LEP(SH:600644)2020-03-20 16:00Financial Performance - The net profit attributable to shareholders for 2019 was CNY 89,234,940.80, representing a 10.31% increase compared to CNY 80,894,636.38 in 2018[6] - The operating revenue for 2019 was CNY 2,223,199,937.34, a 2.44% increase from CNY 2,170,337,886.35 in 2018[22] - The net profit excluding non-recurring gains and losses was CNY 55,992,775.62, which is a significant increase of 100.39% from CNY 27,941,935.85 in 2018[22] - Basic earnings per share increased by 10.31% to CNY 0.1657 in 2019 compared to CNY 0.1502 in 2018[23] - The total profit for the reporting period was CNY 140.40 million, an increase of 10.04% compared to CNY 127.57 million in the previous year[54] - The company reported a net profit attributable to shareholders of 89.23 million yuan, an increase of 10.31% year-on-year[46] Cash Flow and Assets - Cash flow from operating activities increased by 67.84% to CNY 281,509,330.77 from CNY 167,720,213.79 in the previous year[22] - Total assets at the end of 2019 were CNY 3,782,209,518.15, reflecting a 12.88% increase from CNY 3,350,584,568.25 in 2018[22] - The net assets attributable to shareholders increased by 9.28% to CNY 1,482,571,551.42 from CNY 1,356,707,046.52 in 2018[22] - The cumulative distributable profit at the end of 2019 was CNY -538,195,678.86, indicating ongoing financial challenges[6] Profit Distribution - The company did not propose any profit distribution for the year due to insufficient statutory reserve to cover previous losses[6] - The company plans to submit the profit distribution proposal to the annual shareholders' meeting for approval[6] - The company has a cash dividend policy that mandates a minimum cash distribution of 30% of the average distributable profit over the last three years, with a minimum of 80% cash distribution if there are no major cash expenditure plans[109] - The company did not distribute profits in 2018 due to negative retained earnings from the merger, but the cash dividend policy was strictly followed in 2019[112] Operational Efficiency - The company implemented measures to reduce internal operating costs, enhancing operational efficiency significantly[38] - The company has established a three-tier organizational structure to enhance operational efficiency and market responsiveness[36] - The company is focusing on transforming into a comprehensive energy service provider, integrating electricity, gas, water, and IoT technologies[36] - The company is committed to optimizing the business environment and improving service quality through various initiatives[39] Market and Business Expansion - The company is actively pursuing market expansion in the Suji New District and Guanying New District for water supply services[37] - The company is expanding its water supply business in urban areas, with a focus on improving water quality standards and integrating water resources[90] - The company plans to enhance its grid structure and improve supply security while controlling construction costs and increasing operational efficiency[83] - The company plans to expand its solar photovoltaic projects in the western regions of Sichuan, leveraging local geographical advantages[98] Risks and Challenges - The company has acknowledged potential risks in its future development strategies, which investors should consider[8] - The company plans to implement flexible pricing policies to support users affected by the COVID-19 pandemic, which may reduce operating profits for 2020[45] - The company is implementing measures to mitigate risks associated with power market reforms and the impact of the COVID-19 pandemic on its operations[105] Shareholder Information - As of the end of the reporting period, Leshan State Investment Group holds 103,608,320 shares, accounting for 19.24% of the total shares[144] - The total number of ordinary shareholders at the end of the reporting period is 28,007, an increase from 27,322 at the end of the previous month[146] - The company does not have a controlling shareholder or actual controller as per the legal opinion provided by Sichuan Yingjie Law Firm[150] Governance and Management - The company emphasizes compliance and risk management through its dedicated compliance management department[162] - The board of directors consists of 11 members, including 4 independent directors, with no controlling shareholder or actual controller identified[174] - The company has established a sound corporate governance structure, with specialized committees such as the remuneration and assessment committee, audit committee, nomination committee, and strategy committee[175] - The management team has been actively involved in the company’s operational and strategic decisions since 2014[162] Social Responsibility - The company donated CNY 970,000 for poverty alleviation projects in Xingxing Village, focusing on grassroots party building, rural tourism infrastructure, and agricultural development[132] - The poverty alleviation program has successfully reduced the poverty incidence in Xingxing Village to 0% by 2018, with high-quality poverty alleviation achieved[131] - The company plans to enhance infrastructure and promote rural tourism, aiming to increase tourist capacity and develop a new model of agricultural-tourism integration[137]