SGC(SH:601139)2019-04-24 16:00Financial Performance - The company's operating revenue for 2018 was CNY 12,741,389,910.39, representing a 15.22% increase from CNY 11,058,777,569.46 in 2017[16]. - The net profit attributable to shareholders for 2018 was CNY 1,030,929,806.22, which is a 16.24% increase compared to CNY 886,876,369.17 in 2017[16]. - The basic earnings per share for 2018 was CNY 0.36, up 16.13% from CNY 0.31 in 2017[17]. - The company's total assets at the end of 2018 were CNY 19,712,419,073.18, a 4.96% increase from CNY 18,781,463,355.26 in 2017[16]. - The net cash flow from operating activities for 2018 was CNY 1,854,679,385.69, reflecting a 33.07% increase from CNY 1,393,803,301.02 in 2017[16]. - The total equity attributable to shareholders at the end of 2018 was CNY 9,196,961,030.79, a 9.28% increase from CNY 8,415,670,560.73 at the end of 2017[16]. - Total operating revenue for Q4 reached RMB 3,328,877,320.55, showing a steady increase from RMB 3,242,144,992.72 in Q3[20]. - Net profit attributable to shareholders for Q4 was RMB 188,178,677.94, a decrease from RMB 204,356,424.04 in Q3[20]. - Cash flow from operating activities in Q4 was RMB 347,438,097.22, down from RMB 600,717,990.32 in Q3[20]. Assets and Liabilities - The company's total liabilities at the end of 2018 were CNY 10,035,568,434.37, a slight increase of 0.45% from CNY 9,990,393,547.29 in 2017[16]. - The company's asset-liability ratio decreased to 50.91% in 2018 from 53.19% in 2017, a reduction of 2.28 percentage points[16]. - The company's total current assets amounted to CNY 4,587,779,698.97, a slight decrease of 0.68% from CNY 4,619,208,690.89 at the beginning of the year[141]. - Total non-current assets reached CNY 15,124,639,374.21, representing an increase of 6.81% from CNY 14,162,254,664.37 at the beginning of the year[141]. - Total liabilities rose to CNY 10,035,568,434.37 from CNY 9,990,393,547.29, an increase of about 0.5%[142]. - The total liabilities to equity ratio improved to approximately 1.04 from 1.13, indicating a stronger equity position[145]. Cash Flow and Investments - The company’s total cash inflow from operating activities was CNY 14,306,738,685.15, an increase of 14.3% from CNY 12,521,474,242.87 in the previous period[151]. - The net cash flow from operating activities was CNY 1,854,679,385.69, up 33.1% from CNY 1,393,803,301.02 in the previous period[151]. - The cash outflow from investment activities was CNY 2,863,472,110.34, a decrease of 29.7% compared to CNY 4,073,465,447.47 in the previous period[152]. - The total cash inflow from financing activities was CNY 6,304,170,484.96, slightly down from CNY 6,447,659,385.83 in the previous period[152]. - The ending cash and cash equivalents balance was CNY 2,931,611,889.22, an increase from CNY 2,461,021,999.45 at the beginning of the period[152]. Research and Development - Research and development expenses amounted to CNY 195,625,717.72, reflecting a 12.06% increase[30]. - Total research and development investment was CNY 219,223,271.19, accounting for 1.72% of operating revenue[36]. - The company invested 50 million RMB in research and development for new technologies in gas distribution[101]. Market and Industry Outlook - The urban pipeline gas industry is expected to see continuous growth due to favorable policies and urbanization trends[24]. - The company anticipates a positive outlook for natural gas sales driven by ongoing urbanization and consumption upgrades[24]. - The company is positioned to capitalize on the ongoing transition from coal to gas, with an estimated potential increase of 540 billion cubic meters of natural gas demand annually over the next decade[47]. - The company forecasts that by 2035, natural gas consumption in China will reach 620 billion cubic meters, driven by urban population growth and improved gas infrastructure[47]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 1.5 per 10 shares to all shareholders[4]. - The net profit attributable to ordinary shareholders for 2018 was RMB 1,030,929,806.22, representing a payout ratio of 41.86%[56]. - The company has consistently implemented a cash dividend policy since its listing, exceeding the requirements set forth in its articles of association[54]. Corporate Governance and Management - The company has retained the audit firm KPMG Huazhen for three years, with an audit fee of RMB 1,553,000[60]. - The company has established a performance evaluation and incentive mechanism for senior management, ensuring standardized and institutionalized assessment and incentives[117]. - The company strictly adheres to relevant laws and regulations to enhance corporate governance and ensure independent operations of the board and supervisory committee[112]. Employee and Community Engagement - The total number of employees in the parent company and major subsidiaries is 7,117, with 2,898 in the parent company and 4,219 in major subsidiaries[108]. - The company invested a total of 692 million in poverty alleviation efforts, helping 173 registered impoverished individuals to escape poverty[72]. - The company has plans to strengthen grassroots organization construction and enhance support responsibilities in future poverty alleviation efforts[74]. Financial Instruments and Risk Management - The company has a dedicated department and personnel for debt repayment, ensuring timely and full payment of bond obligations[123]. - The company maintains a stable credit outlook, with all bonds rated AAA by the credit rating agency[122]. - The company recognizes impairment losses for financial assets when there is objective evidence of impairment, including significant financial difficulties of the issuer or debtor[178].