SGC(SH:601139)2021-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2021 reached CNY 9,635,821,532.17, representing a 51.20% increase compared to CNY 6,372,775,555.54 in the same period last year[15]. - Operating profit for the first half of 2021 was CNY 1,092,396,448.99, up 40.39% from CNY 778,094,753.51 year-on-year[15]. - The net profit attributable to shareholders for the first half of 2021 was CNY 852,052,584.44, a 29.46% increase from CNY 658,172,685.23 in the previous year[15]. - The basic earnings per share for the first half of 2021 were CNY 0.30, representing a 30.43% increase from CNY 0.23 in the same period last year[16]. - The weighted average return on equity increased to 6.96% from 5.80% year-on-year, an increase of 1.16 percentage points[16]. - The company achieved a revenue of 9.636 billion yuan in the first half of 2021, representing a year-on-year growth of 51.20% and a 46.38% increase compared to 2019[24]. - Net profit attributable to shareholders reached 852 million yuan, up 29.46% year-on-year and 43.19% compared to 2019[24]. - The company reported a net profit of CNY 26.76 million for the Gas Investment Company[37]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 25,808,088,874.78, reflecting a 1.15% increase from CNY 25,514,236,010.61 at the end of the previous year[15]. - The company's total liabilities at the end of the reporting period were CNY 13,246,848,998.85, which is a 1.41% increase from CNY 13,062,085,664.44 at the end of the previous year[15]. - The asset-liability ratio at the end of the reporting period was 51.33%, an increase of 0.13 percentage points compared to 51.20% at the end of the previous year[15]. - The company's net assets attributable to shareholders amounted to CNY 12,011,048,579.90, which is a 1.63% increase compared to CNY 11,818,970,836.60 at the end of the previous year[15]. - Total assets as of June 30, 2021, amounted to CNY 25,808,088,874.78, an increase from CNY 25,514,236,010.61 as of December 31, 2020[74]. - Total liabilities reached CNY 13,246,848,998.85, compared to CNY 13,062,085,664.44 at the end of 2020, indicating a growth in liabilities[75]. Cash Flow - The cash flow from operating activities for the first half of 2021 was CNY 743,096,578.22, down 14.60% from CNY 870,139,741.09 in the previous year[15]. - The company's net cash flow from operating activities for the first half of 2021 was ¥1,605,598,578.80, a significant increase from ¥241,122,548.98 in the same period of 2020, representing a growth of approximately 566%[88]. - The total cash inflow from operating activities was ¥5,804,634,788.72, up from ¥3,570,675,698.08 in the first half of 2020, reflecting an increase of around 62%[88]. - The company incurred cash outflows for financing activities totaling ¥4,986,509,458.43, compared to ¥2,951,035,202.77 in the previous year, representing an increase of approximately 68.8%[86]. Natural Gas Operations - The company operates 57 urban pipeline gas projects across 13 provinces, with natural gas as the primary source for sales in Shenzhen and surrounding areas[19]. - The company has established a comprehensive LNG and LPG supply chain, enhancing its competitive edge in resource procurement and sales[21]. - The company has a stable annual supply agreement for 271,000 tons of natural gas with Guangdong Dapeng Company, ensuring consistent supply[21]. - The company has a procurement agreement with PetroChina for an annual supply of 4 billion cubic meters of natural gas, further securing its gas supply[21]. - The company is positioned to benefit from the increasing share of natural gas in China's energy consumption, projected to reach 15% by 2030[20]. - The company anticipates continued growth in natural gas consumption driven by urbanization and energy structure adjustments in China[20]. - The number of natural gas users increased to 4.6865 million, with a net addition of 323,800 users during the reporting period[24]. - Natural gas supply volume was 2.759 billion cubic meters, a year-on-year increase of 54.77%, with sales volume at 2.286 billion cubic meters, up 38.29% year-on-year[24]. Research and Development - The company has established a technical innovation system with 346 patent applications, of which 183 have been authorized, including 41 invention patents[24]. - The company’s research and development expenses increased by 2.98% to ¥85.13 million, compared to ¥82.67 million in the previous year[30]. - Research and development expenses for the first half of 2021 were ¥85,127,690.79, slightly up from ¥82,667,078.04 in the previous year, indicating a focus on innovation[79]. Market Strategy and Expansion - The company has launched new projects in Shenzhen, including 10 innovative applications in commercial hot water and gas heating[25]. - The company expanded its pipeline gas supply in Shenzhen, achieving a sales volume of 1.258 billion cubic meters, a 30.13% increase year-on-year[25]. - The company expanded its liquefied petroleum gas (LPG) wholesale sales to 273,600 tons, representing a year-on-year growth of 41.85%[27]. Social Responsibility - Shenzhen Gas has invested a total of 540 million RMB in poverty alleviation efforts, including sending 488 graduates to assist in education in Guizhou province[46]. - The company has actively participated in rural revitalization efforts, deploying a team to assist Heqi Town in Shantou City as part of its commitment to poverty alleviation and rural development[48]. - Shenzhen Gas received the "Outstanding Contribution Collective" award for poverty alleviation efforts in Heyuan City for the years 2019-2020[47]. Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders is 29,788[59]. - The largest shareholder, Shenzhen Municipal People's Government State-owned Assets Supervision and Administration Commission, holds 1,153,583,786 shares, representing 40.10% of the total shares[60]. - The top ten shareholders hold a total of 2,000,000,000 shares, with the largest shareholder holding 1,153,583,786 shares[62]. Risks and Challenges - The company faces risks from global oil and gas market volatility, which may significantly impact the costs of liquefied natural gas and liquefied petroleum gas operations[39]. - The company is subject to uncertainties regarding economic recovery in regions affected by the COVID-19 pandemic, potentially affecting commercial gas usage growth[39]. - The company is actively monitoring the impact of national reforms in the natural gas industry, which may introduce uncertainties in user development[39]. Accounting and Financial Reporting - The company has adopted the revised accounting standards for financial instruments and revenue recognition since January 1, 2019, and January 1, 2020, respectively[99]. - The financial statements comply with the requirements of the Ministry of Finance and reflect the company's financial position as of June 30, 2021, accurately[100]. - The company uses Renminbi as its accounting currency, aligning with its primary business revenue and settlement currency[102]. - The company recognizes revenue from natural gas sales based on the fulfillment of specific conditions, including the customer's control over the gas and the company's right to receive payment[151].