证券代码：002221 证券简称：东华能源 编号：2022-001 | --- | --- | --- | --- | --- | |----------------------------------|--------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - The company's operating revenue for Q3 2022 was ¥6,816,574,542.66, a decrease of 5.27% compared to the same period last year[2] - Net profit attributable to shareholders was ¥12,619,009.44, down 94.37% year-on-year[2] - The basic earnings per share were ¥0.0080, reflecting a decline of 94.38% compared to the previous year[3] - Net profit for Q3 2022 was CNY 180,709,721.08, a significant decrease of 82.34% compared to CNY 1,022,527,659.29 in Q3 2021[15] - The company reported a basic and diluted earnings per share of CNY 0.1006, down from CNY 0.6479 in the previous year[16] - Other comprehensive income after tax for Q3 2022 was CNY -109,894,563.25, compared to CNY 121,006,346.27 in the same period last year[16] - The company reported a total comprehensive income of CNY 70,815,157.83 for Q3 2022, a significant decrease from CNY 1,143,534,005.56 in Q3 2021[16] Cash Flow - The net cash flow from operating activities was negative at -¥614,026,727.31, a decrease of 234.37% year-on-year[3] - The net cash flow from operating activities for the current period was -614,026,727.31 CNY, compared to 456,972,486.56 CNY in the previous period, indicating a significant decline[18] - Total cash inflow from operating activities was 23,621,935,063.34 CNY, up from 22,639,466,916.43 CNY in the previous period, reflecting a growth of approximately 4.35%[18] - Cash outflow from operating activities totaled 24,235,961,790.65 CNY, compared to 22,182,494,429.87 CNY in the previous period, representing an increase of about 9.25%[18] - The net cash flow from investment activities was -4,364,613,051.31 CNY, worsening from -2,284,473,202.87 CNY in the previous period[18] - Cash inflow from financing activities increased to 16,629,202,262.17 CNY from 12,642,067,305.41 CNY, marking a growth of about 31.5%[18] - The net cash flow from financing activities was 2,265,841,978.24 CNY, compared to 1,366,065,465.50 CNY in the previous period, indicating an increase of approximately 66%[18] - The company reported a cash and cash equivalents net decrease of 2,705,833,466.17 CNY, compared to a decrease of 462,788,414.07 CNY in the previous period[18] Assets and Liabilities - Total assets at the end of the reporting period were ¥39,183,956,841.10, an increase of 6.30% from the end of the previous year[3] - The total liabilities as of Q3 2022 were CNY 27,270,951,539.29, an increase from CNY 24,045,426,580.30 in the previous year[15] - The total equity attributable to shareholders of the parent company decreased to CNY 10,273,862,626.49 from CNY 11,111,015,785.45[15] Research and Development - The company's R&D expenses increased by ¥1,795.60 million, a growth of 31.39% year-on-year, indicating increased investment in innovation[8] - Research and development expenses for Q3 2022 amounted to CNY 75,153,741.46, an increase from CNY 57,197,787.38 in the same quarter last year[15] Strategic Initiatives - The company signed a strategic cooperation agreement with China National Nuclear Corporation to enhance multi-dimensional collaboration[12] - The company is actively working on the Maoming project, which is progressing as planned[12] - The company aims to leverage its integrated operational advantages to reduce raw material costs amid geopolitical instability and high raw material prices[12] Sales and Inventory - The total sales revenue for the first nine months of the year reached RMB 22 billion, with a net profit of RMB 1.8 billion[12] - The sales volume of industrial by-product hydrogen was 17,000 tons, generating revenue of RMB 234 million, representing a year-on-year growth of 87%[12] - Accounts receivable increased by ¥984.21 million, a growth of 40.14%, primarily due to slow collection of sales payments impacted by the pandemic[6] - Accounts receivable increased from RMB 2.45 billion to RMB 3.44 billion during the same period[13] - Inventory rose from RMB 2.88 billion to RMB 3.80 billion, indicating a significant increase in stock levels[13] Shareholder Information - The total number of common shareholders at the end of the reporting period was 43,732[10] - The largest shareholder, Donghua Petroleum (Yangtze) Co., Ltd., holds 20.64% of the shares, amounting to 325,360,000 shares[11] Financial Reporting - The company did not conduct an audit for the third quarter report[18]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥15,192,142,967.47, representing a 6.54% increase compared to ¥14,259,120,307.14 in the same period last year[11]. - Net profit attributable to shareholders of the listed company decreased by 80.60% to ¥145,904,855.12 from ¥752,230,302.27 year-on-year[11]. - The net profit after deducting non-recurring gains and losses was ¥94,919,843.47, down 86.53% from ¥704,453,475.29 in the previous year[11]. - The net cash flow from operating activities was ¥237,456,397.51, a decline of 55.78% compared to ¥536,970,180.50 in the same period last year[11]. - Basic and diluted earnings per share were both ¥0.0926, down 80.60% from ¥0.4773 in the previous year[11]. - The total assets at the end of the reporting period were ¥36,956,775,960.67, an increase of 2.81% from ¥35,947,388,107.11 at the end of the previous year[11]. - The net assets attributable to shareholders of the listed company decreased by 1.50% to ¥10,679,439,002.17 from ¥10,842,000,106.94 at the end of the previous year[11]. - The weighted average return on net assets was 1.34%, down from 7.09% in the previous year[11]. - The gross profit margin decreased by 5.42% to 4.53% compared to the same period last year[25]. - The investment income amounted to ¥5,591,305.66, contributing 2.97% to the total profit[26]. Revenue and Sales - The hydrogen sales reached approximately 12,200 tons, generating revenue of about CNY 166 million, representing a 102% increase year-on-year[19]. - The company reported a significant increase in polypropylene revenue, reaching approximately CNY 6.92 billion, up 84.79% from CNY 3.74 billion in the previous year[24]. - The revenue from polypropylene was ¥6,916,331,245.69, with a significant year-on-year increase of 84.79%[25]. - The revenue from the East China region (excluding Jiangsu) increased by 110.70% year-on-year[25]. Investments and R&D - The company invested approximately CNY 42.58 million in R&D, an increase of 14.72% compared to CNY 37.11 million in the previous year[22]. - The company invested ¥1,943,845,577.23 during the reporting period, a 102.75% increase compared to the previous year[32]. - The company invested CNY 1.195 billion in significant non-equity projects during the reporting period, with a cumulative investment of CNY 3.171 billion, achieving an 80% project progress for the Ningbo underground gas storage project[35]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were CNY 6,956,528,000.63, compared to CNY 5,793,017,821.15 at the end of the previous year[109]. - The ending cash and cash equivalents balance for the first half of 2022 was ¥1.65 billion, up from ¥712.28 million at the end of the first half of 2021, marking an increase of approximately 132%[111]. - The net cash flow from financing activities was -¥396.98 million in the first half of 2022, compared to -¥950.71 million in the same period of 2021, indicating an improvement[111]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit, with specific emissions monitored and reported[53]. - The total emissions for COD were reported at 28.956 tons, with no exceedance of discharge standards[53]. - The company actively fulfills its social responsibilities, focusing on environmental protection and energy conservation[56]. - The company emphasizes environmental protection, having implemented an environmental management system certified by ISO14001, and has established control measures and standards for environmental protection[57]. Corporate Governance and Management - The company plans not to distribute cash dividends or issue bonus shares[2]. - There were changes in management, with two executives resigning in early 2022 due to personal reasons[50]. - The company maintains a strong commitment to protecting the rights of minority investors, ensuring transparency and fairness in shareholder meetings and decision-making processes[60]. - The company held three shareholder meetings in 2022, with participation rates of 40.48%, 36.95%, and 7.64% respectively[49]. Financial Position and Liabilities - The asset-liability ratio increased to 66.43%, up by 1.33% from the previous year[97]. - Total liabilities reached CNY 24,550,480,786.65, up from CNY 23,401,259,815.20, marking an increase of around 4.9%[101]. - The total liabilities at the end of the period were 3,988,774,422.55 yuan, showing a manageable debt level[117]. Related Party Transactions - The company reported a total of 506,452.8 thousand yuan in related party transactions during the reporting period, with significant contributions from various subsidiaries[66]. - The actual performance of related party transactions during the reporting period was 111,013.3 thousand yuan, with a significant portion attributed to sales and service agreements[67]. Strategic Initiatives - The company plans to introduce strategic investors to develop a zero-carbon industrial park in Maoming, focusing on high polymer materials and hydrogen energy industries[15]. - The company aims to enhance its integrated operations and expand its hydrogen energy ecosystem, leveraging partnerships with various enterprises[20]. - The company is focusing on expanding its market presence through acquisitions and strategic partnerships[82]. Accounting and Financial Reporting - The financial statements are prepared in accordance with the enterprise accounting standards, reflecting the company's financial position and operating results accurately[139]. - The company adopts the equity method for accounting treatment in mergers under common control, measuring assets and liabilities at the book value in the consolidated financial statements of the ultimate controlling party[143]. - The company recognizes goodwill when the merger cost exceeds the fair value of identifiable net assets acquired[145].

