SGC(SH:601139)2017-03-30 16:00Financial Performance - The company's operating revenue for 2016 was CNY 8,508,946,951.38, representing a 6.80% increase compared to CNY 7,967,467,448.72 in 2015[17] - The net profit attributable to shareholders for 2016 was CNY 772,009,612.12, which is a 17.03% increase from CNY 659,661,697.66 in 2015[17] - The basic earnings per share for 2016 was CNY 0.35, a 12.90% increase compared to CNY 0.31 in 2015[19] - The weighted average return on equity for 2016 was 10.42%, an increase of 0.27 percentage points from 10.15% in 2015[19] - The company's total revenue for Q1 was approximately CNY 2.00 billion, Q2 was CNY 2.18 billion, Q3 was CNY 1.85 billion, and Q4 was CNY 2.48 billion[22] - Net profit attributable to shareholders for Q1 was CNY 210.59 million, Q2 was CNY 329.86 million, Q3 was CNY 208.03 million, and Q4 was CNY 23.53 million[22] - The company's total revenue for 2016 reached CNY 8,508,946,951.38, an increase of 6.77% compared to CNY 7,967,467,448.72 in 2015[176] - Net profit attributable to shareholders of the parent company was CNY 772,009,612.12, up from CNY 659,661,697.66, representing a growth of 17.00%[176] Assets and Liabilities - The total assets at the end of 2016 amounted to CNY 17,243,495,674.64, reflecting a 12.94% increase from CNY 15,268,107,349.76 in 2015[18] - The company's total liabilities increased by 17.47% to CNY 9,183,369,988.45 in 2016, up from CNY 7,817,530,018.91 in 2015[18] - The company's asset-liability ratio at the end of 2016 was 53.26%, an increase from 51.20% in 2015[18] - The total equity attributable to shareholders at the end of 2016 was CNY 7,713,487,994.87, an increase of 8.21% from CNY 7,128,374,040.29 in 2015[18] Cash Flow - The cash flow from operating activities for 2016 was CNY 1,540,973,376.17, showing a slight decrease of 1.42% from CNY 1,563,147,841.24 in 2015[17] - The cash flow from operating activities for Q1 was CNY 218.26 million, Q2 was CNY 421.53 million, Q3 was CNY 594.02 million, and Q4 was CNY 307.16 million[22] - The company reported a decrease in cash flow from financing activities by 96.30% to CNY 18.17 million[40] - Cash received from operating activities dropped by 89.48% to ¥86,916,415.73, mainly due to last year's receipt of ¥700 million for pipeline renovation projects[49] - Cash received from investment activities decreased by 41.93% to ¥1,766,820,816.35, attributed to a reduction in bank wealth management product recoveries[49] Market and Operations - The company has a total of 254 million pipeline gas users, covering a population of over 10 million[26] - The company operates over 5,900 kilometers of gas pipelines across 29 cities in 7 provinces[26] - The company is the largest importer of liquefied petroleum gas in China, with a storage capacity of 160,000 cubic meters[29] - The sales volume of natural gas reached 1.763 billion cubic meters, up 17.37% year-on-year, with pipeline natural gas sales increasing by 15.96%[35] - The liquefied petroleum gas sales revenue was CNY 2.084 billion, an increase of 11.15%, with wholesale sales volume growing by 41.75%[35] Strategic Initiatives - The company plans to distribute a cash dividend of CNY 1.05 per 10 shares to all shareholders, subject to approval at the annual general meeting[2] - The company aims to achieve a natural gas sales volume of 1.87 billion cubic meters and a liquefied petroleum gas sales volume of 450,000 tons in 2017[67] - The company is focusing on three strategic areas: focus strategy, integration strategy, and platform strategy, aiming to become a leading comprehensive clean energy operator in China[66] - The company plans to enhance its LNG industry chain and achieve significant growth in vehicle and ship refueling services during the 13th Five-Year Plan period[66] Social Responsibility - The company is actively involved in social responsibility initiatives, with a total investment of RMB 2.92 million in poverty alleviation efforts, helping 218 registered impoverished individuals[92] - The company has committed to improving rural living conditions and enhancing public services as part of its ongoing poverty alleviation projects[94] - The company has established a framework for ongoing social responsibility reporting since 2011, demonstrating its commitment to transparency and accountability in its operations[95] Governance and Compliance - The company has maintained a commitment to avoid conflicts of interest with its major shareholders and related parties since 2008[77] - The company has no major litigation or arbitration matters during the reporting period[81] - The company has implemented a stock option incentive plan, with multiple adjustments to the list of incentive objects and option quantities since 2012[81] - The financial statements comply with the accounting standards issued by the Ministry of Finance of the People's Republic of China, reflecting the company's consolidated financial position as of December 31, 2016[198] Shareholder Information - The largest shareholder, Shenzhen Municipal Government State-owned Assets Supervision and Administration Commission, holds 1,107,997,523 shares, representing 50.09% of total shares[106] - The second largest shareholder, Hong Kong and China Gas Company, holds 362,008,411 shares, accounting for 16.36% of total shares[106] - The total number of ordinary shareholders decreased from 25,808 to 24,772 during the reporting period[104] - The company has a total of 305,000 restricted shares held by Li Zhen, with 122,000 shares eligible for trading from August 29, 2018, under performance conditions[108] Employee and Management - The total number of employees in the parent company and major subsidiaries is 6,646, with 3,535 in production, 881 in sales, and 923 in technical roles[134] - The company has implemented a comprehensive training program focusing on leadership, management skills, and quality systems[137] - The total remuneration paid to directors, supervisors, and senior management during the reporting period amounted to CNY 12.9398 million[132] Financial Instruments - The company issued two tranches of corporate bonds totaling RMB 1 billion, with the first tranche of RMB 500 million issued on July 13, 2016, and the second tranche of RMB 500 million issued on November 24, 2016[103] - The company received a credit rating of AAA for both bond issuances, with a stable outlook from the credit rating agency Zhongcheng Securities[155][156] - The company issued short-term financing bonds totaling 11 billion RMB in May 2016, with a repayment date set for May 19, 2017[162] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency in the coming years[176] - The company anticipates continued growth in natural gas sales due to increasing environmental concerns and government policies favoring cleaner energy[27]