Hengtong Logistics(SH:603223)2020-04-24 16:00Financial Performance - The company's operating revenue for 2019 was approximately RMB 7.04 billion, an increase of 16.44% compared to RMB 6.04 billion in 2018[26]. - The net profit attributable to shareholders of the listed company decreased by 94.55% to RMB 2.57 million in 2019 from RMB 47.07 million in 2018[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was negative RMB 18.14 million, a decrease of 230.13% compared to RMB 13.94 million in 2018[26]. - The net cash flow from operating activities increased by 477.45% to RMB 46.91 million in 2019 from a negative RMB 12.43 million in 2018[26]. - The basic earnings per share for 2019 was RMB 0.01, down 94.44% from RMB 0.18 in 2018[26]. - The diluted earnings per share also decreased by 94.44% to RMB 0.01 in 2019 from RMB 0.18 in 2018[26]. - The weighted average return on net assets dropped by 4.53 percentage points to 0.25% in 2019 from 4.78% in 2018[26]. - The total assets at the end of 2019 were approximately RMB 1.61 billion, a decrease of 3.74% from RMB 1.67 billion at the end of 2018[26]. Dividend Distribution - The company plans to distribute a cash dividend of 0.03 CNY per share, totaling 846,720 CNY based on a total share capital of 28,224,000 shares[7]. - The company reported a cash dividend of 0.03 RMB per share for 2019, with a total cash dividend amounting to 846,720 RMB, representing 33% of the net profit attributable to shareholders[109]. Audit and Compliance - The company received a standard unqualified audit report from He Xin Accounting Firm[6]. - The company has appointed He Xin Accounting Firm (Special General Partnership) for auditing services with a fee of RMB 1 million and has been with the firm for 8 years[120]. - The independent auditor confirmed that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2019[187]. - The auditor aims to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error[197]. - The company did not report any significant deficiencies in internal controls during the reporting period[181]. Business Operations - The company is engaged in LNG and gas business, including trade, logistics, and construction of LNG refueling stations[38]. - The company has a comprehensive logistics park located in Longkou City, Shandong Province, which serves as its operational base[21]. - The company's logistics services include warehousing, driving school training, hoisting services, and vehicle leasing, enhancing its operational capabilities[39]. - The company is focusing on expanding its LNG trade and logistics operations, leveraging its existing infrastructure and partnerships with major clients[60]. - The company is transitioning towards an "Internet + Logistics" model, enhancing operational efficiency and reducing costs through digital platforms[60]. Market Trends - In 2019, China's shale gas production reached 15.4 billion cubic meters, a year-on-year increase of 41.5%, while coalbed methane production was 8.88 billion cubic meters, up 22.3%[41]. - Natural gas consumption growth rate in 2019 decreased to 9.4%, down from previous years' high growth rates of 15.3% and 18.1%[40]. - The overall natural gas production in China for 2019 was 176.17 billion cubic meters, reflecting a 10% year-on-year growth[45]. - The natural gas import dependency rate decreased from 44.5% in 2018 to 43.4% in 2019, indicating a downward trend[42]. - The logistics transportation industry is experiencing a shift towards more integrated and efficient operations due to the rise of non-vehicle carriers and internet technologies[49]. Shareholder Information - The total number of ordinary shares increased to 282,240,000 after a capital reserve conversion, with a cash dividend of RMB 0.47 per 10 shares distributed, totaling RMB 9,475,200[137]. - The number of ordinary shareholders increased from 9,409 to 10,927 during the reporting period, indicating a growth of approximately 16.1%[141]. - Liu Zhendong holds 28.96% of the shares, with a total of 81,742,684 shares, and has pledged 64,465,600 shares[141]. - The top five customers generated sales of 995.45 million yuan, accounting for 14% of the total annual sales[74]. - The top five suppliers accounted for 406.87 million yuan in purchases, representing 59% of the total annual procurement[74]. Management and Governance - The company’s management team includes individuals with extensive experience in logistics and management, enhancing operational capabilities[156]. - The board of directors has established a remuneration and assessment committee to evaluate and propose reasonable remuneration for directors and senior management based on performance[163]. - The company has a diverse board of directors with expertise in various fields, including logistics, finance, and management[156]. - The total pre-tax remuneration for the reporting period amounted to 574.22 million yuan for all executives combined[156]. - The company has not reported any shareholding changes for independent directors during the reporting period[153]. Risk Management - The company emphasizes the importance of investment risk awareness in its forward-looking statements[8]. - The company faces risks from macroeconomic demand weakness, which could impact its logistics and LNG sales revenue[104]. - The company has implemented a comprehensive risk management system to improve service quality and operational standards in logistics[50]. - The company emphasizes the importance of safety in its logistics operations, acknowledging the risks associated with transportation accidents[104].