东华能源股份有限公司 2022 年第一季度报告全文 东华能源股份有限公司 2022 年第一季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整， 没有虚假记载、误导性陈述或重大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准 确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带 的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声 明：保证季度报告中财务信息的真实、准确、完整。 3.第一季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 1 证券代码：002221 证券简称：东华能源 公告编号：2022-025 公司是否需追溯调整或重述以前年度会计数据 | --- | --- | --- | --- | --- | |-----------------------------------------------------|-------------------|-------|-------------------|---------------------------| | ...

Production Capacity and Technology - The company has achieved an annual production capacity of 1.8 million tons of propylene and nearly 2 million tons of polypropylene, with plans to add an additional 4 million tons of PP capacity over the next five years, positioning itself among the global leaders in the industry [3]. - The PDH project utilizes electric drive technology, with a current hydrogen production capacity of 75,000 tons per year, projected to reach 350,000 tons upon full completion, equivalent to a reduction of 5 million tons of CO2 emissions [2]. - The company operates three 600,000 tons/year PDH units and four 400,000 tons/year PP units, with ongoing construction of additional facilities expected to be completed by the end of 2022 [29]. - The company plans to focus on high molecular composite lightweight materials, collaborating with Guangzhou Industrial Control to invest in new production facilities for acrylonitrile and ABS [3]. - The company aims to become a leading supplier of green hydrogen in China, supported by government initiatives and its strategic location in the Beibu Gulf urban agglomeration [5]. Financial Performance - The company reported a total revenue of 10 billion CNY for the year 2021, representing a year-on-year increase of 15% [19]. - The net profit attributable to shareholders was 1.5 billion CNY, reflecting a growth of 20% compared to the previous year [19]. - The company's operating revenue for 2021 was ¥26,367,072,956.07, a decrease of 9.33% compared to ¥29,081,749,414.40 in 2020 [21]. - The net profit attributable to shareholders for 2021 was ¥1,139,939,187.34, down 5.82% from ¥1,210,328,463.30 in 2020 [21]. - The company reported a total revenue of 1.5 billion RMB for the fiscal year, representing a year-over-year increase of 12% [96]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by 2025 [19]. - The company aims to expand its market presence by leveraging its production capabilities and enhancing its product sales through vertical integration and overseas market development [30]. - Donghua Energy plans to expand its market presence by entering three new regions in 2022, targeting a 20% increase in market share [94]. - The company is exploring potential mergers and acquisitions to enhance its supply chain efficiency, with a budget of 1 billion CNY allocated for this purpose [19]. - A strategic acquisition of a local competitor is expected to enhance the company's product offerings and increase market penetration [96]. Research and Development - The company is committed to enhancing its technological capabilities through independent and collaborative research and development, aiming to improve process efficiency and reduce costs [8]. - Research and development expenses increased by 18%, totaling 300 million CNY, focusing on advanced petrochemical technologies [19]. - The company developed 15 new grades of high-melt fiber catalyst, enhancing product competitiveness [54]. - The company’s R&D expenditure increased by 25% in 2021, reflecting its commitment to innovation [94]. - Investment in R&D increased by 20% year-over-year, focusing on new technologies in energy efficiency and sustainability [96]. Environmental and Social Responsibility - The company aims to achieve carbon neutrality by 2030, aligning with national environmental goals [19]. - The company has implemented a comprehensive environmental monitoring plan and has received no administrative penalties for environmental issues during the reporting period [132]. - Donghua Energy actively fulfills its social responsibilities in accordance with relevant laws and regulations [133]. - The company has successfully implemented measures to ensure compliance with environmental laws and regulations, achieving standard emissions [130]. - The company has established a dedicated environmental supervision management position to ensure the stable operation of pollution control facilities [130]. Governance and Compliance - The company has established a governance structure that includes a board of directors, supervisory board, and management team, with clear responsibilities and decision-making processes [84]. - The company has maintained complete independence from its controlling shareholders in terms of organization and management, ensuring compliance with related regulations [84]. - The company emphasizes the importance of investor relations and information disclosure, ensuring transparency and accuracy in its communications [84]. - The company has a robust internal control mechanism in place, with continuous optimization to support business development [120]. - The company reported no significant deficiencies in non-financial reporting [126]. Shareholder and Financial Management - The profit distribution plan includes a cash dividend of 2.17 RMB per 10 shares, based on a total of 1,576,127,767 shares [9]. - The total pre-tax remuneration for the board of directors and senior management was CNY 1,159.14 million [99]. - The company has a structured remuneration process for its executives, approved by the board and shareholders [99]. - The company has a total of 40,868 common shareholders at the end of the reporting period [185]. - The company has not engaged in any repurchase transactions during the reporting period [188]. Operational Efficiency and Cost Management - The company has successfully reduced propane procurement costs by approximately 5% compared to market averages, translating to savings of over 300 RMB per ton [7]. - The gross profit margin for the company was 9.89%, reflecting a slight increase of 1.23% year-on-year [43]. - The company aims to reduce operational costs by 15% through strategic partnerships and process optimization [94]. - The company aims to reduce operational costs by 5% through efficiency improvements in the supply chain [96]. - The company has implemented advanced energy-saving and environmental protection technologies in its propane dehydrogenation projects, achieving a nearly 100% increase in single-pass conversion rate and a 30% reduction in energy consumption [134].

