SGC(SH:601139)2019-08-20 16:00Financial Performance - The company's operating revenue for the first half of 2019 was CNY 6,583,257,398.22, representing a 6.69% increase compared to the same period last year[14]. - Operating profit decreased by 14.61% to CNY 718,621,107.88 from CNY 841,618,137.99 in the previous year[14]. - The total profit for the period was CNY 728,616,124.47, down 13.54% from CNY 842,762,414.88 year-on-year[14]. - Net profit attributable to shareholders was CNY 594,638,712.10, a decrease of 6.85% compared to CNY 638,394,704.24 in the same period last year[14]. - The net cash flow from operating activities was CNY 686,550,293.76, reflecting a decline of 24.27% from CNY 906,523,298.15[14]. - Basic earnings per share decreased by 4.55% to CNY 0.21 from CNY 0.22 in the previous year[15]. - The weighted average return on net assets was 5.49%, down 1.51 percentage points from 7.00% year-on-year[15]. - The total profit for the period was CNY 729 million, a decrease of 13.54% compared to the previous year[22]. - The net profit attributable to shareholders was CNY 595 million, down 6.85% year-on-year, with basic earnings per share of CNY 0.21, a decline of 4.55%[22]. Assets and Liabilities - The company's total assets increased by 8.13% to CNY 21,314,074,193.86 from CNY 19,712,419,073.18 at the end of the previous year[14]. - The total liabilities as of June 30, 2019, were CNY 10.106 billion, slightly up from CNY 10.036 billion at the end of 2018, indicating a marginal increase of about 0.7%[84]. - The company's total liabilities remained at CNY 10,035,568,434.37, with no significant changes reported in the liability structure[160]. - The company's debt-to-asset ratio improved to 47.42%, a decrease of 3.49 percentage points from 50.91%[14]. - The company's current ratio is 0.76, an increase of 2.70% compared to the previous year's 0.74[76]. Market and Operations - The company has over 3.4 million pipeline gas users, covering a population of over 16 million[19]. - The company has a stable gas supply with a procurement agreement for 271,000 tons of natural gas annually and a 4 billion cubic meters agreement with PetroChina[18]. - The company aims to increase bottled LPG sales by integrating the bottled gas industry in Shenzhen, targeting areas without pipeline gas[19]. - The company is focusing on expanding its market in towns without pipeline gas and areas not covered by gas networks[19]. - The company operates in 40 cities with pipeline gas business licenses, enhancing its competitive advantage[20]. Research and Development - The company has established a comprehensive R&D system and has received 131 intellectual property rights, including 108 patents[20]. - The company has developed AI monitoring systems and other technologies to improve safety and customer service[20]. Social Responsibility and Community Engagement - The company invested CNY 24.5 million during the reporting period, a decrease of 68.52% compared to the previous year[26]. - The company invested a total of 692,000 RMB in poverty alleviation efforts, with an additional 153,000 RMB from government funding, totaling 845,000 RMB[48]. - A total of 173 registered impoverished individuals were helped to escape poverty, with 166 individuals achieving this through targeted assistance[48]. - The company aims to ensure that all registered impoverished households meet poverty alleviation standards by the end of 2019, as part of a broader strategy to combat poverty[49]. Shareholder Information - The total number of ordinary shareholders reached 29,669 by the end of the reporting period[56]. - The total number of shares decreased by 237,900 shares, resulting in a total of 2,876,849,834 shares after the change[54]. - The largest shareholder, Shenzhen Municipal Government State-owned Assets Supervision and Administration Commission, holds 1,440,396,780 shares, accounting for 50.07% of total shares[57]. - The company repurchased and canceled 237,900 restricted shares due to the departure of two incentive plan participants[55]. Financial Management and Strategy - The company has not proposed any profit distribution or capital reserve increase for the first half of 2019, maintaining a conservative financial strategy[33]. - The company is actively monitoring the impact of market reforms on its operations, particularly in the natural gas sector, to mitigate risks[30]. - The company has a loan repayment rate of 100%[76]. - The company issued bonds with a total amount of RMB 5 billion for "16 深燃 01" and RMB 19 billion for "18 深燃 01" to repay debts and supplement working capital[71]. Compliance and Governance - The company appointed KPMG Huazhen as the auditor for 2019, with total audit fees amounting to 2.1 million (including tax)[35]. - There were no significant litigation or arbitration matters reported during the reporting period, indicating a stable legal environment[36]. - The company has committed to avoiding competition with Shenzhen Gas in specified regions since May 2008, ensuring compliance with competitive regulations[34]. Accounting Policies and Financial Reporting - The financial statements are prepared based on the going concern assumption, indicating confidence in the company's future operations[109]. - The company adheres to the enterprise accounting standards, ensuring the accuracy and completeness of its financial reporting[110]. - The company implemented changes in accounting policies effective January 1, 2019, due to the revised financial instrument standards, resulting in a reclassification of non-trading available-for-sale equity investments[158]. - The group recognizes current income tax and deferred tax based on taxable income for the year, calculated at the expected tax rate, plus adjustments for prior years[153].