DELONG CO-ENERGY(SZ:000593)2017-04-28 16:00Financial Performance - The company's operating revenue for 2016 was CNY 473,502,647.45, representing a 12.37% increase compared to CNY 421,369,385.12 in 2015[17]. - The net profit attributable to shareholders was a loss of CNY 55,084,345.74, a decrease of 490.82% from a profit of CNY 14,094,561.97 in the previous year[18]. - The net cash flow from operating activities was a negative CNY 89,479,998.04, down 264.14% from CNY 54,515,295.70 in 2015[18]. - The total assets at the end of 2016 amounted to CNY 1,580,783,325.38, an increase of 100.04% from CNY 790,227,332.64 at the end of 2015[18]. - The net assets attributable to shareholders increased by 70.86% to CNY 1,110,282,103.31 from CNY 649,822,609.01 in 2015[18]. - The basic earnings per share for 2016 was -CNY 0.169, a decline of 438.00% from CNY 0.050 in 2015[18]. - The weighted average return on equity was -6.36%, a decrease of 8.50 percentage points from 2.14% in the previous year[18]. Business Strategy and Operations - The company has undergone several changes in its main business focus, shifting towards urban pipeline gas and LNG investment and operation[15]. - The company terminated all retail business operations in June 2016 due to increasing losses and shifted its focus to urban pipeline gas and LNG distribution and marketing[28]. - The company aims to expand its clean energy supply framework, focusing on natural gas as a key clean energy source amid government energy development plans[29]. - The company plans to enhance management strategies and team building to navigate the evolving energy market landscape[29]. - The company plans not to distribute cash dividends or issue bonus shares for the year[5]. Investments and Acquisitions - The company completed acquisitions in the natural gas sector, including stakes in Jingneng Natural Gas and Luojiang Natural Gas, and invested in a distributed energy project in Shanghai[28]. - The company reported a total investment of 878.267 million CNY across various projects, with a cumulative actual investment of 34.284 million CNY[74]. - The company completed a non-public acquisition of 556.718 million CNY for a 100% stake in a gas company, with a total investment of 29.476 million CNY[73]. - The company also increased its investment in another gas company by 60 million CNY, maintaining a 100% ownership[73]. Revenue and Profitability - Revenue from gas supply and related income surged by 164.30% to ¥269,809,783.47, accounting for 56.98% of total revenue[43]. - Commercial retail revenue decreased significantly by 41.04% to ¥161,037,035.09, representing 34.01% of total revenue[43]. - The gross profit margin for gas supply and related income was 26.86%, while commercial retail had a gross profit margin of 13.88%[46]. - The company reported a non-recurring loss of approximately $29.70 million, primarily due to various operational adjustments and asset impairments[25]. Financial Position and Cash Flow - Total operating cash inflow increased by 3.69% to ¥511,508,935.05 in 2016, while cash outflow rose by 36.96% to ¥600,988,933.09[57]. - Investment cash inflow surged by 864.29% to ¥14,629,160.02, while outflow increased by 339.27% to ¥725,739,989.19, resulting in a net cash flow from investment activities of -¥711,110,829.17[59]. - Financing cash inflow skyrocketed by 2,615.63% to ¥814,688,914.02, driven by private placement and new bank loans[59]. - The company reported a significant increase in financial expenses by 360.65% to ¥6,409,286.68, mainly due to new loans and reduced interest income from bank deposits[55]. Governance and Compliance - The company appointed Sichuan Huaxin (Group) CPA as the auditor for 2016, with an audit fee of CNY 500,000[107]. - The company has established a clear governance structure that adheres to relevant laws and regulations, enhancing operational standards[180]. - The audit report was signed on April 27, 2017, by Sichuan Huaxin (Group) CPA firm, with no non-standard opinions issued[198]. - The company has not been subject to any penalties from securities regulatory authorities in the past three years[170]. Employee and Management - The total remuneration for directors and senior management during the reporting period amounted to 2.83 million CNY, with the highest individual salary being 427,300 CNY for the general manager[173]. - The company employed a total of 770 staff, including 284 production personnel and 220 sales personnel[174]. - Employee training programs are conducted to enhance skills and safety awareness, including specialized training for management, technical, and marketing personnel[177]. - The company has a comprehensive salary system that encourages cost reduction and efficiency improvement based on local price levels and industry standards[176]. Market Challenges - The company faces challenges from an oversupply in the natural gas market and increased competition from overseas LNG pricing and distribution channels[29]. - The contraction of retail business led to a total profit reduction of ¥30,578,300, primarily due to decreased gross profit and increased management expenses[53]. Shareholder Information - The total number of shares increased from 279,940,202 to 358,631,009 due to a private placement of 78,690,807 shares[141]. - The largest shareholder, Tianjin Datong Investment Group Co., Ltd., holds 40.94% of the shares, totaling 146,825,228 shares[150]. - The company has a total of 33,865 shareholders at the end of the reporting period[149]. - The company received approval from the China Securities Regulatory Commission for the private placement of shares on February 1, 2016[146].