Financial Performance - The company's operating revenue for Q3 2021 was ¥7,187,330,734.46, a decrease of 1.27% compared to the same period last year[2] - The net profit attributable to shareholders for Q3 2021 was ¥206,125,437.23, down 39.17% year-on-year[2] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥202,568,827.04, a decrease of 34.69% compared to the previous year[2] - The net profit for Q3 2021 was CNY 959,636,891.24, a decrease of 6.9% compared to CNY 1,031,011,886.99 in Q3 2020[14] - Operating profit for the quarter was CNY 1,205,356,571.01, down 5% from CNY 1,268,376,151.08 in the same period last year[14] - Total revenue from sales of goods and services received was CNY 22,508,769,704.20, a decline from CNY 24,916,414,005.01 in the previous year[16] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥425,928,251.66, an increase of 165.71% year-on-year[2] - The net cash flow from operating activities was CNY 425,928,251.66, a recovery from a negative cash flow of CNY -648,216,881.92 in the same quarter last year[17] - The net cash flow from financing activities increased by 118.69% year-on-year, totaling an increase of ¥75,070.86 million[5] - The net cash flow from financing activities was CNY 1,383,201,306.12, an increase of 118% compared to CNY 632,492,741.16 in the previous year[18] - The total cash inflow from financing activities was CNY 12,642,067,305.41, compared to CNY 7,693,506,842.46 in the same period last year, representing a growth of 64%[18] - Cash outflow from financing activities totaled CNY 11,258,865,999.29, an increase from CNY 7,061,014,101.30 in the previous year[18] Assets and Liabilities - The total assets at the end of the reporting period were ¥33,182,559,824.46, representing a growth of 17.99% from the end of the previous year[2] - Current assets increased to CNY 17,044,491,234.55 as of September 30, 2021, compared to CNY 15,563,625,776.20 at the end of 2020, reflecting a growth of 9.5%[10] - Non-current assets totaled CNY 16,138,068,589.91, up from CNY 12,560,231,949.26 at the end of 2020, representing a significant increase of 28.8%[11] - Total liabilities amounted to CNY 22,245,105,318.79, up from CNY 17,916,226,914.23, indicating a rise of 24.6%[12] - The company's total liabilities increased significantly, with contract liabilities rising by 286.65% to ¥36,628.82 million[4] Research and Development - The company's R&D expenses increased by 631.22% year-on-year, amounting to an increase of ¥4,937.56 million[4] - Research and development expenses increased significantly to CNY 57,197,787.38 from CNY 7,822,206.57, marking a growth of 631.5% year-over-year[14] Shareholder Information - The company has 41,863 common shareholders at the end of the reporting period[6] - The largest shareholder, Donghua Petroleum (Yangtze) Co., Ltd., holds 19.73% of shares, totaling 325,360,000 shares[6] - The top ten shareholders collectively hold a significant portion of the company's shares, with the largest holding being 19.73%[6] Production and Sales - The company produced 186,800 tons of polypropylene, a decrease of 37.42% year-on-year[8] - Hydrogen sales revenue for the reporting period was 43 million RMB, with a total of 125 million RMB for the first three quarters, representing a year-on-year increase of 31.58%[8] Projects and Operations - The company is progressing with the Maoming Phase I project, with pile foundation work nearly completed and installation of the heating furnace for the 1 PDH unit starting on August 31, 2021[8] - The Ningbo Phase II and III projects completed maintenance and are currently operating smoothly[8] - The company has a systematic advantage in the supply chain, effectively managing raw material cost fluctuations to ensure stable operations[8] Other Financial Information - The company's investment income decreased by 70.29% year-on-year, amounting to a reduction of ¥4,860.87 million[5] - The company's cash and cash equivalents decreased to CNY 7,186,190,555.38 from CNY 7,661,649,583.79, a decline of 6.2%[10] - Inventory increased to CNY 2,707,313,040.12, compared to CNY 2,225,899,752.59 at the end of 2020, marking a growth of 21.6%[10] - Long-term borrowings rose to CNY 4,793,443,448.76 from CNY 4,315,031,763.15, reflecting an increase of 11.1%[12] - The company's retained earnings increased to CNY 5,491,929,523.93 from CNY 4,897,659,298.61, showing a growth of 12.1%[12] Audit and Compliance - The company did not undergo an audit for the third quarter report[19] - The company has not applied the new leasing standards for the first time in 2021[19]

Financial Performance - The company reported a significant increase in revenue for the first half of 2021, with total revenue reaching 1.5 billion RMB, representing a 20% year-over-year growth[6]. - The net profit for the first half of 2021 was 300 million RMB, an increase of 15% compared to the same period last year[6]. - The company's operating revenue for the first half of 2021 was CNY 14.26 billion, a decrease of 13.32% compared to the same period last year[11]. - Net profit attributable to shareholders was CNY 752.23 million, an increase of 8.92% year-on-year[11]. - The net profit after deducting non-recurring gains and losses was CNY 704.45 million, up 23.71% from the previous year[11]. - The net cash flow from operating activities was CNY 536.97 million, a significant increase of 179.56% compared to a negative cash flow in the same period last year[11]. - The company's revenue for the reporting period was ¥14,259,120,307.14, a decrease of 13.32% compared to ¥16,449,560,279.41 in the same period last year[26]. - The operating costs decreased by 15.87% to ¥12,833,441,834.68 from ¥15,254,494,422.40, indicating improved cost management[26]. - Research and development investment surged by 1,536.26% to ¥37,114,395.92, reflecting a significant increase in R&D activities[26]. - The company reported a total comprehensive income of approximately ¥832 million for the first half of 2021, compared to ¥713 million in the same period of 2020[120]. Market Expansion and Strategy - User data showed a growth in active users, with the number of registered users increasing by 25% to 5 million[6]. - The company plans to expand its market presence by entering two new regions by the end of 2021, aiming for a 10% market share in these areas[6]. - The company has no plans for major acquisitions in the near term but is exploring joint ventures to enhance its technological capabilities[6]. - The company is focusing on strategic partnerships to enhance its supply chain efficiency, which is expected to improve margins by 5%[6]. - The company is focusing on high-end polymer materials and has formed a strategic partnership with Honeywell UOP to drive innovation in the petrochemical industry[22]. - The company aims to enhance its competitive advantage by transitioning to green chemicals and expanding into high-end polymer materials, while gradually transferring its LPG international trade operations to Massen Energy[22]. Environmental Commitment - The company is committed to achieving carbon neutrality by 2030, aligning with national environmental goals[5]. - The company has implemented advanced energy-saving and environmentally friendly processes in its propane dehydrogenation projects, achieving a nearly doubled conversion rate and a 30% reduction in energy consumption[56]. - The company’s wastewater and waste gas treatment facilities are operating normally and meet emission standards, with no environmental pollution issues reported[54]. - The company has established a dedicated environmental supervision management position to ensure the stable operation of environmental protection facilities[54]. - The company emphasizes environmental protection and has obtained ISO14001 certification for its environmental management system[55]. Operational Efficiency - The company has established a new engineering management department to improve project implementation efficiency for the Maoming and Ningbo projects[21]. - The company has implemented a fully integrated intelligent warehousing system, improving operational efficiency and accuracy in logistics management[19]. - The company has established a comprehensive safety management system, implementing a "safety first" policy across all production units, ensuring compliance with safety regulations and standards[58]. - The company has invested in safety management by allocating funds annually for safety production expenses, ensuring the operation of safety management systems and continuous updates[58]. Financial Position and Assets - The total assets at the end of the reporting period reached CNY 32.08 billion, an increase of 14.08% from the end of the previous year[11]. - The company reported a total of 18.01 billion RMB in actual performance for related transactions in the first half of 2021, with an expected total of 7 billion RMB for the next 12 months[73]. - The company reported a total of 117,541,530 restricted shares at the end of the reporting period, with 75,000 shares released and 304,500 shares added during the period[99]. - The total owner's equity at the end of the reporting period is CNY 1,649,022,824.00[135]. - The company reported a total comprehensive income of CNY 21,891,944.50 for the period[133]. Research and Development - New product development includes the launch of a new energy-efficient technology expected to reduce operational costs by 30%[6]. - The company plans to enhance its technological innovation capabilities through independent and collaborative research and development efforts[47]. - The company has developed three new specialized polypropylene materials, enhancing its product offerings in high-end applications[18]. Shareholder Relations - The company has committed to protecting the rights of minority investors by ensuring transparent decision-making processes and providing online voting options for shareholder meetings[59]. - The company maintains good relationships with stakeholders, including banks and suppliers, and adheres to principles of honesty and fairness in its economic activities[59]. - The company has no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[51]. Risks and Challenges - The company faces risks related to industry overcapacity and operational cost fluctuations, particularly due to the volatility of international LPG prices[46][48]. - The company has not reported any significant litigation or arbitration matters during the reporting period[68]. - There were no violations of external guarantees reported during the period[65]. Corporate Governance - The company has established a labor management system that complies with national regulations, ensuring social security for all employees[58]. - The company has signed integrity agreements with suppliers and construction firms to prevent corruption during major project procurement[59]. - The company has not undergone any bankruptcy reorganization during the reporting period[67].

