SGC(SH:601139)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was CNY 21,414,734,213.10, an increase of 42.62% compared to CNY 15,014,814,569.43 in 2020[14]. - The net profit attributable to shareholders for 2021 was CNY 1,353,966,552.27, reflecting a growth of 2.46% from CNY 1,321,400,281.94 in the previous year[14]. - The total assets at the end of 2021 amounted to CNY 34,096,211,723.46, a 33.64% increase from CNY 25,514,236,010.61 in 2020[14]. - The total liabilities increased by 53.33% to CNY 20,028,542,215.00 in 2021, up from CNY 13,062,085,664.44 in 2020[14]. - The company's net cash flow from operating activities for 2021 was CNY 1,337,474,875.45, a decrease of 55.82% compared to CNY 3,027,639,210.43 in 2020[14]. - The net assets attributable to shareholders at the end of 2021 were CNY 12,362,647,464.13, representing a 4.60% increase from CNY 11,818,970,836.60 in 2020[14]. - The company's asset-liability ratio increased to 58.74% in 2021, up from 51.20% in 2020, an increase of 7.54 percentage points[15]. - The company achieved a total operating revenue of RMB 21.415 billion in 2021, representing a year-on-year increase of 42.62%[22]. - The net profit after deducting non-recurring gains and losses was RMB 1.333 billion, reflecting an 8.75% year-on-year growth[22]. - The total operating revenue for 2021 reached RMB 21,414,734,213.10, a significant increase of 42.5% compared to RMB 15,014,814,569.43 in 2020[184]. Operational Highlights - The number of natural gas users reached 5.74 million, an increase of 1.38 million users year-on-year[22]. - Natural gas sales volume was 4.401 billion cubic meters, up 14.05% year-on-year, while natural gas transmission volume increased by 117.00% to 0.811 billion cubic meters[22]. - The company signed long-term LNG procurement agreements and completed gas project acquisitions in cities such as Shunping and Lianshui[22]. - The company exceeded its target for gas pipeline installations in urban villages in Shenzhen, adding 1.01 million residential users and achieving a total of 3.75 million pipeline natural gas users in Shenzhen, with a penetration rate of 74%[23]. - The company achieved a net increase of 1.38 million natural gas users, with 1.13 million in Shenzhen and 250,000 in other regions[24]. - The company signed long-term contracts for LNG supply, adding approximately 570,000 tons per year, and became one of the first shippers for the national pipeline network[25]. - The company operates 57 urban pipeline gas projects across 13 provinces, serving over 5.74 million pipeline gas users and covering a population of over 20 million[36]. Investment and Acquisitions - The acquisition of Swick contributed to the increase in total assets and operating revenue, with Swick's photovoltaic film sales volume reaching 12 million square meters and revenue of RMB 1.734 billion in the last four months of 2021[22]. - The company entered the photovoltaic power generation sector by acquiring four solar power station assets in October 2021[34]. - The company invested in several companies, including a 100% stake in Nanjing New Star Wang Gas Co., Ltd., which focuses on urban gas production and sales[61]. - The company acquired a 50% stake in Jiangsu Swick New Materials Co., Ltd. for RMB 1.8 billion in August 2021[62]. - The company also acquired 100% equity of four photovoltaic power companies for a total consideration of RMB 757.69 million in November and December 2021[170]. Research and Development - Research and development expenses increased by 58.06% to CNY 382.1 million, driven by investments in both the company and the consolidated entity, Swick[45]. - The total R&D investment accounted for 1.78% of operating revenue[53]. - The company has filed a total of 391 intellectual property applications, with 207 granted, including 43 invention patents[40]. - The company established a multi-level innovation system with various research centers and partnerships with notable universities and enterprises[39]. Market and Industry Trends - In 2021, global natural gas consumption increased by 4.6%, reaching a historical high, while LNG trade grew over 9% year-on-year, also a record[30]. - China's apparent natural gas consumption reached 372.6 billion cubic meters in 2021, a year-on-year increase of 12.7%[30]. - The natural gas demand in China is expected to maintain rapid growth until 2040, with a peak demand of nearly 650 billion cubic meters[66]. - The global photovoltaic installed capacity is expected to exceed 14,000 GW by 2050, with solar and wind power accounting for 63%[68]. Corporate Governance - The company has been actively involved in corporate governance, with multiple shareholder meetings held to approve key resolutions[80]. - The company has maintained a strong governance structure with a clear delineation of roles among its board members and management team[89]. - The company reported a total of 13 board meetings held in the year, with all directors attending the majority of the meetings in person[95]. - The company has a structured remuneration decision-making process based on performance evaluations, ensuring alignment with corporate goals[91]. Social Responsibility - The company has actively engaged in social responsibility initiatives, including supporting poverty alleviation efforts in Guizhou Province for 26 years, with over 533 graduates sent for teaching and donations exceeding 6 million yuan[117]. - Shenzhen Gas invested over 6.9 million yuan in targeted poverty alleviation efforts in Minle West Village, resulting in a significant increase in per capita disposable income for villagers[118]. - The company organized 12 performances to promote patriotism and community spirit, integrating cultural activities with rural development efforts[119]. Financial Management - The company has engaged in various entrusted financial management activities, with a total amount of RMB 4,820 million across multiple contracts, achieving annualized returns ranging from 2.90% to 3.45%[136]. - The company has consistently achieved actual returns on entrusted financial management that match or exceed expected returns, indicating effective management of financial assets[136]. - The company has a structured deposit with Industrial Bank amounting to RMB 90 million, yielding an annualized return of 2.85%[136]. Future Outlook - The company plans to enhance its urban gas services by advancing the "bottle-to-pipe" initiative and optimizing its regional layout through acquisitions of quality urban gas projects[71]. - The company aims to expand its clean energy business in line with China's dual carbon goals, providing significant growth opportunities in the natural gas and photovoltaic sectors[65]. - The company plans to purchase LNG at a price based on upstream LNG procurement costs plus reasonable additional costs, as per the contract signed with Huaneng[139].