Jinhong (SZ:000669)2023-04-21 16:00Financial Performance - The company's operating revenue for 2022 was ¥1,258,805,456.95, a decrease of 36.17% compared to ¥1,972,157,130.00 in 2021[28]. - The net profit attributable to shareholders was -¥132,733,090.86, showing an improvement of 79.91% from -¥660,668,238.07 in the previous year[28]. - The cash flow from operating activities was ¥227,791,530.96, an increase of 2.56% compared to ¥222,108,906.99 in 2021[28]. - The total assets at the end of 2022 were ¥2,895,870,744.79, a decrease of 10.99% from ¥3,253,578,944.91 at the end of 2021[28]. - The company's basic earnings per share for 2022 was -¥0.20, improving by 79.38% from -¥0.97 in 2021[28]. - The company reported a significant reduction in non-recurring losses, with a total of -¥12,446,882.31 in 2022 compared to a gain of ¥33,671,338.96 in 2021[36]. - The total operating revenue for 2022 was CNY 1,258,805,456.9, a decrease of 36.17% compared to CNY 1,972,157,130.0 in 2021[69]. - The gas business accounted for 98.25% of total revenue, generating CNY 1,236,782,549.6, down 36.50% from CNY 1,947,656,004.8 in 2021[69]. - Natural gas revenue was CNY 1,132,907,138.5, representing 90.00% of total revenue, a decline of 35.70% from CNY 1,762,010,434.6 in 2021[69]. Debt and Liabilities - As of December 31, 2022, Jinhong Holding's debt to Huabei Company amounted to CNY 479.6963 million, with a bad debt provision of CNY 161.7060 million recognized[5]. - The company has a guarantee balance of CNY 1.6044535 billion related to Huabei Company, with CNY 1.3184789 billion backed by collateral[10]. - The company plans to repay CNY 136.34 million of debt due in June 2023, with full repayment expected by June 2024[7]. - The company has recognized a provision for expected liabilities of CNY 210.2749 million related to external guarantees[10]. - The company has signed settlement agreements with most creditors regarding its bond issues, with most principal repayments already completed[106]. - The company has actively engaged in social responsibility, ensuring shareholder rights and maintaining cash dividends as a primary principle since its restructuring[160]. - The company has been actively managing its financial obligations and has made significant repayments towards its debts[183]. Operational Challenges - The company reported a significant risk in its future operations, which is detailed in the management discussion section of the report[8]. - The company has faced uncertainty regarding its ability to continue as a going concern, as indicated by the negative net profit figures over the past three years[29]. - The company is currently facing a total of 9,000,000 CNY in claims related to urban pipeline engineering projects[187]. - The company has been involved in multiple legal disputes, indicating ongoing financial and operational challenges[179]. - The company has faced challenges in fulfilling contractual obligations, leading to multiple lawsuits and enforcement actions[195]. Corporate Governance - The company's financial report has been confirmed as true, accurate, and complete by its board and management[4]. - The company maintained compliance with corporate governance regulations as per the annual report[112]. - The company confirmed independence from its controlling shareholders in terms of operations and finances[113]. - The company has established a relatively complete corporate governance structure by the end of the reporting period[112]. - The company has emphasized the importance of risk management, appointing a new Risk Control Director to strengthen its governance framework[119]. Strategic Initiatives - The company is transitioning to an investment holding company, with its actual business operations now conducted by its wholly-owned subsidiary, focusing on natural gas pipeline construction and operation[27]. - The company aims to align with national strategies for carbon neutrality and energy efficiency improvements by 2030 and 2060[39]. - The company is focused on expanding its natural gas business, including gas source development, transportation, and urban gas operations[47]. - The company is actively pursuing mergers and acquisitions of quality energy projects to bolster its growth[47]. - The company aims to enhance its market position by expanding its gas supply channels and reducing reliance on upstream gas sources[46]. Legal Matters - The company is involved in a lawsuit with Tianjin Xin'ao Gas Development Co., Ltd. regarding a claim amounting to CNY 16,356.52 thousand, which has not yet been adjudicated or executed[179]. - The company has faced a financial dispute resulting in a court ruling that froze CNY 140 million in bank deposits or equivalent assets[181]. - The company has been involved in multiple legal proceedings, indicating ongoing financial and operational challenges[179]. - The company has received a notice for execution regarding a judgment made on August 9, 2021, with enforcement actions initiated[188]. - The company is currently appealing a jurisdictional objection related to its lawsuits, with hearings held on January 11, 2023[180]. Employee and Management Changes - The total number of employees at the end of the reporting period is 827, with 495 in production, 20 in sales, 51 in technology, 49 in finance, and 212 in administration[142]. - The company reported a significant leadership change with the election of Zhang Dawei as Chairman and Liu Yuxiang as Vice Chairman and General Manager on December 28, 2022[118]. - The company has undergone a restructuring of its management team, with several key positions filled by newly elected members as part of the board's re-election process[119]. - The total remuneration for directors, supervisors, and senior management amounted to 5.69 million yuan in the reporting period[129]. Research and Development - The R&D budget for new products and technologies has been increased by 15% compared to the previous year[125]. - Research and development expenses decreased by 20.32% to ¥12,711,884.25 compared to the previous year[80]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and market share[125]. Market Expansion - The company plans to expand its market presence by entering three new provinces in the next fiscal year[125]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[198]. - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase market penetration by 15%[198]. Risk Management - The company is committed to enhancing risk management and control, ensuring compliance with management systems to prevent major operational risks[100]. - The company actively takes measures to address internal control deficiencies and improve overall risk management[147]. - The company is currently facing potential stock warnings due to its current development challenges[104]. Social Responsibility - The company has actively participated in social welfare activities, including donations and support for low-income families, contributing to local community building[164]. - The company has made significant investments in customer service, pipeline monitoring, and safety inspections, achieving recognition in the gas industry[162]. - The company has implemented measures to reduce carbon emissions, promoting natural gas as a clean energy source[158].