Financial Performance - The company's operating revenue for Q1 2021 was ¥7,290,376,265.17, a decrease of 21.92% compared to the same period last year[2] - Net profit attributable to shareholders was ¥372,539,018.39, an increase of 39.24% year-on-year[2] - The net profit after deducting non-recurring gains and losses was ¥345,294,925.15, up 48.62% from the previous year[2] - Basic and diluted earnings per share were both ¥0.2364, reflecting a 39.30% increase year-on-year[2] - The company reported a total comprehensive income of CNY 383.64 million for Q1 2021, compared to CNY 276.71 million in the same quarter last year[40] - The total operating costs decreased to CNY 6.84 billion from CNY 9.01 billion year-on-year, showing effective cost management[39] - Tax expenses for Q1 2021 were CNY 96.29 million, compared to CNY 80.59 million in Q1 2020, reflecting higher profitability[39] Cash Flow - The net cash flow from operating activities improved to -¥303,206,941.61, a 63.44% increase compared to -¥829,243,437.44 in the same period last year[2] - Cash inflow from operating activities was approximately ¥6.78 billion, down from ¥9.09 billion in the previous year, indicating a decrease of about 25.5%[44] - The net cash flow from financing activities was approximately ¥880.09 million, a significant improvement from -¥777.88 million in the same period last year[46] - The company reported a net increase in cash and cash equivalents of approximately -¥51.84 million, compared to -¥539.23 million in the previous year, indicating a significant improvement[48] Assets and Liabilities - Total assets at the end of the reporting period were ¥29,117,196,776.85, a 3.53% increase from the end of the previous year[2] - The total liabilities increased to CNY 18,520,955,337.70, up from CNY 17,916,226,914.23, reflecting a growth of 3.4%[33] - Current assets totaled CNY 16,056,189,310.06, up from CNY 15,563,625,776.20, indicating an increase of about 3.17%[30] - Non-current liabilities amounted to CNY 5,273,876,397.39, compared to CNY 4,890,453,052.99, representing an increase of 7.9%[33] Shareholder Information - The company had a total of 41,662 common shareholders at the end of the reporting period[5] - Net assets attributable to shareholders increased by 3.82% to ¥10,577,305,811.93 compared to the end of the previous year[2] - The largest shareholder, Donghua Petroleum (Yangtze) Co., Ltd., held 19.73% of the shares, totaling 325,360,000 shares[5] Investment and Projects - The company is advancing the construction of new projects, including the Ningbo Phase II project, which has a capacity of 600,000 tons/year for PDH and has commenced stable production[14] - The company reported a total investment commitment of 100,000 million CNY for the Ningbo Propane Resource Comprehensive Utilization Project (Phase II), with a cumulative investment of 74,820.57 million CNY, achieving an investment progress of 74.82% as of the end of the reporting period[23] - The company has invested 2,721.71 million CNY in the Ningbo Propane Resource Comprehensive Utilization Project (Phase II) during the reporting period[23] Research and Development - Research and development expenses increased by ¥2.70 million, a growth of 207.08%, reflecting increased investment in R&D during the period[10] - Research and development expenses increased significantly to CNY 3.99 million, compared to CNY 1.30 million in the previous year, reflecting a focus on innovation[39] Market and Competitive Position - The company achieved a historical high in polypropylene product exports, exceeding 60,000 tons, driven by increased international demand due to supply shortages[15] - The company is focusing on capacity expansion and new product development as part of its future growth strategy[29] - The company has engaged in discussions regarding its competitive advantages and investment considerations in Maoming[28] Compliance and Governance - The company has no violations regarding external guarantees during the reporting period[26] - The company is currently fulfilling its commitment to ensure that it does not engage in similar business activities as the listed company, as per the commitment made on February 20, 2008[19] - The company has committed to measures to compensate for the dilution of immediate returns from the public issuance of convertible bonds, ensuring effective implementation[19] Miscellaneous - The first quarter report for Donghua Energy Co., Ltd. is unaudited[50] - The report does not include information on new product or technology development[50] - There are no updates on market expansion or mergers and acquisitions in the report[50] - The report lacks any mention of new strategies or initiatives[50]

[Important Notice, Table of Contents and Definitions](index=1&type=section&id=Important%20Notice%2C%20Table%20of%20Contents%20and%20Definitions) This section provides crucial disclaimers, outlines the report structure, and defines key terms for clarity [Important Notice](index=1&type=section&id=Important%20Notice) The board ensures the report's accuracy and highlights major operational risks, including intensified competition, market expansion challenges, technological innovation hurdles, and cost risks from raw material prices and exchange rate fluctuations, alongside the 2020 profit distribution plan - Company faces four main risks: - **Intense Industry Competition**: Petrochemical industry capacity continues to grow; the company needs to leverage PDH cost advantages, focus on polypropylene new materials, and develop hydrogen energy from by-product hydrogen to strengthen competitiveness[1](index=1&type=chunk) - **Market Expansion Difficulty**: Global economic downturn leads to weak downstream demand; the company will respond by adjusting product structure, strengthening R&D, and expanding overseas markets[2](index=2&type=chunk) - **Technological Innovation Risk**: Digestion and absorption of introduced international advanced technology exist; the company will collaborate with technology providers for improvements and strengthen independent R&D[4](index=4&type=chunk) - **Volatile Operating Costs**: LPG, the main raw material, frequently fluctuates due to international oil prices and other factors; the company will control risks through inventory management, hedging, and exchange rate locking[4](index=4&type=chunk) Profit Distribution Plan | Distribution Plan | Details | | :--- | :--- | | **Dividend Base** | 1,576,127,767 shares | | **Dividend Scheme** | Cash dividend of 2.31 yuan (tax inclusive) per 10 shares | | **Bonus Shares/Capitalization** | No bonus shares, no capitalization of capital reserves | [Definitions](index=6&type=section&id=Definitions) This chapter defines key terms and abbreviations used in the report, covering company entities, business terms like LPG, PDH, and polypropylene, project names, and macroeconomic concepts, providing a foundation for understanding the report content - Key business terms defined: - **LPG (Liquefied Petroleum Gas)**: Clean gaseous energy primarily composed of propane and butane[8](index=8&type=chunk) - **PDH (Propane Dehydrogenation)**: Process producing propylene from propane via catalytic dehydrogenation[8](index=8&type=chunk) - **PP (Polypropylene)**: Thermoplastic resin produced by polymerizing propylene monomer, a main chemical product of the company[9](index=9&type=chunk) [Company Profile and Key Financial Indicators](index=8&type=section&id=Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's basic information and a detailed analysis of its key financial performance and position [Company Information](index=8&type=section&id=Company%20Information) This chapter provides basic information about Donghua Energy Co., Ltd., including its stock ticker "Donghua Energy," stock code "002221," and contact details such as registered address, office address, website, and email Company Information | Item | Information | | :--- | :--- | | **Stock Abbreviation** | Donghua Energy | | **Stock Code** | 002221 | | **Listing Exchange** | Shenzhen Stock Exchange | | **Legal Representative** | Zhou Yifeng | | **Company Website** | www.chinadhe.com | [Key Accounting Data and Financial Indicators](index=9&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In 2020, the company's operating revenue decreased by 37.04% to 29.08 billion yuan, mainly due to the divestiture of LPG trading business; however, net profit attributable to shareholders increased by 9.63% to 1.21 