Financial Performance - For the six months ended June 30, 2020, the group reported an unaudited loss attributable to shareholders of approximately RMB 103.3 million, a decrease in loss of RMB 225 million compared to the same period last year [3]. - The group's unaudited revenue for the same period was approximately RMB 995 million, representing an increase of about 4.3% year-on-year, primarily due to increased production [4]. - The basic loss per share for the six months ended June 30, 2020, was approximately RMB 1.88, compared to RMB 7.64 in the same period last year [4]. - The pre-tax loss for the six months ended June 30, 2020, was RMB (115,509,000), a significant improvement from a loss of RMB (341,433,000) in the same period of 2019, indicating a reduction in losses by approximately 66% [26]. - The basic and diluted loss per share for the six months ended June 30, 2020, was RMB (0.0188), an improvement from RMB (0.0763) in the same period of 2019 [34]. - The company did not recommend any interim dividend for the six months ended June 30, 2020 [5]. - The company did not declare any dividends for the six months ended June 30, 2020, as per the board's recommendation [35]. Sales and Production - Total sales volume (excluding trade) reached approximately 587,750 tons, an increase of 24.8% compared to the same period last year [4]. - The revenue from urea sales was RMB 352,350,000, accounting for 35.4% of total revenue, up from 30.4% in the previous year [23]. - The revenue from ammonia sales was RMB 325,050,000, representing 32.7% of total revenue, compared to 31.9% in the previous year [23]. - The company experienced a decrease in sales of methanol, generating RMB 305,691,000, which accounted for 30.7% of total revenue, down from 35.1% in the previous year [23]. - Total sales volume (excluding trade) reached approximately 587,750 tons, an increase of 24.8% compared to 471,127 tons in the same period last year [48]. - Urea production in the first half of 2020 was 27.127 million tons, up 3.3% from 26.245 million tons in the same period of 2019 [60]. - The total production of synthetic ammonia in the first half of 2020 was approximately 26 million tons, a decrease of 9.7% year-on-year, primarily due to the impact of the pandemic and the conversion of production facilities to urea [64]. Cash Flow and Assets - The unaudited cash generated from operating activities was approximately RMB 16.79 million, an increase of RMB 60.58 million compared to cash outflow of RMB 43.79 million in the same period last year [4]. - The net cash generated from operating activities was RMB 28.98 million, compared to a cash outflow of RMB 30.72 million in the same period last year [13]. - The total assets as of June 30, 2020, were RMB 2.90 billion, a decrease from RMB 2.98 billion as of December 31, 2019 [9]. - Total liabilities as of June 30, 2020, were RMB 2.77 billion, compared to RMB 2.75 billion as of December 31, 2019 [11]. - The company’s net current liabilities as of June 30, 2020, amounted to RMB 1,704,697,000, indicating a need for careful cash flow management [18]. - The group has cash and bank balances of approximately RMB 6,415,000 as of June 30, 2020, with no available bank credit [77]. - The group reported net current liabilities of approximately RMB 1,704,697,000 as of June 30, 2020 [75]. Cost Management - The gross profit margin decreased from approximately 1.5% in the previous year to 0.3% due to a decline in product prices [49]. - Sales costs amounted to approximately RMB 992 million, an increase of about 5.6% year-on-year, attributed to increased sales volume [49]. - Distribution costs increased by approximately 11.3% due to higher sales volume [49]. - Administrative expenses decreased by about 35.9% compared to the same period last year, due to reduced impairment losses on equipment and effective cost control [49]. Strategic Initiatives - The company plans to enhance production efficiency by optimizing resource organization and implementing cost-reduction measures to cope with the economic downturn caused by the pandemic [69]. - The company anticipates that the synthetic ammonia market will improve in the second half of 2020, driven by new production facilities and regional supply-demand dynamics [67]. - The company aims to strengthen employee training and improve management capabilities to enhance operational efficiency and adaptability in a challenging market environment [69]. - The group aims to optimize the sales model to increase the proportion of direct sales customers and enhance local customer sales scale [71]. - The group plans to gradually reduce the proportion of exclusive suppliers to lower procurement costs and improve procurement quality [71]. - The group plans to promote new project approvals and construction to enhance competitiveness [71]. Workforce and Governance - The company has 649 employees as of June 30, 2020, a decrease from 665 in 2019 [88]. - The audit committee, established on June 10, 2003, consists of three independent non-executive directors [113]. - The company has adopted a standard code of conduct for securities trading, compliant with trading regulations [112]. - The company has taken appropriate actions to comply with the corporate governance code since January 1, 2005 [116]. Shareholder Information - Major shareholder Zheng Jianming held 800,000,000 shares (14.58%) before conversion, which would increase to 1,801,375,000 shares (23.09%) post-conversion [96]. - Public shareholders held 3,887,742,599 shares (70.84%) before conversion, which would decrease to 52.54% post-conversion [96]. - The total number of shares before conversion of unexercised convertible securities was 5,488,042,599, which would increase to 7,800,717,599 after conversion, representing a 42.00% increase [96]. - The total equity interest of director Tang Guoqiang was reported at 130.83%, including 7,180,000,000 shares and related securities [104]. - The company proposed a new share option plan, granting 300,000,000 options to director Shi Jianmin at an exercise price of HKD 0.141 per share, pending shareholder and exchange approval [104]. - The company has three types of convertible securities with maturity dates in November 2024, January 2024, and March 2024 [98]. - The total number of shares held by major shareholders and directors represents significant control over the company, with Zheng Jianming and Zhang Weihua holding substantial stakes [106]. Market Conditions - As of mid-2020, China's methanol production capacity reached 90.28 million tons, maintaining a high growth rate, with a 130.77% increase in new capacity compared to the same period last year [56]. - In the first half of 2020, methanol production totaled 32.65 million tons, with an average operating rate of 66.14%, showing a year-on-year production decline of 0.29% and an operating rate decline of 8.79% [56]. - Methanol imports in the first half of 2020 amounted to 5.978 million tons, an increase of 1.3296 million tons or 28.6% year-on-year [56]. - The average operating rate of domestic urea enterprises was 62.72% in the first half of 2020, with urea exports of 1.6 million tons, a decrease of 5.8% year-on-year [60]. - The price of urea fluctuated between RMB 1,550 and RMB 1,800 per ton in the first half of 2020, influenced by domestic and international pandemic conditions and industrial demand [60].

Financial Performance - For the year ended December 31, 2019, the net cash outflow from operating activities after interest payments was approximately RMB 37.4 million, a decrease of about RMB 161 million compared to a net cash inflow of RMB 123.6 million in 2018[7]. - The loss attributable to shareholders for the year was approximately RMB 732 million, an increase of RMB 384 million compared to a loss of RMB 348 million in 2018[7]. - The basic loss per share for the year was approximately RMB 0.1598[7]. - The total sales revenue for the year was approximately RMB 1,964 million, a decrease of about 36.7% compared to 2018[7]. - The company recorded a revenue of approximately RMB 1,964,000,000 for the year ended December 31, 2019, a decrease of 36.7% compared to the previous year[28]. - The net loss attributable to shareholders increased to approximately RMB 732,000,000, compared to a loss of RMB 384,000,000 in the previous year[28]. - The company's sales cost was approximately RMB 1,958,000,000, a decrease of 31.9% from 2018, primarily due to a reduction in trade volume[29]. - The gross profit margin fell from approximately 7.2% in 2018 to 0.3% in 2019, attributed to declining product sales prices and rising natural gas prices[29]. - The distribution costs decreased by about 20.6% compared to the previous year, with a distribution cost to sales ratio of 1.35%, an increase of 0.27% from 2018[29]. Production and Sales - The sales volume of urea increased by 37% to 325,170 tons, with sales revenue of RMB 554 million, a 17% increase[7]. - The average price of urea in 2019 was RMB 1,842 per ton, down RMB 131 per ton from RMB 1,973 per ton in 2018[10]. - In the first half of 2020, the average daily production of urea is expected to exceed 160,000 tons, with production showing a stable upward trend[12]. - The company faced challenges due to significant price declines in products and rising natural gas raw material costs[9]. - The company anticipates that the urea market prices will rise during the spring planting season, followed by a gradual decline after June due to reduced agricultural demand[12]. Dividends and Reserves - The company did not recommend any final dividend for the year ended December 31, 2019, consistent with no dividends declared in 2018[9]. - The company does not recommend the payment of any final dividend for the year ended December 31, 2019, consistent with the previous year[66]. - The company's available distributable reserves as of December 