Guizhou Gas(SH:600903)2021-03-01 16:00Financial Performance - The company's operating revenue for 2020 was CNY 4,244,104,771.79, representing a 3.95% increase compared to CNY 4,083,024,996.24 in 2019[25]. - The net profit attributable to shareholders for 2020 was CNY 206,358,548.04, an increase of 8.24% from CNY 190,652,995.55 in 2019[25]. - The net profit after deducting non-recurring gains and losses was CNY 195,528,122.15, which is a 21.96% increase from CNY 160,324,056.94 in 2019[25]. - The net cash flow from operating activities decreased by 52.80% to CNY 315,427,707.91 from CNY 668,243,769.98 in 2019[25]. - The total assets at the end of 2020 were CNY 9,182,201,087.20, a slight decrease of 0.12% compared to CNY 9,193,312,846.37 at the end of 2019[25]. - The net assets attributable to shareholders increased by 1.81% to CNY 2,820,949,366.67 from CNY 2,770,708,985.29 at the end of 2019[25]. - The basic earnings per share for 2020 were CNY 0.18, up 5.88% from CNY 0.17 in 2019[25]. - The diluted earnings per share also stood at CNY 0.18, reflecting the same 5.88% increase from the previous year[25]. - The weighted average return on equity for 2020 was 7.39%, a slight decrease of 0.11 percentage points from 7.50% in 2019[25]. - The company reported a significant increase in the weighted average return on equity after deducting non-recurring gains and losses, rising to 7.01% from 6.31% in 2019, an increase of 0.70 percentage points[25]. Dividend Policy - The board proposed a cash dividend of 0.55 CNY per 10 shares, totaling 62,600,176.49 CNY to be distributed to shareholders[5]. - The company distributed cash dividends of CNY 62,600,176.49 in 2020, representing 30.34% of the net profit attributable to ordinary shareholders[135]. - In 2019, the cash dividend amount was CNY 58,047,436.38, accounting for 30.45% of the net profit attributable to ordinary shareholders[135]. - The cash dividend for 2018 was CNY 52,031,315.52, which was 30.30% of the net profit attributable to ordinary shareholders[135]. - The company has a stable cash dividend policy, aiming for a minimum cash dividend ratio of 15% of distributable profits, with conditions for higher distributions based on financial health and investment plans[130]. - The company prioritizes cash dividends over stock dividends, especially when it has sufficient cash flow and no major investment plans[130]. - The company must obtain approval from the board of directors and the supervisory board for its profit distribution policy, which requires a two-thirds majority vote from shareholders at the general meeting[132]. - The company has a commitment to implement its profit distribution policy post-IPO, ensuring compliance with regulations[142]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits[137]. - The company’s profit distribution policy adjustments must comply with the regulations set by the China Securities Regulatory Commission and the Shanghai Stock Exchange[134]. Operational Risks and Strategies - The company emphasized the importance of risk awareness regarding future plans and development strategies[6]. - The company has detailed the main operational risks in the report, urging investors to pay attention[7]. - The company faces risks related to policy changes, including potential increases in gas procurement costs due to market fluctuations following the establishment of the National Pipeline Company[122]. - The company is also exposed to engineering installation fee risks due to regulatory changes that may affect service charges and related costs[123]. - The company relies heavily on a few suppliers for pipeline natural gas, primarily from PetroChina, which poses a supply concentration risk[124]. - The company has implemented various performance incentive systems to retain its core management team, but there is a risk of talent loss as the gas market expands and new competitors enter[127]. Market Expansion and Infrastructure Development - The company is actively expanding its market presence by investing in natural gas branch pipelines and related facilities in Guizhou Province[43]. - The company has established three natural gas branch pipelines and obtained gas supply franchise rights in 31 specific areas within Guizhou Province[35]. - The company plans to expand its market share by actively exploring new regions and users while enhancing its operational capabilities through big data and IoT technologies[120]. - The company is focused on enhancing its service capabilities and expanding its market presence through strategic partnerships and agreements with local authorities[10][11][12][13]. - The company has initiated digital transformation efforts, achieving significant progress in cloud computing applications and customer service systems[54]. Legal and Compliance Matters - The company is involved in significant litigation, including a civil lawsuit against Guizhou Xinda Yuanyang Investment Co., Ltd. for overdue gas usage fees amounting to RMB 5,363,834.76 and a penalty of RMB 4,282,136.40, totaling RMB 9,645,971.16[150]. - Another civil lawsuit involves Guizhou Gas (Group) Liupan Water Gas Co., Ltd. suing Guizhou Santiago International Hotel Co., Ltd. for unpaid rent of RMB 11,025,000.00[150]. - The company has fully provided for bad debts related to overdue gas fees, reflecting a cautious approach to potential recoveries from litigation outcomes[153]. - The company has faced no risks of suspension or termination of listing during the reporting period[148]. - The company has not reported any major litigation or arbitration matters that were not disclosed in temporary announcements[150]. Research and Development - The company reported a 126.41% increase in R&D expenses, amounting to 1.079 million yuan, indicating a focus on innovation[59]. - The company has completed several R&D projects aimed at improving gas meter detection efficiency and is applying for related patents[68]. - Guizhou Gas has initiated the development of new technologies for gas pipeline maintenance, aiming to reduce operational costs by 10% over the next three years[186]. Subsidiaries and Acquisitions - Guizhou Gas Group invested CNY 7,100.00 million to acquire 100% equity of Shen'an Gas and increased its capital by CNY 5,200.00 million[82]. - The company completed the acquisition of 60% equity in Xincheng Company for CNY 2,190.00 million and increased its capital by CNY 5,200.00 million, bringing the total investment to CNY 5,310.00 million[83]. - The company has established a wholly-owned subsidiary, Guize Hong Kong Development Limited, in Hong Kong with a share capital of 1 HKD on January 14, 2020[93]. - A new subsidiary, Singapore Guize Investment PTE.LTD, was set up in Singapore with a share capital of 100 SGD on April 16, 2020[93]. - The company has invested 9.98 million CNY to establish a joint venture, Zunyi Petrochemical Guiran Energy Co., with a registered capital of 20 million CNY, where the company holds a 49.9% stake[94]. Government and Regulatory Relations - The company has signed long-term supply agreements with major suppliers such as PetroChina and Sinopec, ensuring a stable gas supply[42]. - The company has received government subsidies amounting to CNY 7.64 million in 2020, down from CNY 22.74 million in 2019[29]. - The company has engaged Lixin Accounting Firm for auditing services, with a remuneration of CNY 1,800,000[146]. - The company appointed ShineWing Certified Public Accountants as the auditor for the 2020 financial report, with an audit fee totaling RMB 2.3 million (including RMB 1.8 million for financial report audit and RMB 0.5 million for internal control audit)[148].