billion yuan, and non-recurring net profit increased by 16.75% to 1.04 billion yuan, indicating improved profitability from its transformation to chemical manufacturing, while net operating cash flow was 885.30 million yuan, a decrease Key Financial Indicators | Key Financial Indicators | 2020 | 2019 | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (yuan)** | 29,081,749,414.40 | 46,187,623,600.18 | -37.04% | | **Net Profit Attributable to Parent (yuan)** | 1,210,328,463.30 | 1,104,002,053.20 | 9.63% | | **Non-recurring Net Profit Attributable to Parent (yuan)** | 1,042,164,292.48 | 892,640,295.20 | 16.75% | | **Net Operating Cash Flow (yuan)** | 885,300,496.09 | 1,177,952,566.73 | -24.84% | | **Basic Earnings Per Share (yuan/share)** | 0.7677 | 0.6984 | 9.92% | | **Total Assets (yuan)** | 28,123,857,725.46 | 28,081,435,717.57 | 0.15% | | **Net Assets Attributable to Parent (yuan)** | 10,188,491,457.03 | 9,326,855,706.79 | 9.24% | [Key Quarterly Financial Indicators](index=10&type=section&id=Key%20Quarterly%20Financial%20Indicators) The company's 2020 quarterly financial data shows Q2 net profit attributable to parent peaking at 423.05 million yuan, while operating revenue was highest in Q1 at 9.34 billion yuan before declining sequentially, and net operating cash flow was strongest in Q4 at 1.53 billion yuan, reversing prior quarters' outflows or small inflows Indicators (yuan) | Indicator (yuan) | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 9,337,175,814.07 | 7,112,384,465.34 | 7,279,886,196.50 | 5,352,302,938.49 | | **Net Profit Attributable to Parent** | 267,546,538.38 | 423,053,231.51 | 338,859,537.52 | 180,869,155.89 | | **Net Operating Cash Flow** | -829,243,437.44 | 154,284,566.67 | 26,741,988.85 | 1,533,517,378.01 | [Non-recurring Gains and Losses and Amounts](index=10&type=section&id=Non-recurring%20Gains%20and%20Losses%20and%20Amounts) In 2020, the company's non-recurring gains and losses totaled 168.16 million yuan, a decrease from 211.36 million yuan in 2019, primarily comprising 106.64 million yuan from fair value changes and investment income related to financial assets/liabilities, and 88.26 million yuan in government subsidies Item (yuan) | Item (yuan) | 2020 Amount | 2019 Amount | | :--- | :--- | :--- | | **Disposal Gains/Losses on Non-current Assets** | 619,178.88 | 18,128,459.97 | | **Government Subsidies** | 88,263,482.44 | 164,404,981.43 | | **Gains/Losses from Financial Assets/Liabilities at Fair Value** | 106,643,749.60 | 43,080,645.29 | | **Total** | 168,164,170.82 | 211,361,758.00 | [Company Business Overview](index=12&type=section&id=Company%20Business%20Overview) This section outlines the company's core business transformation, significant asset changes, and key competitive advantages [Main Business](index=12&type=section&id=Main%20Business) The company has successfully transformed from an LPG trader into the world's largest propane dehydrogenation (PDH) manufacturer, with core business segments now including PDH to propylene, polypropylene production, and comprehensive hydrogen utilization, adopting a flat management model and recognizing the long-term advantages of low-carbon PDH technology under "carbon neutrality" goals - Company has transformed into the world's largest propane dehydrogenation manufacturer, with multiple PDH and PP (polypropylene) facilities in Zhangjiagang and Ningbo, and new capacity planned in Maoming and Ningbo[21](index=21&type=chunk) - After divesting trading business, the company focuses on three core businesses: - **PDH to Propylene**: Producing propylene from propane[21](index=21&type=chunk) - **Polypropylene**: Polymerizing propylene into new polypropylene materials[21](index=21&type=chunk) - **Comprehensive Hydrogen Utilization**: Focusing on hydrogen as a clean energy application[21](index=21&type=chunk) [Significant Changes in Major Assets](index=13&type=section&id=Significant%20Changes%20in%20Major%20Assets) During the reporting period, the company's major assets underwent significant changes, with construction in progress increasing by 1.8 billion yuan due to ongoing investments in Ningbo Phase II & III and Maoming projects, while trading financial assets and notes receivable financing decreased by 534 million yuan and 614 million yuan respectively, reflecting adjustments in fund utilization and sales settlement methods Major Assets | Major Assets | Significant Change Explanation | | :--- | :--- | | **Construction in Progress** | Increased by 1.8 billion yuan from year-end to year-beginning, mainly due to increased investment in Ningbo Phase II & III and Maoming projects | | **Trading Financial Assets** | Decreased by 534 million yuan from year-end to year-beginning, mainly due to redemption of some wealth management products | | **Notes Receivable Financing** | Decreased by 614 million yuan from year-end to year-beginning, mainly due to reduced receipt of letters of credit for goods sold | - The company's main overseas asset is its wholly-owned subsidiary, "Donghua Energy (Singapore) International Trading Co., Ltd.," engaged in international LPG trading. As of the end of 2020, its total assets reached **5.99 billion yuan**, accounting for **58.76%** of the company's net assets, and it achieved a net profit of **277 million yuan** for the year[23](index=23&type=chunk) [Analysis of Core Competencies](index=13&type=section&id=Analysis%20of%20Core%20Competencies) The company's core competencies are rooted in its efficient flat management culture, a unique systemic advantage across the LPG value chain, strategic geographical positioning in the Yangtze River Delta and Pearl River Delta, and the significant cost and environmental benefits of its advanced PDH technology - Company's core competencies include: - **Management Culture Advantage**: Flat management, efficient decision-making[24](index=24&type=chunk) - **Systemic Advantage**: Formed a complete industrial chain in LPG trading, shipping, storage, and PDH deep processing, utilizing futures instruments to control risks[24](index=24&type=chunk) - **Geographical Advantage**: Production bases strategically located in the Yangtze River Delta and Pearl River Delta, covering approximately **70%** of China's PP end-consumption market and facing ASEAN[25](index=25&type=chunk) - **Technology and Cost Advantage**: PDH process is short, capital-efficient, low energy consumption, clean, and environmentally friendly, aligning with energy saving, emission reduction, and carbon neutrality trends[25](index=25&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the company's operational performance, including business overview, detailed analysis of main and non-main businesses, and changes in asset and investment status [Operating Overview](index=15&type=section&id=Operating%20Overview) In 2020, despite the pandemic and complex external environment, the company focused on its core business and steadily advanced strategic transformation, achieving robust production and sales in chemical plants, significant progress in hydrogen energy utilization, and orderly construction of new projects, while the divestiture of trading assets improved financial structure and increased the chemical segment's revenue and gross profit contribution - Chemical plant operations were stable, with robust production and sales. In 2020, the two production bases produced a total of **1.17 million tons** of propylene and **915,900 tons** of polypropylene, including a large quantity of medical non-woven fabric special materials for epidemic prevention[27](index=27&type=chunk) - Hydrogen energy comprehensive utilization yielded significant benefits, achieving **139 million yuan** in sales revenue in 2020, a **36.47%** year-on-year increase. The company actively participates in the construction of hydrogen energy industrial chains in the Yangtze River Delta and Pearl River Delta, and plans to build ammonia synthesis facilities to explore more applications[28](index=28&type=chunk) - New project construction progressed smoothly: Ningbo Phase II PDH project commenced operation in February 2021; Ningbo Phase III PP project entered trial production in April 2021; Maoming Phase I project has started construction, key equipment ordered, and port shoreline approved[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - Transformation through trading asset divestiture showed initial results. During the reporting period, total revenue decreased by **37.04%**, but the chemical