BEIJING ENT(00392)2023-04-27 08:54Financial Performance - Beijing Enterprises Holdings Limited reported a revenue increase of 14.6% year-on-year to HKD 92.30 billion[8]. - The company's net profit attributable to shareholders decreased by 23.7% to HKD 7.57 billion[8]. - Basic earnings per share fell by 23.6% to HKD 6.00, while the total dividend per share increased by 28% to HKD 1.60[8][12]. - The gross profit margin decreased to 13.3% from 15.3% in the previous year[9]. - The net profit margin declined to 9.0% from 13.1% year-on-year[9]. - Total revenue for the year ended December 31, 2022, was HKD 92,296,553, an increase of 14.5% from HKD 80,521,838 in 2021[148]. - Net profit for the year was HKD 8,264,021, a decrease of 21.3% compared to HKD 10,518,631 in 2021[150]. - The company reported a significant increase in financial costs, which rose to HKD 2,071,957 from HKD 1,794,397 in 2021[148]. Dividend and Shareholder Returns - The company maintained a dividend payout ratio of 26.7%, reflecting a commitment to shareholder returns[12]. - The company aims to enhance its dividend payout ratio in the future to reward long-term shareholder support[12]. - Shareholder returns are expected to increase, with a proposed dividend of 0.5 HKD per share, representing a 10% increase from the previous year[55]. - The company declared an interim dividend of HKD 0.50 per share on October 27, 2022, and proposed a final dividend of HKD 1.10 per share for the year ending December 31, 2022, subject to shareholder approval[79]. Assets and Liabilities - Total assets slightly decreased by 0.8% to HKD 221.07 billion[8]. - Non-current assets, including property, plant, and equipment, increased by 5.2% to approximately HKD 63.8 billion, mainly due to the increase in Beijing Gas construction projects[43]. - Current assets included cash and bank deposits of HKD 31.35 billion, with total borrowings amounting to HKD 77.39 billion, resulting in a net debt of HKD 46.04 billion, an increase of 18.8% year-on-year[44]. - The asset-liability ratio was reported at 43%, up from 40% in the previous year[46]. - Total liabilities increased from HKD 113,755,082,000 in 2021 to HKD 118,032,670,000 in 2022, representing an increase of about 3.5%[159]. Cash Flow and Financing - Cash generated from operating activities was HKD 7,548,712, down from HKD 9,140,862 in the previous year, reflecting a decline of 17.4%[166]. - The net cash flow from investing activities was negative HKD 9,733,049, compared to negative HKD 6,393,486 in 2021, indicating increased investment outflows[167]. - The company reported a net cash flow from financing activities of HKD 331,863, an increase from HKD 165,052 in the previous year[167]. - The company’s bank and other borrowings increased from HKD 9,179,370,000 in 2021 to HKD 24,613,662,000 in 2022, a substantial rise of approximately 168.5%[156]. Operational Highlights - Beijing Gas recorded a revenue of HKD 69.61 billion in 2022, representing a year-on-year increase of 19.8%[20]. - The pre-tax profit from core operations, including natural gas distribution, reached HKD 6.21 billion, up 10.8% year-on-year[20]. - Natural gas sales volume totaled 21.69 billion cubic meters, with a 5% year-on-year increase in sales within Beijing to 17.8 billion cubic meters[20]. - The company added approximately 155,000 new residential users and 4,062 public service users during the reporting period[21]. - Capital expenditure for the year was approximately HKD 9.16 billion[21]. Environmental and Sustainability Initiatives - The company is committed to enhancing its ESG framework, integrating sustainability into daily management practices[16]. - The company aims to reduce methane emission intensity to below 0.12% by 2025 and to near zero by 2030 as part of its greenhouse gas reduction targets[61]. - The beer segment, Yanjing Beer, set a goal to reduce nitrogen oxide emissions, total phosphorus in wastewater, chemical oxygen demand, and ammonia nitrogen emissions by 5% during the year[62]. - The company emphasizes sustainable development and actively invests in energy-saving and emission-reduction technologies to enhance resource utilization efficiency[61]. Corporate Governance and Management - The board of directors underwent changes, with key appointments and resignations noted during the fiscal year[89]. - The company has established a leadership group for energy-saving initiatives within its solid waste platform projects[62]. - The audit committee consists of independent non-executive directors, ensuring compliance with the listing rules and effective financial reporting[113]. - The company has implemented mechanisms to ensure independent viewpoints and opinions are available to the board[106]. Future Outlook and Strategic Plans - The company provided a positive outlook for the upcoming year, projecting a revenue growth of 10% to 12% for 2023, driven by new product launches and market expansion strategies[53]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[55]. - A strategic acquisition of a local competitor is in progress, expected to enhance the company's operational capabilities and increase revenue by an estimated 5% annually[56]. - The company aims to enhance per share net asset value and earnings through share repurchases authorized by shareholders[86].