Sino Prima Gas(SZ:300483)2022-04-26 16:00Financial Performance - The company reported a total revenue of RMB 500 million for the year 2021, representing a 15% increase compared to 2020[14]. - The net profit for 2021 was RMB 80 million, which is a 10% increase year-over-year[14]. - The company's operating revenue for 2021 was ¥1,823,556,314.07, representing a 19.54% increase compared to ¥1,525,535,322.60 in 2020[19]. - The net profit attributable to shareholders decreased by 40.22% to ¥64,412,670.46 in 2021 from ¥107,755,183.82 in 2020[19]. - The net profit after deducting non-recurring gains and losses was ¥61,712,038.22, down 46.48% from ¥115,303,175.66 in the previous year[19]. - The total net profit for 2021, after accounting for non-recurring gains and losses, was ¥2,700,632.24, compared to a loss of ¥7,547,991.84 in 2020[25]. - The company reported a quarterly operating revenue of ¥571,708,080.20 in Q4 2021, with a net profit of ¥5,699,840.71[20]. - The total cost of sales for natural gas extraction and sales was ¥1,100,199,980.41, reflecting a 43.24% increase from ¥768,057,269.44 in 2020[100]. - The gross profit margin for gardening products decreased to 15.40%, down 6.34% from the previous year[100]. - The company achieved an operating income of CNY 182,355.63 million, representing a year-on-year growth of 19.54%, with natural gas business revenue increasing by 20.08% to CNY 151,568.55 million and garden supplies revenue rising by 17.34% to CNY 30,036.97 million[83]. User and Market Growth - User data showed an increase in active users by 25%, reaching a total of 1 million users by the end of 2021[14]. - The company plans to expand its market presence in the southern regions of China, targeting a 20% market share by 2025[14]. - The company expects an increase in revenue share from the Shilou West block, with a projected R value greater than 1 starting from February 2021[21]. - The gardening products market is expected to grow due to increased urban greening and rising consumer income, leading to higher demand for gardening supplies[54]. - The expansion of the gardening product consumer base is driven by rising living standards and the emergence of middle-class consumers[54]. Investment and Development - The company is investing RMB 50 million in new product development, focusing on advanced gas technologies[14]. - The company has committed to invest RMB 96,564.8 million in the Shilou project, which has not yet commenced[131]. - The company has also committed RMB 41,384.9 million for working capital, with 83.69% of this amount already utilized[131]. - The company raised a total of CNY 137,949.71 million through the issuance of convertible bonds in November 2021, primarily for the development of natural gas resources in the Shilou West Block[157]. - The company plans to increase investment and integration in the natural gas extraction business of Zhonghai Wobang, aiming to enhance exploration levels and extraction scale[139]. Research and Development - The company has increased its R&D investment from 26.42 million yuan in 2018 to 88.47 million yuan in 2021, reflecting a growing commitment to innovation[74]. - R&D investment amounted to ¥92,896,586.76 in 2021, representing 5.09% of operating revenue, up from 4.87% in 2020[113]. - The number of R&D personnel increased by 9.09% to 84 in 2021, with the proportion of R&D staff rising to 19.58% from 17.38%[113]. - The company completed several R&D projects aimed at improving tight gas development efficiency, including the optimization of horizontal well deployment technology[112]. - The company has received 29 authorized patents and applied for 17 software copyrights by the end of 2021, showcasing its focus on technological advancement[74]. Risks and Challenges - Risks identified include fluctuations in natural gas prices and regulatory changes impacting the industry[4]. - The company acknowledges the risk of discrepancies between proven reserves and actual extraction volumes, but considers the risk level for the Shilou West Block to be manageable[149]. - The company faces risks related to policy changes affecting natural gas subsidies, which are currently set to expire in 2023[153]. - The actual extraction volume of natural gas may differ from the disclosed data due to various factors, including exploration and development technology, natural gas prices, and operational costs[150]. - The company has implemented measures to mitigate foreign exchange risks, including shortening quotation cycles and locking in exchange rates, but remains exposed to potential impacts on export revenues and profit margins[156]. Corporate Governance - The company operates independently from its controlling shareholder, ensuring no interference in decision-making or operations[161]. - The company’s governance structure complies with relevant laws and regulations, ensuring effective internal control and management systems[160]. - The company has established an independent financial department with a complete financial accounting system, ensuring independent financial decision-making and tax compliance[171]. - The company actively communicates with stakeholders to balance interests and fulfill corporate social responsibilities[166]. - The board of directors has set up four specialized committees to provide scientific and professional opinions for decision-making[164]. Future Outlook - Future guidance indicates a projected revenue growth of 12% for 2022, with a target of RMB 560 million[14]. - The company anticipates continued growth in the upcoming fiscal year, supported by strategic initiatives and market expansion efforts[181]. - In 2022, the company will focus on the exploration and development of the Shilou West Block, including comprehensive research on multi-layer resource potential and trial work for multi-layer development[141]. - The company is committed to enhancing internal management and collaboration to ensure the stable development of acquired entities and reduce risks associated with goodwill and contract rights[154]. - The company is focusing on enhancing its product offerings and exploring potential mergers and acquisitions to accelerate growth[181].