31, 2019, were approximately RMB 243,056,000, indicating a healthy reserve position for potential future distributions[69]. Future Plans and Investments - The company plans to continue optimizing its sales model and increasing direct sales ratios to improve operational efficiency[9]. - The company plans to develop fine chemical industries, utilizing existing equipment to minimize investment and construction time, which will provide new profit growth points[22]. - A new materials factory project with a capacity of 20,000 tons per year is planned, which will enhance the company's product value and risk resistance[23]. - The company will actively seek cooperative funding to promote the approval, construction, and operation of new projects[20]. - The company is developing a 500,000 tons/year polyether polyol project, which is expected to have lower energy consumption and better environmental effects compared to similar projects in the industry[26]. Financial Health and Debt - As of December 31, 2019, the total borrowings and notes payable of the group amounted to approximately RMB 2,113,032,000[41]. - The capital-to-debt ratio as of December 31, 2019, was approximately 90%, compared to 78% as of December 31, 2018[42]. - As of December 31, 2019, the group had no significant contingent liabilities[43]. - The total net value of mortgaged assets as of December 31, 2019, was approximately RMB 1,538,018,000, an increase from RMB 1,130,436,000 in 2018[49]. - The group has a total of approximately RMB 30,116,000 in bank deposits as of December 31, 2019, up from RMB 24,339,000 in 2018[49]. Environmental and Social Responsibility - The company is committed to managing and monitoring environmental and social performance, ensuring compliance with applicable regulations[51]. - The total greenhouse gas emissions amounted to 1,660,607.70 tons of CO2 equivalent, with a density of 56.33 tons per square meter of total production area[158]. - The emissions of nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter (PM) were recorded at 95,346.09 kg, 474.65 kg, and 8.07 kg, respectively[157]. - The company adheres to various environmental regulations, including the Air Pollution Prevention and Control Law of China and the Environmental Protection Law of the People's Republic of China[155]. - The company has implemented three management systems: ISO 9001 for quality management, ISO 14001 for environmental management, and ISO 50001 for energy management[153]. Employee and Management - The number of employees as of December 31, 2019, was 696, a decrease from 725 in 2018[50]. - The total number of employees increased by 4% to 631, all of whom are full-time staff in China[181]. - The employee turnover rate for the reporting period was 10%, with 65 full-time employees from China leaving the company[191]. - The company has increased disease allowances and ensures compensation aligns with market levels to attract and retain talent[196]. - The company promotes equal opportunities in employment policies, with a slight increase of 2% in the proportion of female employees over the year[198]. Corporate Governance - The company has undergone a restructuring to prepare for its shares to be listed on the GEM of the Hong Kong Stock Exchange, which was completed in June 2003[63]. - The company has experienced changes in its board of directors, with several members resigning and new appointments being made, ensuring continuity in governance[73]. - The audit committee, established in June 2003, reviews the company's financial reporting procedures and internal control systems[107]. - The company has no management contracts related to significant parts of its business during the year[106]. - There are no competitive business interests held by the company's directors or management shareholders[104].

Financial Performance - For the six months ended June 30, 2019, the group reported an unaudited loss attributable to shareholders of approximately RMB 328.3 million, an increase of RMB 167.3 million compared to the same period last year[3]. - The group's unaudited revenue for the same period was approximately RMB 954 million, a decrease of about 52.1% year-on-year, primarily due to a reduction in sales trading volume[3]. - The unaudited basic loss per share for the six months ended June 30, 2019, was approximately RMB 7.64[4]. - The company experienced a pre-tax loss of RMB 341,433,000 for the six months ended June 30, 2019, compared to a pre-tax loss of RMB 175,131,000 for the same period in 2018, indicating a deterioration in financial performance[25]. - The cash generated from operating activities for the six months ended June 30, 2019, was RMB 24,127,000, a decrease from RMB 111,896,000 in the same period of 2018, reflecting challenges in cash flow management[25]. - Gross margin decreased from approximately 5.8% to 1.5% due to falling product prices[47]. - Sales costs were approximately RMB 939 million, a