和远气体(002971) - 2019 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2019 was CNY 665,623,667.86, representing a 6.57% increase compared to CNY 624,616,617.42 in 2018[18]. - The net profit attributable to shareholders for 2019 was CNY 84,527,935.04, which is a 12.17% increase from CNY 75,359,184.84 in the previous year[18]. - The net cash flow from operating activities increased by 27.04% to CNY 95,782,300.59 in 2019, up from CNY 75,394,300.33 in 2018[18]. - The basic earnings per share for 2019 was CNY 0.70, an increase of 11.11% from CNY 0.63 in 2018[18]. - Total assets at the end of 2019 reached CNY 1,224,965,544.53, marking a 19.03% increase from CNY 1,029,163,991.55 at the end of 2018[18]. - The net assets attributable to shareholders increased by 15.89% to CNY 611,744,885.05 at the end of 2019, compared to CNY 527,849,694.97 at the end of 2018[18]. - The weighted average return on equity for 2019 was 14.83%, slightly down from 15.36% in 2018[18]. - The net profit after deducting non-recurring gains and losses was CNY 82,075,407.55, an 8.26% increase from CNY 75,813,423.49 in 2018[18]. Revenue Breakdown - Total revenue for the year was approximately ¥685 million, with quarterly revenues of ¥144.95 million, ¥173.97 million, ¥163.50 million, and ¥183.21 million respectively[22]. - Net profit attributable to shareholders for the year was approximately ¥84.53 million, with quarterly net profits of ¥17.50 million, ¥22.10 million, ¥24.46 million, and ¥20.47 million respectively[22]. - The net cash flow from operating activities for the year was approximately ¥95.78 million, with quarterly cash flows of ¥15.53 million, ¥23.87 million, ¥23.67 million, and ¥32.72 million respectively[22]. - Main business revenue from gas sales was ¥599,818,127.79, accounting for 90.11% of total revenue, with a slight increase of 1.81% from ¥589,181,823.32 in 2018[82]. - Revenue from other business activities, including processing and leasing, surged by 85.71% to ¥65,805,540.07, up from ¥35,434,794.10 in the previous year[82]. Market Position and Strategy - The company operates in the industrial gas sector, focusing on the research, production, and sales of gases such as oxygen, nitrogen, and hydrogen, with applications across various industries including metallurgy and healthcare[27]. - The company holds a 70% market share in the bottled gas market in Hubei Province, with a strong sales network covering the entire province[29]. - The industrial gas market in China reached over 130 billion RMB in 2018 and is expected to grow at a rate of over 10% annually in the coming years[29]. - The company has established a circular economy supply model in three major industrial parks in Hubei, enhancing regional competitive advantages[30]. - The company is in the process of expanding its operational layout in the potential industrial parks in Wuhan, further enhancing its market presence[30]. Research and Development - The company has obtained 5 invention patents and 47 utility model patents, contributing to its unique competitive edge in the industrial waste gas recovery sector[31]. - Research and development expenses in 2019 were 18,298,174.39, an increase of 4.01% from 2018[95]. - The number of R&D personnel increased to 48, representing 6.40% of the total workforce[99]. - The company completed seven R&D projects in 2019, focusing on energy-efficient gas recovery and purification technologies[96]. Operational Efficiency - The company has developed a comprehensive gas supply solution that integrates pipeline supply and waste gas recovery, promoting economic benefits and environmental sustainability[37]. - The company achieves a vehicle utilization rate of over 90% by adjusting delivery schedules based on customer demand and operational capacity[43]. - The logistics model for bottled gas limits the sales radius to generally within 100 kilometers due to transportation costs, while the liquid gas model can extend up to 300 kilometers[44][46]. - The company has established a mature procurement process, ensuring stable supply channels and long-term partnerships with quality suppliers[40]. Risk Management - The company has detailed the risks it faces in the "Future Development Outlook" section of the annual report[6]. - The company faces safety production risks due to the hazardous nature of industrial gas products, which could lead to significant losses in case of accidents[126]. - The company is exposed to macroeconomic fluctuations that may impact the pricing of its main products, as its customer base spans various foundational industries[128]. - The company must navigate stringent regulatory requirements for industrial gases, which could delay market entry and affect investment plans[131]. Profit Distribution Policy - The company has a profit distribution policy that emphasizes stable and active returns to investors, prioritizing cash dividends when conditions allow[143]. - The company plans to distribute at least 10% of the annual distributable profit in cash dividends, with a cumulative cash distribution of at least 30% of the average annual distributable profit over the last three years[146]. - The company has not distributed any cash dividends in the last three years, with the cash dividend ratio being 0% for 2017, 2018, and 2019[149]. - The company will consider stock dividends if it is deemed beneficial for all shareholders, ensuring sufficient cash dividends are distributed first[144]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[171]. - The company plans to expand its production capacity, particularly in liquid oxygen, nitrogen, and argon, while increasing market share in Hubei and Central China[121]. - The company is targeting the development of a 30,000 cubic meters/hour air separation project to enhance its operational scale[120]. - The company plans to leverage its existing medical oxygen service network to enter the research, production, and sales of home medical gas products to meet future health demands[123].