ENN-NG(SH:600803)2021-03-22 16:00Financial Performance - The operating revenue for 2020 was CNY 8,809,877, a decrease of 0.62% compared to 2019[19]. - The net profit attributable to shareholders was CNY 210,696, down 27.49% from the previous year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 65.86% to CNY 130,528[20]. - The net cash flow from operating activities was CNY 1,244,768, a decrease of 13.02% year-on-year[19]. - The total assets at the end of 2020 were CNY 10,952,385, an increase of 3.17% from the previous year[19]. - The basic earnings per share for 2020 was CNY 0.82, a decrease of 26.79% compared to 2019[20]. - The weighted average return on net assets was 16.51%, a decrease of 1.85 percentage points from the previous year[20]. - The company reported a total revenue of 730,727 million, a decrease of 24,305 million compared to the previous year[27]. - The company’s financial expenses amounted to -29,942 million, indicating a significant cost in financing operations[27]. - The company achieved a total of 120.42 billion kWh in comprehensive energy sales, representing a 75.9% year-on-year growth, with 21 comprehensive energy projects operational during the reporting period[61]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 1.9 RMB per 10 shares, totaling approximately 537.23 million RMB, based on a total share count of 2,827,513,551 shares after excluding repurchased shares[4]. - The company distributed cash dividends of 2.10 RMB per 10 shares in 2019, totaling 254,313,300.15 RMB, which is 32.72% of the net profit attributable to shareholders[132]. - In 2020, the cash dividend per 10 shares was 1.90 RMB, amounting to 537,227,574.69 RMB, representing 25.50% of the net profit attributable to shareholders[133]. - The company has a cash dividend policy ensuring at least 10% of distributable profits are paid out annually, with a cumulative distribution of at least 30% over three years[132]. - The company has not proposed a cash profit distribution plan for the reporting period despite positive profits available for distribution[135]. Audit and Compliance - The company has received a standard unqualified audit report from Zhongxi Accounting Firm[3]. - The company has confirmed that all board members attended the board meeting, ensuring accountability for the report's accuracy[3]. - The company has not experienced any non-operating fund occupation by controlling shareholders or their affiliates[5]. - The company has not violated decision-making procedures for external guarantees[5]. - The company has not disclosed any significant changes in its stock structure or shareholder situation during the reporting period[8]. - The company has maintained its registered office and operational addresses in Hebei Province, ensuring compliance with regulatory requirements[14]. - The company has appointed Zhongxi Accounting Firm as its auditor, with specific partners responsible for the audit[18]. Business Operations and Strategy - The company is transitioning its business model from single gas sales to a comprehensive energy service model, integrating various energy sources[31]. - The company has signed long-term LNG import contracts with international suppliers, including TOTAL and Chevron, to secure gas sources[30]. - The company is actively developing the hydrogen energy industry chain, with its first hydrogen supply project under construction in Huludao, Liaoning[48]. - The company is positioned as a "smart ecological operator" in the natural gas industry, leveraging a large customer base and a mature international sourcing capability[44]. - The company plans to expand its natural gas market, which has seen an average annual growth of over 10% since the 13th Five-Year Plan, with consumption reaching 325.9 billion cubic meters in 2020[96]. Market and Industry Trends - The global natural gas demand is expected to recover post-COVID-19, with strong growth driven by the transition from coal to low-carbon economies in developing Asian countries[37]. - In 2020, China's apparent natural gas consumption reached 325.93 billion cubic meters, an increase of 22.87 billion cubic meters or 7.6% year-on-year[38]. - Domestic natural gas production in China grew by 9.8% in 2020, reaching 188.8 billion cubic meters[38]. - The total natural gas import volume in China for 2020 was 101.66 million tons, an increase of 5.3% compared to 2019[38]. - The liquefied natural gas (LNG) import volume increased by 11% year-on-year in 2020, while pipeline gas imports decreased by 4.9%[38]. Risks and Challenges - The company has faced risks related to interest rates, exchange rates, and derivative products, which are detailed in the "Discussion and Analysis of Operating Conditions" section[6]. - The company faces risks related to macroeconomic uncertainties, particularly due to the ongoing global pandemic, which may impact business operations[124]. - There is a significant reliance on upstream suppliers for gas sourcing, and fluctuations in natural gas prices could adversely affect the company's financial performance[125]. - Safety risks associated with the storage and transportation of natural gas remain a concern, as any incidents could disrupt operations and impact business continuity[126]. - The market-oriented reform of the natural gas sector poses risks, particularly regarding the operational experience of the newly established national pipeline company, which may affect the company's procurement activities[127]. Environmental and Social Responsibility - The company is committed to expanding its clean energy coverage and supporting urbanization efforts, targeting a reduction in carbon emissions to 10.6 billion tons by 2025[190]. - The company has established a robust environmental management system, increasing investment in environmental protection and safety measures[190]. - The company reported a total of 106,207.12 tons of general solid waste generated, with no violations of pollution control standards[193]. - The company actively participates in disaster relief and social welfare initiatives, promoting community engagement through its volunteer service brand[191]. - The company donated RMB 500,000 to support local agricultural projects and RMB 525,000 for assisting 20 individuals in need in Langfang City[181]. Related Party Transactions - The actual amount of daily related transactions in 2020 was CNY 2,511.66 million, which is a decrease of CNY 1,162.09 million compared to the estimated amount[159]. - The company’s related transactions with Xin'ao Energy Holdings Co., Ltd. amounted to CNY 539.25 million, matching the estimated amount[160]. - The company’s related transactions for administrative logistics services with Xin'ao (Zhoushan) LNG Co., Ltd. amounted to CNY 2.99 million in 2020[160]. - The company signed a management entrustment agreement with Xin'ao (Zhoushan) LNG Co., Ltd. on October 29, 2020[159]. - The company reported a related transaction amount of CNY 61.55 million with Xin'ao (Zhoushan) Natural Gas Pipeline Co., Ltd. in 2020[160].