segment's sales revenue proportion increased to **27.95%**, and the chemical product sales gross profit contribution significantly rose from **60.04%** in 2018 to **90.83%**[34](index=34&type=chunk) [Main Business Analysis](index=19&type=section&id=Main%20Business%20Analysis) In 2020, the company's main business structure significantly changed; LPG revenue decreased by 42.61% due to trading business divestiture, leading to a 37.04% total revenue decline, yet the chemical segment performed strongly with polypropylene and propylene gross margins increasing by 11.24 and 6.15 percentage points respectively, while warehousing revenue doubled, and R&D expenses surged by 2300.80% reflecting increased innovation investment, with cash flows from operating activities decreasing by approximately 35% due to trading business contraction Operating Revenue Composition (yuan) | Operating Revenue Composition (yuan) | 2020 | % of Total Revenue | 2019 | % of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Polypropylene** | 6,587,450,036.69 | 22.65% | 7,945,147,312.44 | 17.20% | -17.09% | | **Propylene** | 1,391,516,782.80 | 4.79% | 1,252,542,067.98 | 2.71% | 11.10% | | **Liquefied Petroleum Gas** | 20,631,770,483.97 | 70.94% | 35,951,635,640.44 | 77.84% | -42.61% | | **Warehousing** | 155,291,198.47 | 0.53% | 75,115,580.51 | 0.16% | 106.74% | Main Product Gross Margin | Main Product Gross Margin | 2020 | 2019 | YoY Change | | :--- | :--- | :--- | :--- | | **Polypropylene** | 28.13% | 16.89% | +11.24% | | **Propylene** | 19.86% | 13.71% | +6.15% | | **Liquefied Petroleum Gas** | 1.03% | 2.08% | -1.05% | Expense Items (yuan) | Expense Item (yuan) | 2020 | 2019 | YoY Change | Significant Change Explanation | | :--- | :--- | :--- | :--- | :--- | | **Selling Expenses** | 104,548,998.34 | 194,913,588.82 | -46.36% | Transportation costs reclassified to cost of goods sold under new revenue standards | | **R&D Expenses** | 95,017,806.79 | 3,957,756.53 | 2,300.80% | Company increased R&D investment | Key Cash Flow Statement Items (yuan) | Key Cash Flow Statement Item (yuan) | 2020 | 2019 | YoY Change | | :--- | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 885,300,496.09 | 1,177,952,566.73 | -24.84% | | **Net Cash Flow from Investing Activities** | -1,054,019,999.91 | 343,613,156.22 | -406.75% | | **Net Cash Flow from Financing Activities** | -1,026,594,590.75 | -871,948,782.65 | 17.74% | | **Net Increase in Cash and Cash Equivalents** | -1,267,536,394.11 | 609,979,425.42 | -307.80% | [Non-Main Business Analysis](index=25&type=section&id=Non-Main%20Business%20Analysis) In 2020, the company's non-main business profit contribution primarily stemmed from 82.36 million yuan in investment income, 30.73 million yuan in fair value change gains, and 52.62 million yuan in non-operating income, while also recognizing 29.31 million yuan in asset impairment, mainly for chemical product storage tanks Item (yuan) | Item (yuan) | Amount | % of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | **Investment Income** | 82,364,320.55 | 5.30% | Mainly from wealth management products and futures contracts | | **Fair Value Change Gains/Losses** | 30,725,903.48 | 1.98% | Mainly from futures contracts and unexpired wealth management products | | **Asset Impairment** | -29,305,752.87 | -1.89% | Mainly impairment provision for chemical product storage tanks | | **Non-operating Income** | 52,623,656.23 | 3.39% | Mainly government awards received during the period | | **Other Income** | 45,351,650.08 | 2.92% | Mainly government subsidies and tax refunds related to daily operations | [Analysis of Assets and Liabilities](index=25&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) As of year-end 2020, total assets were 28.12 billion yuan, largely unchanged from the beginning of the year, but asset structure shifted significantly, with construction in progress increasing by 1.8 billion yuan to 14.26% of total assets, and long-term borrowings rising by 2.58 billion yuan to 15.34% to meet project funding needs, while 11.91 billion yuan of assets were restricted, primarily for loan collateral and deposits Key Asset and Liability Items (yuan) | Key Asset and Liability Item (yuan) | Dec 31, 2020 | % of Total Assets | Jan 1, 2020 | % of Total Assets | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Construction in Progress** | 4,009,947,440.65 | 14.26% | 2,210,155,356.53 | 7.87% | +6.39% | | **Long-term Borrowings** | 4,315,031,763.15 | 15.34% | 1,735,016,779.29 | 6.18% | +9.16% | - As of the end of the reporting period, the company had a total of **11.91 billion yuan** in restricted assets, primarily including: - **Monetary Funds**: **2.01 billion yuan** (mainly various deposits)[62](index=62&type=chunk) - **Fixed Assets**: **5.83 billion yuan** (loan collateral)[62](index=62&type=chunk) - **Construction in Progress**: **3.33 billion yuan** (loan collateral)[62](index=62&type=chunk) - **Intangible Assets**: **597 million yuan** (loan collateral)[62](index=62&type=chunk) [Analysis of Investment Status](index=27&type=section&id=Analysis%20of%20Investment%20Status) In 2020, the company's total investment was 1.93 billion yuan, a 16.58% year-on-year decrease, primarily focused on significant non-equity projects, particularly the Ningbo and Maoming alkane resource comprehensive utilization projects, with 1.73 billion yuan invested in Ningbo Phase II & III and Maoming Phase I, alongside capital injections into subsidiaries and the use of raised funds for committed projects Significant Non-equity Investment Projects | Significant Non-equity Investment Project | Investment Method | Current Period Investment (yuan) | Cumulative Investment as of Period End (yuan) | Project Progress | | :--- | :--- | :--- | :--- | :--- | | **Ningbo Alkane Resource Comprehensive Utilization (Phase II)** | Self-built | 600,899,569.05 | 1,759,329,826.88 | 90.00% | | **Ningbo Alkane Resource Comprehensive Utilization (Phase III)** | Self-built | 890,104,946.33 | 1,573,407,246.47 | 80.00% | | **Maoming Alkane Resource Comprehensive Utilization (Phase I)** | Self-built | 232,584,962.38 | 232,585,463.38 | - | - The company's 2015 non-public offering raised a total of **2.88 billion yuan**, with **1.94 billion yuan** cumulatively used as of the end of the reporting period, leaving **945 million yuan** unused, primarily held in special fundraising accounts[70](index=70&type=chunk) [Significant Matters](index=36&type=section&id=Significant%20Matters) This section details the company's profit distribution plan, significant related-party transactions, and major contracts, particularly focusing on guarantees provided to subsidiaries [Profit Distribution and Capital Reserve Capitalization](index=36&type=section&id=Profit%20Distribution%20and%20Capital%20Reserve%20Capitalization) The company's 2020 profit distribution plan proposes a cash dividend of 2.31 yuan (tax inclusive) per 10 shares, totaling an estimated 364.09 million yuan, representing 30.08% of net profit attributable to parent, which aligns with the future three-year (2021-2023) shareholder return plan's commitment to distribute no less than 30% of distributable profit annually, with the company consistently providing cash dividends and share repurchases over the past three years Dividend Situation (yuan) | Dividend Year | Cash Dividend Amount (yuan) | % of Net Profit Attributable to Parent | Share Repurchase Amount (yuan) | Total Cash Dividend (incl. Repurchase) | % of Net Profit Attributable to Parent | | :--- | :--- | :--- | :--- | :--- | :--- | | **2020** | 364,085,514.18 | 30.08% | 0.00 | 364,085,514.18 | 30.08% | | **2019** | 332,562,958.84 | 30.12% | 197,069,022.91 | 529,631,981.75 | 47.97% | | **2018** | 59,103,428.78 | 5.48% | 402,933,291.91 | 462,036,720.69 | 42.84% | - The company formulated the "Shareholder Return Plan for the Next Three Years (2021-2023)," committing to distribute no less than **30%** of the annual distributable profit in cash, provided the company is profitable and has positive accumulated undistributed profits[87](index=87&type=chunk) [Significant Related-Party Transactions](index=42&type=section&id=Significant%20Related-Party%20Transactions) During the reporting period, the company engaged in multiple daily operational transactions with related parties, primarily selling LPG to Matheson Energy and its subsidiaries for over 3.8 billion yuan based on cost-plus pricing, providing port and storage leasing services to Matheson Energy for