Financial Performance - The Group recorded a turnover of approximately RMB7,447 million for the year ended 31 March 2023, a decrease of 5.8% compared to RMB7,902 million in 2022[6] - The loss after tax for the year was approximately RMB28 million, compared to a profit of approximately RMB96 million in the previous year[6] - Impairment losses of approximately RMB151 million were incurred due to the suspension of operations at a non-wholly owned subsidiary, Huaheng Energy[7] - The Group produced approximately 455 million cubic meters of LNG, representing a decrease of 12.8% compared to the previous year[20] - Revenue from LNG sales was approximately RMB1,551 million, a decrease of 4.9% from the previous year, contributing approximately 20.8% of the total turnover[20] - The gross profit margin for LNG production and sales decreased from approximately 12.5% to approximately 10.9%[20] - Revenue from piped gas sales decreased to approximately RMB365 million, a decline of 45% compared to RMB662 million last year, contributing about 4.9% of total turnover[24] - Oil and gas sales contracts gross amounts decreased slightly to approximately RMB5,501 million, down 0.5% from RMB5,528 million, contributing approximately 74% of total turnover[25] - Gross profit for the year ended 31 March 2023 was approximately RMB252 million, down from RMB302 million, with a gross profit margin decreasing from 3.8% to 3.4%[34] Cost Management and Strategy - The Group aims to optimize cost structures and expand LNG distribution channels through collaborations with industry players and state-owned enterprises[12] - The management is cautious about the market environment and will implement strategies to mitigate adverse impacts on the business[13] - The Group is focused on developing its natural gas sector and exploring new business opportunities to create shareholder value[13] Financial Position and Ratios - As of 31 March 2023, the Group maintained bank balances and cash of approximately RMB72 million, down from RMB123 million[47] - The current ratio improved slightly to approximately 1.47 from 1.43 in the previous year[47] - The gearing ratio increased to approximately 0.86 from 0.74, indicating a rise in debt relative to equity[47] - The group's income tax expenses for the year ended March 31, 2023, were approximately RMB 22 million, down from RMB 26 million in 2022[51] - As of March 31, 2023, the group held cash and bank balances of approximately RMB 72 million, a decrease from RMB 123 million in 2022, while net current assets increased to approximately RMB 1,026 million from RMB 796 million[52] Corporate Governance - The Board held a total of eight meetings during the year ended March 31, 2023, with attendance rates of 100% for the Chairman and Chief Executive Officer, Mr. Wang Jianqing, and 7 out of 7 for Mr. Bao Jun[81] - All independent non-executive directors confirmed their independence annually, ensuring compliance with Rule 3.13 of the Listing Rules[93] - The Board consists of five members, including three independent non-executive directors, which meets the requirement of having at least one-third of the Board as independent[94] - The Board is responsible for overseeing the Group's operational and financial performance, ensuring sound internal control and risk management systems are in place[85] - Directors received adequate and timely information prior to meetings, ensuring they were well-informed on issues arising at Board meetings[88] Remuneration Committee - The Remuneration Committee consists of three independent non-executive directors: Dr. Leung Hoi Ming, Mr. Wong Chi Keung, and Mr. Tom Xie[120] - The remuneration policy is designed to reward employees and Directors based on performance, qualifications, and market comparables, typically including salary, pension contributions, performance bonuses, and share options[127] - The RC reviews and approves management's remuneration with reference to the Board's corporate goals and objectives[124] - The remuneration packages for individual executive directors and senior management include benefits in kind, pension rights, and compensation payments for loss or termination of office[124] Audit Committee - The Audit Committee is responsible for reviewing the adequacy of the group's internal controls, risk management systems, and financial reporting processes[134] - The Committee must meet with the external auditor at least twice a year to discuss significant financial reporting judgments and any unusual items[136] - The Company is required to ensure compliance with accounting and auditing standards, as well as Listing Rules and legal requirements related to financial reporting[137] - The AC reviewed the financial results for the year ended March 31, 2023, and the interim report for the six months ended September 30, 2022[145] Risk Management - The Group has established a risk management framework to assess and manage risks across business operations[174] - The risk management group will identify risk exposures at least once a year and formulate a risk mitigation plan[175] - The Board is responsible for ensuring the financial statements comply with statutory requirements and applicable accounting standards[165] - The Group's internal audit function helps monitor the effectiveness of risk management and internal control systems[176] Shareholder Communication - The Company maintains a website to provide shareholders and investors with timely access to financial performance, strategic goals, and other relevant information[192] - The Group's communication policy aims to ensure shareholders and investors receive unbiased and understandable information about the Company[191] - The Company has adopted a shareholder communication policy to enhance transparency and effective communication with shareholders and investors[194] - The Board maintains ongoing dialogue with shareholders primarily through financial reports and annual general meetings[195]
元亨燃气(00332) - 2023 - 年度财报