Bestsun Energy(SH:600681)2024-04-17 09:26Share Issuance and Capital Increase - The company issued a total of 607,679,922 shares to 2 legal entities and 36 natural persons to acquire 100% equity of Baichuan Gas Co., Ltd., increasing the total share capital to 859,157,472 shares[13] - In 2017, the company issued 53,885,057 shares to Xianda Industrial Co., Ltd. and 13,471,264 shares to Jinghu Real Estate Co., Ltd. to acquire 100% equity of Jingzhou Natural Gas Development Co., Ltd., increasing the total share capital to 1,031,513,793 shares[15] Subsidiaries and Consolidation - As of December 31, 2023, the company's consolidated financial statements include subsidiaries such as Baichuan Gas Co., Ltd., Baichuan Investment Holding Co., Ltd., and Baichuan Logistics Co., Ltd.[16] - The company has a wide range of subsidiaries and affiliates, including Baichuan Gas, Baichuan Thermal Power, and various regional gas companies[39] - The company's control criteria for consolidation are based on power over investees, variable returns, and the ability to influence returns[41] Financial Performance and Cash Flow - The company's net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 115,904,055.49, with a significant increase compared to the previous period[30] - Operating cash flow for the year was RMB 723,398,466.20, showing strong cash generation capabilities[30] - The company's operating income in 2023 was RMB 5.22 billion, a 4.27% increase compared to 2022[56] - Net profit attributable to shareholders in 2023 was RMB 368.42 million, a 5.82% decrease compared to 2022[56] - The company's cash flow from operating activities in 2023 was RMB 668.63 million, a 31.36% increase compared to 2022[56] - Revenue for the year reached 5.223 billion yuan, a year-on-year increase of 4.27%[80] - Net profit attributable to shareholders of the listed company was 368 million yuan, a year-on-year decrease of 5.82%[80] - Net profit for the period was RMB 386.55 million, compared to RMB 406.27 million in the previous period[122] - Operating cash flow increased to RMB 668.63 million, up from RMB 509.01 million in the previous period[122] Expenses and Costs - Sales expenses for the year totaled RMB 39,925,406.30, with employee compensation being the largest component[33] - Management expenses amounted to RMB 151,694,812.29, with employee compensation and business entertainment being the major expenses[35] - The company's R&D expenses in 2023 were RMB 6.31 million, a 51.38% increase compared to 2022[61] - R&D expenses totaled RMB 6.31 million, up from RMB 4.17 million in the previous period[133] Lease and Financing Agreements - The company entered into a financing lease agreement with Industrial Financial Leasing Co., Ltd. in December 2023, with a lease term of 4 years and a buyout price of RMB 10,000 at the end of the lease term[21] - The company's lease liabilities decreased significantly from RMB 3,331,885.21 to RMB 852,397.39, indicating reduced lease obligations[42] - Short-term lease expenses amounted to RMB 2.98 million, compared to RMB 2.66 million in the previous period[129] - Operating lease income was RMB 6.85 million[130] - Future undiscounted lease receivables for the next five years total RMB 15.18 million[133] - Cash inflow from sale-leaseback transactions was RMB 50.00 million[129] - Cash outflow related to sale-leaseback transactions was RMB 2.34 million, compared to RMB 153.53 million in the previous period[129] - Total cash outflows related to leases amounted to RMB 4.73 million[130] Natural Gas Operations and Infrastructure - The company's natural gas pipeline network exceeds 6,500 kilometers, covering a population of over 18 million, with 2.61 million residential users and tens of thousands of commercial and industrial users[48] - The company's main gas sources include the Shaanxi-Beijing II Pipeline, Shaanxi-Beijing IV Pipeline, and West-East Gas Pipeline[49] - The company operates in key regions such as Beijing-Tianjin-Hebei and the Yangtze River Economic Belt, with significant growth potential in natural gas demand[47] - The company is transitioning from a regional city gas operator to a national clean energy service provider[48] - The company's gas sales business covers regions including Langfang, Zhangjiakou, Cangzhou, Baoding, and Wuhan[51] - Total natural gas sales volume was 1.45 billion cubic meters, a year-on-year increase of 5.03%[80] - Residential gas sales volume was 738 million cubic meters, a year-on-year increase of 4.51%, while non-residential gas sales volume was 712 million cubic meters, a year-on-year increase of 5.57%[80] - The company developed and installed 158,000 residential users and over 1,800 non-residential users during the reporting period[80] - Total high and medium-pressure pipelines exceeded 6,500 kilometers, covering a residential population of over 18 million, with 2.61 million existing residential users[80] - National natural gas apparent consumption reached 394.53 billion cubic meters, a year-on-year increase of 7.6%[81] Investments and Acquisitions - The company's other equity instrument investments remained unchanged at RMB 1,500,000.00, with no impact on current profits[27] - The company invested in Beijing Yuantai Energy Materials Technology Co., Ltd., entering the hydrogen energy industry and focusing on the R&D and production of core membrane materials for electrolyzed water hydrogen production[80] - The company established new subsidiaries including Anzhi Nuo (100% ownership), Linquan Yiquan (58% ownership), Fuyang Petrochemical (100% ownership), Baichuan