CQGAS(SH:600917)2019-03-29 16:00Financial Performance - The company's operating revenue for 2018 was CNY 6,371,596,474.03, representing an increase of 11.51% compared to CNY 5,714,054,694.35 in 2017[22]. - The net profit attributable to shareholders for 2018 was CNY 347,670,559.76, a decrease of 4.34% from CNY 363,429,196.12 in 2017[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 293,082,037.06, down 11.87% from CNY 332,562,992.90 in 2017[22]. - The net cash flow from operating activities increased by 47.12% to CNY 512,026,750.39 in 2018, compared to CNY 348,024,513.24 in 2017[22]. - The company's total assets at the end of 2018 were CNY 8,351,814,082.88, a 1.32% increase from CNY 8,243,091,647.60 at the end of 2017[22]. - The basic earnings per share for 2018 was CNY 0.22, a decrease of 4.35% from CNY 0.23 in 2017[23]. - The weighted average return on equity for 2018 was 9.01%, down 0.89 percentage points from 9.90% in 2017[23]. - Operating revenue was 6.372 billion yuan, a year-on-year growth of 11.51%, while total profit reached 441 million yuan[47][48]. Dividend Policy - The proposed cash dividend for 2018 is CNY 0.80 per 10 shares, totaling CNY 124.48 million, based on a total share capital of 1,556,000,000 shares[6]. - The company plans to distribute cash dividends of 0.80 RMB per 10 shares for the 2018 fiscal year, totaling 12,448,000 RMB, which represents 35.80% of the net profit attributable to shareholders[88]. - In 2017, the company distributed cash dividends of 1.30 RMB per 10 shares, totaling 20,228,000 RMB, which was 55.66% of the net profit attributable to shareholders[88]. - The company has implemented a cash dividend policy that exceeds regulatory requirements, ensuring reasonable returns for investors[87]. - The company has not made any adjustments to its cash dividend policy during the reporting period[87]. Audit and Compliance - The company has received a standard unqualified audit report from Xinyong Zhonghe Accounting Firm[5]. - The company is committed to maintaining accurate and complete financial reporting as stated by its management[4]. - The company has maintained compliance with commitments made during its IPO regarding shareholding intentions and competition avoidance[91]. - The company received an audit opinion stating that its financial statements fairly reflect its financial position and operating results as of December 31, 2018[176]. - The company maintained effective internal controls over financial reporting as per the audit conducted by Xinyong Zhonghe Accounting Firm[173]. - There were no significant deficiencies in internal controls reported during the year[171]. Market and Operations - The company operates in the natural gas sector, with significant reliance on suppliers like China National Petroleum Corporation and Sinopec[14]. - The company operates in urban pipeline gas supply and services, with a focus on natural gas supply and city pipeline construction[33]. - The company has expanded its natural gas supply coverage to 25 districts and counties in Chongqing and obtained gas operation rights in Hunan Province[34]. - The company achieved a total gas supply of 3.433 billion cubic meters in 2018, representing a growth rate of 34.5% compared to the previous year[41]. - The company serves 4.92 million customers, accounting for 59.28% of the total customers in Chongqing[41]. - The company has a market share of 34% of the total natural gas consumption in Chongqing[41]. - The company plans to supply a total of 3.35 billion cubic meters of gas in 2019, with a target of developing 250,000 new users and controlling the transmission loss rate within 4%[83]. Challenges and Risks - The company emphasizes the importance of objective conditions for the realization of future plans and strategies, highlighting potential investment risks[7]. - The company has faced operational risks due to a slowdown in urbanization and declining real estate development growth, impacting traditional business models[84]. - The company is exposed to exchange rate risks due to its major borrowings in Japanese yen, which can significantly affect financial expenses and overall profit[84]. - The natural gas industry is expected to face challenges from market competition and the need for transformation, but it also presents significant growth opportunities[78]. Corporate Governance - The company emphasizes the importance of corporate governance, adhering to laws and regulations to improve its governance structure and protect shareholder interests[159]. - The company has established a robust governance structure, enhancing the effectiveness of its board and committees[166]. - The board of directors consists of 11 members, including 4 independent directors, and has maintained stable operations during the reporting period[165]. - The company has committed to protecting the interests of all shareholders, particularly minority shareholders, through diligent governance practices[166]. - The company has actively engaged in the nomination and election of board members and supervisors to ensure effective governance[152]. Social Responsibility - The company actively fulfills its social responsibilities, with a dedicated report published for 2018[114]. - The company has established a poverty alleviation record for 69 households and has assisted 26 impoverished families in 2018[113]. - The company has made significant efforts to enhance its internal management and control systems to ensure compliance and operational efficiency[159]. Employee Management - The total number of employees in the parent company is 2,152, and the total number of employees in major subsidiaries is 1,912, resulting in a combined total of 4,064 employees[155]. - The company organized 54 training sessions throughout the year, training a total of 4,965 employees, with a focus on improving training quality through project management and feedback evaluation[157]. - The company has established a comprehensive salary management and performance evaluation system to enhance employee motivation and ensure their legal rights[156]. - The company has a total of 1,676 retired employees who require financial support[155]. Future Outlook - The company provided a future outlook, projecting a revenue growth of 12% for the next fiscal year, targeting 1.68 billion[144]. - The company plans to enhance its digital platform, with an investment of 30 million to improve customer engagement and service delivery[144]. - The management team emphasized a focus on sustainability initiatives, aiming to reduce carbon emissions by 25% over the next five years[144].