SGC(SH:601139)2018-08-22 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 6,170,367,597.12, representing a 20.25% increase compared to CNY 5,131,401,706.67 in the same period last year[18]. - Operating profit increased by 13.49% to CNY 841,627,993.27 from CNY 741,564,633.19 year-on-year[18]. - Net profit attributable to shareholders was CNY 638,394,704.24, an increase of 11.60% compared to CNY 572,044,764.88 in the previous year[18]. - The net cash flow from operating activities was CNY 906,523,298.15, up 18.67% from CNY 763,895,590.42 in the same period last year[18]. - Total profit for the period was CNY 843 million, reflecting a growth of 13.07% compared to the previous year[36]. - Natural gas sales revenue amounted to CNY 4.03 billion, marking a 28.58% increase, with sales volume reaching 1.376 billion cubic meters, up 29.52%[36]. - The company’s liquefied petroleum gas sales revenue was CNY 1.395 billion, a year-on-year increase of 6.32%[37]. - The company reported a total comprehensive income of CNY 664,080,394.34 for the period, with a significant contribution from shareholder investments of CNY 664,227,663.00[123]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 19,955,156,585.52, a 6.25% increase from CNY 18,781,463,355.26 at the end of the previous year[18]. - The company's total liabilities increased by 8.15% to CNY 10,804,456,903.93 from CNY 9,990,393,547.29 year-on-year[18]. - The net asset attributable to shareholders was CNY 8,738,457,556.15, reflecting a 3.84% increase from CNY 8,415,670,560.73 at the end of the previous year[18]. - The company's total equity rose to CNY 9,150,699,681.59 from CNY 8,791,069,807.97, indicating an increase of around 4.1%[105]. - The company's total liabilities decreased by 12.5% compared to the previous period, indicating improved financial stability[123]. Shareholder Information - The company reported a total of 2,878,319,874 shares outstanding after the recent changes, with an increase of 664,227,663 shares[72]. - The top shareholder, Shenzhen Municipal Government, holds 1,440,396,780 shares, accounting for 50.04% of the total shares[75]. - Hong Kong and China Gas Company Limited is the second-largest shareholder with 470,610,934 shares, representing 16.35%[75]. - The company distributed a cash dividend of 1.50 RMB per 10 shares and issued 3 additional shares for every 10 shares held as part of the 2017 annual profit distribution plan[73]. Market Operations - The company operates in 38 cities across 8 provinces, focusing on urban pipeline gas supply and liquefied petroleum gas (LPG) wholesale and retail, with no major changes in its main business since establishment[25]. - The company serves over 3 million pipeline gas users, covering a population of more than 10 million, indicating a strong customer base and market presence[31]. - The LPG wholesale and retail business is fully market-oriented, with pricing subject to market fluctuations, while the company aims to expand into areas without pipeline gas access[26]. - The company plans to integrate the bottled gas market in Shenzhen, aiming to increase its market share and sales volume in the LPG sector[26]. Risk Factors - The company faces uncertainties in operations due to government reforms in natural gas pricing and potential supply disruptions during peak demand periods[45]. - Risks include fluctuations in international oil prices and the impact of the US-China trade war on the liquefied petroleum gas business[46]. - The company has implemented various measures to mitigate operational risks but acknowledges ongoing uncertainties in the market[45]. Corporate Social Responsibility - The company is committed to promoting clean energy and improving living environments as part of its corporate social responsibility initiatives[67]. - The company has committed RMB 20.4 million to install a 27.2KW photovoltaic power generation project for poverty alleviation, with all profits directed towards helping impoverished households[62]. - The company has provided vocational training to 48 impoverished individuals to assist in employment[64]. - The company has allocated RMB 1.86 million to support 39 impoverished students in education[64]. Financial Management - The company issued a total of 19 billion RMB in bonds this year, which increased cash flow and improved liquidity ratios[89]. - The current ratio improved to 0.78, up 39.29% from the previous year, primarily due to the bond issuance[95]. - The quick ratio also increased to 0.72, reflecting a 41.18% rise compared to last year, attributed to the same bond issuance[95]. - The company maintained a loan repayment rate of 100% during the reporting period[95]. Investment and Growth Strategy - The company plans to expand its market presence and invest in new technologies to drive future growth[124]. - The company is focusing on enhancing its product offerings and exploring potential mergers and acquisitions to strengthen its market position[124].