德龙汇能(000593) - 2018 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2018 was CNY 630,964,895.64, representing a 29.94% increase compared to CNY 485,589,663.85 in 2017[18]. - The net profit attributable to shareholders for 2018 was a loss of CNY 185,633,136.73, a significant decline of 870.02% from a profit of CNY 24,107,697.43 in 2017[18]. - The net cash flow from operating activities decreased by 82.81% to CNY 14,039,895.09, down from CNY 81,689,970.31 in the previous year[18]. - The total assets at the end of 2018 were CNY 1,633,547,328.09, a decrease of 5.34% from CNY 1,725,619,044.44 at the end of 2017[19]. - The net assets attributable to shareholders decreased by 16.67% to CNY 922,211,023.91, down from CNY 1,106,650,869.32 in 2017[19]. - The basic earnings per share for 2018 was -CNY 0.518, a decline of 873.13% from CNY 0.067 in 2017[18]. - The weighted average return on net assets was -18.32%, a decrease of 20.48 percentage points from 2.16% in 2017[18]. - The company's operating costs rose to CNY 488.83 million, reflecting a significant increase of 42.04% from CNY 344.16 million in the previous year[48]. - The company recorded a goodwill impairment provision of CNY 20.55 million during the reporting period, which significantly impacted operating profit[52]. Operational Challenges - The company has faced significant operational challenges leading to a substantial net loss in 2018[18]. - Future outlook includes addressing operational risks as detailed in the report[4]. - The LNG business is characterized by a higher degree of marketization, with revenue and profit being more volatile compared to urban gas operations[36]. - The company has not made significant changes to its business model or operating areas during the reporting period[38]. Revenue Sources - The gas supply and related income contributed CNY 550.39 million, accounting for 87.23% of total revenue, with a year-on-year increase of 38.62%[56]. - Total revenue from gas supply and related services reached ¥550,388,547.15, representing a 38.62% increase year-over-year[60]. - Revenue from Sichuan province accounted for 59.67% of total revenue, with a year-over-year growth of 16.82%[60]. - Revenue from Jiangxi province surged by 87.72% year-over-year, totaling ¥158,601,664.56, which is 25.14% of total revenue[60]. - Other business income increased by 50.27% year-over-year, amounting to ¥31,960,367.09[60]. Cash Flow and Investments - Operating cash inflow for 2018 was CNY 777.81 million, an increase of 32.36% compared to CNY 587.66 million in 2017[71]. - Operating cash outflow for 2018 was CNY 763.77 million, a significant increase of 50.95% from CNY 505.97 million in 2017[71]. - Investment cash inflow surged by 11,467.58% to CNY 27.90 million, compared to CNY 0.24 million in 2017[72]. - Net cash flow from investment activities improved by 43.58%, resulting in a net outflow of CNY 75.20 million[72]. - Financing cash inflow decreased by 71.19% to CNY 83.60 million, down from CNY 290.19 million in 2017[73]. - Net cash flow from financing activities fell by 72.81% to CNY 26.70 million, compared to CNY 98.20 million in 2017[73]. Market and Business Strategy - The company operates primarily in the clean energy sector, focusing on natural gas supply, with three main business segments: urban gas, LNG, and distributed energy[28]. - The company is actively expanding its gas business in underdeveloped regions, particularly in Hubei and Dalian, to tap into significant growth potential[42]. - The company plans to focus on refining urban gas operations and enhancing distributed energy business in 2019, supported by a stable new controlling shareholder[47]. - The company plans to actively explore energy supply markets related to its controlling shareholder and upstream/downstream enterprises[104]. - The company aims to enhance operational efficiency and market position through strict management and active market expansion[103]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares for the year[5]. - The company reported a net profit attributable to shareholders of -185.63 million yuan in 2018, with no cash dividends proposed for the year[116]. - The company has established a professional management team to enhance operational efficiency and market position[43]. - The company has engaged Sichuan Huaxin (Group) CPA as its auditor for 21 years, with an audit fee of 700,000 CNY for the current period[126]. - The company has a strong management team with diverse backgrounds, including finance, engineering, and business management, enhancing its operational capabilities[177][178]. Employee and Management - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 3,847,100.66[190]. - The annual salary for the general manager is set at CNY 760,618.97, while the salary for other senior management positions is CNY 660,000 per year[190]. - The company has a total of 824 employees, with 35 in the parent company and 789 in major subsidiaries[191]. - Employee training programs are implemented to enhance skills and competencies, including onboarding and safety training[194]. Future Outlook - The company anticipates a slowdown in natural gas market growth in 2019 compared to 2017-2018 due to reduced "coal-to-gas" project progress[101]. - The company expects continued supply tightness during peak demand periods in 2019 due to limited natural gas import capacity and production[102]. - The company plans to focus on refining urban gas operations, expanding distributed energy projects, and strengthening LNG business in 2019[103]. - The company projects a revenue growth of 10% for the next fiscal year, targeting 1.32 billion CNY[183].