CC GAS(SH:600333)2019-04-23 16:00Financial Performance - In 2018, the company's operating revenue was CNY 1,568,483,156.13, an increase of 7.22% compared to CNY 1,462,821,920.06 in 2017[19] - The net profit attributable to shareholders was a loss of CNY 70,001,183.44, a decrease of 224.09% from a profit of CNY 56,413,091.08 in 2017[19] - The cash flow from operating activities was CNY 8,816,534.93, down 60.19% from CNY 22,146,837.80 in the previous year[19] - The basic earnings per share for 2018 was -CNY 0.11, a decrease of 210.00% from CNY 0.10 in 2017[20] - The weighted average return on equity was -3.28%, a decrease of 6.18 percentage points from 2.90% in 2017[20] - The company reported a significant impact on profits due to rising upstream natural gas procurement prices, particularly during the winter of 2017-2018[21] - The company achieved a gas sales volume of 427 million cubic meters in 2018, an increase of 30 million cubic meters, or 7.81% year-on-year[41] - Total sales revenue for the year reached 1.568 billion RMB, a growth of 7.22% compared to the previous year, with gas sales revenue contributing 1.21 billion RMB, up 16.78%[41] - The company's operating costs rose to 1.088 billion RMB, an increase of 23.57%, with natural gas operating costs reaching 842 million RMB, up 31.35%[41] - The gross profit margin for gas sales decreased by 7.72 percentage points to 30.44% due to rising costs[45] - The total profit for the year was -114,269,923.86 RMB, compared to a profit of 47,569,743.67 RMB in the previous year, indicating a significant decline[160] - The net profit for the year was -81,833,499.07 RMB, a decrease from the previous year's net profit of 41,643,088.61 RMB[160] Cash Flow and Investments - The company's cash flow from operating activities showed a net decrease of 60.19%, dropping to 8.82 million RMB[43] - Cash inflow from operating activities totaled 1,765,259,813.07 RMB, an increase from 1,653,990,354.65 RMB in the previous year[163] - Cash outflow from operating activities was 1,756,443,278.14 RMB, compared to 1,631,843,516.85 RMB in the previous year, resulting in a net cash flow from operating activities of 8,816,534.93 RMB[163] - Cash flow from investing activities was -200,481,331.34 RMB, an improvement from -298,315,069.57 RMB in the previous year[163] - The company received 1,822,250,000.00 RMB in borrowings, an increase from 1,649,880,000.00 RMB in the previous year[165] - The company paid 1,581,950,000.00 RMB in debt repayments, compared to 1,724,930,000.00 RMB in the previous year[165] Assets and Liabilities - The total assets at the end of 2018 were CNY 5,627,641,581.87, an increase of 4.14% from CNY 5,403,927,170.47 at the end of 2017[19] - Total liabilities increased to CNY 3,511,134,701.98 from CNY 3,217,960,790.27, indicating a rise of approximately 9.09%[150] - Shareholders' equity decreased to ¥2,116,506,879.89 from ¥2,185,966,380.20, a decline of about 3.16%[151] - The company reported a decrease in undistributed profits to ¥329,777,295.38 from ¥423,019,805.78, a drop of approximately 22.14%[151] - Current assets rose to ¥896,967,387.75, up from ¥789,332,884.91, indicating an increase of about 13.65%[150] - Accounts receivable increased significantly to ¥93,521,604.47 from ¥58,808,868.02, a growth of approximately 58.67%[150] - Inventory grew to ¥419,977,844.62 from ¥364,113,070.80, reflecting an increase of around 15.36%[150] Operational Highlights - The company adjusted the non-residential natural gas prices in Q4 2018, which contributed to the increase in operating revenue despite the overall loss[21] - The company experienced a seasonal increase in gas demand during winter, leading to higher revenue in Q1 and Q4, while Q2 and Q3 were impacted by rising procurement costs[24] - The company operates in multiple sectors, including urban pipeline gas, municipal engineering, vehicle gas, clean energy development, and value-added services, indicating a diversified business model[30] - The clean energy sector is expected to grow due to government initiatives promoting clean heating and energy efficiency, providing new opportunities for the company's gas business[31] - The vehicle gas market is anticipated to expand as urbanization increases and the demand for cleaner fuel alternatives rises, particularly for LNG in logistics vehicles[31] Corporate Governance and Management - The company has appointed a new board and management team as of March 25, 2019, following the expiration of the previous term[111] - The independent director Du Jie has a background as a teacher at Jilin University and holds a CPA qualification[111] - The company’s board includes members with extensive experience in various sectors, including finance and law, enhancing its governance structure[111] - The company has established a performance-oriented dynamic compensation system to enhance employee motivation and align individual performance with company goals[118] - The total remuneration for the chairman Zhang Zhichao is CNY 577,900, while the general manager Liang Yongxiang received CNY 543,900[110] Social Responsibility and Community Engagement - The company emphasizes the integration of social responsibility with corporate culture, focusing on safety, environmental protection, and community contribution[93] - The company has completed its poverty alleviation tasks with 33 registered impoverished households, totaling 97 individuals[87] - The company invested 130,000 RMB in livestock for 33 impoverished households, with an expected annual income increase of 3,000 RMB per household[89] - The company has initiated a photovoltaic power generation project, expected to generate an annual income of 100,000 RMB, all of which will support impoverished households[89] - The company has achieved a total investment of 1.442 million RMB in poverty alleviation efforts, helping 97 registered impoverished individuals[90] Future Outlook and Strategy - The company is focusing on expanding its natural gas development and utilization during the 13th Five-Year Plan period, ensuring stable gas supply[34] - The company is actively promoting clean heating projects and the "coal-to-gas" initiative, which are expected to provide new market opportunities[35] - The company plans to actively develop value-added services and leverage internet technologies to improve customer service experience[69] - The company aims to optimize its organizational structure and implement mixed ownership reforms to enhance efficiency and reduce costs[69] - The company is positioned to benefit from the new urbanization policies and the expected economic rebound in China in the second half of 2019[64]