Financial Performance - In 2021, Sino Gas Holdings recorded a revenue of approximately RMB 1,907.8 million, an increase of about 48.5% compared to the previous year[9]. - The company's liquefied petroleum gas (LPG) sales revenue reached approximately RMB 1,602.9 million, up by about RMB 575.4 million from RMB 1,027.5 million in 2020, driven by increased sales volume and higher selling prices[22]. - The compressed natural gas (CNG) sales revenue was approximately RMB 241.8 million, an increase of about RMB 52.6 million compared to RMB 189.2 million in 2020, attributed to higher sales volume and selling prices[23]. - The group's sales cost increased from approximately RMB 1,182.1 million in 2020 to about RMB 1,815.0 million in 2021, an increase of approximately RMB 632.9 million, primarily due to higher procurement volume and prices of liquefied petroleum gas and compressed natural gas[49]. - The group's gross profit for the year ended December 31, 2021, was approximately RMB 92.8 million, a decrease of about RMB 9.5 million from approximately RMB 102.3 million in 2020, resulting in a reduced gross margin due to increased procurement costs[49]. - The group's profit before tax decreased to approximately RMB 14.0 million in 2021 from about RMB 18.3 million in 2020, a decline of approximately RMB 4.3 million[58]. - The total assets of the group increased to approximately RMB 919.5 million as of December 31, 2021, up by approximately RMB 252.7 million from about RMB 666.8 million in 2020[63]. - The group's cash and bank balances amounted to approximately RMB 472.0 million as of December 31, 2021[64]. - The capital expenditure for the year ended December 31, 2021, was approximately RMB 4.1 million, primarily related to the acquisition of properties, plants, and equipment[65]. - The capital-to-debt ratio increased to approximately 58.2% as of December 31, 2021, compared to about 43.1% as of December 31, 2020, due to increased bank loans[67]. - The company has delayed the use of funds for acquisitions and storage facility construction until the end of 2023 due to the uncertain economic environment and the impact of the pandemic[76][77]. Market and Business Strategy - The company aims to expand the market for natural gas and LPG, focusing on applications in transportation, industry, and residential sectors[12]. - Sino Gas Holdings plans to enhance its marketing strategies and expand its marketing team to solidify its market position in Guangdong and Henan regions[12]. - The company is focusing on expanding its services in industrial, commercial, and residential sectors to enhance user satisfaction and corporate value[16]. - The company is gradually exiting the LPG vehicle market due to structural adjustments in transportation energy policies, having closed 3 LPG vehicle refueling stations[21]. - The company is exploring the conversion of one LPG refueling station into a hydrogen refueling station in response to government policies[21]. - The natural gas market is expected to see a marketization push in 2022, with the proportion of natural gas in primary energy expected to reach 11.5% by 2025 and 14% by 2030[44]. - The overall economic recovery post-COVID-19 is expected to positively impact the demand for LPG and CNG in the coming years[42]. Corporate Governance and Management - The company has established a robust governance structure with independent non-executive directors overseeing key committees[109]. - The company has a strong management team with over 14 years of experience in gas retail and wholesale operations[103]. - The CEO has been involved in financial planning and management, overseeing internal controls and risk management policies since joining the company in 2016[98]. - The management team is committed to driving the company's overall operations and marketing strategies for future growth[98]. - The company has implemented prudent financial management strategies, maintaining a healthy liquidity position as of December 31, 2021[80]. Environmental and Social Responsibility - The company is committed to achieving carbon peak by 2030 and carbon neutrality by 2060, positioning natural gas as a key low-carbon energy source[12]. - The company emphasizes safety production and integrates environmental, social, and governance (ESG) principles into its development processes[13]. - The company is committed to environmental sustainability and aims to become an environmentally friendly enterprise, with detailed policies disclosed in the ESG report[135]. - The company encourages stakeholder participation in expressing opinions on its environmental, social, and governance policies through various channels[131]. Risks and Challenges - The company has identified significant risks including reliance on government policies, supply chain stability, and competition from alternative fuels, which could adversely affect business performance[93]. - The company’s operations are entirely based in China, exposing it to currency risks primarily related to the Hong Kong dollar[79]. - The company’s gross profit margin may fluctuate due to sensitivity to external factors affecting the purchase and sale prices of gas products[93]. Shareholding Structure - As of December 31, 2021, the total number of issued shares was 216,000,000[192]. - Major shareholder UBS Trustees holds 121,500,000 shares, representing 56.25% of total shares[197]. - The family trust established by Mr. Ji controls 162,000,000 shares, which is 75% of the total shares[197]. - The ownership structure indicates a high concentration of shares among a few entities[198]. - The trust structure includes Mr. Ji, his wife, and their daughter, indicating family control over significant shares[198]. - The company is compliant with the Securities and Futures Ordinance regarding the disclosure of shareholdings[193]. Employee and Related Party Transactions - The company employed 448 employees as of December 31, 2021, down from 502 in 2020[148]. - The total salary cost incurred by the company for the year ended December 31, 2021, was approximately RMB 36.5 million[148]. - The company had a continuous related party transaction with Zhengzhou Public Transport, with a transaction limit of RMB 96.1 million and an actual amount of RMB 54.8 million for the year ended December 31, 2021[161]. - The company also had a continuous related party transaction with Guangzhou Jiahe Development, with a transaction limit of RMB 82.1 million and an actual amount of RMB 63.8 million for the year ended December 31, 2021[161]. - The independent non-executive directors confirmed that the related party transactions were fair and reasonable and conducted in the ordinary course of business[164].
中油洁能控股(01759) - 2021 - 年度财报