Guizhou Gas(SH:600903)2019-04-22 16:00Financial Performance - The company's operating revenue for 2018 was CNY 3,605,825,417.64, representing a 29.75% increase compared to CNY 2,779,004,649.90 in 2017[24]. - The net profit attributable to shareholders for 2018 was CNY 171,709,800.84, a 24.96% increase from CNY 137,410,642.53 in 2017[24]. - The net cash flow from operating activities decreased by 13.69% to CNY 399,782,841.47 in 2018 from CNY 463,191,877.53 in 2017[24]. - The total assets at the end of 2018 were CNY 8,190,558,780.51, a 6.69% increase from CNY 7,676,887,015.46 at the end of 2017[24]. - The basic earnings per share for 2018 was CNY 0.21, a 5.00% increase from CNY 0.20 in 2017[24]. - The weighted average return on equity increased by 1.13 percentage points to 7.34% in 2018 from 6.21% in 2017[24]. - The company reported a net profit of CNY 55,096,580.05 in Q4 2018, following a loss of CNY 2,989,492.13 in Q3 2018[26]. - The total non-operating income for 2018 amounted to CNY 21,249,982.23, compared to CNY 18,293,429.77 in 2017[27]. - The company's net assets attributable to shareholders at the end of 2018 were CNY 2,320,450,982.77, a decrease of 1.77% from CNY 2,362,282,334.03 at the end of 2017[24]. Shareholder Information - The board proposed a cash dividend of 0.64 CNY per 10 shares, totaling 52,031,315.52 CNY, and a capital reserve increase of 4 shares for every 10 shares held, resulting in an increase of 325,195,722 shares, raising total shares to 1,138,185,027[8]. - The total number of shares before the proposed increase was 812,989,305[8]. - The company reported a cash dividend of 52,031,315.52 RMB for 2018, which represents 30.30% of the net profit attributable to ordinary shareholders[78]. - In 2018, the company distributed a cash dividend of 0.64 RMB per 10 shares, compared to 0.17 RMB per 10 shares in 2017[78]. - The total number of shareholders increased from 79,283 to 85,598, representing a growth of approximately 8.5%[158]. - The largest shareholder, Beijing Dongjia Investment Co., Ltd., holds 361,758,457 shares, accounting for 44.50% of the total shares[158]. - Guizhou Industrial Investment (Group) Co., Ltd. holds 292,210,422 shares, representing 35.94% of the total shares[158]. - The total number of restricted shares at the beginning of the year was 329,282,452, all of which were released on November 7, 2018[156]. Operational Highlights - The company achieved natural gas sales of 925 million cubic meters, a year-on-year increase of 34.84%[37]. - The company expanded its customer base by adding 230,000 users during the reporting period[37]. - The company holds 27 natural gas franchise rights in Guizhou province, making it the largest urban gas operator in the region[36]. - The company is implementing a moderate diversification strategy, including investments in LNG and distributed energy services[30]. - The company has established three natural gas branch pipelines in Guizhou Province, covering major cities and industrial parks, laying a foundation for future growth[30]. - The company is focused on urban gas supply and service, with its core competitiveness stemming from its extensive operational experience and brand strength in the industry[30]. - The company is actively pursuing market expansion and new technology development in the clean energy sector[60]. Risk Management - The company has outlined major operational risks in the report, advising investors to be cautious[10]. - The report includes a forward-looking statement risk declaration, cautioning investors about potential risks[9]. - The company faces risks related to price control and potential revenue decline due to regulatory changes in gas pricing mechanisms[65]. - The company has identified potential risks from intensified market competition and fluctuations in downstream gas demand[66]. - The company is heavily reliant on PetroChina for gas supply, which poses a risk if supply agreements are not honored[66]. - The company faced risks related to project implementation and revenue generation due to macroeconomic fluctuations and market competition[68]. Corporate Governance - The company reported a standard unqualified audit opinion from Lixin Certified Public Accountants[7]. - All board members attended the board meeting, ensuring comprehensive oversight of the report[6]. - The company emphasizes the importance of accurate financial reporting, with key personnel affirming the report's integrity[7]. - The company has a structured decision-making process for profit distribution, requiring approval from the board and the shareholders' meeting[73]. - The company has established a performance incentive system to retain its core management team, which has remained stable during the reporting period[68]. - The governance structure includes a clear separation of powers among the shareholders' meeting, board of directors, and supervisory board[191]. - The company maintains independence from its controlling shareholder in terms of personnel, assets, and operations[196]. Legal Matters - The company has ongoing significant litigation involving a claim for overdue gas fees amounting to RMB 5,363,834.76 and a penalty of RMB 4,282,136.40 against Guizhou Xinda Yuanyang Investment Co., Ltd. and Guizhou Ruili Real Estate Development Co., Ltd.[90]. - The company is pursuing a lawsuit against Guizhou Santiago International Hotel Co., Ltd. for overdue rent exceeding 25 months, with a total claim of RMB 11,025,000.00[90]. - A court ruling on the gas fee dispute resulted in a judgment requiring Guizhou Xinda Yuanyang Investment Co., Ltd. to pay RMB 2,683,066.68 in gas fees and penalties calculated at four times the standard loan interest rate from April 1, 2016, until payment is made[91]. - The company has fully provisioned for bad debts related to overdue gas fees based on prudence, reflecting potential difficulties in recovering these amounts[91]. - The company has initiated legal proceedings to enforce a judgment against Guizhou Xinda Yuanyang Investment Co., Ltd. and is preparing new evidence for a civil retrial application[91]. Community Engagement - Guizhou Gas Group is actively involved in poverty alleviation efforts, supporting government initiatives in its operational areas[140]. - The company invested a total of 3,575,026.15 CNY in poverty alleviation efforts, including 3,478,100.00 CNY in cash and 96,926.15 CNY in materials, benefiting over 900 impoverished households[141]. - A total of 376 registered impoverished individuals were lifted out of poverty through various initiatives[146]. - The company provided financial assistance of 4.4 million CNY to support 51 impoverished students[146]. - The company donated 2 million CNY to establish the Guizhou Hongji Public Welfare Foundation[149]. Employee Information - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 9.52 million yuan[181]. - The company employed a total of 3,636 staff, including 1,641 production personnel and 669 sales personnel[183][186]. - The company adjusted salaries for frontline employees during the reporting period to enhance their sense of recognition and belonging[187]. - The remuneration scheme for senior management is approved by the board and is based on the company's annual economic indicators and individual performance[181]. - The company has a total of 394 technical staff and 139 financial personnel[186]. Strategic Initiatives - The company is exploring potential mergers and acquisitions to enhance its market share[175]. - The company is focusing on sustainable energy solutions as part of its new strategic initiatives[175]. - The management team emphasized the importance of regulatory compliance and risk management in future operations[175]. - The company plans to enhance its LNG storage capacity to ensure supply during pipeline gas shortages[34]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of $100 million allocated for potential deals[174].