Hydrogen Energy (100% ownership), Yiju Technology (100% ownership), and Jiaxing Information (100% ownership) in 2023[155] - The company absorbed and merged Suizhong Dadi Natural Gas Pipeline Co., Ltd. into Suizhong Dadi Gas Co., Ltd. on December 7, 2023[155] - The company completed non-controlling acquisitions of several subsidiaries, including Fuyang Yunhe (RMB 10.00 million, 60% stake), Funan Huilong (RMB 300.00 million, 70% stake), and Fuyang Chuangyi (RMB 600.00 million, 68% stake)[190] - The company established new subsidiaries, including Linquan Baiyuan (RMB 4,000.00 million, 58% stake), Linquan Yiquan (RMB 200.00 million, 58% stake), and Fuyang Shihua (RMB 600.00 million, 100% stake)[190] - The company acquired Jingzhou Natural Gas (RMB 6,000.00 million, 100% stake) and Jianli Natural Gas (RMB 1,700.00 million, 100% stake) through non-controlling acquisitions[190] - The company established a new subsidiary, Ji Quan Trade, in Ningbo with a capital of RMB 1,000.00 million and a 100% stake[190] Financial Instruments and Foreign Currency - The company's cash and cash equivalents are defined as highly liquid assets with minimal risk of value fluctuation[44] - Foreign currency financial statements are translated using the spot exchange rate at the balance sheet date for assets and liabilities[45] - The company uses the transaction date's spot exchange rate to convert foreign currency transactions into RMB[69] - Foreign currency monetary items at the balance sheet date are translated at the spot exchange rate, with exchange differences recognized in current period profit or loss[69] - The company measures loss provisions for financial instruments based on expected credit losses over the entire life of the instrument[74] - If a financial instrument's credit risk has significantly increased since initial recognition, the company measures loss provisions for the entire expected life of the instrument[74] - The company considers a financial instrument's credit risk to have significantly increased if it is overdue by more than 30 days, unless there is evidence to the contrary[74] - For financial instruments with low credit risk at the balance sheet date, the company considers the credit risk not to have significantly increased since initial recognition[74] - The company reclassifies foreign currency translation differences related to the disposal of foreign operations from equity to profit or loss in the disposal period[71] Equity and Long-term Investments - The company uses the equity method to account for investments in joint ventures[67] - Equity method investment income for the current period was RMB 6,133,656.83, compared to RMB 3,021,882.28 in the previous period[75] - The company uses the cost method for long-term equity investments in subsidiaries, recognizing investment income based on declared cash dividends or profits[98] - For equity method investments, the company adjusts the carrying value of long-term equity investments based on the share of net profits, other comprehensive income, and other owner equity changes of the investee[98] - Disposal of long-term equity investments results in the difference between the carrying value and the actual proceeds being recognized in current profit or loss[98] - The company's long-term equity investments are initially measured at the cost of the consideration paid, with adjustments made to capital reserves or retained earnings as necessary[146] Government Subsidies and Non-recurring Items - The company received government subsidies of RMB 24.75 million in 2023, a 31.6% increase compared to 2022[62] - Non-recurring gains and losses totaled RMB 87,430,135.43, with a significant impact from income tax effects of RMB 25,324,954.35[96] - Other non-operating income and expenses amounted to a loss of RMB 5,773,786.82[96] - Minority interest impact after tax was RMB 551,880.11[96] Inventory and Asset Management - The company's inventory is classified into raw materials, finished goods, and contract performance costs, with initial measurement based on cost, including procurement, processing, and other expenses[107] - Inventory is valued using the weighted average method at the end of the month[109] - The company uses the perpetual inventory system for inventory management[109] - Low-value consumables and packaging materials are amortized using the one-time write-off method[109] - Inventory is measured at the lower of cost or net realizable value, with provisions made for inventory write-downs when cost exceeds net realizable value[110] - Contract assets are recognized based on the relationship between the fulfillment of performance obligations and customer payments, with expected credit losses determined using specific accounting methods[111][113] - Non-current assets or disposal groups held for sale are classified based on specific criteria, including the likelihood of sale within one year[116][117] - Discontinued operations are defined and reported separately in the financial statements, with related gains or losses classified as discontinued operations[118] Borrowings and Payables - Long-term payables at the end of the period amounted to RMB 35,690,156.25[68] - Short-term borrowings increased by RMB 526,520,000.00, reaching a total of RMB 426,520,000.00 at the end of the period[148] - Long-term borrowings increased by RMB 991,830,000.00, reaching a total of RMB 1,341,570,000.00 at the end of the period[148] - Long-term payables increased by RMB 50,000,000.00, reaching a total of RMB 50,000,000.00 at the end of the