decrease of about 49.9% compared to the same period last year[47]. - Administrative expenses decreased by approximately 61.3% due to reduced operational costs during the winter gas supply suspension[47]. Assets and Liabilities - Total assets as of June 30, 2019, were RMB 3,367.7 million, compared to RMB 3,282.9 million as of December 31, 2018[8]. - Total liabilities as of June 30, 2019, were RMB 2,808.3 million, compared to RMB 2,697.7 million as of December 31, 2018[10]. - The company’s total liabilities as of June 30, 2019, included a net current liability of RMB 1,358,545,000, raising concerns about liquidity[18]. - As of June 30, 2019, the group's net current liabilities amounted to approximately RMB 1,358,545,000[68]. - The capital debt ratio as of June 30, 2019, was 79%, compared to 78% as of December 31, 2018[71]. Cash Flow - The group's unaudited cash generated from operating activities before tax was approximately RMB 24.1 million, a decrease of RMB 87.8 million compared to the same period last year[3]. - The net cash outflow from operating activities for the six months ended June 30, 2019, was RMB 30.7 million, compared to a net inflow of RMB 48.6 million in the same period last year[12]. - Cash and cash equivalents as of June 30, 2019, amounted to RMB 37.1 million, an increase from RMB 4.5 million at the beginning of the year[12]. Sales and Production - Total sales volume (excluding trading) reached approximately 471,127 tons, an increase of 32.8% compared to the same period last year[3]. - Urea sales contributed RMB 290,114,000, accounting for 30.4% of total revenue for the six months ended June 30, 2019, compared to RMB 268,330,000 and 13.5% in the previous year, showing strong growth in this segment[22]. - The company reported a significant increase in ammonia sales, generating RMB 304,059,000, which accounted for 31.9% of total revenue, up from RMB 166,446,000 and 8.3% in the previous year[22]. - In the first half of 2019, the total urea production in China was estimated at 26.21 million tons, an increase of approximately 1.43 million tons or 5.8% compared to the same period in 2018[54]. - The total methanol production in China for the first half of 2019 was 52 million tons, with an average operating rate increase of 3.49% year-on-year, representing a growth of 5.21%[56]. - The total synthetic ammonia production in the first half of 2019 was approximately 25.3 million tons, a decrease of about 8% year-on-year[61]. Corporate Governance and Compliance - The company has adopted a standard code for securities trading by directors, ensuring compliance with trading regulations[108]. - The Audit Committee was established on June 10, 2003, and is responsible for reviewing the financial reporting process and internal control systems of the company and its group[109]. - The Audit Committee consists of three independent non-executive directors as of the mid-term report date[109]. - The company has taken appropriate actions to comply with the corporate governance code since January 1, 2005[112]. Future Plans and Market Outlook - The company plans to issue convertible bonds worth HKD 987,000,000 to improve its financial position and has successfully negotiated the extension of bank loan repayments[18]. - The company plans to continue optimizing production efficiency by monitoring and adjusting production loads daily to ensure cost-effectiveness[64]. - The company aims to reduce operational costs and cash flow expenditures as part of its strategy to achieve an annual loss reduction target[64]. - The domestic urea market is expected to experience a rebound in prices due to environmental pollution control efforts leading up to the 70th anniversary of the founding of the People's Republic of China[54]. - The methanol market is anticipated to face challenges and opportunities in the second half of 2019, with new production capacity coming online[57]. Shareholder Information - Major shareholder Zheng Jianming holds 800,000,000 shares, representing 18.61% of the issued share capital as of June 30, 2019[102]. - Public shareholders hold 3,397,742,599 shares, accounting for 79.05% of the total equity as of June 30, 2019[90]. - The company’s board members and executives have disclosed their interests in the company, with significant holdings reported[99]. - Li Weiruo holds 410,392,000 shares, representing 9.55% of the issued share capital as of June 30, 2019[105].

Ko Yo Chemical (Group) Limited 玖源化工 ( 集團 ) 有限公司 Annual Report 2O18 年報 (於開曼群島註冊成立之有限公司) (股份編號 : 00827) 2O18 玖源化工（集團）有限公司 2018年年報 | --- | --- | |--------------------------|-------| | | | | 目 錄 | | | 公司資料 | 2 | | 摘要 | 3 | | 主席報告書 | 4 | | 業務回顧 | 10 | | 董事及高級管理層 | 14 | | 董事會報告書 | 17 | | 環境、社會及管治報告 | 27 | | 企業管治常規 | 40 | | 獨立核數師報告 | 46 | | 綜合損益及其他全面收益表 | 50 | | 綜合財務狀況表 | 51 | | 綜合權益變動表 | 53 | | 綜合現金流量表 | 54 | | 綜合財務報表附註 | 56 | | 財務概要 | 108 | 玖源化工（集團）有限公司 2018年年報 公司資料 | --- | --- | --- | |------------------------- ...