ENN ENERGY(HK:02688)2023-04-19 14:32Financial Performance - Total revenue for the natural gas retail business increased by 22.0% to RMB 60,082 million from RMB 49,247 million[54]. - The total revenue for the group increased by 18.2% to RMB 110,051 million from RMB 93,113 million[73]. - The company's revenue increased by 18.2% to RMB 110.051 billion for the year ended December 31, 2022, driven by core profit growth of 11.3% to RMB 7.964 billion[108]. - Core profit grew by 11.3% to RMB 7,964 million from RMB 7,154 million[57]. - Basic earnings per share fell by 24.4% to RMB 5.20 from RMB 6.88[59]. - The company reported a net profit attributable to shareholders of RMB 5.865 billion, a decrease of 24.4% year-on-year, while core profit from operating activities grew by 11.3% to RMB 7.964 billion[130]. - Free cash flow decreased by 19.4% to RMB 2,365 million from RMB 2,936 million[58]. - The gross profit for wholesale gas surged by 664.2% to RMB 2,736 million from RMB 358 million[56]. - The company's gross margin slightly decreased by 0.8 percentage points to 14.3% due to rising natural gas procurement costs and a decline in engineering installation volumes[130]. Customer and Market Metrics - The company achieved a customer satisfaction rate of 95.4% in 2022, up from 92.1% in 2021, indicating an improvement of 2.3 percentage points[12]. - The number of residential users reached 27,921 thousand, representing an 8.1% increase from 25,835 thousand[49]. - The number of newly developed residential gas users decreased by 20.4% to 2,086 thousand in 2022 from 2,622 thousand in 2021[48]. - The natural gas sales volume to industrial users reached 20.375 billion cubic meters, a year-on-year increase of 2.4%, while sales to residential users grew by 9.5% to 5.151 billion cubic meters[122]. - The total natural gas sales volume was 32,697 million cubic meters in 2022, a decrease from 33,097 million cubic meters in 2021, reflecting a decline of 1.2%[12]. - The company developed 22,003 industrial users and completed installations for 2.086 million new residential users in 2022, with a total of 22,446 industrial users served by year-end[122]. Safety and Environmental Initiatives - The company maintained a zero fatal accident rate in 2022, consistent with 2021[12]. - The carbon emission intensity was reduced to 7,036 tons of CO2 equivalent per billion cubic meters in 2022, down from 8,060 tons in 2021, marking a decrease of 12.7%[12]. - In 2022, the company achieved a gas sales volume of 32.697 billion cubic meters, reducing carbon dioxide emissions by 44.9 million tons[114]. - The company aims to align with national low-carbon development goals and enhance its clean energy offerings[109]. - The company has implemented a green finance framework and launched the "Green Action 2030" initiative aimed at achieving net-zero carbon emissions[162]. Digital Transformation and Innovation - The company is focusing on digital transformation to enhance operational efficiency and reduce costs amid rising energy prices and global inflation[109]. - The company plans to continue expanding its urban gas projects and enhance its digital management applications in construction projects, maintaining a 97% application rate in 2022[12]. - The company launched numerous innovative smart gas products in response to customer demand, enhancing its smart home business[123]. - The smart home business generated revenue of RMB 3.114 billion, up 33.0%, with a gross profit of RMB 2.078 billion, reflecting a 20.6% increase[130]. - The average revenue per household from smart home services reached RMB 118, a year-on-year increase of 19.2%, indicating significant growth potential with a current penetration rate of only 10.1% among existing customers[130][127]. Corporate Governance and Management - Liu Jianfeng appointed as Executive Director and CEO on January 16, 2023, with over 20 years of experience in corporate operations and financial management[143]. - The company emphasizes the adoption of international methane reduction standards to enhance environmental, social, and governance management[143]. - The board includes independent directors with extensive experience in energy and corporate governance, such as Ma Zhixiang and Ruan Baoguang[145][146]. - The company is focused on improving internal controls and risk management practices to ensure sustainable growth[145]. - The board consists of 11 members, with 2 female directors, representing 18% of the board, aiming for 30% by FY2025[182]. Financial Stability and Debt Management - The net debt ratio improved to 25.8%, down 0.8 percentage points from the previous year, indicating better financial stability[131]. - The total borrowing as of December 31, 2022, was RMB 19.792 billion, a decrease of RMB 98 million from December 31, 2021, with a net debt ratio of 25.8%, down from 26.6% in 2021[133]. - 83.4% of the total borrowings were at fixed interest rates, indicating a focus on managing financing costs effectively[133]. - The group has established a comprehensive risk management policy to mitigate commodity price risks associated with LNG procurement, aiming to stabilize procurement costs[140]. Awards and Recognition - The company has received multiple awards, including "Best ESG Issuer" and "Best Bond Deal" from FinanceAsia, reflecting its strong performance in ESG initiatives[115]. - The company's ESG rating was upgraded from A to AA by MSCI, marking it as the highest-rated company in its industry within the Greater China region[115]. - The company has published independent ESG reports since 2018, demonstrating its commitment to transparency and accountability in environmental, social, and governance matters[166].