Hongtong Natural Gas(SH:605169)2023-04-11 16:00Financial Performance - The company's operating revenue for 2022 was CNY 1,435,157,354.10, representing a 19.16% increase compared to CNY 1,204,408,538.64 in 2021[22]. - The net profit attributable to shareholders for 2022 was CNY 160,701,617.94, a decrease of 19.68% from CNY 200,083,258.91 in 2021[22]. - The cash flow from operating activities for 2022 was CNY 228,332,626.44, down 14.35% from CNY 266,587,777.03 in 2021[23]. - The total assets at the end of 2022 were CNY 2,409,606,367.09, reflecting a 5.74% increase from CNY 2,278,710,006.20 at the end of 2021[23]. - The basic earnings per share for 2022 was CNY 0.5681, a decrease of 19.68% compared to CNY 0.7073 in 2021[24]. - The weighted average return on equity for 2022 was 9.51%, down 2.92 percentage points from 12.43% in 2021[24]. - The total profit amounted to CNY 202,710,600.00, a decrease of 18.65% year-on-year[66]. - The company's total assets reached CNY 2,409,606,400.00, reflecting a growth of 5.74% since the beginning of the year[66]. - The company’s equity attributable to shareholders increased by 3.74% to CNY 1,732,095,200.00[66]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 2 RMB per 10 shares, totaling 56,576,000 RMB (including tax) based on a total share capital of 282,880,000 shares as of December 31, 2022[6]. - The cash dividend distribution will account for 35.21% of the net profit attributable to ordinary shareholders in the consolidated financial statements[143]. - The company adheres to a stable profit distribution policy, ensuring that cash dividends do not exceed the cumulative distributable profits[136]. - The company will prioritize cash dividends, distributing at least 10% of the distributable profits if there are no major investment plans or cash expenditures[136]. - The company has a clear profit distribution policy that aligns with its articles of association and shareholder resolutions[141]. Operational Developments - The company has completed the basic construction of the LNG peak-shaving plant with a designed capacity of 100,000 m³/d, and the project is expected to be operational in the first half of 2023[32]. - During the reporting period, the company added 7 new gas stations, bringing the total to over 30 operational stations, with plans to expand by over 20 additional stations in 2023[34]. - The company has initiated the standardization renovation of over 10 gas stations and deployed an ecosystem operation across all stations, enhancing customer management and service offerings[34]. - The company has completed the overall architecture adjustment of the "Hongtong Smart Cloud" and launched the gas station ecosystem project to improve operational efficiency[35]. - The company has completed the construction of the Kuerle gas supply project, achieving 100% project progress[87]. Market and Industry Trends - The demand for LNG is increasing significantly due to environmental concerns, with LNG being a cleaner alternative to coal and oil, producing about half the greenhouse gases of coal[49]. - LNG's transportation cost is only 1/6 to 1/7 of pipeline transportation, reducing the risk of shortages due to insufficient gas sources[50]. - The market for LNG as a vehicle fuel is expanding, with advantages such as high octane rating, good anti-knock properties, and environmental benefits[51]. - The natural gas market in China is expected to maintain a growth trend, with the proportion of natural gas in primary energy consumption targeted to reach over 10% by 2020 and 15% by 2030[92]. - The government aims to eliminate over 1 million diesel trucks with National III and below emission standards by the end of 2020, significantly increasing the demand for natural gas[95]. Governance and Compliance - The company has a robust governance structure, with a board of directors and supervisory board operating independently and in compliance with legal regulations[109]. - The company has conducted multiple shareholder meetings to approve key operational and financial decisions, reflecting transparency and accountability in its governance[110]. - The company has not been penalized by securities regulatory authorities in the past three years[122]. - The company has a well-structured internal control system that meets the requirements of relevant regulatory bodies[146]. - The company has not faced any significant internal control deficiencies during the reporting period[146]. Strategic Initiatives - The company plans to continue its market expansion and product development strategies in the upcoming fiscal year[22]. - The company is strategically positioned in Xinjiang, benefiting from national policies like "Western Development" and "Belt and Road Initiative" which enhance market potential[63]. - The company is focused on acquiring more urban gas operating rights through mergers and acquisitions to expand its market presence[101]. - The company is actively pursuing new strategies for market expansion and technological advancements in the energy sector[198]. - The company is investing 100 million yuan in R&D for new technologies aimed at improving service delivery and customer satisfaction[115]. Risk Management - The company faces risks related to increased natural gas procurement costs, which may rise if domestic and international supply tightens, potentially impacting profit margins for LNG and CNG products[104]. - The majority of the company's natural gas procurement comes from PetroChina, with long-term supply agreements in place, ensuring stable gas supply under current policies[104]. - The company has established stable relationships with upstream gas suppliers, ensuring a reliable supply of natural gas for current and future operations[63]. - The company has not experienced significant supply disruptions from upstream suppliers, maintaining a stable operational environment[104]. - The company has a comprehensive financial management system, ensuring independent financial decision-making and tax compliance[110].