CC GAS(SH:600333)2019-08-23 16:00Financial Performance - The company's operating revenue for the first half of 2019 was approximately CNY 800.72 million, an increase of 8.73% compared to CNY 736.42 million in the same period last year[15]. - The net profit attributable to shareholders for the first half of 2019 was a loss of CNY 62.42 million, improving from a loss of CNY 86.36 million in the same period last year[15]. - The basic earnings per share for the first half of 2019 was -CNY 0.10, compared to -CNY 0.14 in the same period last year[15]. - The weighted average return on net assets increased by 1.00 percentage points to -3.04% from -4.04% in the same period last year[15]. - The net cash flow from operating activities was -CNY 76.67 million, a decrease in loss compared to -CNY 71.65 million in the same period last year, representing a 7.01% increase in loss[15]. - The total assets at the end of the reporting period were approximately CNY 5.56 billion, a decrease of 1.27% from CNY 5.63 billion at the end of the previous year[15]. - The net assets attributable to shareholders at the end of the reporting period were approximately CNY 2.03 billion, down 2.86% from CNY 2.09 billion at the end of the previous year[15]. - The actual gas sales volume for the first half of 2019 was 220 million cubic meters, a decrease of 5.8 million cubic meters or 2.56% compared to the previous year[25]. - The company achieved a sales revenue of 800 million RMB, an increase of 8.73% year-on-year, with gas sales revenue reaching 688 million RMB, up 10.13%[25]. - Operating costs amounted to 577 million RMB, an increase of 5.91% year-on-year, with natural gas operating costs rising by 10.44% to 512 million RMB[25]. - The investment income from the company's main joint venture, Changchun Natural Gas Co., Ltd., decreased by 84.72% compared to the previous year[25]. - The company reported a net cash flow from operating activities of -76.67 million RMB, a deterioration of 7.01% compared to the previous year[29]. - The company reported a net loss for the first half of 2019 of CNY 62,287,539.26, compared to a net loss of CNY 87,058,603.12 in the same period of 2018, showing an improvement of approximately 28.5%[76]. - The company reported a comprehensive income loss of CNY 62,419,120.27 for the first half of 2019[88]. Market Position and Operations - The company operates in urban pipeline gas business, municipal engineering construction, vehicle gas business, and clean energy development[20]. - The company has a total of 8 cities and 1 national-level development zone engaged in pipeline gas business, indicating a relatively monopolistic market position[20]. - The company has established a complete industrial chain for municipal engineering projects, including design, construction, supervision, and project management[20]. - The company is focusing on clean energy projects, including natural gas for residential heating and cooling, and plans to invest in comprehensive energy utilization projects[21]. - The market for vehicle gas is expected to grow significantly, particularly for LNG-powered logistics vehicles, due to increasing urbanization and environmental concerns[22]. Assets and Liabilities - The company's cash and cash equivalents decreased by 37.42% to 124.82 million RMB, primarily due to the repayment of due bills[32]. - The prepayments for natural gas purchases decreased by 59.78% to 53.91 million RMB[32]. - The total assets of Changchun Gas (Dehui) Development Co., Ltd. are approximately ¥139.5 million, with a net profit of ¥651,207.43[37]. - Changchun Gas (Yanjing) Co., Ltd. reported total assets of ¥211.6 million and a net loss of ¥362,765.23[37]. - The net profit of Jilin Peak Natural Gas Co., Ltd. was a loss of ¥7,934,327.83, with total assets of ¥28.2 million[39]. - The total revenue for Changchun Gas (Longshan Protection Development Zone) Co., Ltd. was ¥21.2 million, with a net loss of ¥1,411,589.10[39]. - The company reported a cash balance of RMB 124,821,293.39 as of June 30, 2019, down from RMB 199,459,662.99 at the end of 2018[67]. - Total current assets amounted to RMB 793,764,037.39, a decrease from RMB 896,967,387.75 in the previous period[67]. - The inventory value as of June 30, 2019, was RMB 433,112,935.10, slightly up from RMB 419,977,844.62 at the end of 2018[67]. - The accounts receivable stood at RMB 91,938,182.33, compared to RMB 93,454,530.11 in the previous period[67]. - The company's total liabilities reached CNY 3,499,442,695.92, a slight decrease from CNY 3,511,134,701.98[69]. - Shareholders' equity