Jinhong (SZ:000669)2017-04-25 16:00Financial Performance - The company's operating revenue for 2016 was ¥2,471,143,028.76, representing a decrease of 3.96% compared to ¥2,573,031,895.38 in 2015[18]. - The net profit attributable to shareholders for 2016 was ¥190,539,516.67, down 23.00% from ¥247,447,739.54 in 2015[18]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, decreased by 24.66% to ¥181,431,045.29 in 2016 from ¥240,821,605.91 in 2015[19]. - Basic and diluted earnings per share fell by 22.98% to ¥0.3921 in 2016 from ¥0.5091 in 2015[19]. - Total assets increased by 32.25% to ¥12,161,755,258.32 at the end of 2016 from ¥9,196,343,555.80 at the end of 2015[19]. - Total revenue for 2016 was ¥2,471,143,028.76, a decrease of 3.96% compared to ¥2,573,031,895.38 in 2015[42]. - Natural gas revenue decreased by 20.10% to ¥1,343,766,412.44, down from ¥1,681,786,515.60 in 2015, representing 54.38% of total revenue[42]. - Liquefied gas revenue increased significantly by 221.30% to ¥227,310,128.64, compared to ¥70,746,635.84 in 2015, accounting for 9.20% of total revenue[42]. - Engineering installation revenue rose by 18.02% to ¥620,647,790.69, up from ¥525,887,932.75 in 2015, making up 25.12% of total revenue[42]. - Revenue from the environmental protection business increased by 9.21% to ¥233,741,779.91, compared to ¥214,039,250.87 in 2015, representing 9.46% of total revenue[42]. Cash Flow and Financing - The net cash flow from operating activities increased by 59.57% to ¥697,403,834.19 in 2016 compared to ¥437,047,136.51 in 2015[19]. - The net cash flow from financing activities surged by 486.71% to ¥1,589,456,313.96, driven by increased fundraising efforts[54]. - Total operating cash inflow was ¥2,475,235,213.93, reflecting a slight increase of 0.62% year-over-year[54]. - Total operating cash outflow decreased by 12.12% to ¥1,777,831,379.74, indicating better cost management[54]. - Cash and cash equivalents increased by 144.37% to ¥705,010,896.58, reversing a previous decline[54]. - The total amount of funds raised by the company is ¥248.91 million, with ¥169.71 million from private placement and ¥79.20 million from corporate bonds[70]. - The company has actively pursued financing through various methods, achieving over ¥3.3 billion in financing in 2016, improving its financial condition and supporting acquisition efforts[39]. Dividends and Profit Distribution - The board approved a profit distribution plan, proposing a cash dividend of ¥1.00 per 10 shares, based on a total of 486,006,284 shares[4]. - The cash dividend represents 25.51% of the net profit attributable to ordinary shareholders, which was ¥190,539,516.67 for 2016[100]. - The total distributable profit for 2016 was ¥227,343,733.75, with cash dividends accounting for 100% of the profit distribution[101]. - The company has maintained a consistent dividend payout, with 2015's dividend being ¥1.50 per 10 shares and 2014's being ¥2.00 per 10 shares[99]. Business Operations and Strategy - The company plans to expand its natural gas business and enhance investment in renewable energy technology development[27]. - The company aims to increase the share of natural gas in primary energy consumption to 10% by 2020 and 15% by 2030[29]. - The company is focusing on both clean energy and environmental engineering services, leveraging partnerships with research institutions[28]. - The company completed acquisitions of 80% of Suzhou Tianhong Gas Company, which has become a new profit growth point, and 100% of the Shouguang Gas Project, enhancing its strategic expansion in the East China region[37]. - The company is focusing on expanding its clean energy and renewable energy development, including wind, solar, and hydrogen energy[36]. - The company has established deep cooperation with well-known research institutions, resulting in 14 national patents related to desulfurization and denitrification technologies[33]. Corporate Governance and Management - The company has maintained a stable relationship with its accounting firm, with a continuous service period of three years and an audit fee of ¥2.3 million[110]. - The company has a diverse management team with extensive backgrounds in finance and engineering[165][166]. - The current chairman, Chen Yihe, has been in position since March 2012 and has a strong economic background[164]. - The company is committed to maintaining a robust governance structure with independent directors and experienced executives[171][172]. - The total number of employees in the company is 4,263, with 51 in the parent company and 4,212 in major subsidiaries[177]. - The remuneration for the board of directors and senior management during the reporting period totaled ¥609.07 million[176]. Risks and Challenges - The company recognizes the risks associated with economic cycles, policy changes, market dynamics, and reliance on upstream suppliers, which could impact its operations[90][91]. - The company faced delays in several projects due to external factors, including land compensation issues and regulatory approvals, impacting expected benefits[73]. - The company reported a significant loss of -¥32,545,805.00 in one of its subsidiaries, indicating challenges in certain areas of its operations[78]. Related Party Transactions and Guarantees - The company reported a related party transaction amounting to ¥33.723 million, accounting for 2.95% of similar transaction amounts[117]. - The approved transaction amount for related party transactions was ¥135.82 million, which was not exceeded during the reporting period[117]. - The company provided external guarantees totaling ¥30 million, with actual guarantees amounting to ¥11.0264 million[125]. - The company has a guarantee period of two years for the external guarantees provided[125]. Internal Control and Compliance - The internal control audit report received a standard unqualified opinion, indicating effective internal controls[199]. - The company maintained effective financial reporting internal controls as of December 31, 2016, according to relevant regulations[198]. - No significant internal control deficiencies were identified during the reporting period[194].