ZCE(600121)2021-04-29 16:00Financial Performance - In 2020, Zhengzhou Coal Power achieved a net profit of -863,184,576.59 RMB, with a net profit attributable to shareholders of -944,084,997.36 RMB, resulting in a basic earnings per share of -0.7748 RMB[4]. - The company's operating revenue for 2020 was 2,793,337,246.31 RMB, representing a decrease of 22.32% compared to the previous year[22]. - The net profit attributable to shareholders for 2020 was a loss of CNY 146,626,504, which improved by CNY 3,084,934 from the previous loss of CNY 149,711,438[27]. - The basic earnings per share for 2020 was -0.7748 CNY, a decrease of 2.66% compared to -0.7547 CNY in 2019[24]. - The total profit for the year was a loss of CNY 783 million, with a debt-to-asset ratio of 82.24%[56]. - The company's adjusted revenue for 2020 was CNY 591,047,081, an increase of CNY 21,799,361 compared to the previous figure of CNY 569,247,719[27]. - The total revenue of large-scale coal enterprises in 2020 was 2,000.19 billion RMB, a year-on-year decrease of 8.4%, while the total profit was 222.27 billion RMB, down 21.1% year-on-year[38]. - The company achieved a coal production of 7.11 million tons and a revenue of CNY 2.793 billion, reflecting a decrease of 22.32% compared to the previous year[56]. - The coal segment generated revenue of CNY 2.375 billion with a gross margin of 14.48%, down 19.63 percentage points year-over-year[60]. - The electricity segment reported a significant decline in revenue by 75.58% to CNY 18.05 million, with a gross margin of -51.52%[60]. Assets and Liabilities - The total assets of Zhengzhou Coal Power at the end of 2020 were 14,452,403,675.92 RMB, an increase of 6.85% from the previous year[23]. - The net assets attributable to shareholders decreased by 34.59% to 1,810,072,322.53 RMB compared to the previous year[23]. - The company's total liabilities increased, leading to a significant rise in financing costs, which were CNY 380.76 million, up 1,442.46% from the previous year[58]. - The company's cash and cash equivalents at the end of the period amounted to 3,400,223,813.49 CNY, with certain funds restricted due to environmental and legal obligations[77]. - The company reported a significant increase in other receivables by 301.48% to 531,262,643.83 CNY, attributed to debt transfer arrangements[74]. Cash Flow - The net cash flow from operating activities was -114,256,178.03 RMB, showing an improvement of 12.72% compared to the previous year[22]. - The cash flow from operating activities for 2020 was a negative CNY 556,947,986, showing a slight improvement of CNY 425,680 compared to the previous figure[27]. - The net cash flow from investing activities was primarily affected by payments for equity acquisitions, while financing activities saw a net outflow due to the repayment of due financing[71]. Market and Industry Trends - Zhengzhou Coal Power is facing significant risks related to coal price volatility influenced by macroeconomic factors and market supply and demand changes[8]. - The national coal consumption increased by 0.6% year-on-year, with the power industry, steel industry, building materials industry, and chemical industry consuming coal up by 0.8%, 3.3%, 0.2%, and 1.3% respectively[35]. - The national coal production reached 3.9 billion tons in 2020, a year-on-year increase of 1.4%, while the coal import volume was 304 million tons, up 1.5% year-on-year, marking the highest level since 2014[36]. - The coal industry is expected to see an annual consumption growth rate of around 1% during the 14th Five-Year Plan period, reflecting a decline in coal's share of primary energy consumption[92]. - The company’s coal production and sales are expected to remain stable, with coal maintaining a 50% share in China's energy consumption structure[92]. Operational Developments - The company is continuing its mine technical reform projects in 2021, which may impact future financial performance[4]. - The company operates primarily in coal mining and sales, with a focus on direct sales and a unified management model for sales[33]. - The company aims to maintain profitability through the production and sale of raw coal, emphasizing a long-term development strategy[34]. - The company has developed proprietary technologies in mining safety and efficiency, leading in the domestic market for complex mining techniques[39]. - The company has made significant investments in safety equipment and monitoring systems to improve emergency response capabilities and operational safety[44]. - The company has established five pairs of high-efficiency coal mines, with Xinzheng Coal Mine classified as a special high-efficiency coal mine, and others like Baiping Coal Industry and Chaohua Coal Mine classified as first-level high-efficiency coal mines[49]. - The company plans to increase the main shaft lifting capacity from 1.3 million tons to 1.8 million tons per year at Gaoceng Coal Mine, following the completion of the industrial upgrade project[47]. Environmental and Safety Management - The company is focusing on safety management and environmental protection, aiming for zero fatalities in coal production[97]. - The company has implemented a comprehensive safety management system, enhancing risk prevention and control measures across its operations[42]. - The company has achieved a 100% safe disposal rate for solid and hazardous waste during the reporting period[146]. - The wastewater treatment station has a total processing capacity of 2,500 m³/h for mine water, ensuring compliance with discharge standards[146]. - The company has converted coal-fired boilers to gas boilers, resulting in compliant emissions for air pollutants[147]. - The company has implemented a comprehensive environmental management responsibility system and increased investment in environmental governance[146]. Governance and Management - The company has established a governance structure that complies with relevant laws and regulations, ensuring effective operation and information disclosure[186]. - The management team includes experienced professionals from various sectors, enhancing strategic decision-making capabilities[172]. - The company has not disclosed any new product developments or technological advancements in the current report[175]. - The independent directors did not raise any objections to the company's matters during the reporting period[193]. - The company has established a comprehensive evaluation mechanism for senior management based on production, safety, and operational budget execution, but has not yet implemented a long-term incentive mechanism for senior management[195]. Shareholder and Investor Relations - The company has actively communicated with investors and regulatory bodies to maintain transparency and manage stock price fluctuations effectively[54]. - The number of ordinary shareholders increased from 135,650 to 151,516 during the reporting period[157]. - The largest shareholder, Zhengzhou Coal Industry (Group) Co., Ltd., holds 777,671,056 shares, representing 63.83% of total shares[159]. - The company does not have any strategic investors or general legal entities among its top ten shareholders[161]. - The company has not made any adjustments to its cash dividend policy during the reporting period[108]. Legal and Compliance Issues - The company faced a significant lawsuit involving its subsidiary Shanghai Zhengmei, with a first-instance judgment resulting in a liability provision of RMB 161.72 million[120]. - As of December 31, 2020, the total accrued penalties and delayed payment interest related to the lawsuit amounted to RMB 195.08 million[120]. - The audit report issued by Asia Pacific (Group) CPA firm highlighted significant uncertainties regarding the company's ability to continue as a going concern[6]. - The company has not reported any major accounting errors or changes in accounting estimates during the reporting period[117].