BEIJING ENT(HK:00392)2024-03-27 09:31Financial Performance - The company's operating revenue for the year was approximately RMB 82.31 billion, an increase of 3.7% compared to the previous year[3]. - The profit attributable to shareholders was approximately RMB 5.5 billion, with a profit of RMB 4.88 billion after excluding one-time items[4]. - Basic and diluted earnings per share were RMB 4.36[3]. - The net profit for the year was RMB 6.40 billion, down from RMB 7.11 billion in the previous year[65]. - The net profit for the year ended December 31, 2023, was RMB 6,401,291 thousand, a decrease of 9.9% from RMB 7,107,058 thousand in 2022[67]. - Total comprehensive income for the year increased to RMB 4,287,763 thousand in 2023, up from RMB 3,303,433 thousand in 2022, representing a growth of 29.8%[67]. - The overall gross margin for 2023 was 13%, a slight decrease of 0.3% from the previous year's 13.3%, primarily due to increased costs at Beijing Gas[38]. - The total income tax expense for the year was RMB 865,887,000, a decrease from RMB 940,150,000 in the previous year, reflecting a reduction of 7.9%[95]. - Basic earnings per share for the year were RMB 5,498,290,000, down from RMB 6,512,480,000 in 2022, indicating a decline of 15.5%[97]. Revenue Contributions - The gas business contributed RMB 5.15 billion to profit, accounting for 61.5% of total profit[5]. - The total gas sales volume for Beijing Gas was 24 billion cubic meters, with a year-on-year increase of 1.7% in pipeline gas sales[8]. - In 2023, the group's operating revenue was RMB 82.31 billion, an increase of 3.7% compared to 2022, with Beijing Gas contributing RMB 61.47 billion, accounting for 74.7% of total revenue[36]. - Gas business segment revenue reached RMB 61,470,405 thousand, contributing significantly to the overall revenue of RMB 82,313,331 thousand for the year ended December 31, 2023, representing an increase from RMB 59,862,104 thousand in 2022[86]. - The environment business segment generated revenue of RMB 8,426,418 thousand, while the beer business segment contributed RMB 12,328,849 thousand, showcasing the company's diverse operational segments[86]. Expenses and Costs - Sales cost increased by 4% to RMB 71.58 billion, driven by natural gas procurement costs and pipeline network depreciation[37]. - Financial expenses for 2023 were RMB 2.64 billion, a significant increase of 48.4%, attributed to rising global interest rates affecting loan costs[44]. - The company incurred financial expenses of RMB 2,644,327 thousand, which impacted overall profitability[86]. - Total financial expenses increased to RMB 2,901,328,000 in 2023 from RMB 1,797,775,000 in 2022, representing a growth of 61.6%[92]. - The group's cost of sold inventory rose to RMB 65,617,420,000 in 2023, compared to RMB 63,383,322,000 in 2022, an increase of 3.5%[94]. Capital Expenditure and Investments - Capital expenditure for Beijing Gas was approximately RMB 4.55 billion for the year[11]. - The group’s capital expenditure for the environmental business segment was approximately RMB 3.11 billion[20]. - The balance of investments in joint ventures increased by RMB 2.22 billion, primarily due to the group's share of profits from VCNG, National Pipeline Beijing Company, Beijing Water Group, and China Gas[50]. Market and Strategic Plans - The company plans to expand its market presence and develop new energy business directions, including renewable energy and hydrogen energy[12]. - Beijing Gas aims to enhance its market presence in Beijing and expand into competitive regional markets, focusing on LNG resource development and downstream sales[29]. - China Gas plans to solidify its natural gas business, improve sales volume and gross profit, and transition to integrated energy supply services[31]. - The company plans to continue expanding its operations in both domestic and international markets, focusing on gas distribution and environmental services[86]. Assets and Liabilities - Total assets reached RMB 204,454,706 thousand, up from RMB 194,542,803 thousand in 2022, marking an increase of 5.0%[70]. - Total liabilities increased to RMB 111,405,341 thousand in 2023, compared to RMB 103,868,750 thousand in 2022, which is a rise of 7.4%[70]. - The company's total equity was RMB 93.05 billion, with an asset-to-liability ratio of 45%, up from 43% in 2022[63]. - Cash and bank deposits as of December 31, 2023, amounted to RMB 28.86 billion, with total borrowings of RMB 76.25 billion, resulting in a net debt of RMB 47.39 billion, an increase of 17% year-on-year[57]. Corporate Governance and Compliance - The company has adhered to the Corporate Governance Code as of December 31, 2023[116]. - The audit committee, consisting of three independent non-executive directors, has reviewed and approved the annual performance[118]. - The company's auditor confirmed that the preliminary announcement aligns with the consolidated financial statements for the year ending December 31, 2023[119]. Employee and Shareholder Information - The company has approximately 31,000 employees as of December 31, 2023, with compensation based on performance, professional experience, and industry standards[115]. - The annual general meeting will be held on June 6, 2024, and the notice will be sent to all shareholders in due course[112]. - The final dividend will be paid in RMB or HKD, with the exchange rate determined five business days before the annual general meeting[108].