment projects, focusing on natural gas procurement and pipeline construction in Shenzhen and Jiangxi Province[32]. - The total investment during the reporting period was 76.03 million yuan, reflecting an increase of 18.06% compared to the previous year[39]. - The company has invested RMB 30 million in the construction and management of natural gas facilities and pipeline projects in Huangshan City[188]. - The company is actively investing in the construction of urban gas supply systems and related infrastructure to enhance service delivery[187]. - The company has established a liquefied petroleum gas base and related facilities with an investment of RMB 29.71 million, generating a revenue of RMB 400 million[192]. Shareholder and Equity Information - The company approved a profit distribution plan on May 30, 2014, distributing cash dividends of RMB 1.43 per 10 shares to all shareholders, based on a total share capital of 1,980,456,261 shares[47]. - The total number of shareholders at the end of the reporting period was 36,121[71]. - The largest shareholder, Shenzhen Municipal People's Government, holds 51.00% of the shares, totaling 1,010,029,500 shares[71]. - The total number of restricted shares at the beginning of the period was 75,870,735, with no changes during the reporting period[71]. - The company has not faced any administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period[58]. Risk Management and Compliance - The company has implemented a robust internal control system, covering major risk areas and core business processes, to ensure effective risk management and compliance[66]. - The company has established a risk management culture by enhancing employee awareness of risk control through regular updates on significant risk events[68]. - The company has no major litigation, arbitration, or media disputes during the reporting period[50]. - The company has committed to avoiding any form of competition with Shenzhen Gas in the same region since May 20, 2008[57]. Accounting Policies and Financial Reporting - The financial statements comply with the accounting standards and accurately reflect the company's financial position as of June 30, 2014[112]. - The company uses the historical cost basis for financial reporting, with impairment provisions made as necessary[111]. - The company recognizes goodwill in business combinations, which is tested for impairment at least annually[117]. - The company regularly reviews key assumptions and estimates related to accounting policies, which may significantly affect the carrying amounts of assets and liabilities in future periods[182]. - The corporate income tax rate applicable to the company and its subsidiaries in Shenzhen for 2014 is 25%, consistent with the previous year[185].