period[148] Fixed Assets and Intangible Assets - Fixed assets are depreciated using the straight-line method, with annual depreciation rates ranging from 3.17% to 19.00% depending on the asset category[152] - Construction in progress is measured at actual cost, including construction, installation, and capitalizable borrowing costs, and is transferred to fixed assets upon reaching the intended usable state[153] - Investment properties are measured using the cost model, with depreciation and amortization policies consistent with those of fixed assets and intangible assets[158] - Intangible assets with finite useful lives are amortized over their expected economic benefit period, while those with indefinite lives are not amortized[164] - The company estimates the useful lives of intangible assets such as land use rights (based on land use term), software (5 years), and franchise rights (based on agreement term)[165] - Research and development costs are expensed as incurred, while development costs are capitalized if they meet specific criteria, including technical feasibility and intent to complete the asset[167] - Long-term assets, including intangible assets with finite lives, are tested for impairment if there are indications of potential impairment[170] - Goodwill and intangible assets with indefinite lives are tested for impairment annually, regardless of whether there are indications of impairment[170] Borrowing Costs and Capitalization - Borrowing costs are capitalized when they are directly attributable to the acquisition, construction, or production of a qualifying asset, and capitalization begins when specific conditions are met[144] - The company capitalizes borrowing costs for assets under construction or production, but suspends capitalization if the interruption exceeds 3 months and is not a necessary process for the asset to reach its intended use or sale[160] - For specialized borrowing, the capitalized amount is determined by subtracting interest income or investment returns from the actual borrowing costs incurred[160] - General borrowing costs are capitalized based on the weighted average of expenditures exceeding specialized borrowing, multiplied by the capitalization rate[160] - Foreign currency borrowing costs for specialized loans are capitalized, while other foreign currency borrowing costs are expensed[160] Contract Liabilities and Subsidiary Details - Contract liabilities represent obligations to transfer goods or services to customers for which the company has received or is entitled to receive consideration[172] - Baichuan Investment Holdings is a wholly-owned subsidiary with a registered capital of $10,000 USD, located in Hong Kong, focusing on project investment[180] - Baichuan Gas, a subsidiary with a registered capital of RMB 36,000,000, operates in Yongqing County, Hebei Province, specializing in gas supply[180] - Gu'an Baichuan, with a registered capital of RMB 3,000,000, is a gas supply company located in Gu'an County, Hebei Province[181] - Gu'an Thermal Power, with a registered capital of RMB 20,000,000, operates in Gu'an County, Hebei Province, focusing on heat supply[181] - Sanhe New Energy, with a registered capital of RMB 4,000,000, is a gas supply company located in Sanhe City, Hebei Province[181] - Shaanxi Weist, a subsidiary with a registered capital of RMB 1,200,000, operates in Xianyang City, Shaanxi Province, specializing in instrument manufacturing with a 75.5% ownership[184] - Baichuan Suizhong, with a registered capital of RMB 50,000,000, focuses on LNG production and sales in Suizhong County, Liaoning Province, with a 60% ownership[187] - Panrui Energy, with a registered capital of RMB 6,123,650, operates in Sanhe City, Hebei Province, focusing on distributed energy with a 70% ownership[187] - Fuyang Gas, with a registered capital of RMB 11,635,550, operates in Fuyang City, Anhui Province, specializing in gas supply[187] - Taihe Golden Eagle, with a registered capital of RMB 1,200,000, operates in Taihe County, Anhui Province, focusing on gas supply with a 65% ownership[187] Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.30 per 10 shares (tax included) based on the total share capital on the record date for the 2023 profit distribution[194] Financial Transactions and Guarantees - The company's financial transactions include the purchase of financial products and structured deposits, with significant changes in amounts compared to the previous period[121] - Bank acceptance bill guarantees and financing guarantees show notable fluctuations in amounts, reflecting changes in financial commitments[121] Cash and Cash Equivalents - Cash and cash equivalents decreased by RMB 12.80 million, compared to a decrease of RMB 516.52 million in the previous period[125] Total Assets and Liabilities - The company's total assets at the end of 2023 were 7.871 billion yuan, a slight increase of 0.58% compared to the previous year[88] Natural Gas Sales Revenue - Natural gas sales revenue accounted for 4.34 billion yuan, a year-on-year increase of 9.51%, representing 83.09% of total revenue[80] Company Information - The company's Chinese name is 百川能源股份有限公司, and its legal representative is 王东海[103] - The company's board secretary is 李思萌, with contact information provided for investor relations[103] - The company's financial report covers the period from January 1, 2023, to December 31, 2023[101] - The company's financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and the relevant regulations of the China Securities Regulatory Commission[101]