Financial Performance - The company reported a profit distribution plan based on a total of 2,786,090,601 shares, with no cash dividends or stock bonuses distributed to shareholders[6]. - In 2019, the company's operating revenue was approximately ¥17.85 billion, a decrease of 0.23% compared to 2018[21]. - The net profit attributable to shareholders was approximately -¥45.86 billion, an increase of 1,230.58% compared to the previous year[21]. - The total operating revenue for 2019 was approximately ¥17.85 billion, a slight decrease of 0.23% compared to ¥17.89 billion in 2018[82]. - The company reported a net profit loss of approximately CNY 45.86 billion for 2019, with a profit distribution ratio of 0.00%[162]. - In 2018, the company also did not distribute any profits, reporting a net loss of CNY 3.45 billion[162]. - The company has not proposed any cash dividend distribution plan for 2019 due to negative retained earnings[164]. Operational Challenges - The company acknowledged a significant internal control deficiency related to project evaluation processes, impacting investment risk management[5]. - The company faced a financial risk increase, with challenges in financing leading to bankruptcy restructuring[79]. - The company is undergoing a bankruptcy reorganization, with ongoing discussions about the completion timeline and potential impacts on stock listing[158]. - The company is currently executing a restructuring plan to reduce financial costs and improve operational efficiency[124]. - The market environment poses risks to revenue generation, particularly in potassium fertilizer and lithium carbonate sectors[124]. - The company is facing significant losses in 2018, particularly in the integrated magnesium project, with no written materials provided to detail the reasons[146]. - The company is facing challenges related to energy issues in the integrated magnesium project, with no solutions confirmed[150]. Production and Sales - The company produced 5.63 million tons of potassium chloride in 2019, an increase of 800,000 tons year-on-year[32]. - The sales volume of potassium chloride was 4.54 million tons, a decrease of 145,800 tons compared to the previous year[32]. - The company produced 11,302 tons of industrial-grade lithium carbonate in 2019, an increase of 294 tons year-on-year, with sales of 11,314.5 tons, achieving a production and sales rate of 102%[44]. - The company produced 563.37 thousand tons of potassium fertilizer, an increase of approximately 80 thousand tons, marking a historical high[64]. - The company plans to produce 5.5 million tons of potassium fertilizer and 16,000 tons of lithium carbonate in 2020[129]. Assets and Liabilities - The total assets at the end of 2019 were approximately ¥22.53 billion, a decrease of 69.96% compared to the end of 2018[22]. - The net assets attributable to shareholders were approximately -¥30.52 billion, a decrease of 282.57% compared to the end of 2018[22]. - The company reported a significant asset disposal resulting in a total asset disposal loss of 30.273 billion yuan[123]. - The company’s total assets were impacted by the bankruptcy reorganization of its subsidiaries, leading to a change in the consolidation scope[90][91]. - The company’s stock has been under delisting risk since April 30, 2019, due to consecutive years of negative net profit, with the 2019 audited net profit also remaining negative[183]. Research and Development - The company’s R&D expenditure was ¥114,767,115.41, a significant decrease of 43.42% from ¥202,843,339.51 in 2018, with R&D investment accounting for only 0.64% of total revenue[97]. - The company has initiated 37 new technology projects and completed 10 technology plan projects, with significant advancements in lithium extraction technology recognized as internationally leading[61]. - The company plans to invest 1% to 3% of annual sales into R&D, focusing on potassium and lithium technologies to enhance product competitiveness[140]. Market and Industry Trends - The potassium fertilizer industry in China saw a 22% increase in imports, totaling 9.1 million tons in 2019[34]. - The global potassium fertilizer demand is expected to rebound in 2020, with shipments projected to reach between 66 million to 68 million tons, driven by a global demand recovery and a slowdown in new project acceleration[42]. - The market for lithium carbonate is expected to grow at a rate exceeding 18% in 2020, driven by the recovery of the new energy vehicle market and the 5G replacement wave, with the market size projected to exceed 800,000 tons by 2025[54]. Governance and Compliance - The company emphasizes the importance of legal compliance and governance to enhance operational efficiency and provide a strong legal foundation for its activities[141]. - The company has not reported any non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[168]. - The company has not made any changes to accounting policies, estimates, or methods compared to the previous year's financial report[170]. Employee and Management - The company optimized its workforce by nearly 2,000 employees as part of its "6636" life project, enhancing employee training and overall quality[68]. - The company has enhanced employee satisfaction through continuous income growth and expanded training programs, leading to increased feelings of security and belonging among staff[74]. - The company is actively recruiting and training talent, enhancing employee incentive mechanisms to boost R&D participation[140]. Legal Matters - The company is involved in multiple lawsuits, including a judgment requiring the subsidiary Salt Lake Haihong to pay approximately 13.94 million yuan to China Metallurgical South Company[188]. - Another lawsuit involves a judgment for Salt Lake Haihong to pay around 14.92 million yuan to Xiamen ABB Low Voltage Electrical Equipment Co., Ltd.[188]. - The company has a pending amount of 32,510,055.92 yuan related to a construction contract dispute, which is currently in arbitration[189].