totaled CNY 2,056,866,159.49, down from CNY 2,116,506,879.89, indicating a decline in net worth[69]. - The company reported a decrease in undistributed profits to CNY 267,358,175.11 from CNY 329,777,295.38, reflecting lower retained earnings[69]. Shareholder Information - The largest shareholder, Changchun Changgang Gas Co., Ltd., holds 58.75% of the shares, totaling 357,810,876 shares[57]. - The company has 79,410,876 restricted shares, which will become tradable after a lock-up period of 36 months starting from July 12, 2020[59]. - The company has not proposed any profit distribution or capital reserve transfer plans for the half-year period[43]. - The company’s controlling shareholder, Changchun Changgang Gas Co., Ltd., committed not to transfer or sell 79.41 million shares subscribed during the non-public offering until July 2020[44]. Corporate Governance and Compliance - There were no major lawsuits or arbitration matters during the reporting period[45]. - The company has not disclosed any major related party transactions during the reporting period[46]. - The company completed the election of its board and supervisory committee, with changes in independent directors[62]. - The company has not reported any major changes in accounting policies or estimates that would significantly impact total assets, liabilities, or net profit[52]. - There were no significant changes in the total number of shares or the capital structure during the reporting period[54]. Social Responsibility and Community Engagement - The company has 32 registered impoverished households remaining, down from 33, with 96 individuals affected[48]. - The company has implemented a targeted poverty alleviation plan, actively engaging with impoverished households to understand their needs[49]. - The company has committed to providing technical support to impoverished households engaged in livestock farming[50]. - The company plans to strengthen the construction of the village party organization and enhance the ideological support for impoverished households[50]. - The photovoltaic power generation project has been completed and is expected to have an investment of 1 million yuan in the second half of the year[48]. Accounting Policies and Financial Reporting - The financial statements are prepared based on the assumption of going concern, indicating a history of profitable operations and sufficient financial resources for at least the next 12 months[104]. - The accounting policies include provisions for bad debts, inventory measurement, and depreciation methods for fixed assets[105]. - The company recognizes revenue based on actual production and sales activities, ensuring accurate financial reporting[105]. - The company has established a normal operating cycle of 12 months for liquidity classification of assets and liabilities[109]. - The company’s accounting currency is Renminbi (RMB)[110]. - The company includes all controlled subsidiaries in its consolidated financial statements, ensuring comprehensive financial reporting[112]. Financial Instruments and Risk Management - The company assesses expected credit losses for financial assets measured at amortized cost and recognizes loss provisions accordingly[125]. - Financial instruments are initially recognized at fair value, with transaction costs included in the initial measurement for certain categories[120]. - The company evaluates credit risk for financial instruments at each reporting date to determine if significant increases in credit risk have occurred[126]. - The company applies different accounting treatments for expected credit losses based on the stage of credit risk of the financial instruments[126]. - The company measures expected credit losses for accounts receivable based on the entire expected credit loss over the entire duration[128]. Investment and Asset Management - Long-term equity investments are primarily in subsidiaries and joint ventures, with significant influence assessed based on ownership of 20% or more of voting rights[137]. - The company uses the cost method for accounting for investments in subsidiaries and the equity method for joint ventures[137]. - The company recognizes expected credit losses for other receivables similarly to accounts receivable, based on the entire expected credit loss over the duration[130]. - The group conducts impairment tests on long-term assets, including fixed assets and intangible assets, at each balance sheet date, recognizing impairment losses when the carrying amount exceeds recoverable amount[150].