Wj Energy(SZ:002700)2022-04-26 16:00Financial Performance - The company's operating revenue for 2021 was ¥592,302,858.74, representing a 41.35% increase compared to ¥419,032,878.93 in 2020[21]. - The net profit attributable to shareholders for 2021 was -¥187,718,729.81, a 6.68% improvement from -¥201,152,720.31 in 2020[21]. - The net cash flow from operating activities decreased by 40.06% to ¥118,261,958.25 from ¥197,314,213.53 in the previous year[21]. - Total assets at the end of 2021 were ¥850,363,223.52, down 21.73% from ¥1,086,495,534.21 at the end of 2020[21]. - The net assets attributable to shareholders decreased by 25.78% to ¥627,564,250.19 from ¥845,529,747.73 in 2020[21]. - The basic earnings per share for 2021 was -¥0.4444, an improvement of 6.68% from -¥0.4762 in 2020[21]. - The weighted average return on equity was -24.97%, a decline of 5.36% from -19.61% in 2020[21]. - The company reported a total operating revenue of ¥563,894,421.43 after deducting other business income for 2021, reflecting a strong performance in core operations[22]. - The company achieved natural gas sales of 24,960,000 cubic meters in 2021, a 25.91% increase from 19,823,000 cubic meters in 2020[45]. - The company reported a total revenue of 592.30 million yuan in 2021, representing a 41.35% growth compared to the previous year[46]. Operational Challenges - The company has indicated uncertainty regarding its ability to continue as a going concern due to negative net profits in recent years[21]. - The company is facing challenges in its gas station sales due to government regulations halting the conversion of vehicles from oil to gas[34]. - The company’s installation business is subject to a maximum profit margin of 10% as per regulatory guidelines, which may impact future profitability[40]. - The company has a risk warning regarding the occupation of funds by controlling shareholders and related parties amounting to ¥513,860,160[5]. - The company is facing price control risks due to national natural gas pricing reforms, leading to uncertainty in future operating performance[100]. - Rising costs and declining gross margins are anticipated as gas purchase costs increase and average wage levels rise, impacting overall expenses[101]. - The company is monitoring the ongoing domestic pandemic situation, which could adversely affect its industrial, commercial, and vehicle gas businesses if outbreaks occur[101]. Strategic Initiatives - The company plans to leverage its subsidiary, Shanghai Yuanhan, to expand into natural gas chemical and air separation businesses[44]. - The company has invested in a 148.48 km long-distance gas pipeline, which has reduced operational costs and improved profitability[41]. - The company has established 18 operational stations, including various combinations of gas stations, to meet regional market demands[47]. - The company aims to expand its market presence outside Xinjiang and explore new business models, including investments in natural gas chemicals and renewable energy[96]. - The company plans for a 5% increase in natural gas sales volume for 2022, while the household installation business is expected to decline by 34%[98]. Governance and Compliance - The company has established a robust corporate governance structure, ensuring compliance with relevant laws and regulations, and protecting shareholder rights[106]. - The company operates independently from its controlling shareholder, maintaining distinct operational, financial, and asset management systems[109]. - The company has implemented measures to recover funds misappropriated by related parties of the controlling shareholder, including legal actions[108]. - The company has established a performance evaluation mechanism for senior management, linking compensation to performance and safety production[158]. - The company has committed to improving compliance awareness and risk consciousness among its board members and senior management through regular training[173]. Shareholder Relations - The company is committed to enhancing investor relations through various communication channels, including online platforms and direct interactions[107]. - The company held several shareholder meetings in 2021, with participation rates of 3.84% for the first temporary meeting and 57.49% for the annual meeting[110]. - The company has a workforce with 83 employees holding bachelor's degrees or higher, 186 with associate degrees, and 270 with vocational education or lower[146]. - The company distributed a cash dividend of 0.35 RMB per 10 shares based on a total share capital of 422,426,880 shares as of December 31, 2020[151]. - The company did not propose a cash dividend distribution plan for the reporting period despite having positive distributable profits[152]. Internal Control and Audit - The internal control audit report concluded that Xinjiang Haoyuan Company maintained effective internal controls related to financial reporting as of December 31, 2021[166]. - The internal control evaluation results indicate a certain risk in predicting future effectiveness due to inherent limitations[165]. - The company has acknowledged the need for improved internal controls to prevent future fund occupation issues[188]. - The company has established a verification team to assess the collateral provided by the controlling shareholder for the outstanding loans[193]. - The company received a qualified audit report from Zhongqin Wanxin Accounting Firm for the 2020 financial statements due to insufficient evidence regarding the impact of an ongoing investigation by the Xinjiang Securities Regulatory Bureau[190].