Guizhou Gas(SH:600903)2020-04-20 16:00Financial Performance - The company's operating revenue for 2019 was approximately CNY 4.08 billion, representing a 13.23% increase from CNY 3.61 billion in 2018[26]. - The net profit attributable to shareholders for 2019 was approximately CNY 190.65 million, an increase of 11.03% compared to CNY 171.71 million in 2018[26]. - The net cash flow from operating activities increased by 67.15% to approximately CNY 668.24 million in 2019 from CNY 399.78 million in 2018[26]. - The total assets of the company at the end of 2019 were approximately CNY 9.19 billion, a 12.24% increase from CNY 8.19 billion at the end of 2018[26]. - The net assets attributable to shareholders increased by 19.40% to approximately CNY 2.77 billion at the end of 2019 from CNY 2.32 billion at the end of 2018[26]. - The basic earnings per share for 2019 were CNY 0.17, up 13.33% from CNY 0.15 in 2018[26]. - The weighted average return on net assets for 2019 was 7.50%, an increase of 0.16 percentage points from 7.34% in 2018[26]. - The company distributed cash dividends of CNY 0.64 per 10 shares, totaling approximately CNY 52.03 million for the year 2018[26]. - The company increased its total share capital from 812,989,305 shares to 1,138,185,027 shares following a capital reserve conversion plan[26]. - The net profit after deducting non-recurring gains and losses for 2019 was approximately CNY 160.32 million, a 6.56% increase from CNY 150.46 million in 2018[26]. Dividend Policy - The company proposed a cash dividend of 0.51 CNY per 10 shares, totaling 58,047,436.38 CNY to be distributed to shareholders[8]. - The company implemented a cash dividend policy, prioritizing cash dividends over stock dividends, with a minimum cash distribution of 15% of distributable profits if no major investment plans exist[91]. - In 2019, the company distributed cash dividends amounting to ¥58,047,436.38, representing 30.45% of the net profit attributable to ordinary shareholders[98]. - The cash dividend for 2018 was ¥52,031,315.52, which accounted for 30.30% of the net profit attributable to ordinary shareholders[98]. - The cash dividend for 2017 was ¥13,820,818.19, representing 10.06% of the net profit attributable to ordinary shareholders[98]. - The company plans to conduct annual cash dividends, with the board able to propose mid-term cash dividends based on profitability and cash flow[92]. - The company’s profit distribution policy requires independent directors to review and provide opinions on the dividend proposals[95]. - The company aims to maintain a stable profit distribution policy, considering the interests of investors and the company's growth potential[91]. - The company’s profit distribution policy must be approved by a two-thirds majority of shareholders present at the general meeting[95]. - The company’s cash dividend conditions include positive distributable profits and sufficient cash flow to ensure ongoing operations[93]. Operational Risks and Compliance - The company has detailed the main operational risks in the report, advising investors to pay attention to investment risks[10]. - The company emphasizes that forward-looking statements do not constitute a substantive commitment to investors[9]. - The company has ensured the accuracy and completeness of the financial report in the annual report[7]. - The company has not violated decision-making procedures for external guarantees[10]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[10]. - The company has not faced any risks of suspension or termination of listing, indicating compliance with regulatory requirements[109]. - The company emphasizes the importance of maintaining compliance with legal regulations to mitigate risks associated with administrative penalties and litigation[88]. Government Support and Subsidies - The company received government subsidies amounting to CNY 22,739,842.46 in 2019, which is a notable increase from CNY 16,582,464.47 in 2018[30]. Infrastructure and Market Expansion - The company utilized 740 million cubic meters of pipeline natural gas in 2019, accounting for 70.5% of the total pipeline gas in Guizhou province[35]. - The company constructed 339.3 kilometers of natural gas pipelines, representing 33.1% of the total pipeline infrastructure in Guizhou province[35]. - The company is actively investing in the construction of natural gas infrastructure to support the "Gasification of Guizhou" strategy, enhancing its market position[35]. - The company has established a long-term supply agreement with major suppliers like PetroChina, ensuring stable gas supply[38]. - The company is focusing on information technology improvements to enhance operational efficiency and reduce management costs[38]. - The company developed 230,000 new users during the reporting period, indicating steady market expansion[43]. - The company is focused on expanding its service offerings in distributed energy stations and heating engineering, aiming to diversify its revenue streams[78]. Legal Matters and Litigation - The company is involved in a civil lawsuit against Guizhou Xinda Ocean Investment Co., Ltd. and Guizhou Ruili Real Estate Development Co., Ltd. for unpaid gas fees totaling RMB 5,363,834.76 and a penalty of RMB 4,282,136.40[111]. - The lawsuit involves a total amount of RMB 9,645,971.16, with no expected liabilities recognized[111]. - The company has filed a lawsuit against Guizhou Santiago International Hotel Co., Ltd. for overdue rent exceeding 25 months, claiming RMB 11,025,000.00 in unpaid rent[112]. - The court ruled that Guizhou Santiago International Hotel Co., Ltd. must pay RMB 8,094,214.00 in rent and RMB 630,000.00 in penalties within 30 days of the judgment[116]. - The company has fully provided for bad debts related to the receivables from both lawsuits due to the uncertainty of recovery[115]. - The first-instance judgment in the gas fee case was upheld by the intermediate court, and the company has applied for enforcement of the judgment[115]. - The second-instance judgment in the rental dispute increased the amount owed by Guizhou Santiago International Hotel Co., Ltd. to RMB 9,931,714.00[117]. - The company is currently in the enforcement stage for both lawsuits, with potential risks of not recovering the owed amounts[119]. Social Responsibility and Community Engagement - The company invested a total of 4.41 million CNY in poverty alleviation efforts, including 4.2793 million CNY in cash and 132,000 CNY in material donations[196]. - The company established the Hongji Foundation, donating 4 million CNY to support public welfare initiatives in Guizhou[196]. - The company provided financial assistance of 16,000 CNY to support 8 impoverished students in Zunyi City[196]. - The company allocated 10,000 CNY to assist in the construction of roads for students in Jiangkou Village[196]. - The company contributed 100,000 CNY in materials to improve rural roads in Longli County[196]. - The company has a plan to continue its poverty alleviation efforts in 2020, adhering to national and local government guidelines[199]. - The company has engaged in targeted poverty alleviation, with a total of 22.53 million CNY allocated for specific poverty alleviation projects[198]. - The company donated 1.12 million CNY to support educational initiatives in Qianxinan Prefecture[196]. - The company has committed to ongoing social responsibility initiatives, as detailed in its annual social responsibility report[200].