Henan Lantian Gas (SH:605368)2022-03-22 16:00Financial Performance - The company's operating revenue for 2021 was CNY 3,900,894,135.12, representing a year-over-year increase of 9.83% compared to CNY 3,551,838,948.75 in 2020[26]. - The net profit attributable to shareholders for 2021 was CNY 420,883,212.96, which is a 26.45% increase from CNY 332,834,447.39 in 2020[26]. - The net cash flow from operating activities for 2021 was CNY 648,057,501.59, up 9.50% from CNY 591,841,157.40 in 2020[26]. - The total assets at the end of 2021 were CNY 5,147,088,350.81, reflecting a 38.87% increase from CNY 3,706,513,611.31 at the end of 2020[28]. - The net assets attributable to shareholders increased by 57.32% to CNY 2,908,887,817.80 at the end of 2021, compared to CNY 1,849,036,196.73 at the end of 2020[28]. - The basic earnings per share for 2021 was CNY 0.92, a 9.52% increase from CNY 0.84 in 2020[28]. - The company achieved a net profit of CNY 120,239,967.97 in Q4 2021, indicating strong performance in the last quarter of the year[32]. - The company reported a significant decrease in financial expenses by 47.41%, attributed to increased interest income and reduced interest expenses[61]. - The company reported a total revenue of 1.31 million for the year, with no significant changes in shareholding among directors[94]. - The company reported a net profit margin of 15.57% for the current fiscal year, indicating strong profitability[97]. Dividend Policy - The company plans to distribute a cash dividend of 5 RMB per 10 shares to all shareholders based on the total share capital as of the dividend distribution date[6]. - The company has not proposed any capital reserve transfer to increase share capital for the current year, with retained earnings to be carried forward to the next year[6]. - The company prioritizes cash dividends, distributing at least 30% of the annual distributable profits in cash if no major investment plans or cash expenditures occur[127]. - In mature stages without major investments, cash dividends should constitute at least 80% of the profit distribution; if there are major investments, this minimum drops to 40%[127]. - For growth stages with significant investments, cash dividends must be at least 30% of the profit distribution[127]. Corporate Governance - The company has received a standard unqualified audit report from Zhongxing Cai Guanghua Accounting Firm[5]. - The company has confirmed that all board members attended the board meeting[5]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has not faced any situation where more than half of the directors cannot guarantee the authenticity, accuracy, and completeness of the annual report[8]. - The company has implemented measures to ensure corporate governance and independence from its controlling shareholder, Li Xinhua[85]. - The board of directors approved the use of idle raised funds for cash management in February 2021[107]. - The company has made changes to its board of directors, including the election of new members in 2021[106]. - The board of directors held 14 meetings in the year, all conducted in person[113]. - The company has not faced any penalties from securities regulatory authorities in the past three years[107]. Risk Management - The company has outlined potential risks in its operations, which are detailed in the management discussion and analysis section of the report[8]. - The company emphasizes the importance of investment risk awareness regarding forward-looking statements in the report[7]. - The company is aware of risks associated with government pricing of natural gas, which could impact profitability[80]. - The company is exposed to competition from alternative energy sources, including coal, wind, and solar energy, which could affect its market position[82]. - The company has established a comprehensive risk management system to enhance financial data analysis and fund usage supervision[135]. - The company has a risk of pipeline damage leading to safety incidents, which could result in significant operational disruptions and liabilities[82]. Operational Highlights - The company signed a share transfer agreement to acquire 48% equity in Zhongguang Nuclear Yulong (Henan) New Energy Co., Ltd., enhancing its market position in the gas industry in Henan Province[40]. - The company actively promoted project construction and market-oriented reforms, ensuring steady progress in pipeline relocation and gas utilization projects[37]. - The company implemented a smart gas system to enhance management efficiency and service capabilities[37]. - The company has established stable gas supply agreements with multiple suppliers, enhancing its supply stability advantage[46]. - The company’s gas pipeline network has expanded to cover central and northern Henan, enhancing its market position[46]. - The company is investing in the construction of natural gas utilization projects in the Zhumadian area, with the aim of meeting local demand[85]. Social Responsibility - The company donated 5 million RMB to support flood relief efforts in Zhengzhou, demonstrating its commitment to social responsibility[40]. - The company has actively engaged in social responsibility initiatives, balancing economic and social benefits[140]. - The company has established a comprehensive employee rights protection system, including compliance with labor laws and regular health checks[140]. Future Outlook - The company plans to achieve a sales revenue of 4.147 billion yuan and a net profit of 490 million yuan in 2022, although this is subject to various uncertainties[79]. - The company aims to actively coordinate and secure multiple gas sources to meet ongoing development needs, emphasizing the importance of gas supply for survival and stability[78]. - The company intends to enhance market development efforts and expand its operational regions, recognizing the gas industry as a scale economy[78]. - Future guidance indicates an expected revenue growth rate of approximately 20% for the next fiscal year[97]. Employee Information - The company had a total of 1,428 employees, with 338 in the parent company and 1,090 in major subsidiaries[119]. - The employee composition includes 584 production staff, 188 sales personnel, 334 technical staff, 102 financial staff, and 220 administrative staff[122]. - The company maintains a stable employee compensation and benefits level during the reporting period[123]. - The company has implemented a comprehensive employee training plan to enhance skills and promote safety awareness[124]. Contracts and Agreements - The company has a contract with Sinopec for a gas supply of 20,503 million cubic meters from April 1, 2021, to March 31, 2022[183]. - The company has a procurement contract with Sinopec for a total of 25,000 to 50,000 million cubic meters of gas supply over multiple years, with specific delivery and pricing terms[183]. - The total contracted gas volume for Blue Sky Gas with various partners until December 31, 2023, amounts to 97800000 cubic meters with China General Nuclear Power Group, 30099000 cubic meters with Henan Wuzhou Gas, and 99819542 cubic meters with Xuchang Tianlun Gas[186].