Xinjiang Xintai Natural Gas (SH:603393)2020-03-30 16:00Dividend Distribution - The company plans to distribute a cash dividend of 8 RMB per 10 shares to all shareholders, totaling approximately 179.2 million RMB, based on a total share capital of 224 million shares as of December 31, 2019[6]. - The company will issue a cash dividend of 8 RMB per 10 shares, totaling 179.2 million RMB, and will also increase capital by issuing 4 additional shares for every 10 shares held[91]. - In 2019, the company distributed cash dividends of 179.2 million RMB, accounting for 42.42% of the net profit attributable to ordinary shareholders[92]. - The cash dividend distribution policy requires a minimum of 20% of the distributable profit to be distributed in cash if there are no major investment plans[88]. - The company plans to distribute at least 30% of the average distributable profit over the last three years in cumulative dividends every three years[88]. - The company’s cash dividend ratio is differentiated based on its development stage, with a minimum of 80% for mature companies without major expenditures[88]. - The board of directors must submit the profit distribution plan for shareholder approval within two months after the general meeting[90]. - The company has not adjusted its cash dividend policy during the reporting period[90]. - The company will consider shareholder feedback, especially from minority shareholders, when formulating or modifying the profit distribution policy[91]. - The company’s major investment plans must be approved by the board and disclosed to shareholders if they affect dividend distribution[88]. Financial Performance - The company's operating revenue for 2019 was CNY 2,296,274,568, representing a 40.72% increase compared to CNY 1,631,812,003.87 in 2018[23]. - Net profit attributable to shareholders for 2019 was CNY 422,425,749.43, a 26.26% increase from CNY 334,568,720.37 in 2018[23]. - The net profit after deducting non-recurring gains and losses was CNY 421,459,837.76, showing a significant increase of 100.29% from CNY 210,424,105.80 in 2018[23]. - The net cash flow from operating activities reached CNY 1,200,219,691.17, up 75.40% from CNY 684,258,507.29 in 2018[23]. - The total assets at the end of 2019 were CNY 8,538,595,968.17, reflecting a 7.46% increase from CNY 7,945,911,568.14 at the end of 2018[23]. - Basic earnings per share for 2019 were CNY 1.89, a 26.85% increase from CNY 1.49 in 2018[23]. - The weighted average return on equity increased to 17.73% in 2019, up 1.13 percentage points from 16.60% in 2018[23]. - The company reported a total revenue of 2,296,274,568 RMB, an increase of 40.72% compared to the previous year[50]. - Net profit attributable to shareholders was 422,425,700 RMB, up 26.26% from the previous year[50]. - The company’s net assets attributable to shareholders reached 2,530,052,800 RMB, with basic earnings per share of 1.89 RMB[50]. Operational Highlights - The company primarily engages in urban natural gas distribution, sales, installation, and coalbed methane extraction in Xinjiang, covering 8 cities including Urumqi and Fukang[37]. - The company achieved a natural gas sales volume of 578 million cubic meters and completed the installation of 24,701 user households in the reporting period[49]. - Coalbed methane extraction volume reached 931 million cubic meters, representing a 16.07% increase from 802 million cubic meters in 2018[49]. - The company has established a one-year written contract system with suppliers for natural gas procurement, with prices negotiated based on national guidelines[37]. - The company utilizes a prepaid settlement method for natural gas payments, settling on a monthly or weekly basis with suppliers[37]. - The natural gas sales price for downstream users is determined by local government price authorities, with efforts to establish a price linkage mechanism[40]. - The company has expanded its operational scope by acquiring Yamei Energy, enhancing its upstream and downstream integration in the natural gas industry[43]. - The company’s operating pipeline length reached 1,036 kilometers, with 22 distribution stations and 20 refueling stations[46]. Market and Industry Context - The global natural gas market is experiencing growth, with supply and consumption increasing, particularly from Australia, the US, and Russia[41]. - The natural gas market in China is undergoing significant reforms, with increased openness to foreign enterprises and a growing LNG import capacity[41]. - In 2019, China's apparent natural gas consumption reached 273.5 billion cubic meters, a year-on-year increase of 9%, but the growth rate decreased by 9.2 percentage points compared to the same period in 2018[67]. - Domestic natural gas production from January to November 2019 totaled 157.5 billion cubic meters, representing a year-on-year growth of 9.2%[68]. - LNG imports in China for the first 11 months of 2019 reached 53.85 million tons, a year-on-year increase of 13.4%, although the growth rate decreased by 30.2 percentage points compared to 2018[67]. - The annual LNG import volume for 2019 is expected to reach 61.92 million tons, a year-on-year increase of approximately 15%[67]. Governance and Compliance - The company has a standard unqualified audit report issued by Zhongshun Zhonghuan Accounting Firm[5]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management[4]. - The company has implemented measures to avoid any direct or indirect competition with its subsidiaries and will prioritize transferring relevant patents and technologies to the company[99]. - The company guarantees that its senior management will not hold concurrent positions in other companies that could lead to conflicts of interest[99]. - The company has established a framework to ensure that any business opportunities that may conflict with its main operations will be redirected to the company[99]. - The company has committed to a long-term effective period for various agreements related to its actual controller and major shareholders[99]. - The company has taken steps to ensure compliance with legal and regulatory requirements in the selection and appointment of its board members and senior management[99]. - The company has a clear strategy to avoid any potential conflicts arising from related party transactions, ensuring the protection of shareholder interests[99]. - The company has maintained a high standard of information disclosure, with no complaints from investors or regulatory bodies during the reporting period[190]. Social Responsibility - The company established a "Love Education Poverty Alleviation Scholarship" to support impoverished students in the regions where it operates, with a 100% visit rate to families of reported students[135]. - A total of 43 impoverished students received financial assistance amounting to 430,000 RMB, demonstrating the company's commitment to education poverty alleviation[137]. - The company plans to continue supporting local government poverty alleviation efforts and assist more impoverished students in the future[138]. - The company strictly adheres to environmental protection policies and integrates environmental responsibility into its sustainable development strategy[142]. Employee and Management Structure - The total number of employees in the company is 853, with 55 in the parent company and 798 in major subsidiaries[183]. - The company has a total of 392 production personnel, 151 sales personnel, 73 technical personnel, 54 financial personnel, and 183 administrative personnel[184]. - The total remuneration paid to all directors, supervisors, and senior management personnel at the end of the reporting period is 854.08[179]. - The company has established a multi-level salary management and performance evaluation system to adjust the total annual salary based on economic performance and market conditions[185]. - The company has appointed Liu Dong as the new board secretary, replacing Wang Bin who resigned due to health reasons[180]. - The board of directors includes a diverse range of professionals with extensive experience in finance and management, which may enhance strategic decision-making[167]. Audit and Financial Standards - The financial statements for the year ended December 31, 2019, were audited and found to fairly reflect the company's financial position and operating results[199]. - The audit opinion confirms that the financial statements were prepared in accordance with accounting standards and provide a true view of the company's financial status[199]. - The company maintained independence during the audit process, adhering to professional ethics and standards[200]. - The company began implementing the new financial instrument standards on January 1, 2019, following the Ministry of Finance's announcement in March 2017[112]. - The company did not restate the 2018 financial statements but adjusted the retained earnings and other comprehensive income for the cumulative impact of the new standards[114].