approximately 123 million yuan, and transferring equity in subsidiary Qinzhou Donghua to Matheson Energy (Maoming) Co., Ltd. for 28.90 million yuan - The company conducted large-scale related-party transactions with Matheson Energy and its subsidiaries, controlled by the same ultimate beneficial owner, primarily involving the sale of liquefied petroleum gas and provision of storage services[108](index=108&type=chunk) Related Party Transactions (yuan) | Related Party | Related Transaction Type | Transaction Content | Transaction Amount (yuan) | | :--- | :--- | :--- | :--- | | **Matheson Energy (Nanjing)** | Sales | Liquefied Petroleum Gas | 2,369,704,800 | | **MATHESON ENERGY PTE LTD** | Sales | Liquefied Petroleum Gas | 1,152,915,100 | | **Matheson Energy (Maoming)** | Sales | Liquefied Petroleum Gas | 289,472,800 | | **Matheson Energy (various subsidiaries)** | Services | Storage Services | 123,286,600 | - The company transferred equity in subsidiary Qinzhou Donghua to related party Matheson Energy (Maoming) Co., Ltd. for **28.90 million yuan**, resulting in a transaction gain/loss of approximately **307,100 yuan**[110](index=110&type=chunk) [Major Contracts and Their Performance](index=45&type=section&id=Major%20Contracts%20and%20Their%20Performance) During the reporting period, the company had no significant entrustment, contracting, or leasing matters; major guarantees were primarily provided to subsidiaries to support their operations and project construction, with approved guarantee limits totaling 18.04 billion yuan and actual outstanding guarantees of 10.92 billion yuan as of year-end, representing 107.19% of the company's net assets, with no instances of irregular external guarantees Guarantee Situation (yuan) | Guarantee Situation (yuan) | Amount | | :--- | :--- | | **Total Approved Guarantee Limit for Subsidiaries within Reporting Period** | 14,885,000,000 | | **Total Actual Guarantees for Subsidiaries within Reporting Period** | 7,770,930,000 | | **Total Approved Guarantee Limit for Subsidiaries at End of Reporting Period** | 18,035,000,000 | | **Total Actual Outstanding Guarantees for Subsidiaries at End of Reporting Period** | 10,920,930,000 | - The company's total actual guarantees represent **107.19%** of its net assets, with the amount exceeding **50%** of net assets being **5.83 billion yuan**[120](index=120&type=chunk) [Share Changes and Shareholder Information](index=54&type=section&id=Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital and provides an overview of its shareholder structure, including major shareholders and ultimate control [Share Changes](index=54&type=section&id=Share%20Changes) During the reporting period, the company's total share capital changed due to the repurchase and cancellation of restricted shares from departed incentive recipients, reducing the total shares from 1,649,782,824 to 1,649,022,824, with 760,000 shares cancelled, leading to a decrease in restricted shares and a corresponding increase in unrestricted shares - Due to the repurchase and cancellation of restricted shares granted to 15 departed incentive recipients that had not yet been lifted, the company's total share capital decreased by **760,000 shares**[135](index=135&type=chunk)[141](index=141&type=chunk) [Shareholders and Ultimate Control](index=58&type=section&id=Shareholders%20and%20Ultimate%20Control) As of the end of the reporting period, the company had 33,356 common shareholders, with the top two being Donghua Petroleum (Changjiang) Co., Ltd. and Unocal Changjiang Co., Ltd., both controlled by the ultimate beneficial owners Mr. Zhou Yifeng and Ms. Wang Mingxiang, holding over 27% combined, while Mr. Zhou Yifeng directly held 9.25% as the third largest shareholder, and there were no changes in the controlling shareholder or ultimate beneficial owner during the period Major Shareholder Information | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | **Donghua Petroleum (Changjiang) Co., Ltd.** | Overseas Legal Person | 19.73% | 325,360,000 | | **Zhou Yifeng** | Domestic Natural Person | 9.25% | 152,610,440 | | **Unocal Changjiang Co., Ltd.** | Overseas Legal Person | 7.96% | 131,296,700 | | **Gongqingcheng Shengbang Investment Management Co., Ltd.** | Other | 5.91% | 97,472,712 | - The company's ultimate beneficial owners are Mr. Zhou Yifeng and Ms. Wang Mingxiang. They control the company through direct shareholding and by controlling Donghua Petroleum (Changjiang) Co., Ltd. and Unocal Changjiang Co., Ltd[144](index=144&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=65&type=section&id=Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) This section provides details on the shareholding changes of directors, supervisors, and senior management, as well as an overview of the company's employee structure [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=65&type=section&id=Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, there were no increases or decreases in the shareholdings of the company's current directors, supervisors, and senior management, with Chairman Zhou Yifeng's year-end shareholding remaining at 152,610,440 shares - During the reporting period, the shareholdings of the company's current directors, supervisors, and senior management remained stable, with no active increases or decreases[153](index=153&type=chunk)[154](index=154&type=chunk) [Company Employee Information](index=70&type=section&id=Company%20Employee%20Information) As of the end of the reporting period, the company had 1,903 employees, with production personnel constituting the largest group at 1,148 (60.3%), and employees with college degrees or higher totaling 1,178 (61.9%), providing strong talent support for the company's development Professional Composition (number of people) | Professional Composition | Number (people) | | :--- | :--- | | **Production Personnel** | 1,148 | | **Sales Personnel** | 41 | | **Technical Personnel** | 250 | | **Financial Personnel** | 70 | | **Administrative Personnel** | 394 | | **Total** | **1,903** | [Corporate Governance](index=72&type=section&id=Corporate%20Governance) This section outlines the company's corporate governance structure and its internal control effectiveness [Basic Corporate Governance Status](index=72&type=section&id=Basic%20Corporate%20Governance%20Status) The company has established a sound corporate governance structure in strict accordance with relevant laws and regulations, including the General Meeting of Shareholders, Board of Directors, Board of Supervisors, and management, complemented by four specialized committees, with its governance practices aligning with regulatory requirements and no significant discrepancies, and the company's operations were standardized through 3 General Meetings, 11 Board Meetings, and 6 Supervisory Board Meetings during the reporting period - The company's corporate governance structure is sound, with standardized operations of the three boards, robust internal control systems, and independence from the controlling shareholder in personnel, assets, organization, business, and finance[166](index=166&type=chunk)[168](index=168&type=chunk) [Internal Control Evaluation Report](index=76&type=section&id=Internal%20Control%20Evaluation%20Report) Based on the Board of Directors' self-assessment report and the accounting firm's standard unqualified internal control attestation report, the company effectively maintained internal controls related to financial statements in all material aspects as of December 31, 2020, in accordance with the Basic Norms for Enterprise Internal Control, with no material or significant deficiencies found in financial or non-financial reporting during the period - The company's internal control evaluation report concludes effectiveness, with no material deficiencies found in financial and non-financial reporting[179](index=179&type=chunk) - The accounting firm issued a **standard unqualified attestation report** on the company's 2020 internal controls, consistent with the Board of Directors' self-assessment report[182](index=182&type=chunk) [Financial Report](index=80&type=section&id=Financial%20Report) This section presents the independent audit opinion on the financial statements and provides a summary of the company's key financial performance and position [Audit Report](index=80&type=section&id=Audit%20Report) Suya Jincheng Certified Public Accountants issued a standard unqualified audit opinion on the company's 