LEP(SH:600644)2022-03-24 16:00Financial Performance - In 2021, the company achieved a total operating revenue of CNY 2,571,148,042.20, representing a year-on-year increase of 12.22% compared to CNY 2,291,204,881.07 in 2020[27]. - The net profit attributable to shareholders of the listed company for 2021 was CNY 117,613,621.56, an increase of 14.71% from CNY 102,535,347.58 in 2020[27]. - The net profit after deducting non-recurring gains and losses was CNY 107,561,593.52, which is a significant increase of 60.81% compared to CNY 66,886,467.10 in 2020[27]. - The net cash flow from operating activities for 2021 was CNY 476,572,365.25, up 16.69% from CNY 408,424,506.68 in 2020[27]. - As of the end of 2021, the net assets attributable to shareholders of the listed company were CNY 1,719,859,771.18, an increase of 8.21% from CNY 1,589,338,612.07 at the end of 2020[27]. - The total assets of the company at the end of 2021 were CNY 3,999,155,370.93, showing a slight increase of 0.01% from CNY 3,998,923,590.43 at the end of 2020[27]. - Basic earnings per share increased by 14.71% to CNY 0.2184 in 2021 compared to CNY 0.1904 in 2020[28]. - The company reported a cumulative undistributed profit of CNY -314,313,021.65 at the end of 2021, indicating ongoing financial challenges[7]. - The company did not propose any profit distribution or capital reserve transfer to increase share capital for the year 2021 due to insufficient surplus reserves to cover losses[7]. Operational Highlights - The company added 23,080 new electricity users, 16,204 new water users, and 17,915 new gas users during the reporting period[34]. - The total sales volume of electricity reached 3.838 billion kWh, ranking 11th in the province[34]. - The company achieved a 100% completion rate for asset investment in 2021, up from 91% in 2020[35]. - The company completed significant projects including rural power grid upgrades and water supply network improvements during the reporting period[36]. - The company's electricity sales volume accounted for 13.89% of the total in Leshan City, an increase of 0.92 percentage points compared to the previous year[42]. - The gas sales volume in Leshan City accounted for 9.05%, a decrease of 0.45 percentage points compared to the previous year[42]. - The water sales volume in Leshan City accounted for 42.01%, an increase of 0.68 percentage points compared to the previous year[42]. - The average annual power outage time for users decreased by 9.95% year-on-year[38]. - The coverage rate of smart meters increased by 24.6% compared to the beginning of the year, achieving near full coverage[38]. Strategic Initiatives - The company initiated the establishment of a comprehensive energy service platform focusing on new energy and smart operations[34]. - The company is exploring new business avenues in water supply, including secondary water supply and direct drinking water services, to mitigate operational pressures[86]. - The company is enhancing its competitive edge in the comprehensive energy service market through the implementation of green and low-carbon technology innovations[87]. - The company plans to develop 100 million kilowatts of clean energy in Sichuan over the next decade, enhancing its position as a clean energy base[83]. - The company aims to achieve a power generation of 53,000 million kWh and a sales volume of 400,000 million kWh in 2022[93]. - The company is focused on improving asset management and aims for a fixed asset investment completion rate of 100%[95]. - The company is actively promoting reforms to improve operational mechanisms, including a performance management model and a new broadband salary system[96]. Governance and Compliance - The board of directors consists of 11 members, including 4 independent directors, ensuring compliance with legal and regulatory requirements[104]. - The company has established a performance evaluation and incentive mechanism for senior management, linking their compensation to the achievement of operational targets[108]. - The company has implemented a strict information disclosure management system, ensuring timely and accurate information dissemination to all shareholders[108]. - The company has a comprehensive risk control mechanism for external guarantees, ensuring that the risks are manageable and do not harm the interests of shareholders[103]. - The company respects the rights of all stakeholders, including creditors, employees, suppliers, and customers, promoting sustainable development[108]. Challenges and Risks - The company has indicated potential risks in its future development strategies, which investors should be aware of[12]. - The company faces significant risks in its electricity business due to the transition to a transmission and distribution pricing model, which has negatively impacted profitability[97]. - In the natural gas sector, the company is experiencing increased procurement costs and supply losses due to rising prices and a lack of a pricing mechanism[98]. Community Engagement - In 2021, the company donated 600,000 yuan to support rural revitalization efforts in Xingxing Village, which was recognized as a "Demonstration Village for Rural Governance" in Sichuan Province[166]. - The village plans to enhance its agricultural production by improving the quality of highland vegetables and expanding the planting areas of various crops, including 80 acres of peach and 40 acres of yellow flowers[170]. - The village aims to develop a standardized production system to ensure product quality and safety, with a focus on establishing a traceability system for agricultural products[170]. - The village is leveraging e-commerce platforms to expand sales channels for its agricultural products, aiming to create a well-known brand "Xingyao Foods" and promote local specialties[170]. - The village is committed to poverty alleviation by implementing monitoring and support mechanisms for vulnerable populations, ensuring access to education, health, and housing[172]. Future Outlook - The company plans to maintain a power loss rate of 6.50%, a water leakage rate of 13.87%, and a gas transmission loss rate of 3.10%[93]. - The budgeted operating revenue for 2022 is 266,301 million yuan, with total operating costs estimated at 266,115 million yuan, resulting in a profit of 3,842 million yuan[93]. - The company aims to enhance market competitiveness through comprehensive market-oriented reforms and digital transformation[92].