Jovo Energy(SH:605090)2022-04-12 16:00Financial Performance - The company achieved operating revenue of CNY 18,488,338,961.68 in 2021, representing a year-on-year increase of 107.42% due to significant sales volume and price increases of LNG and LPG products[13]. - The net profit attributable to shareholders was CNY 619,745,395.30, a decrease of 19.27% compared to the previous year, primarily due to asymmetric fluctuations in international and domestic LNG prices[14]. - The net cash flow from operating activities was CNY 89,508,400.53, down 89.15% year-on-year, largely due to increased inventory levels and a delayed payment from a sales transaction[15]. - The company's net assets attributable to shareholders reached CNY 5,738,200,132.46 at the end of 2021, an increase of 128.33% year-on-year, driven by IPO fundraising and profitability[15]. - Basic earnings per share were CNY 1.52, a decline of 28.64% year-on-year, attributed to the decrease in net profit and an increase in share capital post-IPO[15]. - The weighted average return on equity was 14.17%, down 18.27 percentage points from the previous year, reflecting the impact of reduced profitability[14]. - The company recorded a significant increase in inventory, with a year-end balance rising by CNY 30,905.18 million compared to the beginning of the period[15]. - The company’s LNG product sales volume reached 202.58 million tons, generating sales revenue of CNY 987,856.07 million[29]. - The LPG product sales volume was 177.30 million tons, with operating revenue of CNY 780,659.09 million[32]. Corporate Governance - The company has received a standard unqualified audit report from the accounting firm, ensuring the accuracy and completeness of the financial report[1]. - The report confirms that all board members attended the board meeting, ensuring collective responsibility for the report's content[1]. - The company emphasizes the importance of stakeholder rights and social responsibility, actively engaging with stakeholders to balance interests and promote sustainable development[138]. - The company has established a robust governance structure to protect the rights of shareholders and creditors, ensuring compliance and orderly operations[188]. - The board of directors consists of 9 members, including 3 independent directors, and has held 15 meetings during the reporting period, ensuring compliance with governance standards[135]. - The supervisory board, comprising 3 members, has conducted 11 meetings, effectively overseeing the company's financial status and compliance of directors and senior management[136]. - The company has implemented a performance evaluation and incentive mechanism for directors and senior management, ensuring transparency and compliance with legal standards[137]. - The company held 5 shareholder meetings during the reporting period, adhering to legal requirements and ensuring all shareholders, especially minority shareholders, could exercise their voting rights[133]. Risk Management - The company has outlined potential risks in its report, which can be found in the section discussing future developments and risks[3]. - The company emphasizes the importance of investment risk awareness regarding forward-looking statements and future plans[3]. - The company faces risks from global economic uncertainties and potential impacts from COVID-19, which may affect production and operations[120]. - The company is addressing market competition risks by optimizing its dual gas source strategy and enhancing customer loyalty to maintain competitive advantages[122]. - The company is exposed to procurement price volatility risks due to reliance on international markets for LNG and LPG, and it is implementing strategies to stabilize procurement costs[123]. - The company has long-term LNG procurement contracts requiring a minimum of 4.95 million tons from 2021 to March 2026, which poses risks if actual delivery volumes do not meet contractual obligations[124]. Strategic Initiatives - The company is undergoing asset restructuring involving Sichuan Yuanfeng Sentai Energy Group Co., Ltd. in 2022[5]. - The company plans to continue expanding its LNG and LPG product lines to capitalize on market demand and pricing trends[15]. - The company is committed to the clean energy sector, focusing on LNG, LPG, and hydrogen energy, aligning with national carbon reduction goals[37]. - The company is actively developing hydrogen energy as part of its future strategy, aligning with national policies and local government support for the hydrogen industry[182]. - The company aims to enhance its governance and operational standards post-listing, focusing on compliance and protecting the interests of small and medium investors[33]. - The company is committed to promoting low-carbon economic development in line with the "dual carbon" strategy, positioning itself as a value-creating clean energy service provider[108]. Environmental Responsibility - The company has implemented measures to reduce carbon emissions in line with the "carbon peak and carbon neutrality" strategy, reinforcing its role as a major clean energy service provider[183]. - The company has established a comprehensive environmental monitoring system, ensuring accurate and reliable monitoring data through a three-level review process[181]. - The company has obtained the pollution discharge permit for Dongguan City Jiufeng Energy Co., Ltd., indicating compliance with environmental regulations[177]. - The company has developed an emergency response plan for environmental pollution incidents, which has been filed with the local ecological environment bureau[181]. - The company is committed to environmental protection and sustainable development, implementing strict compliance with environmental regulations and promoting energy conservation and emissions reduction[192]. Employee Management - The total number of employees in the parent company and major subsidiaries is 905, with 489 in operations and 101 in supply chain roles[167]. - The company has established a salary management system that aligns with market conditions and encourages employee contributions[168]. - The company emphasizes continuous improvement in employee training, focusing on enhancing overall quality and efficiency[169]. - The company prioritizes employee welfare by improving working conditions and benefits, ensuring compliance with labor laws, and promoting employee development through training and cultural activities[190]. Shareholder Engagement - The company plans to distribute a cash dividend of 2.50 RMB per 10 shares and to increase capital stock by 4 shares for every 10 shares held, based on a total share capital of 442,969,866 shares as of December 31, 2021[2]. - The company has a comprehensive cash dividend policy that has not changed during the reporting period, ensuring clarity and compliance with regulations[170]. - The company has implemented a series of commitments regarding share restrictions, ensuring that major shareholders do not transfer shares for a specified period, enhancing investor confidence[197]. - The lock-up period for shares held by major shareholders is set for 36 months post-IPO, with specific conditions for share transfers thereafter[199]. - After the lock-up period, any reduction in shareholding by major shareholders is limited to 10% of their total shares per year, ensuring stability in shareholding structure[200].