Wj Energy(SZ:002700)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was CNY 518,740,042.38, representing a 25.90% increase compared to CNY 412,032,815.71 in 2018[17]. - The net profit attributable to shareholders for 2019 was CNY 70,138,159.50, a slight increase of 0.55% from CNY 69,757,695.88 in the previous year[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 7.15% to CNY 63,815,188.23 from CNY 68,728,236.44 in 2018[17]. - The net cash flow from operating activities for 2019 was negative CNY 528,764,141.99, a significant decline of 760.42% compared to CNY 80,064,502.96 in 2018[17]. - The total assets at the end of 2019 amounted to CNY 1,332,580,988.14, reflecting a 6.97% increase from CNY 1,245,804,389.57 at the end of 2018[17]. - The net assets attributable to shareholders increased by 5.76% to CNY 1,075,337,782.08 from CNY 1,016,802,075.40 in 2018[17]. - The basic earnings per share remained unchanged at CNY 0.17 in both 2019 and 2018[17]. - The weighted average return on equity for 2019 was 6.44%, down from 6.98% in 2018[17]. Revenue Breakdown - The urban gas sector accounted for 87.43% of total operating revenue, generating 453,521,148.04 yuan, up 14.34% from the previous year[46]. - The company reported a 32.20% increase in sales of vehicle gas, reaching 246,101,045.43 yuan in 2019 compared to 186,161,192.45 yuan in 2018[46]. - The company's revenue from the urban gas industry reached ¥453,521,148.04, representing a year-on-year growth of 28.57%[49]. - The sales volume of urban gas was 21,695.14 million cubic meters, with a production volume of 22,023.28 million cubic meters, marking a 16.58% increase[50]. Cash Flow and Investments - The company experienced a significant decrease in cash funds, which fell by 53,009,000 yuan, a reduction of 87.33% due to non-operating fund occupation[34]. - The total investment in 2019 was ¥13,000,000.00, a 95.74% decrease from ¥305,000,000.00 in the previous year[66]. - The company reported a significant increase in R&D expenses, totaling ¥4,595,508.49, which is a 161.66% increase compared to the previous year[56]. - The company has established a new subsidiary, Karamay Haoyuan Energy Research Institute, with an investment of ¥13,000,000, fully owned by the company[52]. Operational Challenges - The company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws[5]. - The company reported a total of 59,717.51 million in non-operating fund occupation, which accounts for 52.24% of the latest audited net assets[116]. - The company acknowledged significant internal control deficiencies regarding the approval process for non-operating fund occupation[116]. - The company has faced disciplinary actions from the Shenzhen Stock Exchange and the China Securities Regulatory Commission due to the failure to repay non-operating funds[116]. Market and Industry Outlook - The natural gas industry is expected to see continuous growth due to favorable policies and urbanization trends, with no significant cyclical characteristics[32]. - The company plans to leverage the economic development and urbanization in Xinjiang to expand its market presence, particularly in areas with lower urbanization rates[38]. - The company plans to sell 21 million cubic meters of natural gas in 2020, with a 4.65% decrease in vehicle gas sales and a 2.09% decrease in residential gas sales compared to the previous year[95]. Shareholder and Governance - The company has consistently adhered to its profit distribution policy, ensuring compliance with regulations and protecting minority shareholders' rights[103]. - The cash dividend policy is designed to share the company's operational results with all shareholders while considering cash flow planning[103]. - The company reported a positive net profit attributable to ordinary shareholders, with a cash dividend distribution plan of CNY 0.35 per 10 shares, totaling CNY 14,784,940.80[108]. - The company ensures equal rights for all shareholders, particularly minority shareholders, during shareholder meetings[200]. Employee and Management Structure - The total number of employees in the company is 549, with 404 in the parent company and 145 in major subsidiaries[193]. - The company has established a salary and welfare management system based on local living standards and operational conditions[195]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounts to 585.61 million yuan[192]. - The company has implemented a broad salary system that includes position salary, performance salary, and benefits, ensuring fair and just salary distribution[195].