Xinjiang Tianfu Energy (SH:600509)2019-06-04 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 and diluted earnings per share decreased to ¥0.0430, down 77.37% from ¥0.1900 in the previous year[26]. - The weighted average return on equity dropped to 0.76%, a decrease of 2.85 percentage points compared to 3.61% in the previous year[26]. - The company's net profit decreased significantly by 72.29% compared to the previous year due to rising production costs and multiple reductions in electricity sales prices[41]. - The average selling price of electricity decreased due to multiple government price adjustments, impacting overall profitability[44]. Revenue and Sales - Operating revenue for 2018 was driven by an increase in electricity sales, with total electricity sales reaching 13.411 billion kWh, up 18.65% year-over-year[32]. - The company achieved a revenue growth of 16.94% year-on-year, reaching a total revenue of 36.43 billion CNY in the electricity business, with a sales volume of 134.11 billion kWh, an increase of 18.65%[41]. - The total power generation reached 141.56 billion kWh, representing a year-on-year increase of 31.80%[41]. - The company’s heating business revenue increased by 6.03% to 5.12 billion CNY, despite a 4.88% decrease in heating volume due to improved efficiency measures[41]. - The company achieved a total natural gas supply of 180.66 million cubic meters, a year-on-year increase of 28.41%, generating revenue of 363 million yuan, up 32.95%[44]. Costs and Expenses - Total costs increased by 28.96% to CNY 3,806,228,523.32, driven by higher coal prices and increased depreciation from construction projects being transferred to fixed assets[53]. - The cost of electricity production rose by 33.05% to CNY 2,714,668,710.80, accounting for 71.32% of total costs, due to increased power generation and rising coal prices[53]. - The company implemented cost control measures, resulting in a 25% increase in operating costs year-on-year, despite efforts to manage coal prices and consumption[44]. Investments and Expansion Plans - The company plans to expand its natural gas business beyond the Shihezi area, aiming to increase its market share in the gas sector[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 invest 1.117835 million yuan in technological transformation projects to improve operational efficiency[102]. - The company plans to conduct financing leases with a total amount of up to 3.1 billion CNY at an annual interest rate of 6.00% for a term of 5 years[11]. 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]. - In 2018, the cash dividend was reduced to 0.16 RMB per 10 shares, amounting to 18,422,640.28 RMB, representing 37.18% of the net profit attributable to ordinary shareholders[110]. - The company implemented a cash dividend policy, distributing at least 10% of the distributable profits as cash dividends, ensuring sustainable operation and long-term development[109]. Risk Management and Compliance - The report includes a detailed description of potential risks faced by the company, which investors are advised to review[9]. - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm[6]. - The board of directors and senior management have confirmed the accuracy and completeness of the financial report[4]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[9]. Environmental and Social Responsibility - The company has invested significantly in environmental protection measures, achieving emissions below national standards and moving towards near-zero emissions[39]. - The company achieved a 25.26% reduction in sulfur dioxide emissions and a 15.80% reduction in nitrogen oxides compared to the previous year, meeting national environmental targets ahead of schedule[191]. - The company has engaged in social responsibility initiatives, including educational support in poverty alleviation efforts[186]. - The company has implemented employee welfare measures, including health check-ups and additional medical insurance for staff[189]. Financing and Guarantees - The company reported a significant increase in short-term borrowings by 208.43% to CNY 1,819,750,000.00, aimed at supplementing working capital[65]. - The company provided guarantees totaling RMB 7.37 billion for Xinjiang Tianfu Group Co., Ltd. as of the end of the reporting period[172]. - The company has multiple loan agreements with various banks, totaling over 500 million yuan, aimed at supporting operational and project financing needs[166]. - The company approved guarantees totaling 730 million yuan for its subsidiaries in 2018, including 100 million yuan for Shihezi Tianfu Nanridian Co., 400 million yuan for Xinjiang Tianfu Tianyuan Gas Co., and 130 million yuan for Xinjiang Tianfu Jinyang New Energy Co.[176].