Jinhong (000669)2024-04-26 14:52Financial Performance - The net profit for Jinhong Holdings in 2023 was -251.95 million yuan, following -156.37 million yuan in 2022 and -673.88 million yuan in 2021, indicating a continued decline in profitability [5]. - The net profit attributable to shareholders for 2023 was -¥222,834,630.57, representing a decline of 67.88% from -¥132,733,090.86 in 2022 [28]. - The company's operating revenue for 2023 was ¥1,231,817,048.49, a decrease of 2.14% compared to ¥1,258,805,456.95 in 2022 [28]. - The cash flow from operating activities for 2023 was ¥200,110,296.48, down 12.15% from ¥227,791,530.96 in 2022 [28]. - The total assets at the end of 2023 were ¥2,707,676,464.65, a decrease of 6.50% from ¥2,895,870,744.79 at the end of 2022 [28]. - The company's basic earnings per share for 2023 was -¥0.33, a decrease of 65.00% from -¥0.20 in 2022 [28]. - The company reported a significant increase in non-operating losses, totaling -¥225,893.88 in 2023 compared to -¥12,446,882.31 in 2022 [36]. - The company has experienced a decline in net assets, which were ¥259,756,585.05 at the end of 2023, down 44.31% from ¥466,419,828.52 at the end of 2022 [28]. - The company is facing uncertainty regarding its ability to continue as a going concern, as indicated by the negative net profit figures over the past three years [29]. Debt and Financial Obligations - The company failed to repay 136.34 million yuan of bonds due in June 2023, with a total repayment amount of 279.75 million yuan due by June 2024, raising concerns about its ability to continue as a going concern [5]. - Jinhong Holdings has recognized bad debt provisions of 266.54 million yuan related to its claims against a subsidiary, indicating significant financial strain [7]. - The company has provided guarantees totaling 1.58 billion yuan for its subsidiary, with 1.31 billion yuan backed by collateral, highlighting its exposure to financial risks [7]. - The company is addressing debt issues by communicating with creditors and exploring asset disposals to enhance its debt repayment capacity [100]. - The company has a total outstanding debt of CNY 1,415,107.85, with a payment schedule of 50% by January 31, 2023, 30% by December 13, 2023, and the remaining 20% by June 30, 2024 [189]. Legal Challenges - The company is facing legal challenges, including a claim for 39.11 million yuan related to a loan agreement, which could further impact its financial position [8]. - The company lost control over its subsidiary, Shahe Zhongyou Jintong Natural Gas Co., Ltd., due to severe disagreements with another shareholder, which has not been resolved as of December 31, 2023 [11]. - The company has reported a significant internal control deficiency related to its loss of control over the subsidiary, which has persisted since December 31, 2021 [11]. - The company is involved in a lawsuit with Tianjin Xin'ao Gas Development Co., Ltd. regarding a share transfer dispute, with the amount in question being CNY 16,356.52 million [171]. - The company is currently awaiting the court's decision on the jurisdictional objections related to the lawsuits [173]. - The ongoing legal matters may impact the company's financial liabilities, although no provisions have been made yet [171]. - The company is actively pursuing its legal rights and has engaged in communication with the courts to expedite the hearings [172]. - The company has received a total of 1.4 billion yuan in frozen bank deposits and assets due to ongoing legal issues [175]. Business Strategy and Operations - The company is transitioning to an investment holding company after a major asset restructuring, focusing on natural gas pipeline construction and operation [27]. - The company aims to enhance the development of the natural gas industry, which is crucial for optimizing energy structure and promoting energy conservation [41]. - The company aims to enhance its market position by expanding its business areas and increasing investment in high-quality energy projects and new energy technology development [47]. - The company has established a comprehensive business structure integrating upstream, midstream, and downstream operations in the natural gas sector [51]. - The company plans to continue focusing on clean energy and renewable energy development while monitoring policy and market dynamics [52]. Corporate Governance and Management - The company has maintained a high attendance rate at board meetings, with no directors missing more than one meeting [124]. - The board of directors has approved a new dividend policy, increasing the payout ratio to 30% of net income [110]. - The total pre-tax remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 343.85 million [121]. - The company has established a competitive compensation and benefits system to attract and retain key talent, enhancing overall competitiveness [133]. - The internal control system is overseen by the supervisory board, ensuring effective management and risk control [138]. Market and Industry Trends - Natural gas production in China reached 2,075.8 billion cubic meters in 2021, with a year-on-year growth of 7.8% [42]. - Natural gas consumption increased by 12.5% in 2021, significantly outpacing the growth rates of coal, crude oil, and electricity consumption [42]. - The forecast for natural gas demand in China is expected to reach 600 billion cubic meters by 2035 and 670 billion cubic meters by 2050 [43]. - The company is focusing on developing its mid-to-downstream business in response to changing national policies and increasing market competition [99]. Employee and Workforce Development - The total number of employees at the end of the reporting period is 934, with 560 in production, 49 in sales, 60 in technology, 53 in finance, and 212 in administration [131]. - The educational background of employees includes 12 with master's degrees or above, 261 with bachelor's degrees, 399 with associate degrees, and 262 with education below associate level [132]. - A training system is in place to improve employees' professional skills and qualities, ensuring alignment with the company's strategic goals [134]. Social Responsibility and Community Engagement - The company actively participates in social responsibilities and aims to balance economic benefits with social and environmental impacts [150]. - The company has focused on sustainable development by enhancing urban gas infrastructure and promoting energy structure improvements in new operational areas, contributing to local economic growth [153]. - The company has actively participated in social welfare activities, including donations and community support initiatives, contributing to local social harmony [154].