SGC(SH:601139)2015-08-18 16:00Financial Performance - The company's operating revenue for the first half of 2015 was CNY 3,863,733,493.17, a decrease of 16.45% compared to CNY 4,624,397,777.04 in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2015 was CNY 386,390,906.60, down 12.84% from CNY 443,295,811.91 in the previous year[17]. - The net cash flow from operating activities decreased by 77.55%, amounting to CNY 167,220,604.13 compared to CNY 744,991,536.51 in the same period last year[17]. - The total profit for the period was 477 million RMB, a decline of 14.53% year-on-year, with net profit attributable to shareholders at 386 million RMB, down 12.84%[27]. - Basic earnings per share for the first half of 2015 were CNY 0.19, a decrease of 13.64% from CNY 0.22 in the same period last year[18]. - The weighted average return on net assets decreased by 2.23 percentage points to 6.36% compared to 8.59% in the previous year[19]. - The company reported an operating profit of CNY 468,621,544.40, a decrease of 15.6% from CNY 555,242,064.09 in the same period last year[98]. - The company’s financial expenses for the first half of 2015 were CNY 59,459,956.74, an increase from CNY 44,277,536.70 in the previous year, reflecting a rise of 34.3%[97]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 14,851,210,560.46, an increase of 11.99% from CNY 13,261,675,829.68 at the end of the previous year[17]. - The company's total liabilities were CNY 7.67 billion at the end of the reporting period, compared to CNY 7.50 billion at the beginning, indicating a rise of about 2.3%[92]. - The total equity attributable to shareholders increased to CNY 6.86 billion from CNY 5.43 billion, representing a growth of approximately 26.3%[92]. - Cash and cash equivalents rose significantly to CNY 3.08 billion from CNY 2.11 billion, marking an increase of about 45.8%[90]. - Accounts receivable increased to CNY 412.84 million from CNY 286.96 million, reflecting a growth of approximately 43.8%[90]. - The company’s total liabilities were CNY 1,319,993.49 million, which is critical for assessing financial leverage[112]. Revenue Sources - Natural gas sales revenue increased by 4.71% to 250,077,000 RMB from 238,837,000 RMB year-on-year, while liquefied petroleum gas (LPG) wholesale sales revenue decreased by 59.77% to 56,492,000 RMB from 140,426,000 RMB[27]. - Pipeline gas revenue reached ¥2,423,035,797.01, an increase of 6.37% year-on-year, with a gross margin of 27.29%, up 1.54 percentage points[36]. - Revenue from external regions increased by 12.62%, while revenue from Guangdong province decreased by 15.20%[39]. Market and Operational Developments - The company expanded its user base in Shenzhen by adding 412 commercial users, which is expected to bring an additional gas volume of approximately 19.93 million cubic meters per year[25]. - The company completed 45% of its annual natural gas sales target of 1.65 billion cubic meters and 47% of its LPG sales target of 450,000 tons[33]. - The company faced challenges due to rising upstream raw material costs and competition from imported LNG, leading to a decrease in the operating rate of its liquefaction plants[26]. - The company plans to invest in two new gas projects, including LNG and CNG refueling stations in Wuzhou and Hefei[25]. - The company anticipates a downward adjustment in natural gas prices due to the economic environment and competition from alternative energy sources[28]. Shareholder Information - The company distributed a cash dividend of CNY 1.43 per 10 shares to shareholders based on a total share capital of 2,177,616,866 shares, with the record date on June 25, 2015[52]. - The total number of shareholders reached 31,340 by the end of the reporting period[78]. - The largest shareholder, Shenzhen Municipal Government State-owned Assets Supervision and Administration Commission, holds 1,107,997,523 shares, representing 50.88% of total shares[80]. Risk Management and Compliance - The company completed a major risk assessment for 2015, identifying the top ten risks faced by Shenzhen Gas[72]. - The company implemented a risk management tracking report mechanism, requiring quarterly risk assessments from all units[72]. - The company has maintained compliance with corporate governance standards, ensuring independent operations and adherence to legal regulations[71]. Future Outlook and Strategy - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and service delivery[86]. - Future guidance indicates a cautious outlook due to market volatility and economic uncertainties[1]. - The company is exploring potential mergers and acquisitions to strengthen its market position[1]. - The company aims to increase its investment in research and development to foster innovation[1]. Accounting and Financial Reporting - The financial statements are prepared based on the accrual basis of accounting, ensuring a true and fair view of the company's financial position[118]. - The accounting policies comply with the enterprise accounting standards, reflecting the company's commitment to transparency and accuracy in financial reporting[120]. - The company has implemented significant changes in accounting policies, which may impact future financial reporting[118].