BEIJING ENT(HK:00392)2023-03-31 08:48Financial Performance - The company's operating revenue for the year was approximately HKD 92.3 billion, an increase of 14.6% compared to the previous year[2]. - The profit attributable to shareholders was approximately HKD 7.57 billion, with a profit of HKD 8.24 billion after excluding one-time items[3]. - Basic and diluted earnings per share were HKD 6.0, with a proposed final dividend of HKD 1.1 per share, resulting in a total annual dividend of HKD 1.6 per share, an increase of 28% year-on-year[2]. - The group’s attributable profit for the year ended December 31, 2022, was HKD 7.57 billion[36]. - The net profit for the year was HKD 8,264,021 thousand, down from HKD 10,518,631 thousand in 2021, indicating a decrease of about 21.2%[41]. - The basic and diluted earnings per share attributable to shareholders was HKD 6.00, compared to HKD 7.86 in the previous year, reflecting a decline of approximately 23.5%[41]. - The company reported a significant foreign exchange loss of HKD 7,871,336 thousand in other comprehensive income, compared to a gain of HKD 2,285,461 thousand in 2021[42]. - The company reported other income of HKD 2,479,698,000, an increase from HKD 2,085,270,000 in the previous year, indicating a growth of approximately 19%[57]. Revenue Breakdown - The total revenue for the gas business segment reached HKD 69,607,098, while the environmental business segment generated HKD 9,141,156, and the beer business segment reported HKD 13,470,870, contributing to a consolidated revenue of HKD 92,296,553[52]. - Revenue from the mainland China market was HKD 76,579,585,000, up from HKD 71,342,949,000 in 2021, marking an increase of about 7.9%[55]. - The LNG business achieved significant growth, with sales revenue reaching HKD 13.03 billion, a substantial increase compared to the previous year[9]. Operational Highlights - Beijing Gas recorded operating revenue of HKD 69.61 billion, a year-on-year increase of 19.8%, with a pre-tax profit of HKD 6.21 billion, up 10.8%[6]. - The total natural gas sales volume for Beijing Gas was 21.69 billion cubic meters, with a year-on-year increase of 5% in the sales volume within Beijing[6]. - The natural gas transmission business recorded a gas transmission volume of 59.21 billion cubic meters, a year-on-year increase of 9%[10]. - The environmental business segment achieved a waste treatment capacity of 32,895 tons per day, with a total waste processing volume of 4.607 million tons and energy sales of 4.91 billion KWH, generating revenue of HKD 5.9 billion[14]. - The domestic environmental business processed 6.09 million tons of waste, a year-on-year increase of 5.9%, and generated 1.52 billion KWH of electricity, contributing HKD 3.24 billion in revenue, with a profit attributable to shareholders of HKD 200 million, up 69.8% year-on-year[14]. - Beijing Yanjing Beer achieved beer sales of 3.77 million kiloliters, a year-on-year increase of 4.14%, with Yanjing U8 sales reaching 388,900 kiloliters, up 51%[16]. - Beijing Yanjing Beer recorded operating revenue of HKD 13.47 billion, a year-on-year increase of 4.9%, and a pre-tax profit of HKD 694 million, up 19%[16]. Financial Position - Cash and bank deposits as of December 31, 2022, amounted to HKD 31.35 billion, with total borrowings of HKD 77.39 billion, resulting in a net debt of HKD 46.04 billion, an increase of 18.8% from the previous year[39]. - The group’s total equity was HKD 103.04 billion, with a debt-to-equity ratio of 43% as of the end of 2022[40]. - The company’s total assets amounted to HKD 222,822,051,000, while total liabilities were HKD 113,755,082,000, resulting in a net asset position of HKD 109,066,969,000[54]. - Non-current assets, including property, plant, and equipment, increased by 5.2% to approximately HKD 63.8 billion, mainly due to increased construction projects in Beijing Gas[37]. - The company’s inventory decreased to HKD 5,680,631 thousand from HKD 6,218,945 thousand in 2021, a reduction of approximately 8.6%[43]. Strategic Initiatives - The group plans to enhance its main business advantages in natural gas distribution, expand the market, and invest in upstream and downstream industries, while focusing on new energy and integrated energy business development[22]. - The environmental business will benchmark against industry leaders to improve economic efficiency of existing projects and accelerate the disposal of non-performing assets[25]. - Yanjing Beer aims to leverage its performance momentum to expand its U8 core strategy and enhance its high-end product offerings, while promoting low-alcohol and fruit beer products[26][27]. Challenges and Outlook - The group anticipates challenges in the 2023 economic environment, emphasizing the need for strategic upgrades and proactive adjustments to market changes[21]. - The effective income tax rate after accounting for share of profits and losses from associates was 31.7%, up from 20.9% in the previous year[35]. Shareholder Returns - The company declared a total dividend of HKD 2,016,851,000 for the year, compared to HKD 1,577,566,000 in 2021, reflecting an increase of about 27.9%[61]. - The company proposed a final dividend of HKD 1.1 per share for the year ended December 31, 2022, compared to HKD 0.85 per share in the previous year, marking an increase of approximately 29.4%[69]. Audit and Compliance - The company’s audit committee, consisting of three independent non-executive directors, has reviewed and approved the annual results, ensuring compliance with financial reporting standards[77]. - The consolidated financial statements for the year ended December 31, 2022, have not yet been reported by the company's auditor and will be submitted to the company registry in due course[47].