2020 financial statements, affirming that they fairly present the company's financial position, operating results, and cash flows in all material respects, while identifying inventory existence and revenue recognition as two key audit matters - The audit opinion type is **standard unqualified opinion**[184](index=184&type=chunk) - Key audit matters are: - **Inventory Existence**: The authenticity of inventory significantly impacts financial statements due to the company's leased warehouses and third-party storage arrangements[187](index=187&type=chunk)[188](index=188&type=chunk) - **Revenue Recognition**: The company's diverse business models present an inherent risk of manipulating revenue recognition timing to achieve specific targets[190](index=190&type=chunk) [Financial Statements](index=83&type=section&id=Financial%20Statements) The financial statements present the company's financial position as of year-end 2020 and its full-year operating results, showing total assets of 28.12 billion yuan, total liabilities of 17.92 billion yuan, and total equity attributable to parent of 10.19 billion yuan, with full-year operating revenue of 29.08 billion yuan, net profit attributable to parent of 1.21 billion yuan, and net cash flow from operating activities of 885.30 million yuan Consolidated Balance Sheet Key Items (yuan) | Consolidated Balance Sheet Key Item (yuan) | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | 28,123,857,725.46 | 28,081,435,717.57 | | **Total Liabilities** | 17,916,226,914.23 | 18,741,061,586.55 | | **Total Equity Attributable to Parent Company Owners** | 10,188,491,457.03 | 9,326,855,706.79 | Consolidated Income Statement Key Items (yuan) | Consolidated Income Statement Key Item (yuan) | 2020 | 2019 | | :--- | :--- | :--- | | **Total Operating Revenue** | 29,081,749,414.40 | 46,187,623,600.18 | | **Operating Profit** | 1,505,828,017.55 | 1,377,172,163.79 | | **Total Profit** | 1,554,271,492.91 | 1,440,139,804.75 | | **Net Profit** | 1,212,471,779.15 | 1,106,939,357.98 | | **Net Profit Attributable to Parent Company Shareholders** | 1,210,328,463.30 | 1,104,002,053.20 | Consolidated Cash Flow Statement Key Items (yuan) | Consolidated Cash Flow Statement Key Item (yuan) | 2020 | 2019 | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 885,300,496.09 | 1,177,952,566.73 | | **Net Cash Flow from Investing Activities** | -1,054,019,999.91 | 343,613,156.22 | | **Net Cash Flow from Financing Activities** | -1,026,594,590.75 | -871,948,782.65 | [Reference Documents](index=240&type=section&id=Reference%20Documents) This section lists the documents available for inspection, including signed financial statements, the original audit report, and all statutory disclosure documents from the reporting period, kept at the company's Board of Directors office - This chapter lists the reference documents available for inspection, including financial statements signed by responsible persons, the original audit report, and all statutory disclosure documents from the reporting period, kept at the company's Board of Directors office[596](index=596&type=chunk)

Financial Performance - Net profit attributable to shareholders was ¥338,859,537.52, a decrease of 10.21% year-on-year[3]. - Operating revenue for the period was ¥7,279,886,196.50, down 35.81% compared to the same period last year[3]. - The basic earnings per share were ¥0.2150, reflecting a decline of 9.97% year-on-year[3]. - The weighted average return on equity was 3.40%, down 0.76% from the previous year[3]. - The company reported a net profit excluding non-recurring gains and losses of ¥310,152,201.46, an increase of 20.24% year-on-year[3]. - The company's revenue for the reporting period was 23.729 billion yuan, a decrease of 36.14% compared to the same period last year, primarily due to the divestment of the LPG domestic distribution business[16]. - The net profit attributable to the parent company was 1.029 billion yuan, an increase of 1.88% year-on-year, demonstrating resilience despite the pandemic's impact[16]. - Total operating revenue for Q3 2020 was CNY 7,279,886,196.50, a decrease of approximately 35.5% compared to CNY 11,340,387,917.45 in the same period last year[36]. - Net profit for Q3 2020 was CNY 339,713,788, compared to CNY 378,235,864 in Q3 2019, reflecting a decrease of about 10.2%[38]. - The total profit for Q3 2020 was CNY 412,093,531.33, down from CNY 507,737,771.10 in the previous year, a decline of approximately 18.8%[38]. - The company reported a total comprehensive income of CNY 986,542,833.80, down from CNY 1,046,303,091.06 in the previous period[46]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥28,918,710,345, an increase of 2.98% compared to the end of the previous year[3]. - The total liabilities amounted to CNY 18,925,303,988.46, slightly up from CNY 18,741,061,586.55 year-over-year[33]. - The total equity attributable to shareholders of the parent company was CNY 9,977,168,650.41, up from CNY 9,326,855,706.79, marking an increase of about 6.9%[33]. - The company reported a total of 9,563,721,051.08 CNY in short-term loans, remaining unchanged from the previous period[58]. - The total liabilities reached 16,187,383,791.56 CNY, with current liabilities comprising a significant portion of this total[58]. - The company has a total of 1,735,016,779.29 CNY in long-term loans, indicating a stable long-term financing structure[58]. - The total assets amounted to 28,081,435,717.57 CNY, with current assets totaling 16,833,801,557.36 CNY[57]. - The company has maintained a strong liquidity position with a cash balance increase of 43,556,448.83 CNY during the quarter[55]. Cash Flow - The net cash flow from operating activities was ¥26,741,988.85, a significant decrease of 97.64%[3]. - The company reported a decrease in operating cash flow of 2.141 billion yuan, a decline of 143.42%, mainly due to increased accounts receivable[15]. - The net cash flow from operating activities for the third quarter was -648,216,881.92 CNY, a decrease from 1,492,848,941.04 CNY in the previous year[50]. - Cash received from the sale of goods and services was 24,916,414,005.01 CNY, down from 38,881,513,081.57 CNY year-over-year, representing a decline of approximately 36%[50]. - The total cash inflow from operating activities was 25,370,630,450.91 CNY, compared to 39,029,873,523.90 CNY in the previous year, indicating a decrease of about 35%[51]. - The net cash flow from investing activities was -1,327,129,740.76 CNY, worsening from -407,693,186.69 CNY in the same period last year[52]. - The net cash flow from financing activities was 632,492,741.16 CNY, a significant improvement from -2,646,568,749.41 CNY in the previous year[52]. Shareholder Information - The total number of shareholders at the end of the reporting period was 42,626[6]. - The largest shareholder, Donghua Petroleum (Yangtze) Co., Ltd., held 19.73% of the shares[6]. - The company did not engage in any repurchase transactions during the reporting period[9]. Investment and Development - The company achieved hydrogen sales revenue of 54.1468 million yuan during the reporting period, with total sales revenue of 95.1436 million yuan for the first three quarters[16]. - The construction of the Maoming Phase I and Ningbo Phase II and III projects is progressing as planned, with significant milestones achieved[17]. - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[36]. - Research and development expenses increased to CNY 5,553,965.77 in Q3 2020, up from CNY 1,922,841.72 in Q3 2019, indicating a significant investment in innovation[37]. - Research and development expenses increased to CNY 7,822,206.57 from CNY 6,944,008.33, reflecting a growth of 12.6%[43]. Other Financial Metrics - The gross profit margin increased to 7.51%, up 2.05% year-on-year, indicating improved profitability post-LPG business divestment[16]. - The company’s derivative financial assets increased by 19.699 million yuan, a growth of 59.94%, attributed to gains from futures fair value changes[12]. - The company’s other comprehensive income decreased by 44.4691 million yuan, a decline of 75.83%, primarily due to foreign currency translation adjustments[14]. - The company has no securities or derivative investments during the reporting period[21][22]. - The company has not undergone an audit for the third quarter report[64]. - The implementation of new revenue and leasing standards began on January 1, 2020, affecting financial reporting[63].