ENN-NG(SH:600803)2019-03-11 16:00Financial Performance - The company's operating revenue for 2018 was approximately RMB 13.63 billion, representing a year-on-year increase of 35.84% compared to RMB 10.04 billion in 2017[16]. - The net profit attributable to shareholders for 2018 was approximately RMB 1.32 billion, a significant increase of 109.37% from RMB 631 million in 2017[16]. - The net cash flow from operating activities for 2018 was approximately RMB 1.22 billion, reflecting a year-on-year increase of 23.41% compared to RMB 990 million in 2017[16]. - The basic earnings per share for 2018 was RMB 1.11, up 73.44% from RMB 0.64 in 2017[17]. - The weighted average return on equity for 2018 was 17.29%, an increase of 4.43 percentage points from 12.86% in 2017[17]. - The total assets at the end of 2018 were approximately RMB 23.51 billion, a 9.09% increase from RMB 21.55 billion at the end of 2017[16]. - The company reported a net profit of RMB 344 million in Q1 2018, with total operating revenue of approximately RMB 2.94 billion[19]. - The company recorded a net profit of RMB 361 million in Q2 2018, with total operating revenue of approximately RMB 3.70 billion[19]. - The company achieved a total operating revenue of CNY 1,363,247.90 million, with a year-on-year increase across all main business segments[36]. - The company's net profit attributable to shareholders was CNY 132,122.97 million, a significant increase of 109.37% year-on-year[37]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 2.10 RMB per 10 shares, totaling approximately 256.92 million RMB, based on a total share base of 1,223,412,348 shares after accounting for repurchased shares[3]. - The company has not proposed any capital reserve transfer to increase share capital or bonus shares in the current profit distribution plan[3]. - The company plans to distribute a total cash dividend of approximately ¥316.66 million for 2018, which represents 23.97% of the net profit attributable to shareholders[153]. - In 2018, the company paid a cash dividend of ¥2.10 per 10 shares, compared to ¥1.00 per 10 shares in 2017[153]. - The company has repurchased a total of 5,943,435 shares for a total amount of ¥59.74 million, which is considered as part of the cash dividend calculation[153]. Risk Management - The company faces various risks including macroeconomic changes, policy risks, environmental risks, and safety production risks, which are detailed in the operational discussion section[5]. - The company has a comprehensive risk management strategy to address potential operational and market risks[5]. - The company emphasizes the importance of not relying on forward-looking statements due to potential discrepancies with actual results[4]. - The company faces liquidity risks due to "take-or-pay" contract obligations, which could impact its financial stability if LNG sales do not meet expectations[149]. - The company faces potential risks from increasing environmental governance costs due to stricter regulations, which may require further investment in equipment to meet national standards[139]. - The company is exposed to risks from international trade barriers that may increase tariffs on LNG exports from the U.S., impacting its market competitiveness[148]. Operational Highlights - The company is engaged in the production and sale of liquefied natural gas, energy technology engineering services, and other energy-related products[23]. - The company’s subsidiary, Qingshui Xin'ao, has an average daily LNG production of 450,000 cubic meters, with an annual LNG capacity of approximately 100,000 tons[24]. - After reaching full production, the total LNG annual capacity of the company will increase to 240,000 tons[24]. - The company holds a 45% stake in CNOOC Beihai, which produces LNG primarily for the Pearl River Delta region[25]. - The company owns a 10.07% stake in Santos, Australia's second-largest oil and gas company, and has contributed to its strategic planning and operational development[25]. - The company’s methanol production capacity is 600,000 tons from its first-phase facility, with a total production of 1,033,500 tons in 2018[28][29]. - The company has established stable trade relationships with major energy consumers across various regions, enhancing its procurement and sales channels for methanol and other chemical products[29]. - The company achieved a total revenue of RMB 423,149.79 million from New Energy (Tianjin) Energy Co., with a net profit of RMB 409.54 million[127]. Environmental and Social Responsibility - The company has committed to sustainable development and has published its sustainability report for the period from January 1, 2017, to November 30, 2018[190]. - The company has implemented wastewater treatment measures to achieve "zero discharge" of wastewater, utilizing SBR biochemical treatment technology[194]. - The company reported a total of 634.96 tons of sulfur dioxide emissions, with a concentration of 150.41 mg/m3, which is below the regulatory limit[192]. - The company has invested 1 million RMB in poverty alleviation projects in Kangbao County, focusing on infrastructure and relocation efforts[186]. - The company actively participated in various charitable activities and encouraged employees to contribute to social welfare[185]. - The company has committed to avoiding competition and maintaining independence, with these commitments being fulfilled as of the reporting period[156]. Strategic Initiatives - The company is focusing on technological advancements in coal chemical processes, with the potential to convert over 30 billion cubic meters of excess coke oven gas into natural gas, enhancing resource utilization[78]. - The company plans to expand its market presence and invest in new technologies to enhance product offerings[56]. - The company is actively developing new technologies, including a rock-pipe guided drilling technology aimed at improving drilling efficiency and reducing costs[62][63]. - The company is pursuing the acquisition of Toshiba's LNG project in the U.S. to gain 2.2 million tons per year of LNG capacity[37]. - The company plans to continue its targeted poverty alleviation efforts in 2019, aligning with government directives and local development conditions[189]. Audit and Compliance - The company has received a standard unqualified audit report from Zhongxi CPA, ensuring the accuracy and completeness of the financial report[2]. - The company is committed to ensuring the accuracy and completeness of its financial reporting, as stated by its responsible executives[2]. - The company has implemented changes in accounting policies, including the integration of accounts receivable and notes receivable into a single line item[161]. - The company has no significant litigation or arbitration matters for the year[167]. - The company has ensured compliance with the use of funds raised from share placements and will monitor the repayment of loans[158].