Xinjiang Tianfu Energy (SH:600509)2019-04-25 16:00Financial Performance - The company's operating revenue for 2018 was approximately CNY 4.96 billion, an increase of 16.94% compared to CNY 4.24 billion in 2017[23]. - The net profit attributable to shareholders for 2018 was CNY 49.54 million, a decrease of 72.29% from CNY 178.78 million in 2017[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 22.86 million, down 84.6% from CNY 148.42 million in 2017[23]. - The net cash flow from operating activities increased significantly to CNY 1.55 billion, a rise of 429.76% compared to CNY 292.29 million in 2017[23]. - Basic earnings per share decreased by 77.37% to ¥0.0430, while diluted earnings per share also fell by the same percentage[26]. - The weighted average return on equity dropped to 0.76%, a decrease of 2.85 percentage points from the previous year[26]. - The company achieved an operating revenue growth of 16.94% year-on-year, totaling 3.64 billion CNY, despite a significant net profit decline of 72.29% due to increased production costs and reduced electricity sales prices[41]. - The company reported total revenue of 4.956 billion yuan, a year-on-year increase of 16.94%, while net profit attributable to shareholders decreased by 72.29% to 50 million yuan[47]. Cash Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.16 per 10 shares, totaling CNY 18.42 million, based on a total share capital of 1,151,415,017 shares[7]. - For 2018, the company plans to distribute a cash dividend of 0.16 RMB per 10 shares, totaling 18,422,640.28 RMB, which is 37.18% of the net profit attributable to ordinary shareholders[110]. - The company has established a clear cash dividend policy, ensuring a minimum distribution of 10% of the distributable profit[109]. - The company commits to a cash dividend policy, ensuring that annual cash dividends will not be less than 10% of the distributable profits when profitable[116]. Operational Highlights - Operating income for 2018 was driven by an increase in electricity sales, with total electricity sales reaching 13.411 billion kWh, up 18.65% year-on-year[32]. - The electricity business generated a total power generation of 14.156 billion kWh, representing a year-on-year increase of 31.80%, and electricity sales volume reached 13.411 billion kWh, up 18.65%[41]. - The heating business recorded a total heating supply of 20.0793 million GJ, a decrease of 4.88% year-on-year, while revenue from heating services increased by 6.03% to 512 million CNY due to an increase in heating area[41]. - The natural gas business saw a 29.10% increase in vehicle gas supply and a 43.10% increase in industrial gas usage year-on-year, driven by differentiated marketing strategies and a focus on industrial clients[41]. Market Position and Strategy - The company has a unique position in the market as the only legal electricity supplier in the Shihezi area, with a self-owned installed capacity of 3,173 MW[32]. - The company is actively investing in clean energy and transitioning towards becoming a comprehensive urban service provider, enhancing its competitive edge in the market[32]. - The company plans to expand its natural gas business beyond the Shihezi area, aiming to increase market share and sales volume[32]. - The company is transitioning towards a comprehensive urban energy service platform, leveraging its unique multi-energy operational model and extensive experience in energy dispatch[36]. Risk Management and Compliance - The company has detailed potential risks in the report, which investors should review[9]. - The audit report for the company was issued by Tianzhi International Accounting Firm with a standard unqualified opinion[6]. - The company emphasizes that forward-looking statements do not constitute substantive commitments to investors, highlighting the importance of investment risk awareness[8]. - The company has invested significantly in environmental protection measures, ensuring that emissions meet or exceed national standards, and is moving towards near-zero emissions[39]. Financial Management and Investments - The company completed the issuance of asset securitization products, raising 710 million yuan to support operational funding needs[44]. - The company has strengthened its service management and emergency response capabilities, enhancing customer satisfaction and brand value in the local community[39]. - The company has established a comprehensive independent power supply network covering an area of approximately 7,000 square kilometers, with a self-owned installed capacity of 3,173 MW[36]. - The company has built a natural gas pipeline network exceeding 700 kilometers, serving 184,300 households, and is expanding its gas business beyond Shihezi to other regions in Xinjiang[36]. Environmental Initiatives - The company reported a 25.26% decrease in sulfur dioxide emissions and a 15.80% decrease in nitrogen oxide emissions compared to the previous year, achieving its emission reduction targets[188]. - The company has implemented ultra-low emission modifications for its power generation units, with all pollution control facilities operating normally[193]. - The company has completed environmental impact assessments for its power generation projects, ensuring compliance with environmental regulations[194]. - The company has engaged a third-party service provider for environmental monitoring, ensuring compliance with self-monitoring plans submitted to local environmental authorities[196]. Future Outlook - The company plans to generate 17.055 billion kWh of electricity and supply 16.504 billion kWh in 2019, with a construction investment plan totaling approximately 1.4008235 billion yuan[102]. - The company aims to increase the installed capacity of non-fossil energy to approximately 840 million kW by the end of 2019, representing about 41.8% of total capacity[98]. - The company anticipates a stable electricity consumption growth rate of around 5.5% for 2019, with a projected increase in installed capacity of 11 million kW[98]. - The company will continue to enhance clean and efficient power supply capabilities while promoting market-oriented reforms in the electricity sector[99].